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By: Defence World
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.
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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.
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