Combat aircraft deal: Defence Ministry likely to review tender process

NEW DELHI: Against the backdrop of objections raised over it, the Defence Ministry is expected to review the process to determine the lowest bidder in the multi-billion dollar deal for procuring 126 combat aircraft after completing negotiations with French Dassault Aviation.

Senior leader Yashwant Sinha had questioned the Defence Ministry's move to have "life cycle cost" clause in tenders for military hardware.

The Defence Ministry is expected to review the process of determining the lowest bidder in the multi-billion dollar deal after the conclusion of commercial negotiations, sources said here.

India had last year selected Rafale aircraft of France after a five-year process after eliminating five other contenders in the race.

The French aircraft manufacturer is in talks with the Defence Ministry to finalise the deal and extensive negotiations are being held with Hindustan Aeronautics Limited also.

After objections were raised by Sinha on the life cycle cost procedure, the IAF had sought to clarify the doubts over it.

Former TDP MP Mysura Reddy had also raised questions over the deal after Rafale was found to be the lowest bidder.

The French aircraft outbid its European rival Eurofighter in the final phase of the tender race in terms of lower price.

Defence Minister A K Antony recently said that the deal would be signed only after it goes through five to six more procedures to ensure probity and integrity in the contract.

The deal will also have to go through the Central Vigilance Commission scrutiny before it is finalised.