Blue Marlin
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Ecuador cancels Rs 200 crore order of seven ALHs after four crashes
Ecuadorian Hal dhruv
NEW DELHI: India's first military chopper export has gone bust with Ecuador announcing plans to cancel the order after four out of the seven advanced light helicopters (ALH) supplied by HAL have crashed, brining into serious question the safety of the remaining.
Ecuadorian defence minister Fernando Cordero has announced plans to cancel the contract, seven years after the Rs 200 crore deal was signed in 2008 and retire the three remaining choppers. While HAL is yet to receive the official order for cancellation, officials told ET that it would affect pending upgrades and maintenance orders.
The cancellation is especially bitter as HAL had sold the ALH to Ecuador at a price below the manufacturing cost, in the hope that the money would be recovered in service and maintenance contracts through its 20 year service life.
While the ALH has been exported to other nations including Nepal, Mauritius and Maldives, Ecuador was the only order the Indian chopper had bagged in the face of international competition. However, the trouble with the Ecuadorian fleet started within a year of the signing of the contract with the first chopper crashing in October 2009. Though the crash was attributed to pilot error, it took place during the national day celebration of the nation, bringing the fleet's troubles to international attention. Out of the four choppers that have crashed, two are attributed to pilot error.
However, an Indian CAG report has pointed that ALH crashes have taken place due to a design flaw that leads to a loss of control when it is being rolled back from a left turn.
The two other choppers with Ecuador have crashed due to mechanical failure. HAL officials pointed out that the two choppers were being maintained by Ecuador and that the Indian responsibility was limited to providing technical support and spares. While the terms and conditions of the cancellation are yet to be shared, HAL will also explore legal options as payments for several small sub contracts is still pending.
The ALH has had a patchy safety record with several crashes in India as well. In 2014, two ALH choppers crashed in the Siachen area alone. Manufacturer Hindustan Aeronautics Limited (HAL), had sold the ALH even below the manufacturing price to be competitive with other global bidders. A 2013 CAG report had revealed that HAL had quoted a price of Rs 204 crore for the supply of seven choppers, which was Rs 52crore below the manufacturing cost of the choppers.
Ecuador cancels Rs 200 crore order of seven ALHs after four crashes - The Economic Times
Ecuador cancels Rs 200 crore order of seven ALHs after four crashes
Ecuadorian Hal dhruv
NEW DELHI: India's first military chopper export has gone bust with Ecuador announcing plans to cancel the order after four out of the seven advanced light helicopters (ALH) supplied by HAL have crashed, brining into serious question the safety of the remaining.
Ecuadorian defence minister Fernando Cordero has announced plans to cancel the contract, seven years after the Rs 200 crore deal was signed in 2008 and retire the three remaining choppers. While HAL is yet to receive the official order for cancellation, officials told ET that it would affect pending upgrades and maintenance orders.
The cancellation is especially bitter as HAL had sold the ALH to Ecuador at a price below the manufacturing cost, in the hope that the money would be recovered in service and maintenance contracts through its 20 year service life.
While the ALH has been exported to other nations including Nepal, Mauritius and Maldives, Ecuador was the only order the Indian chopper had bagged in the face of international competition. However, the trouble with the Ecuadorian fleet started within a year of the signing of the contract with the first chopper crashing in October 2009. Though the crash was attributed to pilot error, it took place during the national day celebration of the nation, bringing the fleet's troubles to international attention. Out of the four choppers that have crashed, two are attributed to pilot error.
However, an Indian CAG report has pointed that ALH crashes have taken place due to a design flaw that leads to a loss of control when it is being rolled back from a left turn.
The two other choppers with Ecuador have crashed due to mechanical failure. HAL officials pointed out that the two choppers were being maintained by Ecuador and that the Indian responsibility was limited to providing technical support and spares. While the terms and conditions of the cancellation are yet to be shared, HAL will also explore legal options as payments for several small sub contracts is still pending.
The ALH has had a patchy safety record with several crashes in India as well. In 2014, two ALH choppers crashed in the Siachen area alone. Manufacturer Hindustan Aeronautics Limited (HAL), had sold the ALH even below the manufacturing price to be competitive with other global bidders. A 2013 CAG report had revealed that HAL had quoted a price of Rs 204 crore for the supply of seven choppers, which was Rs 52crore below the manufacturing cost of the choppers.
Ecuador cancels Rs 200 crore order of seven ALHs after four crashes - The Economic Times
