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Eurocopter expresses surprise

NEW DELHI: On a day New Delhi and Paris chalked out defence collaboration at a high-level meeting, Eurocopter expressed surprise at the cancellation of a mega helicopter deal in which it was the sole contender. The company, in which the French have a substantial stake, said it had not officially learnt of the cancellation of the Rs. 17,000-crore tender and remained “optimistic” about the deal being signed during President Nicolas Sarkozy’s visit to India in January.

Last week, official sources announced the cancellation of the deal for about 200 light utility helicopters for the Army. The French Government, which thought the contract had been won with the elimination of a U.S. competitor, immediately served a demarche (a note seeking explanation) on India. While no reason was given in New Delhi, officials in private spoke of violation of tender conditions including the alleged presence of middlemen, offering a less versatile engine and using a civil version for some trials.

Senior Eurocopter official Norbert Ducrot denied the allegations at a news conference on Tuesday. At the same time, he said, there was no information by the Defence Ministry 10 days after the media had reported the deal cancellation. The negotiations over the terms and conditions, which began in February, were still on. “I am still optimistic,” he said to a question whether the contract would be signed during Mr. Sarkozy’s visit.

Mr. Ducrot said there could be no violation of the defence procurement policy of 2006 because the helicopter was given for trials in 2004 and norms could not be applied retrospectively. That Eurocopter was the only company called for price negotiation meant it successfully cleared the first stage of selections — technical examination of the machine.

“As far as we are concerned, all trials were approved. That is why we were called for negotiations. As far as we are concerned we are still negotiating the contract.”

The company was engaged in discussions with the Defence Ministry till a week ago and there was no inkling at the meeting of other ideas in the government about the contract.

On the charge that a civil version was used for some trials, he said it was the same as the military version in terms of airframe, systems, main gearbox, rotor head, blades, engine and performance. “These are identical vehicles and made on the same assembly line. The mild differences between configurations for operational missions, structural enforcements for hard points for armaments were not yet defined for the trials.”

About the engine, the official said one version was not offered earlier because the certification process was not complete.

Otherwise, both versions were the same except for a “peripheral” safety feature in one of them.

Despite Mr. Ducrot’s optimism, Defence Ministry officials maintain that there would be no rethink on the government decision.

There is also diplomatic pressure on India, reminiscent of the activity in the U.S. Embassy after an American company was knocked out of the same tender on technical grounds.

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