Ficci against re-examination of RFPs to replace Avro fleet

NEW DELHI: Industry body Ficci has asked the Defence Ministry not to re-examine the Request for Proposals issued to global aviation majors for replacement of ageing transport aircraft fleet of the Indian Air Force.

In a letter to Defence Minister A K Antony, the industry chamber said that any such re-examination and subsequent roll-back of RFP will be a setback to open and transparent process and put private sector at a disadvantageous position.

The roll-back of RFP will bar Indian private sector to participate in the project with global players, it said.

The proposal envisaging buying 16 transport aircraft in flyaway condition to meet the immediate operational requirements of the IAF and setting up a production facility for the remaining fleet of 40 aircraft in the country.

"This golden opportunity to the private sector should not be frittered away since it will not only enhance India's strategic capability in the aerospace sector but have multiple spin-offs in ancillary industry development, job creation and export opportunities," Ficci President Naina Lal Kidwai said.

According to a Ficci official, the Defence Ministry is re-examining the RFP following a letter from Heavy Industries Minister Praful Patel to the Prime Minister questioning the IAF's decision to bar PSUs like HAL from participating in the mega tender.

Patel had said that many PSUs who meet all prescribed criterion for participating in the tender for supply of 56 transport aircraft to the Indian Air Force are being denied the opportunity to participate only because they are PSUs. The deal is estimated to be worth Rs 12,000 crore.

Ficci said that the re-examination of the RFP issued to global aviation majors like Airbus Military, Embraer, Lockheed Martin to replace the ageing AVRO fleet would send wrong signal regarding the opening up of defence production and doing away with the erstwhile nomination regime.

Ficci also said that it is universally known and understood that competition has always benefited the user while both private and public sector become more efficient.