Is BAE cutting price to win India contract?

LONDON: Britain's BAE Systems is reported to be preparing a fresh bid which may include cutting down the prices for the world's biggest fighter jet order despite India's rejection of its Eurofighter Typhoon in favour of France's Dassault Rafale.

India chose the French fighter in January in a deal worth nearly 13 billion pounds, for 126 aircraft.

India's decision had disappointed many in Britain, including Prime Minister David Cameron.

In a report without mentioning the source of information, The Mail today said: "BAE believes that when India scrutinises the Rafale and assesses the French submission, it will realise the Eurofighter is a superior aircraft that will be cheaper overall".

"If the Indians are willing to look again at the Eurofighter and there are indications that is happening, a revised bid will be ready for them," it added.

"BAE has even come up with designs for a marine version of the Eurofighter in case the Indians want to fly it from aircraft carriers," the report said.

The report said that Ian King, BAE chief executive, had not ruled out reducing the price of the Typhoon.

"The Eurofighter, which is built in partnership with the German and Spanish arms of defence giant EADS and Italy's Finmeccanica, lost out because it was about 3.5 million pounds a plane more expensive than the Rafale", the report said.

"And the French, according to the Indians, offered better after-deals, including technology upgrades and the latest weaponry," it added.

There were earlier suggestions that Britain's aid to India was partly designed to help win the major contract, which has since been denied.