The Defence Ministry on Friday scrapped a scam-tainted tender worth over Rs. 6,000 crore to procure 197 light utility helicopters for the Army and the Air Force to replace the vintage Cheetahs and Chetaks used to move troops and equipment to high-altitude locations such as Siachen.
At a meeting of the Defence Acquisition Council (DAC) headed by Defence Minister Arun Jaitley, the government also cleared proposals worth over Rs. 17,500 crore, including those for the midlife upgrade of the fleet of submarines for Rs. 4,800 crore and procurement of 118 Arjun Mk II tanks for Rs. 6,600 crore.
The Council decided to retract from the tender for procuring the helicopters and decided that the Indian industry would be given the opportunity to produce 400 such choppers, sources said.
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In line with the 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 that the tender has been scrapped. It had been on hold for two years for a CBI investigation. — PTI