Acquisition Of 111 Navy Helicopters Hits Rough Weather

New Delhi, May 22, 2020

The critical project for indigenous manufacturing of Naval Utility Helicopters (NUH) is unable to take off due to a lack of consensus on whether the Indian partner should be a private company or a defence public sector undertaking (DPSU). Out of the 111 helicopters, 95 are to be manufactured in India by the selected Indian Strategic Partner. (Reuters file photo of Chetak)

At a time when the mantra is self-reliance, the Indian Navy’s acquisition of 111 helicopters under the strategic partnership model aimed at boosting domestic manufacturing in collaboration with foreign firms is facing hurdles.

This is due to a lack of consensus in the Ministry of Defence whether the Indian partner should be a private or a state owned company.

While the Navy had earlier shortlisted three foreign and four private Indian companies, a recent deliberation that the state-owned Hindustan Aeronautics Limited (HAL) should be the strategic partner has delayed matters, sources said.

There is a view that a Defence Public Sector Undertaking (DPSU) be given the nod.

“Despite Navy’s recommendations and a decision taken as per the strategic partnership model to go with private Indian company without participation of a DPSU, there is back and forth on the participation of HAL, delaying the critical acquisition of NUH,” said a defence source.

An official said a decision to go with a private Indian industry was taken in August 2018.

The Rs 21,000-crore project to include helicopters is critical for enhancing the Navy’s operational capabilities.

These helicopters can operate from warships and will replace the ageing Chetak helicopters used for search and rescue operations, casualty evacuation, low intensity marine operations and torpedo drops.

The Defence Ministry is yet to issue the Request for Proposal (RFP) for Naval Utility Helicopters that will pave the way for domestic manufacturing in collaboration with a foreign company.

The foreign equipment manufacturers will play a key role in transfer technology and be a strategic partner for the Rs 21,000-crore deal.

The Strategic Partnership model aims at collaboration between Indian manufacturers and foreign firms who are willing to share technology and then set up Indian production lines.

The other project under the strategic partnership model for manufacturing of six indigenous submarines, meanwhile, has had some forward movement with two Indian and five foreign companies being shortlisted.

The Ministry of Defence had issued Expression of Interest for short listing of potential Indian Strategic Partners and foreign OEMs for the ‘Procurement of 111 Naval Utility Helicopters (NUH) for the Indian Navy on February 12, 2019.

Out of the 111 helicopters, 95 helicopters will be manufactured in India by the selected Indian Strategic Partner.

The foreign firms will have to set up dedicated manufacturing line, including design, integration and manufacturing processes for the helicopters in India and make Indian manufacturing line as a global exclusive facility for the NUH platform being offered.

Through the strategic partnership model, the government aims at reducing defence imports that currently account for 60 per cent of military acquisitions.

Courtesy: India Today