Scrapping yet another major defence deal this year over alleged involvement of middlemen, the defence ministry on Thursday said that the Rs 17,000 crore helicopter deal with the European aviation consortium, Eurocopter, to acquire 197 light helicopters stays cancelled. Ministry officials accused the company of “deviating from approved parameters,” prescribed for such international deals.
“A fresh request for proposals will be issued shortly,” defence ministry spokesperson Sitanshu Kar said. Earlier in the year, the defence ministry had cancelled international tenders for Rs 4,000 crore to buy 400 upgraded 155 mm .52 guns for the Army.
The Eurocopter and a US firm Bell Helicopters were shortlisted for the contract earlier. The deal was to purchase 60 helicopters off the shelf and to manufacture 137 more in India under the technology transfer. The deal was at its finalisation stage and the defence ministry officials had reportedly started price negotiations with the France based company. The Eurocopter had claimed that it was very much in contention to acquire the deal and was expecting the deal to be finalised soon.
“We presented the civilian version of the Eurocopter in full knowledge of the Army as well as defence ministry officials,” a statement from the company said. It added that its rival, Bell, had also brought its civil version of the B407 for trials in India in the same manner.
“The helicopter presented during the trials is identical to the one proposed to the Indian Army’s technical offers and have been duly evaluated by the committee comprising Army and ministry of defence officials,” the statement said, adding, “All trials have been conducted with utmost transparency and professionalism.” The defence procurement policy of the ministry says that a technical offer once submitted should not be materially changed subsequently.