In the Eurocopter deal, astonishingly the wrong machines were tested, posing the question that if middle-men were involved, what were the overseeing agencies doing? Or was there some extraneous pressure?

Driven by the urgent need to replace the Chetaks and Cheetahs of 1960s and 1970s vintage in Army Aviation, a Request for Proposal (RFP) was issued in 2001 for 197 helicopters at an approximate cost of about $600 million (Rs 2,366 crore). Subsequently, in 2006, the shortlisted Bell 407 and Eurocopter’s AS350 B3 were comparatively evaluated. In February/ March 2007, the General Staff evaluation approved by the Indian Army was forwarded to the Ministry of Defence (MoD), and was duly accepted. Reportedly, Eurocopter’s AS350 B3 had received the nod. Replying to a question in the Lok Sabha on March 15, 2007, Defence Minister A.K. Antony confirmed that 60 helicopters would be directly imported while another 137 would be built by Hindustan Aeronautics Ltd under transfer of technology agreement.

On December 6, 2007, the MoD announced that the $550 million (Rs 2,174 crore) deal was off ostensibly because flaws had been detected in the machines during the evaluation process. Apparently, the civilian versions of the aircraft had been offered for trials, thereby, according to the MoD, rules had been flouted, necessitating the declaration of a fresh RFP. Official clarification notwithstanding, the real reasons for the deal falling through continues to fuel speculation. Both contenders claim the versions offered for trials are identical to their military counterparts with very marginal differences. In fact, the military versions were demonstrated at the factory location by both the companies.