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Business News/ Politics / Policy/  Defence minister scraps Rs6,000 crore tender for light utility helicopters
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Defence minister scraps Rs6,000 crore tender for light utility helicopters

Ministry says the Indian industry would be given the opportunity to produce around 400 such choppers

The decision to procure military equipment from the Indian Industry comes in line with National Democratic Alliance (NDA) government’s plan to develop the indigenous industry. Photo: MintPremium
The decision to procure military equipment from the Indian Industry comes in line with National Democratic Alliance (NDA) government’s plan to develop the indigenous industry. Photo: Mint

New Delhi: Defence ministry on Friday scrapped a scam-tainted tender worth over 6,000 crore to procure 197 light utility helicopters for army and air force to replace the vintage fleet of Cheetah and Chetak choppers used to move troops and equipment to high altitude locations like Siachen.

In a meeting of the defence acquisition council headed by defence minister Arun Jaitley, the government also cleared proposals worth over 17,500 crore including the mid-life upgrade of the aging fleet of submarines for 4,800 crore and procurement of 118 Arjun Mk II tanks for 6,600 crore.

The Defence Acquisition Council (DAC) decided to retract from the tender for procuring 197 helicopters and it has been decided that the Indian industry would be given the opportunity to produce around 400 such choppers for the requirements of the armed forces, defence ministry sources said.

In line with National Democratic Alliance (NDA) government’s plan to develop the indigenous industry, the government decision is expected to generate business worth over 40,0000 crore for the local industry in the defence sector, they said.

This is the second time in seven years that the tender has been scrapped in which European Eurocopter and Russian Kamov were competing and it had been on hold for the past over two years due to an ongoing Central Bureau of Investigation (CBI) probe and other allegations of wrongdoings in the trial process.

The CBI probe was ordered into the deal in view of allegations in the AgustaWestland chopper scam that a brigadier had asked for a bribe of 30 crore from the Anglo-Italian firm for helping it in the light chopper deal.

AgustaWestland was eliminated in the first round of the deal and only Eurocopter and Kamov were left in the race.

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Published: 29 Aug 2014, 07:12 PM IST
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