First tender out for attack helicopters,US giants can now bid too

The new UPA government has issued its first defence tender,estimated at $600 million,to procure attack helicopters for the IAF.

The new UPA government has issued its first defence tender to procure attack helicopters for the IAF. The tender,estimated at $600 million,was issued to five vendors on Monday,hours after A K Antony assumed charge as Defence Minister for the second consecutive term.

The IAF is looking for 22 twin-engine attack helicopters to replace its ageing fleet of Russian-origin Mi-35s. The Request for Proposals (RFP) have been sent to five vendors Italian AgustaWestland,US companies Boeing and Bell,the Russian Khazan and the European consortium Eurocopter.

While the tenders were first issued in May 2008,the procurement process had been cancelled earlier this year after the two US companies opted out as they did not get adequate time to seek permission from Washington to take part in the contract.

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This time around,sources said,the contract has been modified to include the Foreign Military Sales (FMS) route of purchase so that both Bell and Boeing can participate. This has been done by doing away with the clause which stipulated that only the Original Equipment Manufacturer (OEM) can take part in the tender.

The earlier requirement of 50 per cent offsets for the deal has also been modified and the winning contender will now need to invest 30 per cent of the contract value in the Indian defence sector.

The IAF urgently requires the helicopters as the Mi-35s,its only fleet of dedicated attack helicopters,are nearing their end of service life. Last month,Air Chief Marshal F H Major said that the delay in purchase affects our operational preparedness. If the evaluation process goes on smoothly,it will take at least four-five years before the first chopper is inducted into the IAF.