Ecuador signs contract to buy Dhruv Helicopters

Ecuador signs contract to buy Dhruv Helicopters (NSI News Source Info) NEW DELHI - November 18, 2008: Foreign Minister of Ecuador Maria Isabel Salvador met her counterpart, Pranab Mukherjee, on Monday with a close relationship in oil and defence between these geographically distant countries high on the agenda. On the oil front, the new government in Ecuador has reversed the earlier revenue-sharing arrangements with western oil companies and is now keen on striking new partnerships with state-owned companies from China, Russia and India.

PUSH FOR TIES: External Affairs Minister Pranab Mukherjee with his Ecuador counterpart, Maria Isabel, in New Delhi on Monday

In the defence sector, Ecuador became the first country to sign a contract for purchasing the indigenously made Dhruv helicopters of which one will be for use by its President. The Embassy here has expanded its setup with the appointment of a Military Attache and prospects appear bright for more defence exports as Ecuador has agreed to be the servicing hub in South America for Indian defence equipment.

India has won an export order to supply seven homemade Advanced Light Helicopters, the Dhruv, to the Ecuadorian Air Force. The Indian Defence Ministry's June 26 news release said that Hindustan Aeronautics Ltd. (HAL) "has bagged this order amidst strong competition from Elbit of Israel, Eurocopter of France and Kazan of Russia. HAL's offer of $50.7 million for 7 helicopters was about 32% lower than the second lowest bid from Elbit." The contract is likely to be signed within a few weeks, and the first helicopter would be delivered by HAL in six months, a Defence Ministry official said. HAL has already supplied 76 helicopters to the Indian defense services and has an order to supply 159 more to the Army and Air Force. Other countries have inquired about the Dhruv, the Defence Ministry official said. However, early this year, Chile rejected the Dhruv in favor of Bell Helicopter's Bell-412. The Chilean Air Force bought 12 light transport helicopters from Bell Helicopter for more than $120 million. HAL has already sold two Dhruvs to Nepal and has dispatched one for the use of the Israeli Air Force. Designed and developed by HAL, the Dhruv is a multirole, cost-effective helicopter in the 4- to 5-ton class for civilian and military use.