Bang Galore
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Capping the price? At what price would you want to place the cap. How do you determine that?
Err...By how much we can afford. Same like you & me don't go around shortlisting a Ferrari because it is technically more capable.
The MMRCA tender I believe was very reasonable and unique at that time. Competitive trials was a good idea. Set minimum requirements (which were somewhat futuristic, and reasonably so). Separate the men from the boys and buy the cheapest one. I don't know why the requirements were so stringent that Hornet, Viper and Gripen flopped or if they had comparative trials (On another forum, some poster claimed that it was so, with Rafale emerging 1st and EF 2nd).
Anyway, it gave us the opportunity to have a close look at the performance of 6 different jets, 5 of which we didn't even need to buy. Plus, when the deal was originally envisioned i.e pre financial crisis period; money would have been the last thing in the minds of our planners. Even then ~85 mn per jet was considered expensive back then (for any jet bar the might F-22).
Unfortunately they did the opposite, pretty much set the maximum possible requirement. Even refused to allow the SH to change the engine on offer (after problems at Leh), not something you do if you want the best possible offer. There is no logic to directly compare single engined light aircraft with heavier twin engined ones without allowing cost to be a factor. If you shortlist on technical grounds alone, you can be sure the expensive ones will be on that list; little wonder that they are technically better.
If this was as easy as is believed, do you think the government would have dragged this out so long & caused so much delay? The Rafale is a great plane, this deal is anything but. Whether or not they dump this deal, it remains a very bad idea when seen on economic grounds alone.