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Tough bargaining ahead for India’s MMRCA winner

Discussion in 'Indian Air Force' started by SpArK, Oct 22, 2011.

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  1. SpArK

    SpArK SorCeroR Staff Member ADMINISTRATOR

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    Tough bargaining ahead for India’s MMRCA winner


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    Sat, Oct 22, 2011 15:35 CET


    The two finalists in India’s Medium Multi Role Combat Aircraft (MMRCA) aircraft deal, Eurofighter and Dassault, will have to be prepared for tough bargaining at the price negotiation stage as a rise in the value of the Euro Vs the Indian currency has pushed up the Rupee value of their bid by an estimated 15% in the last one year.

    Following the acceptance of the offsets proposals of the two bidders a fortnight ago, the only remaining formality is the opening of the envelopes containing the commercial bids and announcing the lowest bidder which will walk away with the estimated $1.2 billion prize.

    The lowest bidder will then be called for further talks called price negotiations to be held by the price negotiations committee.

    It is at this stage that the final price will be decided and tough bargaining will ensue. India has in the past let go of defence contracts as talks have broken down at the final price negotiation stage with the winning bidder. Cases to point are Airbus Industrie and Eurocopter both of which had to back off after being selected as winners, as the Indian Finance Ministry found their final price too expensive.

    “Even after the final winner is announced, it is still touch and goâ€, said an industry source to Defenseworld.net. “There is no finality that the lowest bidder will get the deal if India’s Finance Ministry which holds the purse strings objects to any part of the financial commitment. The Euro value rise will be an important element to discuss as a 15%-18% rise in the last 18 months means that order price has increased by over a billion Eurosâ€.

    It may be recalled that in mid-2009, the MMRCA bidders have had to submit fresh bids as the two year validity of their commercial bids had expired then and a couple of the bidders had told defenseworld.net then “ the purpose of submitting fresh commercial bids is to take into account price escalation†adding that “the best value at current prices has been offered to Indiaâ€, which means that a price rise has been effected in the new bids.


    Tough bargaining ahead for India’s MMRCA winner : Defense news
     
  2. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    I hope we get the best price for the Euro Fighter :bounce-grn:
     
  3. uptotrix

    uptotrix Captain SENIOR MEMBER

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    French don't mind bargaining, with Euro Fighter you have to convince 4 countries.
     
  4. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    i am sure they will come up with something
     
  5. uptotrix

    uptotrix Captain SENIOR MEMBER

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    It's too late now. French has stopped exporting weapons to pakistan, Eurofighter club can't do that.
     
  6. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    Fingers Crossed :happy:
     
  7. Jungibaaz

    Jungibaaz Lt. Colonel ELITE MEMBER

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    nope... rather Pakistan switched suppliers, but take AK 2 for example, Thales is a tender for AK 2 goodies.
    Euro fighter club is hardly ever supplied us any weapons, especially not now.

    But rest assure, both would sell their own mothers to win MMRCA, you got them right were you want them!
     
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  8. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    Italy and Britain are still suppliers of weapons to pakistan even now.
    although further dealing have been barred by Britain,
    In Italy there is no such restriction.
     
  9. Himanshu Pandey

    Himanshu Pandey Don't get mad, get even. STAR MEMBER

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    I agree with this
     
  10. TereBinLaden

    TereBinLaden Captain STAR MEMBER

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    Last edited: Oct 23, 2011
  11. Jungibaaz

    Jungibaaz Lt. Colonel ELITE MEMBER

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    temporary shut down it seems, since AK 2 has Thales as a possible avionics supplier.
    One thing is for sure, if say Rafale is not chosen French arms market will not be closing down as it has been.

    I wonder what heavy arms these articles were talking about, the only thing that comes to mind was the JF-17 avionic deal(s). Although this breakdown happened around 2008.
    Refused later by France and all Western possible components were dumped by PAF, more Chinese and indigenous now.
     
  12. satya

    satya Lieutenant FULL MEMBER

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    Bidders can always do one thing,settle for little less now & once they have the contract they can demand more for other systems at will.
    Russia did this to us in gorkshov deal
     
  13. vikas jat

    vikas jat Captain SENIOR MEMBER

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    russians are altogether different case thatswhy india start looking in western world to [procure weapons
     
  14. satya

    satya Lieutenant FULL MEMBER

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    Please explain,i want to know!
     
  15. MAFIAN GOD

    MAFIAN GOD Captain SENIOR MEMBER

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    Thats what you call a bussiness!!!!
    You are a Technologically backward nation with lots and lots of $$$$$$$.
    So everybody wants a piece of that.:meeting:
     
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