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Lockheed Martin to meet deadline for India's war jet deal

Industry sources say the Russian-built MiG-35 and MiG-29 aircraft and the Lockheed Martin F-16 and Boeing F-18 are front-runners.
by Staff Writers
New Delhi (AFP) Nov 2, 2007
US aerospace giant Lockheed Martin on Friday said it would meet a March 2008 deadline set by India to bid for the world's largest military aircraft deal estimated at 10 billion dollars.

It is among six global armament firms in the race to sell 126 fighter jets to the Indian air force.

"We have sought no extension and plan to meet the deadline," company vice president Orville Prins told reporters in New Delhi.

The remarks came amid reports that three of the bidders have sought an extension to the March 3 deadline to submit proposals to the Indian defence establishment.

"(But) we are not seeking any changes or dilutions, but some clarifications to make our bid robust," Prins said.

India floated the global tenders in August and said six contenders were on its short list.

US manufacturer Boeing and the Russian makers of MiGs are among those who have asked for more time, officials told AFP.

Industry sources say the Russian-built MiG-35 and MiG-29 aircraft and the Lockheed Martin F-16 and Boeing F-18 are front-runners.

Also in the race to replace India's ageing MiG-21s are Eurofighter's Typhoon, Saab's Gripen and Dassault's Rafale and Mirage.

Eighteen of the fighters would be bought off the shelf by 2012 while the remaining 108 planes would be manufactured under licence in India.

India would also hold the option of purchasing another 64 fighters from the top bidder, Indian officials said.

New Delhi called for bids as the operational fighter fleet of the Indian air force in 2007 plunged to a low of 576 aircraft, from nearly 750 in early 2000.

The contract will be the first time India's huge defence establishment has bought fighters after evaluating rival bids through a global tender.

Under the tender, the deal would be subject to so-called "offset obligations" -- meaning a large part of the cost will have to be spent in India.

The Indian military introduced this clause into all major defence deals in the mid-1990s as a way of protecting itself from non-delivery as well as boosting its own domestic armament industry.

With US offerings seen as having a strong chance, the deal could also mark a major shift away from India's traditional dependence on Russian military hardware.

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