Saturday, August 30, 2014

Centre scraps light utility helicopter tender, opens it to Indian players

New Delhi: The government on Friday scrapped a tender worth Rs 6,000 crore to procure 197 light utility helicopters from foreign vendors for the armed forces and decided to allow domestic players to manufacture these helicopters.
Scrapping the tender, the Defence Acquisition Council chaired by Defence Minister Arun Jaitley put the acquisition under the “Buy and Make Indian” category, allowing the Indian industry to make the helicopters under a joint venture with a foreign manufacturer.
This is the second defence tender under the new government to be opened to the Indian industry. Last month, the government had opened the process to develop 56 transport aircraft to the domestic private sector.
The scrapping of the tender is significant as former defence minister A K Antony had deferred a decision on it following the VVIP helicopters scam. Investigations into the scam had also revealed alleged kickbacks in the light utility helicopters procurement process.
30/08/14 Pranav Kulkarni/Indian Express
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