<i>India cancels order for Eurocopter</i>
Citing discrepancies in the evaluation process, India's Ministry of Defense (MoD) has cancelled the Indian Army's tender for 197 Eurocopter AS550C3 Fennec light observation helicopters (LOHs).
"The current request for proposals [RfP] has been scrapped. A fresh RfP will soon be sent out," MoD spokesman Sitanshu Kar said in New Delhi on 6 December.
Hours earlier, Eurocopter had issued a press statement denying media allegations that its contract had been called off and that it was "confident" of signing an agreement.
For almost a year, Eurocopter had made it known that it had almost secured the USD 550 million-USD 600 million order, even as its competitor, Bell Helicopter Textron with its Bell 407 model, claimed t have been unfairly excluded from the race.
However, in June, even as commercial negotiations were in progress, it emerged that there had been 'irregularities' in the evaluation process as Eurocopter had fielded its AS350B3 Ecureuil civilian variant for extended hot weather and high altitude trials in 2004 and 2005.
The final push came a few weeks ago from India's corruption watchdog, the Central Vigilance Commission, which said it had unearthed "sufficient grounds" to scrap the tender.
Sixty LoHs were being acquired in flyaway condition and the remaining 137 were to be built locally under licence.
Source: Jane's Defence Weekly.
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