Following a strong representation by the public sector HAL against its exclusion from the shortlist of Indian bidders for the $3 Billion Naval Utility Helicopter (NUH) programme, the Ministry of Defence has asked the Indian Navy to reconsider HAL's bid for selection as the Indian production agency for delivering 111 helicopters.

In view of HAL's representation for a reconsideration, approval of the Indian Navy shortlist for the programme was deferred by the Defence Acquisition Council (DAC) which met under the chairpersonship of Defence Minister Rajnath Singh on November 28, well-informed sources conformed to this reporter. Approval of the shortlist by the DAC is essential before issuing the tender. The timeline for issuance of tender for this important acquisition was December 2019. It has now been thrown into uncertainty.

The initial elicitation by the Indian Navy of an Expression of Interest from Indian companies earlier this year for the programme specifically mentioned that the process was meant for only the private sector. But HAL and its subsidiary, IRHL nonetheless responded to the EoI, seeking to be considered for the competition

NUH is the first defence acquisition programme under the ambitious Strategic Partnership Model under Chapter 7 of the Defence Procurement Procedure (DPP) 2016, which is meant to midwife the creation of a private sector Defence Industrial Complex.

In its representation which is backed by an "independent opinion" by a former Chief of Integrated Defence Staff, HAL has also reportedly sought the scrapping of the Strategic Partnership Model.

The initial elicitation by the Indian Navy of an Expression of Interest from Indian companies earlier this year for the programme specifically mentioned that the process was meant for only the private sector. But HAL and its subsidiary, IRHL nonetheless responded to the EoI, seeking to be considered for the competition. Shortlisted Indian Strategic Partner hopefuls are required to partner with a foreign OEM identified through a parallel EoI, and submit a competitive bid. Foreign OEMs are meant to be technology partners.

The Indian Navy stuck to the mandate of the NUH programme, and did not consider the public sector, and shortlisted Tata Advanced Systems Limited (TASL), Mahindra Defence, Adani Aerospace & Defence and Bharat Forge as the Indian bidders, while reportedly dropping Reliance and Laxmi Machine Works from the list.

The Indian Navy stuck to the mandate of the NUH programme, and did not consider the public sector, and shortlisted Tata Advanced Systems Limited (TASL), Mahindra Defence, Adani Aerospace & Defence and Bharat Forge as the Indian bidders, while reportedly dropping Reliance and Laxmi Machine Works from the list

All the foreign OEMs which responded to the EoI as technology providers to the Indian Strategic Partner earlier this year made it to the parallel shortlist. These are Airbus Helicopters, Lockheed Martin-Sikorsky and Russian Helicopters, which have offered the AS565 MBe Panther & H145M, S-76D and e Ka-226T helicopters respectively for the competition.

HAL is learnt to have submitted to the Ministry of Defence an "independent opinion" by Vice-Admiral Raman Puri (Retired), a former Chief of Integrated Defence Staff (CISC) and currently a distinguished fellow of the New Delhi-based think tank Vivekanand International Foundation, to endorse its credentials as the most qualified Indian company to build helicopters. This opinion also seeks a re-look at the entire Strategic Partner Model, this reporter has learnt from reliable sources.

"In the light of HAL's submissions, the DAC deferred consideration of approval for the NUH shortlist prepared by the Indian Navy," sources confirmed, suggesting that the acquisition process for the vital requirement will be delayed by at least six months.

SP's Aviation and SP's Naval Forces in their reports on November 22 broke the story about the exclusion of HAL and its subsidiary IRHL from the shortlist of bidders in the NUH programme.