Monday, September 15, 2014

Global vendors give a miss to defence min’s $3.5-bn aircraft project; deadline extended

New Delhi: The Indian Air Force’s (IAF) plan to replace the ageing Russian transport aircraft, Avro, has hit another airpocket with no global vendor showing interest in bidding for the $3.5-bn project. This has forced the defence ministry to extend the deadline for seeking price bids to October, the fourth extension in the last 18 months.
This will be the first time India will see a private consortium come up in a military aviation. Until now, the military aviation business has been dominated by Hindustan Aeronautics (HAL). Senior officials told FE that “a request for proposal (RfP) was issued under ‘buy and make’ Indian to foreign vendors in May, 2012. The RfP makes it mandatory for them to select an Indian partner from the private sector.”
The IAF has to acquire 56 transport aircraft to replace its ageing Avro fleet. In a tender issued on May 9, 2012, the defence ministry had bypassed PSUs like HAL and said new aircraft will be produced by Indian private sector firms.
The tender was issued to eight foreign vendors, including Swedish Saab, Russian Ilyushin, European Airbus Military-Casa C-295, Italian Alenia C-27J Spartan and Brazilian Embraer, and they will have to find an Indian partner to produce 40 aircraft within India.
15/09/14 Huma Siddiqui/Financial Express
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