Wednesday, February 13, 2013

AgustaWestland choppers issue


Background:
  • Earlier Mi-17 cargo helicopters were used for VVIP deployment.
  • Indian Air Force has sought the AgustaWestland choppers as a replacement
  • The Comptroller and Auditor General "it was a waste of resources"
M/s Finmeccanica : manufacturer of AgustaWestland choppers

Ministry Of Defence signed a deal with M/s Finmeccanica for 12 AgustaWestland choppers in Feb 2010 worth INR 3600 crore
 

why it was chosen:
1.It allows vvip to drive right upto the rear exit and not expose protected leaders to threats
2.Much more luxurious model
"Three of such helicopters has already been delivered."

Italian media gives a breaking news:
"slush money generated through arms contracts such as the Indian deal to fund political parties".

accusations:
"around 50 million euros (about Rs 362 crore), about 10 per cent of the contracted amount, were ploughed back as kickbacks to ensure AgustaWestland won the contract

The Italian police arrested the CEO of Finmeccanica 'Giuseppe Orsi'

In India:
Ordered CBI probe into this issue

If found guilty then what India can do:
1. cancellation of the contract
2. blacklisting the companies so that they can not participate in any Indian deal

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