Global tenders for IAF jets by July

The much-delayed deal for purchase of 126 multi-role combat jets for the Indian Air Force (IAF), valued at Rs 37,000 crore, is likely to be thrown open for the global bidders by July.

Defence ministry sources said that floating of requests for proposal (RFP) had been delayed because of the procedural issues that needed attention. Earlier, the ministry had set a March deadline for this deal.

The grey areas that the bureaucrats are busy sorting out before the RPF is issued, pertain to the procedural matters raised by the new defence procurement policy.

"The issues include calculation of lifecycle costs, the manner in which the offsets policy governing defence purchases will be implemented, and transfer of technology (TOT),'' sources said.

Under the offsets policy laid down in the Defence Procurement Procedure-2006, 30 per cent of all military deals worth more than Rs 300 crore has to be reinvested in India.

It is for the first time that analysts have to calculate the life-cycle costs of products, and also to negotiate for transfer of technology as per the new rules.

The IAF desperately needs new aircraft to beef up its depleting fleet of the Soviet-era MiG-21, MiG-23 and MiG-27 aircraft. While the MiG-21 has undergone a mid-life upgrade to increase its service life, the MiG-23 has already been retired, and the MiG-27 is being gradually phased out. As such, the IAF is operating only 33 squadrons as against the sanctioned strength of 45.9 squadrons.

Only recently, Parliament's standing committee on defence had expressed its deep concern on the delay in purchase of jets for the air force.

"The committee, therefore, desires that the ministry of defence should strive hard to expedite the completion of procedures and technicalities in order to facilitate the proposed acquisition of 126 aircraft," it said.