Madhya Pradesh: Two International Companies In Race To Sell Aircraft To State

Madhya Pradesh: Two International Companies In Race To Sell Aircraft To State

Technical, financial bids of two jet manufacturers were opened in May end. The government will buy the mid size twin engine jet plane from the company quoting lowest price (L1)

Staff ReporterUpdated: Thursday, June 13, 2024, 12:45 AM IST
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BHOPAL (Madhya Pradesh): Two international aircraft manufacturers have shown interest to sell the airplane to the Madhya Pradesh government. Their technical and financial bids were opened recently. Now, the aviation department will place the matter before the Cabinet for the necessary approval. The government will buy the mid size twin engine jet plane from the company quoting lowest price (L1).

The two companies are Bombardier Inc, a Canadian business jet manufacturer and Embraer, a Company from Brazil. Bombardier manufactures the jet 'Challenger 3500'.

People aware of the development in aviation department said that technical and financial bids of the two companies were opened in the May end. The two companies have fulfilled the conditions mentioned in the Request for Proposal (RFP).

Commissioner, Aviation, Chandramauli Shukla told Free Press that two companies have technically qualified and their financial bids have been opened. Now the matter will be placed before competent authority for the necessary approval.

Notably, this is the second attempt by the state government to buy a mid size twin engine jet plane. First time, one of the leading aircraft manufacturers of The USA had participated in the bid but it expressed inability to deliver the plane at the stipulated time set by the government. Moreover, there was some issue related to the price as well. The government thus decided to abort the bid and decided to float a fresh one.

It is also learnt that Falcon Company (USA) had participated in the Expression of Interest floated some time back by the state government but it did not go for the tender process.

People in the aviation department said that the price of a Falcon plane is much higher than that of the jets of Embraer and Bombardier companies. This might have prompted the USA-based Company to take a step back.

It is learnt that the cost of the mid-size twin engine jet the government is keen on purchasing is likely to be around Rs 250 crores in addition to certain kinds of taxes (around 30 to 35 % of the cost).

RPF floated in March

It was in March the state government had floated Request For Proposal (RFP) to buy a new twin engine jet aero plane. The condition set in the RFP says that the selected bidder should be able to provide or make necessary arrangements to maintain the aero plane for a period of 12 months from the date of arrival of the plane in Bhopal. The bidder shall be able to supply the aero plane within a period of 20 months from the date of the initial 10 % payment etc.

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