Insta
Agreement Reached On Pricing Of LCA Tejas, Rs 5500 Crore Contract For Akash SAM To Be Signed Within A Week
India’s Light Combat Aircraft Tejas (STRDEL/AFP/GettyImages)
The contract for delivery of 83 Tejas Mark-1A to the Indian Air Force (IAF) will be signed within the coming months as the issue of the aircraft price has been rectified, The Hindu reports.
“Pricing of the LCA, which was under discussion with the costing committee, has been finalised two days back in a meeting with the Secretary of Defence Production. Now, discussion for the support package is on. That also should be finalised in a month or two. So we should be in a position to sign the contract for the aircraft in the next 3-4 months,” said Apurva Chandra, Director General (DG) Acquisition in the Defence Ministry.
Contract negotiations for the 83 aircraft had been stuck since December 2017 after IAF contested the price quoted by Hindustan Aeronautics Limited (HAL) saying that it was higher than the Sukhoi Su-30MKI jets, the most capable jets in the Indian fleet currently.
The Tejas is supposed to be the ‘workhorse’ of the IAF and is to be inducted in large numbers but the price was proving to be pain point in the contract. A Sukhoi fighter produced in India by the HAL costs in the range of Rs 400 crore.
Another agreement cleared by the Cabinet earlier, with the IAF to induct Akash Surface to air missiles is to be signed within this week. The contract is worth Rs 5500 crore and will augment the air force’s missile and air defence capabilities.
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