30 August 2014

News Story: India Cancels $1 Billion Light Helicopter Tender

Eurocopter/Airbus Fennec AS550 (Image: Wiki Commons)

By VIVEK RAGHUVANSHI

NEW DELHI — India has canceled the purchase of 197 Light Utility Helicopters (LUH) worth $1 billion in which Airbus Helicopter’s AS550 was competing with Russia’s Ka-226T built by Kamov. The cancellation followed lengthy corruption investigations.

Cancellation of the LUH helicopter program, which was a re-tender from an earlier cancellation, would hamper Indian Army logistics operations in the Himalayas above 20,000 feet. The Army has been waiting eight years for new helicopters to replace aging Cheetah and Chetak platforms, said an Army official.

The Cheetah and Chetak helicopters, made by state-owned Hindustan Aeronautics Ltd. under license, are 40 years old and being flown beyond their age limitations, the Army official added.

The decision to cancel the LUH tender was made Friday by the Defense Acquisition Council, which is headed by the defense minister and is the highest Defence Ministry agency that makes decisions on weapon purchases.

Read the full story at DefenseNews