Insta
Agreement Reached On Pricing Of LCA Tejas, Rs 5500 Crore Contract For Akash SAM To Be Signed Within A Week
Swarajya Staff
Sep 05, 2019, 05:24 PM | Updated 05:24 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
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.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.