India for bidding of Navy deal, rejects US offer

India has turned down an American offer to supply 16 multirole helicopters (MRH) through the Foreign Military Sales (FMS) route for its Navy and decided to go for open competitive bidding for the multi-billion dollar deal.

New Delhi: India has turned down an
American offer to supply 16 multirole helicopters (MRH)
through the Foreign Military Sales (FMS) route for its Navy
and decided to go for open competitive bidding for the
multi-billion dollar deal.

The US Navy had offered the MH-60 `Romeo` to meet
Navy`s requirement for 16 MRH through an inter-governmental
agreement but the proposal was rejected, Defence Ministry
sources said today.

Under the FMS route, the procurement is done through
inter-governmental agreements where the product is offered
directly by the US government without any global tender being
issued.

Following the Indian government`s decision, only two
contenders American S-70 Bravo and European NH-90 remain in
the fray to take part in the field evaluation trials, the
sources said. The trials are expected to start after March
this year.

The tender was issued over two years ago in September
2008 and the two firms responded to the bids while the US Navy
had offered its Romeo through the FMS route.

The Navy urgently requires the MRH to replace its
aging SeaKing fleet inducted in 1970. It had 40-odd SeaKing
choppers in its air wing, but the strength has come down to
about 30 helicopters due to mishaps.

The MRH`s primary role would be anti-submarine warfare
and anti-surface warfare, while its secondary role would
include search and rescue, cargo carrying and casualty
evacuation.

The RFP for the 16 MRH was initially issued in early
2006, but the tenders were cancelled two years later and
reissued in September 2008.

As per the tender, the winning bidder would be
required to supply the first MRH within 46 months in three
phases.

The Navy will also have the option of placing orders
for another 44 helicopters, once the present contract is
completed.

The contract also mandates fulfillment of the offset
obligations by the winning bidder, which requires it to
reinvest 30 per cent of the contract amount back into the
Indian defence industry.

PTI

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