India’s 197 Light Utility Helicopter Contract Process Extended

Contenders for India’s 197 light utility helicopter tender have been requested an year’s extension to complete the acquisition process. The commercial bids of the two finalists, Eurocopter and Russian Helicopters had expired in mid-June under India’s two year time limit for procurement bids. Industry sources told Defenseworld.net that the bidders have received communication requesting an extension and are most likely to comply. The contract for 197 light utility helicopters has Russian Helicopters Kamov Ka-226T, powered by Turbomeca Arrius 2G1 powerplants, and the Eurocopter AS550C3 Fennec to replace HAL built Chetaks and Cheetahs for the Indian air force and army. It is worth an estimated US$750 million for the winning bidder. The acquisition process has been going on since 2003 when the RFP was first issued. Eurocopter had been declared a winner the first time only to have the contract canceled and the process retendered because there was only one bidder after the withdrawal of Bell Helicopters from the race. The second time around, Eurofighter had AgustaWestland and Kamov for company. While AgustaWestand was disqualified on technical grounds, the remaining two went through the full trials in India and their home countries which were completed in 2010. The sources said that the extension could be due to the Indian MoD having to compute life cycle costs and offsets which are proving to be quite challenging across the procurement spectrum.