Contract For $10 Billion Marks World Largest Military Contract

Lockheed Martin says it will meet a March 2008 deadline set by India to bid for that country’s and the world’s biggest military aircraft contract estimated at $10 billion, according to the Associated Press.

Lockheed will bid among six global armament firms to sell 126 fighter jets to the Indian air force.

"We have sought no extension and plan to meet the deadline," company vice president Orville Prins told reporters in New Delhi.

Other bidding firms have asked for an extension to meet the India’s aircraft demand. "(But) we are not seeking any changes or dilutions, but some clarifications to make our bid robust," Prins said.

As ANN reported, India put out the request in August and followed it up with a list of its favored proposal bidders.

Boeing and Russian based Mikoyan-Gurevich Design Bureau (MiG) are two that have asked for the deadline extension, according to Agence-France Presse.

Russian-built MiG-35 and MiG-29 aircraft and the Lockheed Martin F-16 and Boeing F/A-18 are thought to be favored in the mix of proposed aircraft types. Also bidding to replace India’s aging MiG-21s are Eurofighter's Typhoon, Saab's Gripen and Dassault's Rafale and Mirage.

Eighteen of the winning bid aircraft must be available to purchase by 2012 while the remaining 108 planes would be manufactured under license in India.

Another feature of the deal would give the country rights to purchase another 64 fighters from the top bidder, Indian officials said.

New Delhi asked for bids as the operational fighter fleet of the Indian air force in 2007 dipped to a low of 576 aircraft, from nearly 750 in early 2000.

Under the tender, the first in India’s history, the deal would be subject to so-called "offset obligations" -- meaning a large part of the cost will have to be spent in India.

This provision introduce in the mid-1990’s is a way of protecting India form non-delivery, in an effort to boost its own domestic defense industry.

Indications that India favors US built aircraft, could signal a shift away from India’s pervious dependence on Russian military defense weaponry.

FMI: http://mod.nic.in/