IAF opens $10.4 billion tender bid for combat craft

New Delhi: Commercial bids for the IAF's $ 10.4-billion combat jet deal were opened on Friday but the defence ministry said it was still six to eight weeks away from deciding the final winner from the two finalists - European consortium's Eurofighter and French company Dassault Aviation's Rafale.
The two companies emerged confident from the meeting of the Contract Negotiation Committee, hinting that it would be a close call.
The final result of the four-year-long procurement exercise, dubbed as India's single biggest military award, would be declared after filling the price matrix based on complex calculations. For the first time, life cycle cost would be taken into account in an Indian defence contract. Issues concerning the transfer of technology and the industrial offset proposals of the bidders will have to be taken into account.
The contract negotiations committee opened the bid in the presence of representatives from the two companies. The offers were read out, said a defence ministry officer, claiming that the two companies were now aware of each other's bids but were asked to adhere to the confidentiality provisions.
05/11/11 Gautam Dutt/India Today

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Categories: Foreign Nov 2011, New Nov 2011