India, on 28 Aug 2007, invited bids for 126 multi role combat
aircrafts for its ageing and depleted Air Force. The deal is
expected to cost an awesome Rs 12,000 crore ($ 10 billions). 18
aircrafts would be bought off the shelf in a fly away condition and introduced into the service by 2012. The remaining 108 aircrafts would be manufactured under
technology transfer agreement in India. The option to purchase additional 64 fighters under same terms and conditions is incorporated in the bid. Life time guarantee of supply of spares and serviceability is included in the agreement. The bidders include aircraft manufacturers from USA, Russia, France, Europe, and Sweden The selection process would be fair and transparent. The chosen manufactures would be required to spend 50% as direct offsets on the aircraft or Indian defence manufacturing industry. The cost of aircraft would include the aircraft, including weapons and missiles, warranty for first two years, licence royalty for manufacture in India, cost of technology transfer and costs of initial training. This deal is likely to meet India’s needs next for 40 years or 6000 flying hours.