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Doubts over India helicopter deal | Doubts over India helicopter deal |
(4 days later) | |
A $600m deal India has been negotiating with the European aircraft manufacturer EADS for new military helicopters has been thrown into doubt. | |
A spokesman for India's Ministry of Defence told the BBC the contract is to be opened to other bidders. | A spokesman for India's Ministry of Defence told the BBC the contract is to be opened to other bidders. |
The move is a setback for EADS, which also makes the Airbus family of commercial jets. | The move is a setback for EADS, which also makes the Airbus family of commercial jets. |
The deal is part of a huge military modernisation programme being undertaken by the Indian government. | The deal is part of a huge military modernisation programme being undertaken by the Indian government. |
New equipment ranges from fighter jets to aircraft carriers in what is one of the largest arms purchases of its kind currently being negotiated. | New equipment ranges from fighter jets to aircraft carriers in what is one of the largest arms purchases of its kind currently being negotiated. |
Process 'broadened' | Process 'broadened' |
Some six years in the making, this deal for military helicopters was almost in the bag for the European consortium Eurocopter. | Some six years in the making, this deal for military helicopters was almost in the bag for the European consortium Eurocopter. |
Last February, Eurocopter, whose parent company EADS also makes Airbus airliners, was chosen by India's army to provide 197 new helicopters. | Last February, Eurocopter, whose parent company EADS also makes Airbus airliners, was chosen by India's army to provide 197 new helicopters. |
The Eurocopter had been through field trials, but negotiations over the final price were outstanding. | The Eurocopter had been through field trials, but negotiations over the final price were outstanding. |
Now, though, a spokesman for India's Ministry of Defence has told the BBC that the selection process is being "broadened" as other companies complained they had not been given a proper chance to win the contract. | Now, though, a spokesman for India's Ministry of Defence has told the BBC that the selection process is being "broadened" as other companies complained they had not been given a proper chance to win the contract. |
He denied that Eurocopter's bid was being scrapped; it could still emerge as the preferred choice, he said, but India wanted to be sure of selecting the best helicopter possible. | He denied that Eurocopter's bid was being scrapped; it could still emerge as the preferred choice, he said, but India wanted to be sure of selecting the best helicopter possible. |
However, the process of seeking new tenders could set the deal back by months, even years. | However, the process of seeking new tenders could set the deal back by months, even years. |
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