Wednesday, February 13, 2013

India's 197 Copter Deal Suspended, Indefinitely.

Bad news for Eurocopter and Kamov. The Indian Army / Air Force joint reconnaissance & surveillance helicopter (RSH) acquisition programme -- for 197 helicopters all in flyaway condition -- has been indefinitely deferred. At a meeting of the country's Defence Acquisition Council (DAC) at the Defence Ministry today, it was decided, like it happens so often in India, that no decision would be taken just yet. The official reason recorded at the meeting was the absence of India's Army Chief, General Bikram Singh, currently in Japan on an official visit. The truth, of course, is somewhat different, and has been known for a while now.

Since an all-out cancellation would be too abrupt at this stage, my sources inform me that the deal is likely to languish without decision indefinitely. As I reported earlier, Eurocopter has refused to extend the validity of its commercial bid beyond March 31, 2013, leaving therefore very little time for "clear visibility" from the MoD. Plainly, it doesn't look good.

And with a federal investigation into India's acquisition of AgustaWestland AW101 executive transport helicopters announced yesterday, my sources tell me the collateral damage from the heat has only allowed the government to justify a non-decision on the light copter procurement. At any rate, it seems unlikely now that the government will make any major moves. Parliament reconvenes a week from now, and it promises to be (when is it not) full of righteous turbulence. I'll be looking out for politicians who see the irony, of course, in a deal for copters for politicians going bad, and ending up shafting a deal for copters for army soldiers at India's most hostile battlefields.

The Eurocopter AS 550 C3 Fennec and Kamov Ka-226T Sergei compete for a deal that could top $600-million, but appears now to be headed, once again, into oblivion. More here.

15 comments :

Anonymous said...

Mr Shiv, it sure does not look good for the corrupt. This is one more massive scam. Why does the Indian media get excited after the event. Is it because they are also neck deep in the dirty business. HAL has proven itself in the light helicopter business over several decades. Instead of supporting HAL the IAF goons, media including you, crave for the foreign 'maal'. Tremendous pressure has been applied on HAL to deliver on timelines for only half the required helicopters. Why should India import equipment which can be made in India ?? There is no point crying over spilt milk. Unless this issue is debated and settled, no LUH procurement should be made from abroad. I am now convinced that IAF is fully corrupted. No wonder they want to import things that can be made in India.

Anonymous said...

Shiv, why are you in mourning ? One less expenses paid junket for the media ?? Incidentally, what are the other perks for the media ?

P.K.Chaudhuri said...

No body is ever punished for corruption in India. But this time it is also compromise to national security as the name highest officer of IAF has been mentioned by the Italian authorities.
Kick-back money is the reason why government is not increasing the production capacities of DPSUs and units of OFB. It is a must to sell the shares of DPSUs in the market to make them more competetive. But government will not take this obvious decision.
India needs a total change in the governance quality.

nikdash said...

Luck seems to be favoring us this time. Lots of Babus and army/air force corrupt officials now have to settle for less fancier stuff. Wives not happy for sure.

Anonymous said...

Great news.stop all helicopter imports and buy hal lch,luh,alh and start work on indian medium lift helis.get these ready asap.this is blessing in disguise for drdo hal

Mr. RA said...

Politicians shall be at least and somehow barred from playing mischief in to the deals which are technologically superior and technically justified. Otherwise it will be a repeat of Bofors story every time and we will be short of the best of the guns for all the time to come and etc.

Anonymous said...

I am glad Eurocopter didn't waste their time extending their bid. This is just bad business practice, why request extension when you have little or no intention to buy a product. I am not suggesting that home grown products should not get a fair chance, but before making a decision to invite a bid, it is our responsibility to make sure that we really need to import and that what we can make locally is acceptable or not. Clearly the MOD failed and their failure lead to Eurocopter and Kamov spending their time and money coming up with a bid, and also the user trials that came at their own cost. In business you win some, you lose some. But it's bad when no one wins. Next time we want them to submit a bid, they will keep this in mind and will try and milk us where ever they can.

Rahul said...

http://www.youtube.com/watch?feature=player_embedded&v=e_Fp8uWVV2I

Shiv, you got watch this work of you community!

Anonymous said...

Jai Hind

Abhishek said...

The same should happen with INSAS Rifle , witch Indian army is trying to kill ,it could another multi barrel Italian scam .

Anonymous said...

this sort of news is not fresh in indian defence accquisition.And i wants to recount the words of winston churchil at the time of indian independence that"india will go into the hands of freebooters ."and our gr8 netas and the man governing our society continew to plunder the wealth of this country and followed the golden words of churchil word for word and we the so called intellegencia of our beloved nation can not do any thing to punish them but unless and untill we are not getting aware of any thing these people will cont. to ransack our countries wealth wheather it is coal scam,2g,common wealth.we just think that we are common people what can we do to stop them and ofcourse this is not our duty to stop them.so let them do what ever they do why come on blogs any say something and feel that i am done with my part of responcibility.god save india and indians. hail india

nikdash said...

To the anonymous guy quoting 'Churchill': Go home and keep dreaming. We will clean our mess and come out stronger!

Anonymous said...

and how

Anonymous said...

I have the following observation on this report:

The report says that in 2003, TEC shortlisted 3 heptrs and flight evaluations were conducted, in which EH-101 of M/s. Agusta Westland failed owing to non certification altitude of 6000 meters and the Russian Mi-172 could not comply with 7 mandatory ORs. Hence after flight evaluation, only EC-225 of M/s. Eurocopter was found suitable for acquisition. This amounted to what is termed a "resultant single-vendor" situation. However, the procurement was canceled on account of single vendor situation, and the ORs were re-drafted thereafter.
The same situation was reached in 2008 when only two heptrs, i.e. EH-101 and S-92 participated in flight evaluation, and S-92 was found non-compliant, leaving only EH-101 as the resultant single vendor. Hence, why was the contract canceled in 2003 on this accord, while it was continued in 2009?

Anonymous said...

The air chief leaves no room to show case his love for Pilatus Pc7.. can we ask him why did the IAF change the SQRs for the trainer aircraft and made it to suit PC7, relaxing 0/0 ejection, cockpit pressurisation, 0-99% percentile pilots , auto trim control device and 7 other parameters. Why was he in such a rush to buy 37 more before his retirement....If someone compares it is exactly the AW helicopter sequence....Wake up and smell some cofee before we have another disgraced service chief....
Pilatus always knew that if the PC 21 which was compliant with all IAF requirements is contested they will loose as it is costlier than the Korean KT1 and T6C....and hence the IAF chaged the specs to suit the PC7 which is a low cost option...
The entire project cost is 700 Million USD...Divide this by 75 and you get a cost of almost 50 crores per aircraft. Whom are we fooling trying to show the cost of PC 7 as 31 crores...
Also Swiss are a neutral state and will never allow armed variant of the PC7 aircraft for Close air support on Irregular warfare....All we have bought is a lame trainer for the next 30 years or so...

Can IAF annswer who is gonna maintain the PC 7....as the MTOT as still not been contracted and the swiss will mint money with this...remember the Korean objection....the IAF said the deal was all fair....ditto like the one in Augusta Westland case.....

Swiss aircraft...swiss banks ...all the more easy to set it all.....SHame.......