ASW chopper deal stuck due to price escalation

New Delhi, Aug 7 (IANS) A deal for buying multi-role helicopters for the Indian Navy from US firm Sikorsky has not yet been finalised, Defence Minister Manohar Parrikar said on Friday, adding this was due to price escalation by the firm.

“Procurement proposal for the helicopters is being processed in accordance with the Defence Procurement Procedure and the request of Sikorsky for price escalation was not found acceptable by the Contract Negotiation Committee (CNC),” Parrikar said in a written reply in the Lok Sabha.

“The vendor has been informed accordingly,” he added.

India was to buy 16 Sikorsky S-70B Seahawk helicopters but following delays in inking the deal, the cost had increased from Rs. 17.60 billion ($275 million) sanctioned by the defence ministry in 2007 to over Rs. 50 billion.

Sources added the the defence ministry has now ordered fresh negotiations.

In December last year, the Indian Navy had selected the Sikorskys to fulfill its requirement of for anti-submarine and anti-surface warfare.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here