The IAF, Army and the Navy require 440 choppers and these would now be manufactured within India including the HAL, private sector firms and foreign players, Defence Ministry officials said here.
The armed forces had projected their their requirements to the Defence Ministry before the government scrapped a Rs 6,000 crore tender to procure 197 such helicopters for the Army and the Air Force, they said.
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Last Friday, the Defence Acquisition Council headed by Defence Minister Arun Jaitley had scrapped the scam-tainted tender for procuring the choppers to replace the vintage fleet of Cheetah and Chetak choppers used to move troops and equipment to high-altitude locations like Siachen.
The DAC decided to retract from the tender for procuring these choppers and the Indian industry would be given the opportunity to produce around 400 such choppers for the requirements of the armed forces.
In line with NDA government’s plan to develop the indigenous industry, the decision is expected to generate business worth over Rs 40,0000 crore for the local industry in the defence sector, they said.
This is the second time in seven years the tender has been scrapped in which European Eurocopter and Russian Kamov were competing and it had been on hold for over two years due to an ongoing CBI probe and allegations of wron- gdoings in the trial process.
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