The HAL Light Utility Helicopter (LUH) along with its derivative Light Observation Helicopter (LOH) was designed and developed by Rotary Wing Research and Design Center (RWR&DC) one of the R&D sections of Hindustan Aeronautics Limited (HAL) for civilian and military applications. These are intended to replace license-built versions of Aérospatiale SA 315B Lama (designated Cheetah) and Aérospatiale Alouette III (designated Chetak) in service with Indian Army and Indian Air Force.
Development
Background
During the 1990s and the 2000s, the procurement of a modern successor to the aging HAL Cheetah and HAL Chetak helicopters of the Indian Army and the Indian Air Force had been recognised as an impending need. Multiple attempts at establishing a competitive tendering programme; one such effort specified a total of 197 utility helicopters for the Indian Army, 60 of which were to be directly purchased and the remaining 137 to be produced under licence by Indian aerospace company Hindustan Aeronautics Limited (HAL). However, this tender, in which the Eurocopter Fennec appeared to be the frontrunner against the rival Bell 407, eventually ended up being cancelled in response to allegations of irregularities in the selection process; Eurocopter was subsequently investigated and exonerated of any wrongdoing. Consequently, new safeguards were implemented to ensure impartiality and the replacement effort was subsequently restarted.
During July 2008, the Government of India circulated a request for proposals (RFP) to various helicopter companies, including AgustaWestland, Bell Helicopter, Eurocopter, Kamov and Sikorsky, for a fleet of 197 light utility helicopters to be purchased in a fly-away condition directly from the manufacturer in order to speed up their delivery. Intended for military purposes, the potential contract was valued as a maximum of $750 million, of which 30 per cent was required to be invested within India under the government's policy of industrial offsets; HAL was also specified as to provide domestic maintenance activities for the fleet, who were reportedly also keen to manufacture further examples locally and further develop the selected type. It had been initially hoped that trials would begin in 2009 and that helicopter deliveries could commence as early as 2010.
By late 2008, Bell had announced its decision not to participate despite earlier considerations on offering a variant of their Bell 407 helicopter; according to Bell, the high offset requirements had made any bid less feasible and thus the company chose to withdraw from the Indian military market. Rival firm Russian Helicopters, submitting its Kamov Ka-226T, was another major competitor for the competition. Shortly after the selection of the Ka-226T to meet the requirement, during December 2015, an agreement was signed for the creation of a joint venture between Rostec, Russian Helicopters and HAL to manufacture the Ka-226T at a new factory to be built at Tumakuru, India. Meanwhile, HAL, which had long held ambitions to design and produce such an aircraft, sought to establish a partnership with a Western manufacturer with considerable technical knowhow in the field; reportedly, Eurocopter were viewed as being the favourite, having already worked with HAL for decades on previous ventures, such as the Chetak and Cheetal that were being replaced.
Project launch
During February 2009, India's defence ministry approved HAL's proposal to enter the design phase on an indigenous design that could potentially meet the requirements of the competition, as well to explore partnership arrangements. HAL promptly performed preliminary design studies on a prospective 3-tonne light helicopter, powered by a single HAL/Turbomeca Shakti turboshaft engine and possessing a range of up to 500 km (270 nm) and a payload capacity of up to 500 kg (1,100 lb). In March 2010, HAL announced that it had decided to proceed on the LUH project alone, without any international partner participating in its development.