Navy Finally Ups the Ante

Aditya Kakkar

The Defence Acquisition Council (DAC), chaired by defence minister Nirmala Sitharaman, has approved the procurement of 111 utility helicopters for the Indian Navy under the strategic partnership model which aims to localise manufacturing and indigenise the defence industry.

The Indian Navy intends to procure 123 naval multi-role helicopters (NMRHs) with anti-submarine warfare capabilities, and 111 armed light naval utility helicopters (NUHs). The total value of the two contracts is estimated at over USD10 billion and the Request for Information (RFI) has been sent to six original equipment manufacturers (OEMs).

“The present government has taken a series of significant policy initiatives, including promulgation of Defence Procurement Procedure (DPP) 2016 which gives highest priority to indigenous design and manufacture of defence equipment, introduction of strategic partnership model, liberalisation of foreign direct investment (FDI) norms and providing a level-playing to private industry,” the defence minister had said.

On October 31, the DAC had accorded the Acceptance of Necessity (AON) for the 111 NUHs. 16 helicopters are expected to be procured in fly-away condition from a foreign vendor, with the remaining 95 to be built in India by an Indian partner via joint ventures and technology transfers.

The govern