GE-414 declared lowest bidder for LCA engine - Broadsword by Ajai Shukla - Strategy. Economics. Defence.

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Thursday 30 September 2010

GE-414 declared lowest bidder for LCA engine

This morning, the representatives of GE and Eurojet were informed in Bangalore that GE Aviation was the lowest bidder in the LCA engine competition. The DRDO press release that followed is pasted below.

More on this in tomorrow's Business Standard. Will post in the morning. Stay tuned.

GE Aviation lowest bidder for LCA Mk-2 Alternate Engine

The Price Negotiating Committee for the Alternate Engine for LCA Mk-2 has finalised the Comparative Statement of Tenders. The committee Chaired by Dr Prahlada, DS & CCR&D (Ae&SI) had its representatives from Ministry of Defence, Defence Finance, ADA, DRDO, HAL, Indian Air Force, and Indian Navy. After evaluation and acceptance of the Technical offer provided by both Eurojet and GE Aviation, the commercial quotes were compared in detail and GE Aviation was declared as the lowest bidder. Further price negotiations and contract finalization will follow.


  1. bull shit drdo n mod babus........i think itz better they discontinue lca n move on to amca

  2. A package supposed to be full of surprises from the word 'go'.

  3. Wow, that is indeed a surprise! As per your own report, EJ bid for around 33% less than GE. So how did GE make up for it? Did they lower the price even more? Or did the EJ bid not include ToT/licensing fee or other such extras?

    As for the choice, GE 414 does offer more thrust. Boeing won the LCA-N testing tender, and failed to get approval from US DoD and DoS. Hope GE already has these approvals, else EJ will take us for a ride later on

  4. Neither am i surprised nor angry at MoD . The decision may not be the wisest but still it means we will have LCA Mk-2 ready earlier ;

  5. Hi Ajai,
    This is confusing,perhaps you know more about it. "Business Standard has learned from informed sources that, when the bids were opened last week, European consortium Eurojet, which bid US $666 million for ninety-nine EJ200 engines, has undercut US rival General Electric, which quoted US $822 million."
    GE might have it fair and square but still will want MoD to go for EJ200 then GE414,reasons areclear.
    - Shshank

  6. Is it a direct path to the American or Swedish fighters, or is it the placating the Americans while going for the EFA/ Rafale?

    Would nice if the selection criteria included life-cycle costs... and if these were published thanks to Anthony's "halo".

    Ah, the roll of the dice.. or perhaps its something more simpler...

  7. hi ajai sir
    don't you think it is not a wise decision on part of MoD because in past we have experienced that awarding contract to American companies have not yeilded into any results looking at how Lockheed was selected as a consultant for N-LCA and it was not able to obtain clearance from the US DoD so does this means that GE has prior clearance from DoD and it may be possible that the US DoD has agreed ToT of critical tech such as SCB which EJ had offered or is it a direct indication of F 18 winning the contract and India getting all the key technologies on offer.But we have resisted from CISMOA for C 130J-30,so are we ready to sign CISMOA for such a vital component of our air force which handicap can us in a war if it is against US interests.
    would like to know your views on this

  8. Theretically this should have effect on MMRCA. At least it may be further delayed to some extent.

  9. I think they are looking at the overall costs, not just the cost of the engines. This includes tooling jigs & assemblies required to build the engines in india under ToT. This may have tipped the bid in favour of GE

  10. this is a political decision with Obama coming


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