Procurement of MMRCA and FRA
The tenders for procurement of MMRCA and FRA were evaluated on the basis of life cycle cost concept in terms of the Total Cost of Acquisition as indicated in the respective 'Request for Proposals' (RFPs).
Discounted Cash Flow method was used to arrive at the Net Present Value (NPV) of all future cash flows.
Direct Cost of Acquisition and Transfer of Technology (ToT) (in MMRCA case) were the two elements where NPV was arrived at using the Discounted Cash Flow method.
This information was given by Defence Minister Shri AK Antony in a written reply to ShriKalikesh N. Singh Deoin Lok Sabha today.
DM/VP/RK