NEWS
A decision to procure 197 light helicopters which have come under scrutiny over allegations of deviation from the tendering process was put off, a move that comes against the backdrop of a scam in another chopper deal involving complainant AgustaWestland of Italy. The Defence Acquisition Council (DAC) of the Ministry of Defence, headed by Minister A.K. Antony, did not take up the issue related to purchase of the light utility helicopters for the Army and Indian Air Force at an estimated cost of $1.5 billion ( Rs. 8,250 crore). The DAC was to consider the report of a Special Technical Oversight Committee which went into allegations about non-compliance by one of the two contending vendors with the terms and conditions of the RFP. The issue was not considered as the Chief of Army Staff General Bikram Singh is on a tour to Japan.

VIEWS
Efforts by the Indian Army to replace its ageing fleet of the Cheetah and Chetak helicopters inducted in the 1970s appears to be truly jinxed. The proposal to procure a new fleet of 197 light utility helicopters for the Indian Army and the IAF was initiated by Army Headquarters in the beginning of the last decade. As bulk of the order was meant for the Indian Army, it was appointed as the “Lead Service” to process the tender, notwithstanding the fact that the IAF had more experience in this discipline. Subsequent to the issue of an RFP in 2003, a number of helicopters were put through technical and field evaluation in which the single-engine AS550 C3 Fennec from Eurocopter emerged as the preferred machine. However, following a complaint from Bell Helicopter of irregularity in the evaluation process, the matter was referred to the Central Vigilance Commission (CVC) by the Ministry of Defence (MOD). Findings by the CVC seemed to support the allegations. Bell Helicopter had been disqualified in the technical evaluation. Taking cognizance of the report by the CVC, the tender was cancelled by the government in 2007, reducing to naught seven years of effort by a number of agencies and millions of dollars invested by the original equipment manufacturers (OEMs) participating in the tender. Meanwhile, both the Indian Army and the IAF continued to suffer from erosion of of the existing fleet of ageing helicopters.

A fresh tender was floated in July 2008 in which two machines were shortlisted for flight evaluation: the single-engine Eurocopter AS550 C3 Fennec and the twin-engine Russian Kamov-226 Sergei. On account of internal issues, Bell Helicopter did not participate this time. Also, the AgustaWestland AW119 offered by the Anglo-Italian company, was eliminated from the race early as instead of the military version, the company had fielded a civilian version.

Having got entangled in a web of allegations and investigations, the 197 helicopter tender floated in 2008, once again appears to have run into trouble. This time, AgustaWestland has made allegations of impropriety in the processing of the tender in that one of the vendors had “made changes in the structure of its chopper by adding a bubble bulge to carry injured troops on stretcher”. The other allegation pertained to lack of certification of engines of the Russian Kamov-226 Sergei helicopter which was in the race. As is the practice, the MoD was quick to appoint a high-powered Special Technical Oversight Committee (STOC) to go into the allegations as also to verify whether the parameters laid down in the tender document were indeed followed in letter and spirit. The STOC was headed by Lt General Gurdeep Singh, an aviator of the Indian Army, who had earlier headed the School of Artillery. Meanwhile, on request from the MoD, validity of the commercial bids were extended by the two contenders in the race to the end of March 2013.