Ecuador Scrapping ALH Deal Likely to Hit HAL

BENGALURU: The decision of the Ecuadorian Air Force to cancel the Advanced Light Helicopter (ALH) Dhruv contract with Hindustan Aeronautics Limited (HAL) could be a setback for the PSU’s efforts to find an international market for its flagship product.

Sources told Express that the EAF has communicated its decision to the HAL recently citing problems with the helicopters as the reason.

The EAF had acquired seven helicopters, five in 2009 and two in 2011, in a contract was worth $45.2 million. The fleet was grounded after four of the choppers crashed.

“Canceling the contract due to crashes is unreasonable as crashes are part of flying exercise,” Air Marshal (retired) B K Pandey told Express. “However, in the light of the decision, it will be an uphill task for HAL to export its helicopters,” said Air Marshal Pandey, former chief of IAF Training Command.

Quoting reports on investigation into the accidents, Pandey said, two of those choppers crashed due to human error and mechanical failure was the reason for the two other crashes.

HAL has exported two Dhruvs to Maldives and one each in Nepal and Mauritius. Around 200 of them are flying with the Indian armed forces, including Indian Air Force, Army and Navy.

As the Original Equipment Manufacturer (OEM), HAL was responsible for maintenance of the choppers for the first two years after the sale and after that, equipment were supplied. During the first two years, a HAL team was stationed in Ecuador to provide technical and logistical support.

Sources in the know of the developments told Express that maintenance of the choppers was the responsibility of the EAF and shipment of parts was done in 2013.

TURBULENT TIMES

• HAL supplied 7 ALH Dhruvs to Ecuador Air Force.
• Five were supplied in 2009 and two in 2011.
• Fleet grounded after four choppers crashed.
• The contract was worth $45.2 million.
• 200 choppers are flying with Indian armed forces
• 2 ALHs exported to Maldives, one each to Nepal and Mauritius.

EAF was using the Dhruv helicopters for cargo shipment, troop movement, medical evacuation, fire-fighting and VVIP transportation. In fact, Ecuadorean President Rafael Correa had defended the decision to acquire ALHs stating that the decision was right, but they were just unlucky.

When contacted, HAL spokesperson Gopal Sutar said they are currently examining the matter. “The matter is under scrutiny,” he said.