The Indian Army will soon begin contract negotiations in the multi-billion dollar deal for the very short-range air defence system or VSHORAD, after several retrials and delays due to certain non-compliances by the vendors from the given specifications.
“The activities relating to the Contract Negotiation Committee for the deal started in mid-February. The bids will be opened shortly to select the lowest bidder so as to begin cost negotiations,” a defence official was quoted as saying by The Hindu Sunday.
Before the bids are opened, a benchmark price will be set based on various factors, and the bids will be checked with it.
The Request for Information (RFI) was issued in 2010. Three companies made it to the trials — MBDA of France, Rosoboronexport of Russia and SAAB of Sweden.
“Three companies are in the contest, and all have been declared compliant after the re-trials held last year,” the official added.
The VSHORAD tender is intended for the Army and Navy and estimated over $5 bn for 5175 missiles and 1276 single and multi-launchers with stipulated technology transfer requirement for Defence Public Sector Undertakings (DPSU).
The system should have a maximum range of 6 km and an altitude of 3 km, besides all-weather capability. It will replace the IGLA.