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Section : Economics

Defence ministry scraps deal for 197 Light Utility choppers, opens it for Indian industry
the decision will bring in business worth Rs 40,000 crore to the Indian industry

By Pranav Kulkarni



Within 15 days of Prime Minister Narendra Modi appealing to the industries to make in India, his government has scrapped the deal for a 197 Light Utility Choppers (LUH) and instead opened it for the Indian industry under the Buy and Make Indian category.

This opens the doors for the Indian private sector industry to team up with a foreign manufacturer and make these helicopters within India, thus ensuring a transfer of critical technology.

Defence ministry sources said that the decision will bring in  business worth Rs 40,000 crore to the Indian industry — claim that will be tested only over a period of time. The opening of deal for the Indian industry also comes on the backdrop of the Defence ministry earlier clearing another big ticket program — that if replacing it’s aging Avro aircraft for the Indian private sector last month.

Amongst a total if 20000 crore deals that DAC cleared in one go on Friday  include clearing offset proposals for the procurement of 22 Apache attack helicopters and 15 Chinook heavy lift choppers for the IAF. Besides clearing mid life refit for six submarines at Rs 4800 crore and fitting of Anti Submarine Warfare suit for 11 ships including four destroyers and
seven frigates under projects 15 B and 17 A.

The Navy will also get six of its submarines refitted partly from the original equipment manufacturer as well as Indian shipyards at Rs 4800 crore.

While according extension of Acceptance of Necessity (AON) for the procurement of 118 Arjun Mk II tank for the Indian Army, the council also granted AON for 40 self propelled guns on board MBT Arjun at Rs 820 crore.

The guns will be developed by Ordnance Factory Board.

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