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Monday 23 March 2015

$ 2bn private plane project unlikely to take off

New Delhi:  The $2-billion pilot involving the private sector for manufacture of a new fleet of transport aircraft for the Indian Air Force is floundering and could be shelved by the Defence Ministry that is reviewing the requirement as well as the bidding process.


The government plan to involve only the private sector in the replacement programme to create an alternate aviation industry besides state-owned Hindustan Aeronautics Limited had not garnered much response last year when only one bidder emerged for the Avro replacement project an AirbusTata consortium offering the C295 medium transport airlifter.

The defence ministry has now set up a specialised committee to review the programme and to evaluate why other private players did not come up with bids for what was considered as the largest project given entirely to Indian players. Preliminary indicators do not look positive for the Airbus-Tata alliance with a strong view that the tender has to be rebid with a new set of conditions that would make it easier for other players to come in.
20/03/15 Times of India

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