LOH - 2003 - Army Aviation Corps RFP
The Indian Army and Indian Air Force together operate about 400 Cheetah (France Design Alouette III helicopter) and Chetak (France Design LAMA helicopter ) helicopters supplied by HAL ( Licence produced at HAL, Bengaluru) starting from 1960s. These helicopter fleet have served the country for nearly four decades, need to be replaced in a phased manner with a more efficient and state-of- the- art technology based helicopter.
The Army Aviation Corps was looking to buy 197 helicopters to replace its ageing fleet of Cheetahs and Chetaks. One requirement is that the copter be able to ferry loads of up to troops based in Kargil and Siachen and northern Sikkim, at heights more than 6600 meters. The Army Aviation Corp proposed to buy 55 helicopters outright, with another 142 to be built under licence at Bangalore-based Hindustan Aeronautics. The deal was estimated to be worth more $500 million. By the end of the 10th army plan, it was envisaged to arm Army aviation formations six squadrons of 10 tonne-class.
Against this backdrop, the Indian Army and Indian Air Force finalised the requirement of a Reconnaissance and Surveillance Helicopter (to replace Cheetah and Chetak helicopter). Eurocopter came close to winning the LUH tender, but New Delhi cancelled the program in December 2008 after Bell and several others complained that the EADS subsidiary had been unfairly favored in the selection process. India's defence minister subsequently exonerated the company of any wrong doing. The delays that resulted from the cancellation of the original tender led to the defence ministry promising to put the procurement on a fast track.
GOI issued a new GSQR in July 2008. The total projected quantity required by Armed Forces was 384 helicopters, of which, 197 helicopters are earmarked for direct global purchase and remaining 187 helicopters are classified under make category, to be indigenously manufactured by HAL based on Design and Development of Light Utility Helicopter (LUH). The RFP was sent to AgustaWestland, Bell Helicopter, Eurocopter, Kamov and Sikorsky, who will bid to replace the 1970s-vintage Hindustan Aeronautics Chetak and Cheetah helicopters.
Five contenders were initially in the running: Eurocopter, Bell, Italy's Agusta, and Russia's Kamov and Kazan, with the list narrowed to the Eurocopter AS 550 C3 Fennec and the Bell-407. Russia's Kamov 226 along with Bell and Eurocopter, had responded to the AAC's Request For Proposal in late 2003, but was eliminated early during the paper evaluation.
Eurocopter's long successful partnership with India started more than 45 years ago with the licensing agreement to produce the "Alouette" and "Lama" helicopters in India, where they became the famous "Chetak" and "Cheetah" models. The Indian Army needed new helicopters to replace the ageing 1970s-vintage Chetak and Cheetah helicopters as it modernises and expands its Army Aviation Corps (AAC) to meet current and future rapid mobility battlefield requirements. The initial finalization for the Fennec was cancelled as a company called Vectra came in to play and trials were fouled by Bell's objections.
The Bell 407 and Eurocopter AS 550 underwent trials in Kargil and Siachen glacier heights as well as Thar deserts in Rajasthan. The Italian Augusta Westland EH101, which was also bidding, was not in contention. By then it appearecd that the Army might scale down the order in light of the HAL upgradation program for the Chetaks and Cheetah. The upgraded Cheetal version set a world record in November 2004, landing atop Sasser Kangri main peak at an altitude of 7759 meters.
Bell stated that it could deliver 60 aircraft from its US production line and manufacture the remainder with Hindustan Aeronautics Limited (HAL). But Bell Helicopter pulled out of the Indian military market, after choosing not to take part in the country's revived light utility helicopter competition. The company, which had planned to offer a development of its Bell 407 for the requirement, says New Delhi's stringent 50% offset rules meant it was not possible to submit a bid for the $750 million contract. "We have a very good product in the 407, but it was simply not feasible to take part given the high offset requirements," says a Bell source. "We will continue to look for opportunities in the Indian military market. The focus for now, however, is on the civil helicopter sector."
On 06 December 2007 the defence ministry scrapped the Indian Army tender for 197 Eurocopter Fennec helicopters. Pointing to discrepancies in the evaluation process, it said a fresh request would be sent out soon. For almost a year, Eurocopter had made it known that it had won the $550 million order, while the other contender, Bell Helicopter, objected that it had been unfairly treated.
The MOD scrapped the deal claiming that the European company fielded a civilian version of the helicopter during trials. The company claimed that the AS350 B3 civilian version fielded for trials is exactly the same helicopter as the AS550 C3 military variant in terms of airframe, systems, main gear box, rotor head, blades, engine and performances. The MoD also claimed that the company had engaged a broker to bag the deal. But investigations revealed that Lt. Gen. H.S. Sehgal, who was directly involved in the evaluation of the helicopters, is the brother of Lt. Gen. (retd) S.J.S. Saighal, the chairman and managing director of Global Vectra Helicorp and Vectra Aviation - the sole distributor of the Eurocopter in India. The Indian Defence Procurement Procedure, banning agents, came into place in 2006 while the contract negotiations had been going on since 2001.
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
