NEW DELHI: India has floated its biggest ever global defense tender for purchase of 126 Multi-role Combat aircraft, in a deal which would run up to a staggering Rs 42,000 crores( approx 10 billion dollars).

An official announcement here said the Request For Proposals (RFP) for the fighters had been issued to six main bidders, ending eight-year suspense over the acquisition. The strength of IAF fighters during this year had plunged to an all time low of 32 squadrons (576 aircraft). Under the proposal, 18 fighters would be bought off the shelf and remaining 108 manufactured under technology transfer in India.

The RFP also stipulates an option of India purchasing another 64 fighters under the same terms and conditions. The Defense Ministry expects the first batch of 18, which would be supplied in a flyaway condition to be inducted in IAF by 2012.

The chosen manufacturer would have to spend 50 percent as direct offsets on the aircraft or defense manufacturing industry in India, the announcement said. "As the tender is huge, 50 per cent direct offsets has been mandated, preferably in the aircraft project itself", top defense ministry sources said. Former Defense Secretary Shekar Dutt had gone on record as saying that the offsets could flow to other defense projects, if the country needed them.

The six bidders as listed by the Defense Ministry are American Aviation giants Lockheed Martin in contention with their F-16 Fighting Falcons, Boeing with twin engined F-18/A Super Hornets, French Dassault with Rafale fighters, Swedish SAAB's Gripen JAS-3, Eurofighter Typhoon and Russian Aircraft Corporation's just unveiled Mig-35.

Asserting that the selection process would be "transparent and fair", the Defense Ministry said the new fighters were expected to have a lifeline of over 40 years or an actual flying time of 6,000 hours, whichever is earlier. For the first time under the new fighter RFP, the Government has incorporated the Life cycle cost calculation.

The tender also stipulates guaranteed serviceability and adequate supply of spares throughout the lifetime of the aircraft. The costs of the aircraft would include direct acquisition including that of weapons and missiles, warranty for first two years, license royalty for manufacture in India, cost of technology transfer and costs of initial training.