BE PATIENT: India says it is still negotiating with France’s Dassault on the Medium Multi-Role Combat Aircraft (MMRCA) program. “The proposal will be considered further after the Contract Negotiations Committee concludes its deliberations and submits its report,” Defense Minister A.K. Antony said in parliament Aug. 8. Dassault is expected to sign the Indian air force’s biggest-ever contract, worth more than $15 billion, to supply 126 Rafale fighters. India intends to induct the first squadron of 18 MMRCAs into its air force by 2016.
NEW DELHI — India will penalize foreign military firms that fail to fulfill their defense offset requirements within the set time frame under revised guidelines. According to the amended defense offset policy, the “overall cap on penalty will be 20% of the total offset obligations during the period of the main procurement contract,” a defense official says. But there will be “no cap on penalty” if an international vendor falls short of meeting its obligations within two years of the main procurement contract, he adds.
NEW DELHI — The Indian navy has delayed by another six months a tender to buy 16 multi-role helicopters, even as it plans to issue another request for proposals to procure more than 75 similar aircraft, a senior defense ministry official says. The defense ministry official didn’t give any reasons for delaying the tender, which was initially released in September 2008. NH Industries (NHI) with its NH-90 and Sikorsky with its S-70 have bid for the program, which could expand by an additional 44 units and reach $1 billion.