New Delhi, April 10: Army aviation, till now a
fledgling air operator, got a major boost on Thursday as the
government cleared floating of global tenders for the purchase
of 384 light helicopters.
Of these, the army aviation will get the lion's share of
259 helicopters and the rest 125 would be inducted into the
air force to replace the forces' ageing fleet of Chetak and
Cheetah helicopters.
The Defence Acquisition Council (DAC) chaired by Defence
Minister A K Antony cleared the contract, estimated to be
worth USD 2 billion.
Under the contract, 197 helicopters would be brought off
the shelf and the remaining would be assembled at HAL,
Bangalore under technology transfer, sources in the defence
ministry said.
In a significant step, the DAC said the deal would have a
component of 50 per cent offset.
After the 126 fighter contract, tenders for which are
likely to be opened this month-end, this is a second major
defence deal to have a 50 per cent offset clause.
With the government expected to come out with a new
defence procurement policy this month, indications are that
henceforth all major deals above 500 million dollars would
have a component of 50 per cent offset.
Textron-based American helicopter major bell, European
arms major EADS, Russia's Kamov and Italian Augusta Westland
are expected to be the main bidders for the Indian tender.
The four helicopter manufacturers were also the bidders
in the Indian Army request for proposals for 197 helicopters
which was cancelled at the last moment, when officials were at
price negotiation stage, as the government said the rules of
procurement had been flouted by a bidder.
Bureau Report
First Published: Thursday, April 10, 2008, 00:00