India to float $2 billion military copter tender
India to float $2 billion military copter tender
Published: 12:00 am Apr 11, 2008
New Delhi, April 11:
India is to invite global bids worth two billion dollars for 384 light helicopters in the second biggest military deal this year, defence ministry officials said today.
A source from the Indian government’s weapons contract clearing agency said the call for tenders was finalised and approved yesterday, and “will be sent out within two weeks” to global defence firms.
Bids would be invited from US-based Bell Helicopter, British-Italian firm AgustaWestland, Russia’s Kamov and Eurocopter, a unit of the European Aeronautic Defence and Space Company.
“The initial worth of the contract will be $1.6 billion but the bill is likely to go up to two billion dollars,” said the official. The proposed purchase incorporates 197 helicopters that the Indian government had agreed to buy from Eurocopter. But that $600-million deal was scrapped in December.
The defence ministry said there were “deviations” in the contract, and defence sources spoke of “irregularities” — a euphemism for corruption.
Eurocopter has denied any malpractice, and says it is optimistic of winning the new, larger tender. The air force has added a requirement of 115 helicopters to the 197 units the army wanted, pushing the value of the deal to one billion dollars and the number of aircraft to 312.