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.
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