The Central government has cleared a proposal worth Rs 8,000 crore for acquiring 32 advanced light helicopters (ALH) to boost maritime security capabilities of the Indian Navy (IN) and the Indian Coast Guard (ICG).
Of the 32 helicopters to be built by the Hindustan Aeronautics Limited (HAL), both the maritime services would get 16 each.
The performance based logistics (PBL) support for five years for 16 helicopters for the Coast Guard is the unique feature of this contract.
"The PBL is the purchase of logistics support as an integrated, affordable, performance package designed to optimise system readiness and meet performance goals for the product through long-term support arrangements with clear lines of authority and responsibility," HAL Chairman and Managing Director T. Suvarna Raju said in a statement on Thursday.
The contracts were signed by HAL General Manager (Helicopter Division) V. Natarajan and Defence Ministry Joint Secretary Jayant Sinha, who is also the Acquisition Manager, in New Delhi on Wednesday.
Senior executives from HAL, the Indian Navy and the Indian Coast Guard were present on the occasion.
The PBL is emerging as a preferred acquisition strategy for defence acquisition and asset management. It ensures the availability of products to the customer while the responsibility gets transferred to the contractor.
The PBL envisages rewards or penalties based on the performance.
--IANS
str/ksk/vt
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
