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Rs 6,000 cr chopper deal scrapped: media reports

| | Aug 29, 2014, at 10:42 pm
New Delhi, Aug 29 (IBNS) The Centre on Friday scrapped a tender to procure 197 Light Utility Helicopters (LUH), media reported.
According to NDTV channel, the government on Friday cleared the proposal worth over Rs 17,500 crore including midlife upgradation of submarines. 
 
The Defence Ministry also cleared the proposal for 16 multi role helicopters worth Rs 1800 crore for Navy.
 
Reports said that the DAC  on Friday also approved Army communications system worth Rs 900 crores.
 
But the hightlight was the scrapping of 197 Light Utility Helicopters. 
 
The decision was taken at the meeting of Defence Acquisition Council (DAC) chaired by Defence Minister Arun Jaitley, held in New Delhi today. 
 
It has been learnt that, the choppers that were earmarked for Army and Air Force will now be produced indigenously. 
 
Sources said, the Centre is of the view that the own production is expected to generate 40,000 crore of business and boost the economy. 
 
197 light utility choppers were to be procured for ferrying troops and supplies in high altitude areas such as Siachen Glacier and would be used to replace the vintage Cheetah/Chetak choppers which were inducted 40 years ago.
 
But the acquisition has been marred by several controversies. The formal acquisition procedure has been on hold due to an ongoing CBI probe. 
 
Allegations surfaced that a Brigadier had sought kickbacks from AgustaWestland to help it bag the contract. 
 
This came into light when the central investigation agency was probing the 3600 crore 12 VVIP chopper deal scandal.
#Light Utility Helicopters # Helicopters

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