DEFENCE DEALS WITH AGUSTA PUT ON HOLD

The DAC, which is India’s highest defence procurement body, decided to put the tender on hold pending the outcome of investigations against Agusta Westland, which is alleged to have paid 51 million euros (over Rs 400 crore) as kickbacks to secure the Rs 3,546 crore Indian order for 12 VVIP helicopters.

The Sunday Guardian, in its report published on 23 February had revealed how the Ministry of Defence continued to do business with Agusta Westland and its sister companies under the Italian Finmeccanica group, which was still being allowed to bid for defence business in India worth an estimated $14 billion.

The 24 February DAC meeting chaired by Antony also put on hold another big ticket defence deal involving the Finmeccanica group, as was revealed in The Sunday Guardian report. The pause in the estimated $4.5 billion tender for replacement of 56 Avro aircraft for the IAF has been ordered on two counts: One, the involvement of the Finmeccanica group, and two, to consider an inquiry report into a complaint by Heavy Industries Minister Praful Patel on public sector units being barred from this tender.

As recently as in December 2013, the deadline for the submission of bids in the Avro replacement tender was extended to March 2014 upon the request of Finmeccanica’s Alenia Aermacchi, which is pitting its C-27J Spartan against Airbus Military’s C-295.

The Sunday Guardian report triggered a debate on whether the public posturing against Agusta Westland is only for optics, while it continues to be exceptionally indulged in India’s mega arms bazaar.