New Delhi: The Narendra Modi government swung into action on Friday, scrapping a seven-year-old global tender worth thousands of crores for the acquisition of 197 helicopters for the Army and Air Force after allegations of corruption.
The cancellation of the global tender for the 197 helicopters floated way back in 2007 by the UPA-1 government was perhaps the most significant step on Friday. This is for the second time in seven years that the global tender for this proposed acquisition was cancelled. The deal was worth $600 million when the tender was issued in 2007, but it is estimated that the cost may have gone up at current prices to about $1 billion (about Rs 6,000 crores).
This time the cancellation was done after allegations earlier that an Army brigadier involved in the field trials had demanded a huge bribe from one of the foreign vendors. The tender for this acquisition was cancelled originally in 2007 after alleged irregularities following which a fresh tender was issued which has been cancelled now. Of the 197 helicopters, 133 were believed to be for the Army and the remaining 64 for the IAF.
The European Eurocopter and the Russian Kamov helicopters were in the fray for the deal. The light-utility helicopters were meant to be a replacement to the ageing fleet of Chetak and Cheetah helicopters that carry troops and equipment to high-altitude areas such as the Siachen glacier. But just two weeks after Prime Minister Narendra Modi pledged from the ramparts of the Red Fort to boost indigenous manufacturing, the ministry of defence (MoD) said the acquisition of the 197 helicopters would now be as per the “Buy and Make (Indian)” category which essentially means that an Indian company can enter into a Joint Venture (JV) with a foreign firm and then bid for the contract.
30/08/14 Deccan Chronicle
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The cancellation of the global tender for the 197 helicopters floated way back in 2007 by the UPA-1 government was perhaps the most significant step on Friday. This is for the second time in seven years that the global tender for this proposed acquisition was cancelled. The deal was worth $600 million when the tender was issued in 2007, but it is estimated that the cost may have gone up at current prices to about $1 billion (about Rs 6,000 crores).
This time the cancellation was done after allegations earlier that an Army brigadier involved in the field trials had demanded a huge bribe from one of the foreign vendors. The tender for this acquisition was cancelled originally in 2007 after alleged irregularities following which a fresh tender was issued which has been cancelled now. Of the 197 helicopters, 133 were believed to be for the Army and the remaining 64 for the IAF.
The European Eurocopter and the Russian Kamov helicopters were in the fray for the deal. The light-utility helicopters were meant to be a replacement to the ageing fleet of Chetak and Cheetah helicopters that carry troops and equipment to high-altitude areas such as the Siachen glacier. But just two weeks after Prime Minister Narendra Modi pledged from the ramparts of the Red Fort to boost indigenous manufacturing, the ministry of defence (MoD) said the acquisition of the 197 helicopters would now be as per the “Buy and Make (Indian)” category which essentially means that an Indian company can enter into a Joint Venture (JV) with a foreign firm and then bid for the contract.
30/08/14 Deccan Chronicle
