Panel clears offsets report on $10.4-bn jet plane deal

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Huma Siddiqui: New Delhi, Oct 08 2011, 04:46 IST

The Defence Acquisition Council (DAC) on Friday cleared the offsets proposals evaluation report related to the $10.4-billion 126 medium multi-role combat aircraft (MMRCA) deal. With this the spadework leading to the opening of the commercial bids for the deal has been completed. The bids will be opened in the next few days in the presence of the two shortlisted contenders.

As reported by FE earlier, at the DAC meeting, issues related to the offsets proposals of the two shortlisted contenders as well as other minor issues were discussed. The opening of the commercial bids for the “mother of all deals” was dependant on the decisions taken at Friday’s meet. Also among the issues to be discussed at the DAC were the effect of falling value of the rupee on the deal, and price optimisation.

Industry sources said, “Now, the defence ministry has to send letters to the two contenders informing them of the decisions taken and the dates for the opening of the bids. It is mandatory for the company executives to be present at the opening of the commercial bids.”

“Indian Air Force has the funds for the MMRCA programme. There will be a realignment in committed liabilities and MMRCA deliveries should begin around 2014,” said Air Chief NAK Browne, on the eve of the Air Force Day on Saturday.

On April 27, India shortlisted the two European companies for procuring 126 MMRCA for the IAF — EADS’ Eurofighter and Dassault’s Rafale. Once the bids are opened, the lower among the two

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