Think Tank: India’s Helicopter Contracts - Perspectives

Australian Chinook in Afghanistan (Wiki Info)

The Times of India on 28 October brought out that the Boeing Chinook heavy-lift helicopters have emerged as the L-1 (lowest bidder)" beating the Russian Mi-26 in the contract for 15 Multi Mission Helicopters after both the birds had passed the technical field trials conducted by Indian Air Force (IAF). "The present contract is for 15 such multi-mission helicopters. The Chinook bid was lower both in terms of initial direct acquisition cost as well as life cycle cost. The contract negotiation committee will now finalize the deal for the Chinook," said a source quoted by the Times of India. Boeing had earlier won the contract for 22 heavy-duty Apache attack helicopters for around $1.4 billion in the technical trials phase. 

The Times of India states that Indian armed forces are planning to induct 900 helicopters to include, “440 light-utility and observation, naval multi-role (90), light combat (65), heavy-duty attack (22), medium-lift (139) and heavy-lift (15)”. Of these the major 197 Light Utility Helicopters deal continues to be dogged by controversies. Allegations of corruption in the trials held between four machines fielded by Agusta Westland, Sikorsky, Eurocopter and Kamov have surfaced with reports that an army aviation brigadier had sought money from Agusta Westland to tweak the trials. The procurement has already seen one trial being cancelled in the final stages in 2007 and with the Defence Minister Mr A K Antony known for his probity and penchant for scratching off deals on the whiff of wrong doing fingers are crossed in the hierarchy.

Italian agencies are already probing allegations of kickbacks in the 12 VVIP helicopters for which Agusta Westland has been shortlisted but is yet to deliver. In case the company is found to have indulged in malpractices it may be blacklisted if the current trend is anything to go by. The company has denied all claims of wrong doing so far and sees the move as another attempt to malign the contract which is in final stages.

(VVIP) AW 101 (Wiki Info - Image from Wiki Commons)

As per a Press Information Bureau release, in response to media reports alleging irregularities in the contract for 12 Helicopters from Augusta Westland for VVIP use, the Ministry of Defence has once again taken up the matter with the Italian government through the Ministry of External Affairs and has asked for an early response on the issue. The Italian government has been requested to provide details of the existence, if any, of any middlemen or any individual or Indian entity in the above mentioned contract. The MoD has asked the Italian government and concerned agencies there through MEA to provide the name and relevant documents relating to the alleged involvement of a Brigadier in the ongoing process for the acquisition of 197 Light Utility Helicopters for the Indian Army. MoD will take strong action against the offenders detected through this probe said the release.

India’s helicopter procurements thus seem to be jinxed. After a decade plus of determination for procurement of 197 Light Utility Helicopters a deal is nowhere in sight even though the proposal now involves only two major helicopter companies, Eurocopter and Kamov. Meanwhile the VIP helicopter deal with Agusta Westland has also come under the scanner. While Agusta Westland and US helicopter-maker Sikorsky were ruled out of the light helicopter deal, thus there should be no link with allegations of demand of bribe by the army aviation officer, it is important that the government takes early decision on light helicopters rather than prevaricate. In all probability till the Westland case is clear, the Defence Ministry is unlikely to take a call on the light helicopters. The key challenge also include pulls and pressures that operate in the global defence industry which has found that the Indian system is pliable and thus have been taking advantage of the same to indulge in unhealthy practices from time to time which has led to many delays and distortions.

This Article first appeared on Security Risks and is reposted here under a Creative Commons license.

NOTE: The “Press Information Bureau release” Link in the above, as well as the images, were added by PacificSentinel for clarity & context.