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$1 Billion Indian Navy Helicopter Competition Extended

Discussion in 'Indian Navy' started by Manmohan Yadav, Aug 8, 2012.

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  1. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    The Indian Navy's Multi Role Helicopter (MRH) competition has been extended till December 2012 with the two bidders, Sikorsky and NHI Industries having been notified by the Indian Ministry of Defense (MoD) that their commercial proposals validity be extended till the end of the year.

    The two bids which have been found technically complaint are to be reviewed by a commercial negotiations committee (CNC) before the end of the renewed deadline to choose a winner.

    In November 2011, both companies had cleared the field evaluation trials (FET) for the $1 billion competition to supply 15 helicopters for augmenting the Indian Navy's rotary wing anti-submarine warfare fleet. The contract could lead to another 50 odd helicopters purchased over a period of time.

    [​IMG]

    In a latest communique to the MoD, NHI Industries has claimed that its rival Sikorsky could not have met all the conditions of the Navy's request for proposals (RFP). "In order for Sikorsky to be technically compliant, NHI assumes that its S70B helicopter has been granted waivers on a number of non-compliances of the Multi Role Helicopter (MRH) RFP qualitative requirements".

    NHI Industries has demanded similar concessions before the commencement of contract negotiation stage scheduled for later this year.

    In a written communication to the MoD, NHI Industries has stated that with reports of a CNC being formed, it wants a "written confirmation of the non-compliance waivers granted to Sikorskyâ€￾. It further states that these waivers should equally apply to NHI's NH90 helicopter. It has sought a 30 day grace period to review the "reduced qualitative requirement" once this information is received from the MoD.

    NHI Industries had earlier written a letter to Defense Minister AK Antony seeking clarification as to how Sikorsky made the final cut. NHI Managing Director, B.Vaccari, had pointed out several instances noting Sikorsky’s failure to meet the Naval Staff Quality Requirements (NSQRs) including fuel reserve and sonar among others.

    "NHI would like to understand how this has been demonstrated in the case of the S70B as it does not have dual redundancy built in for aircraft flight control systems," the letter had said.

    An Indian Navy spokesperson had then responded, as quoted in the Indian media, “It emerges that NHI is attempting to mislead the higher authorities and cause delays with unreasonable queries/concerns. The Indian Navy has evaluated the (NHI) NH90 and (Sikorsky) S70B helicopters, and considers both platforms meet the NSQRs specified in the RFP".

    This new salvo by NHI is interesting as it is raking up the issue of non-compliance by its rival Sikorsky when it has already qualified technically and that it should be preparing for the commercial negotiations where the lowest bid would be selected.
     
  2. marshal panda

    marshal panda Lieutenant FULL MEMBER

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    Is the amount we are investing in such deals,not enough for transfer of technology or joint production ?
     
  3. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    The Corrupution Index puts Russia at 147 and India at 87, both being pretty bad Even IKEA pulled out of Russia saying corruption was too bad to even do business there even after they had invested over a hundred milion dollars in Russia. When you have the very corrupt dealing with the most corrupt I wonder what you are really going to get. I had a friend that used to broker deals for Ashland Oil in the middle east and he use to tell me that he would get requests for kick backs in countrys like Saudia Arabia and would have to walk away from the deals because the US laws against kickbacks. He said the peneltys were too harsh for Ashland Oil to take a chance.
     
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