Monday, February 20, 2012

After losing out fighter jet deal, delay in chopper deal concerns Europeans

After losing out to France in the multi-billion dollar fighter jet deal, Europe has now fixed its glaze on the contract for 197 light utility helicopters for the Indian Army. European firm Eurocopter has written to the Indian Army Chief regarding the delay in the finalization of the contract.

The 1.5 billion dollar acquisition process, where Eurocopter’s 350 Fennec is fighting it out with the Russian Kamov-226 Sergei, has been in limbo for quite long.

Expressing its concern over the “time frame taken” to finalise the deal, the European defence major said in its letter: “The technical evaluation process has now taken over 38 months and has not yet been concluded due to reasons which are unknown to us.”

The helicopters will be replace the ageing fleet of Cheetah and Chetak helicopters which are the backbone of the Indian Army’s supply chain in the high altitude region like Siachen Glacier and the north east.

The Indian Army’s first attempt to procure 197 helicopters had got stalled in 2007 when the defence ministry cancelled the tender at the eleventh hour of signing the deal with Eurocopter. The second tender was issued in 2008. The deal has also hit air pocket after an anonymous letter received by the Defence Ministry alleged roles of arms dealers in the contract and over ambitious quality requirements hindered a particular trial.

Earlier this year, the parent company of the European firm had lost out to French Dassault fighter makers in the contract for 126 multi role fighter aircraft valuing a whopping $10.4 billion.

“We hope that this program after so many years will soon be successfully concluded and we would be proud to contribute to the self-reliance of Indian Armed Forces,” the letter added.

The flight trials of the two contenders had been completed in December 2010 and the report was submitted in February 2011. The report got approval of the Defence Ministry and the Technical Oversight Committee in October 2011 and January 2012 respectively.

The process will take a long time as the next step in the process is opening of the commercial bids of the two contenders in fray and then a commercial negotiation committee will be constituted to negotiate with the lowest bidder.

Out of the 197 helicopters, the Indian Army will induct 133 and 64 will go to the air force. Out of these helicopters 60 will be purchased in flyaway condition and the rest of them will be manufactured by Hindustan Aeronautics Ltd (HAL) under license.

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