IAF Planes Tender Limited to Private Sector

The high-level panel is also set to approve the extension of the bidding process for this key Indian Air Force acquisition till August 28.

Published: 18th July 2014 07:41 AM  |   Last Updated: 18th July 2014 07:41 AM   |  A+A-

NEW DELHI:  The Ministry of Defence is all set to approve its earlier proposal to involve only Indian private sector firms in the manufacture of a replacement for 56 Avros transport planes.

At its first-ever meet under the new government on Saturday, the Defence Minister Arun Jaitley-headed Defence Acquisition Council will give its nod for the tendering process. The tendering process had got stuck in November following objections from then Heavy Industries Minister and NCP leader Praful Patel and some others over keeping out Public Sector Undertakings such as Hindustan Aeronautics Limited.

The high-level panel is also set to approve the extension of the bidding process for this key Indian Air Force acquisition till August 28.

In 2013, the UPA government gave approval to acquire 56 new transport planes worth `15,000 crore, of which 16 would be bought off the shelf from a foreign vendor, and the rest would be produced by an Indian company at its domestic facilities, following a technology transfer from the original equipment manufacturer.

The new cargo planes will replace the IAF’s near-obsolete fleet of Avro planes.

Among the foreign original equipment manufacturers that have got the tender papers are Ilyushin of Russia, Antonov of Ukraine, European consortium’s Airbus, Brazilian Embraer, Italian major Finmeccanica’s Alenia Aermacchi, American firms Boeing and Lockheed Martin and Swedish Saab. One of the unstated intention behind the government keeping this tender an “Indian private sector only” venture is to establish an domestic competitor to HAL, which has the only aviation manufacturing facility in the country.

Foreign original equipment manufacturers are to tie up with Indian companies.  The ministry, under A K Antony, had decided to review its ‘private sector only’ tender to build 56 military transport planes. It had also extended the last date for the submission of bids by foreign original equipment manufacturers till a call was taken on including public sector companies as production agencies.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp