Smelling Agusta link, Jaitley defers acquisition of Naval choppers
28 July 2014 5:35 AM IST
Centre has decided to defer its decision on the procurement of 16 multi-role helicopters for the Indian Navy as one of the two companies in the race for the deal is linked with Finmeccannica-- the parent organisation of the scam-tainted firm AgustaWestalnd.
The Defence Acquisition Council headed by defence minister Arun Jaitley put off its decision on the procurement of the helicopters for the Navy from vendors including American Sikorsky and European NH Industries, which has Finmeccannica as one of its partners, said agency reports.
Finmeccannica is the parent firm of AgustaWestland firm, whose Rs 3,600 crore contract for supplying 12 VVIP choppers to the IAF has been scrapped by the government over the charges of paying kickbacks to Indian agents. The government had cancelled AgustaWestland’s contract on 1 January and began the process of encashing bank guarantees of the Anglo-Italian firm worth around Rs 2,200 crore deposited in banks of Italy and India.
In its 19 July meeting, the DAC, which is the highest body in the Ministry to decide on procurements, the members had to decide on deviations sought by the two vendors in offsets proposal and the road ahead for the deal, sources said. The deal has been hanging fire for several years now and has seen a series of anonymous complaints leading to a delay in the procurement of helicopters required by the Navy for its warships.
The Defence Acquisition Council headed by defence minister Arun Jaitley put off its decision on the procurement of the helicopters for the Navy from vendors including American Sikorsky and European NH Industries, which has Finmeccannica as one of its partners, said agency reports.
Finmeccannica is the parent firm of AgustaWestland firm, whose Rs 3,600 crore contract for supplying 12 VVIP choppers to the IAF has been scrapped by the government over the charges of paying kickbacks to Indian agents. The government had cancelled AgustaWestland’s contract on 1 January and began the process of encashing bank guarantees of the Anglo-Italian firm worth around Rs 2,200 crore deposited in banks of Italy and India.
In its 19 July meeting, the DAC, which is the highest body in the Ministry to decide on procurements, the members had to decide on deviations sought by the two vendors in offsets proposal and the road ahead for the deal, sources said. The deal has been hanging fire for several years now and has seen a series of anonymous complaints leading to a delay in the procurement of helicopters required by the Navy for its warships.
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