February 17, 2011 8:13 PM

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India to go for open bidding for Navy deal; rejects US offer

India has turned down an American offer to supply 16 multirole helicopters (MRH) through the Foreign Military Sales (FMS) route for its Navy. Defence Ministry sources said in New Delhi on Thursday, it has decided to go for open competitive bidding for the multi-billion dollar deal. The US Navy had offered the MH-60 'Romeo' to meet Navy's requirement for 16 MRH through an inter-governmental agreement. The Navy urgently requires the MRH to replace its aging SeaKing fleet inducted in 1970. It had 40-odd SeaKing choppers in its air wing, but the strength has come down to about 30 helicopters due to mishaps. The MRH's primary role would be anti-submarine warfare and anti-surface warfare, while its secondary role would include search and rescue, cargo carrying and casualty evacuation. The Navy will also have the option of placing orders for another 44 helicopters, once the present contract is completed.The contract also mandates fulfillment of the offset obligations by the winning bidder, which requires it to reinvest 30 per cent of the contract amount back into the Indian defence industry.

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