Indian Army 197 Helicopters Deal: Confusion Prevails Over Bell's Disqualification
Dated 22/7/2007
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The Indian Government informed Bell that it had been disqualified for the Indian Army 197 Helicopters Deal way back in 2005, even though Bell had since then been lobbying and negotiating for the order.
India had earlier shortlisted the Bell 407 and Eurocopter EC550 C3 Fennec for the $550 million contract two years ago. But Bell, a Textron subsidiary, was disqualified due to an inability to provide a heavy winch during the trials.
"The 407 that took part in the 2005 trials had a light winch. India had asked for a letter saying Bell could provide a heavy winch, and this was done. Then about two months ago, Bell was told that it was disqualified in 2005 as it could not guarantee a heavy winch. But the company had done that and the issue was not raised at any meetings since 2005," says a source close to Bell. "Only the government knows what the exact situation is right now," quotes 'Flight Global'.
Price negotiations with Eurocopter has already begun, while Bell and the American government are pressuring New Delhi to reconsider the 407 and start the entire process afresh.
Jeffrey Kohler, head of the US Defense Security Cooperation Agency, told 'Reuters' last week that his country is asking New Delhi to give Bell "a fair opportunity. The US government is not demanding anything or any change [in the contract] from the Indian side. We want a fair and transparent opportunity," he says. "The company would be happy to bring its machine again if the competition is open, fair and transparent."
When asked last week if Eurocopter had won the bid, Indian defence minister A K Anthony said: "It is under process." His comments leave a competition that has being ongoing since 1999 in limbo, say observers. Few months ago, a New Delhi based news agency IANS, had reported that Eurocopter had won the contract but the Defence Minister's ambiguity raises doubt over that report.
Indian Army needs to replace its fleet of '70s vintage HAL Chetak and Cheetah helicopters. The successful bidder will provide 60 helicopters in a flyaway condition, while the remaining 137 aircraft will be licence-produced by HAL. Under the offsets clause, the winning bidder must also invest at least 30% of the contracted cost in India.
