The requirement is for single engine light utility helicopter to replace Chetak and Cheetah in all the current and future projected roles.Bad analogy. We are not buying Gripen/F-16 because we are going for MWF already.
And Ka-226T and LUH are not competitive. The Ka-226T is twin engined and will be used over mountains while LUH has only 1 engine and will be used over plains.
The Ka-226T is a bigger and heavier helicopter, so it's more useful over mountains. Particularly its modular design which allows the addition of different cabins for different roles. Ka-226T can also carry twice the payload as the LUH and also has more range.
The rear door also is a huge advantage over a side door. So you get much more space to work with.
Especially over mountains where space may be a premium. So it's easier for the crew to operate in dangerous areas where the LUH with its long tail cannot. This gives more advantage than even the Chinook does. The coaxial rotors also offer more stability and is much easier to fly, which is very useful in the changing wind conditions over mountains.
It's actually the LUH that's in danger, not the other way round. But of course HAL has been successful with helicopters, so there won't be a problem as such. The order will be shared between Ka-226T and LUH.
The only reason IAF/IA have agreed to induct LUH is because it's Indian and cheap. Or else they would have gone for Ka-226T for the whole requirement.
Overall there's no competition. It's like two different classes of helicopters.
The twin engine might be an advantage in operations at sea, but not a necessity.
And for use in mountains, HAL LUH will be capable enough. There is no current required role which the HAL LUH cannot do.
For the modularity of Ka226T, etc we can very well use our Dhruv or Mi17 if required.
I still wish and pray that this deal falls through.