A Plan to purchase 12 helicopters for VVIPs has run into rough weather with the Finance Ministry declining approval on ground that they were too expensive at Rs 3,726 crore or Rs 310 crore a piece. Officials said the ministry had objected to the IAF narrowing their selection to a single vendor AgustaWestland for seeking price bid. It has argued that while it was not possible to compare the single price bid, a comparison with previous purchase of similar medium-lift helicopters showed that the price was more than double.

Moreover, the quote from AgustaWestland for 12 AW-101 had overrun the estimated outlay of Rs 1,400 crore approved in 2006, it said. AgustaWestland was the sole firm which qualified the technical norms set by the IAF.

The new choppers which are to replace the Mi-17 machines in the Air Headquarters Communication Squadron, as the VVIP transport squadron is called, will be equipped with flare dispensers and special self-defence systems. The Defence Ministry is working on satisfying the Finance Ministry’s objection before the proposal can be sent to the Cabinet Committee on Security.