The government has set up an independent committee to look into the various issues vis-a- vis a single-vendor scenario for its Avro replacement programme as the Airbus-Tata consortium has emerged as the only bidder for the contract.
Defence Minister Manohar Parrikar informed Lok Sabha of the development today in a written reply.
A proposal to procure 56 transport aircraft to replace the ageing fleet of Avro aircraft through the 'Buy & Make' route was accorded Acceptance of Necessity (AoN) by the Defence Acquisition Council (DAC) on July 23, 2012.
Of these, 40 aircraft are to be manufactured in India by an Indian Production Agency (IPA) from the private sector. The IPA is to be chosen by the Original Equipment Manufacturer (OEM).
The RFP for the project was issued to eight foreign transport aircraft OEMs on May 8, 2013. However, only one vendor has submitted a techno-commercial bid in response to the RFP.
"An Independent Committee has been set up to look into various issues related to a single-vendor situation before a decision is taken to proceed in the case," Parrikar said.
The European aviation major had last week said it would be a "shame" if the project was delayed further while arguing that it cannot be faulted for being the only bidder.
