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ARTICLE · 05 JUNE 2015

Tendering Process In India's Defence Procurement Contracts – Stay Awake Issues!

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One of the perennial pain points expressed by OEMs relates to the tendering process and the significant time lag between tender announcement and closure.

IndiaGovernment, Public Sector
Aditya Patni
Aditya Patni
Tushaar Talwar
Tushaar Talwar
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One of the perennial pain points expressed by OEMs relates to the tendering process and the significant time lag between tender announcement and closure. Despite the potential opportunities presented to OEMs in India, many large tenders in the recent past have still not been concluded. For example, the 2005 MMRCA tender is still in the negotiation stage and is three years behind schedule, at the very least. Other examples include the cancelled tender for 12 AW-101 military/civil use helicopters and the 2007 tender for 197 light utility helicopters, cumulatively worth over USD 3 billion.

This article focuses on crucial aspects of the tendering process relating to eligibility criteria, the technical and commercial offer, selection of lowest bidder, amendment of the contract and judicial review. Additionally, the article also addresses related concerns of the industry with respect to anti-corruption practices and use of agents in the context of India's defence

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