Government allows foreign firm to bid for a domestic helicopter contract

 The Dollar Business Bureau In a move to promote the Make in India, the Government of India has decided to allow a foreign firm to bid for a Naval Utility Helicopter (NUH) contract, on the condition that the firm ties up with a local vendor. According to the Defence News, the Indian government is likely to allow the Italy-based AugustaWestland to bid for NUH for the Indian Navy. The contract by the Indian Navy, for the supply of 100 light-utility vehicles is estimated to be worth around US$ 2 billion, the report informed. Responding to the Indian Navy’s Request for Information (RIF) over the NUH contract, the Anglo-Italian defence firm is fielding the AW-109 helicopter and has submitted its proposal for a tie-up with the local company. However, a confirmation for tie-up with the Italy-based firm was not received in time by the local firm and the deadline for RIF finally ended up on February 28, the report added. The report further says that the project intended towards development of 100 helicopters that would become part of the Indian Navy, comes under the ‘Buy and Make in India’ category of the Defence Procurement Procedure 2013. As per the category under the Defence Procurement Procedure 2013, the company would buy a foreign design that would be assembled in India by local partners. The entities under the local partners include the Reliance Defence and Aerospace, Axis Aerospace, Bharat Forge, Hindustan Aeronautics (HAL) and Larsen & Toubro, among others, who have sent in details about the original equipment manufacturer to the Ministry. The Ministry’s move to allow a Finmeccanica Group company, that is facing CBI probe on a graft case, is subjected to six conditions laid by the Indian government when Arun Jaitley was holding the defence portfolio. As per the pre-conditions laid by the government, the AugustaWestland and its parent Finmeccanica Group will not be able to bid as a prime contractor and will only be allowed to bid as a sub-contractor to principle vendors, the report added. The contract proposal for the development of utility helicopters dates back to 2012, where the Indian Navy and Coast Guard had issued a request for the same. However, in 2014, the new government cancelled the competition and restarted the process again keeping in view, the need for domestic manufacturing.    

This article was published on April 4, 2015.