JOIN USFollowing this announcement, the selected vendor will be engaged in commercial negotiations before the deal is finally signed. Commenting on the process of benchmarking and standardisation of the commercial bids, which were opened on November 4, Chief of Air Staff
Air Chief Marshal N A K Browne said: “...It must be out by mid-December. We are looking into calculations that are complex. They need to be checked and re-checked.”
Browne said that by the end of four weeks, the Ministry of Defence (MoD) and the Indian Air Force (IAF) will have a better sense of whom to select. He was speaking after the 51st conference of Indian Society of Aerospace Medicine (ISAM) at the Institute of Aerospace Medicine.
Deccan Herald had reported earlier this month that the MoD is busy with benchmarking and standardisation of costs, so that there are common parameters for the bidders. A Joint Director rank official from the Defence Accounts Department will head the deliberation of costs.
Given that India is, for the first time going to consider more than just the direct acquisition costs before selecting the lowest bidder, the MoD will also evaluate the life-cycle costs (keeping in mind a time span of 40 years of operation), cost of other aspects like the electronic warfare equipment, avionics et al. Considering that the Hindustan Aeronautics Limited will manufacture the selected aircraft in the future, transfer of technology costs will also be considered.