Myth_buster_1
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June 1/08: The Press Trust of India reports that Russias state-run Rosoboroexport has hiked the price tag for the Mi-171Vs from $650 million or so agreed in March 2007, to over a billion dollars. This comes on the heels of similar moves by Russia with respect to Indias aircraft carrier deal, and PTI reports that ...the demand for more than fifty per cent price hike has irked the Ministry of Defence.
The problem for Indias MoD is that Russia has most of the negotiating leverage. The competing European NH90 medium helicopter is still badly backlogged, as is the American CH-47 Chinook heavy-lift helicopter that has become so popular in Afghanistans hot and high conditions. The European medium-heavy EH-101 is in beter shape than the NH90, but its still backlogged as well to the point that Britain bought Denmarks fleet to upgrade its front-line capacity, rather than waiting for delivery from the factory. That leaves Russias Mi-17, which has abundant international orders and does not depend on India, adoption of the American S-70 Black Hawk with its corresponding removal of key features and questionable hot and high performance, or possibly Eurocopters EC532/EC725 Cougar. Inducting the Black Hawk or Cougar into service would come with an additional cost of its own, however, since they would not be compatible with Indias existing 12 squadrons of Mi-8 and Mi-17 helicopters. If additional training, maintenance tooling, spare parts inventory, et. al. adds 30-40% to the helicopters procurement cost, these alternatives may not even be able to offer much of a financial advantage over the revised Russian deal.
The problem for Indias MoD is that Russia has most of the negotiating leverage. The competing European NH90 medium helicopter is still badly backlogged, as is the American CH-47 Chinook heavy-lift helicopter that has become so popular in Afghanistans hot and high conditions. The European medium-heavy EH-101 is in beter shape than the NH90, but its still backlogged as well to the point that Britain bought Denmarks fleet to upgrade its front-line capacity, rather than waiting for delivery from the factory. That leaves Russias Mi-17, which has abundant international orders and does not depend on India, adoption of the American S-70 Black Hawk with its corresponding removal of key features and questionable hot and high performance, or possibly Eurocopters EC532/EC725 Cougar. Inducting the Black Hawk or Cougar into service would come with an additional cost of its own, however, since they would not be compatible with Indias existing 12 squadrons of Mi-8 and Mi-17 helicopters. If additional training, maintenance tooling, spare parts inventory, et. al. adds 30-40% to the helicopters procurement cost, these alternatives may not even be able to offer much of a financial advantage over the revised Russian deal.
