Pvt defence firms lament entry of DPSUs into strategic partnership tenders

On April 26, HAL submitted two responses to the Navy's EoI issued to industry for building 111 Naval Utility Helicopters for an estimated Rs 21,738 crore

The entry of Hindustan Aeronautics (HAL) into a helicopter purchase that was reserved for the private sector has raised controversy over the “strategic partnership” (SP) model of procurement.

On April 26, HAL submitted two responses to the Navy’s Expression of Interest (EoI) issued to industry for building 111 Naval Utility Helicopters (NUHs) for an estimated Rs 21,738 crore. The NUHs are being acquired under the SP model, which involves choosing an Indian private firm to build the helicopters in the country, with technology provided by a selected foreign “original equipment manufacturer” (OEM).

The SP policy states: “Strategic Partnerships seek to enhance indigenous