CONTEXT:

• The Rs 21,738-crore procurement of 111 light Naval Utility Helicopters (NUH) for the Navy is on track to be the first big procurement of the new National Democratic Alliance (NDA) government.
• At least three international original equipment manufacturers (OEMs) submitted proposals to build their helicopters through an Indian industry designated as “strategic partner” (SP).
• The OEMs who have responded include Lockheed Martin, Airbus and Bell Helicopters.
• The proposal for building 111 helicopters allows the OEM to deliver the first 16 from its home production facility, but at least 95 helicopters must be manufactured in India with an ambitious level of 60 per cent indigenisation stipulated.
• This NUH acquisition, which the defence ministry green lighted on August 25, is the first one being processed under the SP procurement model.