9.11.11

Bids opened

India on Friday opened the financial bids of Eurofighter Typhoon and French Rafale for the world’s biggest combat aircraft deal but promptly declared it would take at least two-three weeks to announce the eventual winner since lots of data had to be computed. For all its promises of “full transparency’’ in the medium multi-role combat aircraft (MMRCA) contract to acquire 126 fighters, likely to be the single biggest defence deal in the run-up to the 2014 polls with its overall value set to exceed $20 billion, the defence ministry refused to say anything concrete. Sources, however, said the “unit flyaway cost’’ or “direct acquisition cost’’ of each Eurofighter Typhoon was “higher’’ than the French Rafale fighter, both of which fall in the $80-$110 million bracket. But the unit flyaway cost will not be the only factor to determine the lowest bidder (L-1). The ministry of defence will also take into account “life-cycle costs” or the cost of operating the fighters over a 40-year period, with 6,000 hours of flying. Besides, there are costs of the transfer of technology since the first 18 jets will be bought from abroad in a flyaway condition, while the rest 108 will be manufactured in India under licence by Hindustan Aeronautics Ltd.

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