Bengaluru, March: The Government has cleared a proposal worth around Rs 8,000 crore for acquiring 32 ALH Dhruv to boost the maritime security capabilities of the Indian Navy (IN) and Indian Coast Guard (ICG).
Of the 32 helicopters to be built by HAL, 16 each would be shared by both the services. To execute the deal, HAL has inked a Performance Based Contract, which is emerging as a preferred acquisition strategy for defence acquisition and asset management.
“The PBL is the purchase of Logistics support as an integrated, affordable, performance package designed to optimize system readiness and meet performance goals for the product through long-term support arrangements with clear lines of authority and responsibility”, says HAL Chief T. Suvarna Raju.
PBL ensures the availability of products to the customer while the responsibility gets transferred to the contractor. The PBL envisages rewards or penalties based on the performance.
The contracts were signed by Mr. V. Natarajan, General Manager (Helicopter Division), HAL and Mr. Jayant Sinha, JS & AM (MS), MoD, in New Delhi yesterday. Senior executives from HAL, the Indian Navy and the Indian Coast Guard were present on the occasion.