As India's military helicopter tender increases in size, Army fears delays
11 Apr 2008
New Delhi: In about two weeks time, India is expected to issue tenders for the supply of 384 helicopters from global suppliers in a deal that is now expected to be worth about $2 billion. Bids would once again be invited from previous contenders Bell Helicopter, AgustaWestland, Kamov and Eurocopter.
An earlier tender for 197 helicopters, meant for the Indian Army, was cancelled in December last year on charges of ''irregularities.''
The worth of the deal has now shot up from an estimated $1.6 billion to $2 billion, as the size of the order has swelled with an Indian Air Force order for 115 helicopters being clubbed with the initial Army order for 197 helicopters.
According to reports, the Defence Acquisition Committee (DAC) has now decided to invite a combined bid for 384 helicopters - 259 for the Indian Army and 125 for the Indian Air Force.
Government officials said the latest force-projection requirements now seek a larger number of helicopters for the forces. These are expected to be primarily heavy and medium-lift helicopters.
Meanwhile, trouble may be brewing in the helicopter deal with the Indian Army apparently objecting to an enhanced requirement for local manufacture. The deal is expected to contain a clause for 50 per cent offsets, which means the company that wins the order will have to source at least half of that order's worth from within the country itself.
With Hindustan Aeronautics Ltd (HAL) slated to manufacture 187 of the 384 light helicopters, the army has found reasons to object saying that the state-owned company was already behind schedule on deliveries of crucial equipment and development programmes.
According to reports, the army has said that with additional load being put on HAL, induction of these helicopters into the service would get delayed.
The tender comes after a $2.2-billion contract awarded to French aerospace giant, Dassault, for the upgrade of India's 51 ageing Mirage-2000 jets. US defence major, Lockheed Martin, won a billion dollar contract last month for the supply of six C-130J Hercules transport aircraft.
Around the end of this month, tenders for the supply of 126 multi-role fighters for the Indian Air Force will be submitted by US companies Boeing and Lockheed Martin, the Russian MiG, European consortium Eurofighter, French Dassault and the Swede Saab. The deal is expected to be worth up to $12 billion over its lifetime.
India may also purchase another 40 Hawk advanced jet trainers from Britain's BAE Systems, in addition to the 66 already contracted for, in a deal worth $1.45 billion.
