Wednesday, September 5, 2012

Exclusive! OEMs scuttle to prepare for first private-company only tender

Neelam Mathews
Sept 5, 2012

An RFP for a tender for manufacturing replacement of 56 Avros, is expected to be out within the next three months. The bidders will be given five months to respond to the tender, Aerospace Diary learns.

No public sector undertaking will be allowed to participate in this tender. The foreign OEM will select a partner in India and the TOT will be his responsibility.

On Oct 5 last year, Aerospace Diary had filed a report in which IAF Chief NAK Browne had dared the Indian industry to put its money where its mouth is by getting involved in the indigenization program to replace its ageing Avros.

The question now is- who will take the bait? Will the 26% FDI be a dampener? Will the limited number required be enough for the industry to set up its facility? Are tier two and three suppliers in the country ready to take on the challenge?

The first 16 aircraft will be bought in a fly away condition, while the rest are to be developed in India. There is no embargo to making additional aircraft, and the government has committed to not interfering in the business model.

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