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'Unsolicited offer" of 20 pc discount on Eurofighter by EADS had 'factual inaccuracies': MoD to CAG

Press Trust of India  |  New Delhi 

The "unsolicited" proposal of 20 per cent discount by major EADS on the Typhoon jet, a competitor of manufacturer Dassault Aviation, had "factual inaccuracies", the was informed by the

The rebate on the was proposed by its manufacturer in comparison to the 2007 offer on the jets.

In July 2014, the European Aeronautic Defence and (EADS) had offered the discount and also proposed enhancing the transfer of

This was done when Dassault had reached a deadlock when the Cost Negotiating Committee realised that if Indian man hours are applied to the cost of production by quoted by it, the price of the would be substantially higher, according to the CAG report, which was tabled in Parliament on Wednesday.

EADS was one of the competitors along with Dassault's Rafale, Russia's MiG, Sweden's SAAB, the US' and Boeing, in the original Medium Multi Role Combat (MMRCA) tender for 126

It said EADS offered to enhance the transfer of through a comprehensive training and support programme to be combined with the creation of an Typhoon Industrial Park in

"The ministry did not accept this offer stating that it was an unsolicited offer. Further, with the procurement of only 36 aircraft through an IGA (intergovernmental agreement), audit also could not find any proposal with the ministry for filling of this wide gap in the operational preparedness of the IAF (Indian Air Force).

"The ministry in response stated that M/s EADS unsolicited offer of 20 per cent discount had factual inaccuracies," the report said.

The also stated that the 36 IGA procurement had been undertaken with the lowest bidder of the MMRCA case in consonance with the Defence Procurement Procedure (DPP)

However, the CAG observed that there are no provisions of concluding an IGA with a L-1 (lowest) bidder in the DPP.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 13 2019. 16:50 IST