Bangalore, March 25:
Defense aircraft maker Hindustan Aeronautics Ltd has invited bids to build a
new design and manufacturing complex in Bangalore for MMRCA fighter
planes.
The facility is estimated to cost Rs 360 crore and is to be completed two years from the award date.
The IAF is acquiring at least 126 MMRCAs (medium multi-role combat aircraft) to modernise its ageing and depleting fleet.
The MiG-21 fighters are to be phased out from 2014. The Navy is also expected to top up the order.
The
tender for the new production unit comes even as the Government's
Contract Negotiation Committee is negotiating the cost of procuring the
fourth-generation fighters with the finalist vendor, France's Dassault
Aviation.
HAL
plans to locate it at Challaghatta where it has large tracts of land.
The integrated 'green' factory complex will include hangars, runways and
residential units.
The area is close to the old international airport, which was closed to commercial flights in May 2008.
The
HAL defence airport continues to operate military, VVIP, charter and
select non-scheduled flights into and out of Bangalore.
The
Ministry of Defence said in February this year that a Contract
Negotiation Committee had started negotiations with the L1 MMRCA bidder,
France's Dassault.
This
was for its lower price over the European Eurofighter consortium for its
Typhoon. Dassault - if and when an agreeable price is reached in the
coming months and the contract is sealed - will directly supply 18
Rafale MMRCAs to the IAF.
HAL
will build the remaining 108 aircraft. It will be its first export of
Rafale, which has also been used in Afghanistan and Libya.
Keenly watched
The MMRCA acquisition is said to be this century's largest and most keenly watched defence purchase contest.
The order is estimated at a minimum of around Rs 50,000 crore ($10 billion)
Also
in the race were Boeing IDS (F/A-18 Super Hornet); Lockheed Martin
(F-16IN Super Viper); Sweden's Saab (JAS 39 Gripen) and Russia's RAC MiG
(MiG-35).
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