April 12, 2008	Saturday	Rabi-us-Sani 5, 1429

NEW DELHI: India is to invite global bids worth two billion dollars for 384 light helicopters in the second biggest military deal this year, defence ministry officials said on Friday.

A source from the Indian government’s weapons contract clearing agency said the call for tenders was finalised and approved on Thursday, and “will be sent out within two weeks” to global defence firms.

Bids would be invited from US-based Bell Helicopter, British-Italian firm AgustaWestland, Russia’s Kamov and Eurocopter, a unit of the European Aeronautic Defence and Space Company (EADS).

“The initial worth of the contract will be $1.6 billion but the bill is likely to go up to $2 billion,” said the official.

The proposed purchase incorporates 197 helicopters that the Indian government had agreed to buy from Eurocopter.

But that $600 million deal was scrapped in December amid major controversy.

The air force has added a requirement of 115 helicopters to the 197 units the army wanted, pushing the value of the deal to one billion dollars and the number of aircraft to 312.

“The number has been since increased to 384 units due to new requirement projections,” the defence source said, adding a separate tender was also likely to be issued this year for a large number of heavy-lift helicopters.—AFP