$600-million chopper deal on hold, US objects to way its bid grounded by Army

Four months after the Ministry of Defence shortlisted Europe’s Eurocopter to supply 197 light helicopters to the Indian Army, the $600-million...

Four months after the Ministry of Defence shortlisted Europe’s Eurocopter to supply 197 light helicopters to the Indian Army, the $600-million deal is now under scrutiny amid questions being raised by Washington over the disqualification of the only other contender, the US-based Bell. In May, Bell and US officials are said to have met Indian Ambassador in Washington Ronen Sen to express their reservations.

In March this year, Defence Minister A K Antony told Parliament that his Ministry had accepted trial evaluation reports of Eurocopter’s AS-550 (popularly called Fennec) and Bell-407 (called Shen) choppers to replace its fleet of 1960s vintage Chetak-Cheetah helicopters. Eurocopter belongs to a consortium of French, German and Spanish companies.

However, the previous month, the Army’s evaluation team, which tested the two choppers in varied environments ranging from Rajasthan to Siachen, disqualified Bell for failing to meet two RFP (Request for Proposal) requirements:

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n A “three-axis” autopilot designed to not only navigate the helicopter during flight but also to bring it down safely in case of mechanical and human failure.

n Capability to hoist a 160-kg payload in rescue and evacuation missions.

Bell and US officials say they could not meet these requirements by the time trials ended in September 2005 only because of “technical reasons” and they informed the MoD and the Army about this.

The only chopper in the Bell fleet with the “three-axis” mechanism was in use with a Canadian company. As for the 160-kg hoist capability, Bell said it could demonstrate this once it got certification from the US’s Federal Aviation Administration (FAA) which it did in November 2005 but by then the trial was over.

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“Bell was not able to demonstrate vital requirement during the trials due to which it was disqualified. There are no provisions to extend the trial period,” a Ministry spokesperson told The Sunday Express.

Bell and US officials dispute this saying it was in constant touch with the MoD and the Army on this — between November 2005 and July 2006, Bell sent 10 letters to MoD saying it had got FAA certification and the “three-axis” chopper. But the Ministry did not respond.

However, when the new Defence Procurement Policy came into effect in August-October 2006, the Ministry wrote to both Bell and Eurocopter for transfer of technology on engine components and other systems. This, Bell officials claim, was surprising if their chopper had already been rejected.

When The Sunday Express contacted the Army Headquarters, they said: “We have handed over the procurement to the Defence Ministry after conducting the trial evaluation of the helicopters….it is now upto Defence Ministry to clear the acquisition …we have not been conveyed any delay by the Ministry.””

THE TWO CHOPPERS

Eurocopter Fennec

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The single-engine helicopter, manufactured by European Aeronautic Defence and Space Company (EADS), has a proven record with several armed forces around the world. Besides its utility transport role, the helicopter can carry out a variety of combat operations. It also has commonality with the French Alouettes (Cheetah/Chetak) in use by the Army. Speed: Over 280 kmph; range: 660 kms.

Bell 407 ‘Shen’

The Bell 407 is primarily a hugely successful commercial model that has been militarised as the ‘Shen’ for the Indian Army contract. As part of its bid, the firm had offered to make India a global hub to produce the Bell 407. While it is technologically similar to the Fennec, the Bell 407 does not have a proven military record. However, a modified version of the chopper recently won a multi-billion- dollar armed reconnaissance helicopter contract for the US Army.

THE SEVEN-YEAR WAIT…

• 1999-2001: MoD agrees to army’s need of acquiring new light helicopters. Request for Information (RFI) process starts

• 2002: India asks global players to submit tenders

• Nov 2003: Requirements modified and tenders reissued after no bidder meets high altitude need

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• Feb 2004: Bell (model 407), Eurocopter (model 350B3) and Kamov (model KA 226) submit bids. MoD constitutes trial teams. Kamov later drops out

• Nov 2004: Field evaluations of the two helicopters start

• Sept 2005: Trials end. Bell fails to demonstrate two RFP requirements, asks for more time

• Nov 2005 – July 2006: After acquiring FAA certification and arranging helicopter with 3-axis autopilot, Bell writes 10 letters to MoD for conducting trials. MoD fails to respond

• Aug – Oct 2006: New Defence Procurement Policy comes into effect. MoD sends letters to Bell and Eurocopter for Transfer of Technology (ToT) on engine components and other systems as per new provisions

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• Jan 2007: MoD asks Bell and Eurocopter to extend validity of commercial offers due to delay in ToT related issues

• Feb 2007: Eurocopter singled out for the deal as MoD says that Bell failed to meet requirements

during 2005 trials. During the intervening period, Bell has attained capabilities to demonstrate all RFP requirements.

• June 2007: Deal put on hold till ministry clears doubts on selection.