Imran Khan
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Bell calls on India to end 'restrictive' offset rules
By Jon Grevatt
09 December 2008
Bell Helicopter of the United States has blamed India's "restrictive and narrow" offset policy for its decision to withdraw from the country's USD600 million Reconnaissance and Surveillance Helicopter (RSH) competition.
India's Ministry of Defence (MoD) dispatched a request for proposals (RfP) to Textron subsidiary Bell - along with five other overseas manufacturers - for 197(RSHs) on 24 July. Other recipients of the RfP included MD Helicopters and Sikorsky of the US, pan-European Eurocopter, AgustaWestland of Italy and Russia's Kamov.
The procurement, worth around INR30 billion (USD600 million), includes an offset requirement of 50 per cent of the contract value, as well as the transfer of maintenance-related technology to state-owned Hindustan Aeronautics Limited (HAL).
Bell's vice-president of communications, Joseph LaMarca Jr, said on 3 December that the company decided to withdraw from the bidding last month because the offset demands did not provide sufficient scope to allow Bell to submit a competitive bid.
He said: "Bell Helicopter has decided not to pursue the current RfP from the Indian government for the RSH programme. The Bell executive leadership team felt the offset and contractual obligations for this programme do not meet our current business objectives."
LaMarca explained: "The current tender requires the bidder to commit to acceptance in advance of India's offset requirements and terms, or be subject to exclusion from the competition.
"Bell Helicopter has a very limited amount of production content eligible under these terms, and therefore cannot responsibly commit to this obligation, nor commit Bell to the potential financial penalties."
http://www.janes.com/news/defence/jdi/jdi081209_1_n.shtml
By Jon Grevatt
09 December 2008
Bell Helicopter of the United States has blamed India's "restrictive and narrow" offset policy for its decision to withdraw from the country's USD600 million Reconnaissance and Surveillance Helicopter (RSH) competition.
India's Ministry of Defence (MoD) dispatched a request for proposals (RfP) to Textron subsidiary Bell - along with five other overseas manufacturers - for 197(RSHs) on 24 July. Other recipients of the RfP included MD Helicopters and Sikorsky of the US, pan-European Eurocopter, AgustaWestland of Italy and Russia's Kamov.
The procurement, worth around INR30 billion (USD600 million), includes an offset requirement of 50 per cent of the contract value, as well as the transfer of maintenance-related technology to state-owned Hindustan Aeronautics Limited (HAL).
Bell's vice-president of communications, Joseph LaMarca Jr, said on 3 December that the company decided to withdraw from the bidding last month because the offset demands did not provide sufficient scope to allow Bell to submit a competitive bid.
He said: "Bell Helicopter has decided not to pursue the current RfP from the Indian government for the RSH programme. The Bell executive leadership team felt the offset and contractual obligations for this programme do not meet our current business objectives."
LaMarca explained: "The current tender requires the bidder to commit to acceptance in advance of India's offset requirements and terms, or be subject to exclusion from the competition.
"Bell Helicopter has a very limited amount of production content eligible under these terms, and therefore cannot responsibly commit to this obligation, nor commit Bell to the potential financial penalties."
http://www.janes.com/news/defence/jdi/jdi081209_1_n.shtml
