US asks India to reopen Army's helicopter contract

The US wants India to reopen the $800-million contract to buy 197 helicopters for the Indian army, saying an American firm had not been given a ‘fair opportunity’ to bid for the deal.

Earlier this year, the government had called Eurocopter, part of European consortium EADS, for price negotiations after rejecting US aviation major Bell's 407 helicopter on technical grounds, after several rounds of trials during 2004-05. The US authorities have raised questions about the grounds on which the Bell helicopter was disqualified. Defence minister A K Antony had clarified on Tuesday that the deal was "still under process".

The Army had projected a need for 197 helicopters for its aviation corps in 1999. Bell, Eurocopter and Russia's Kamov responded to the defence ministry's request for information. Kamov later dropped out of the race and the Army conducted trials with the Bell 407 and Eurocopter's Fennec. Kohler said Bell was prepared to field its helicopters for fresh trials.