Wednesday, January 01, 2014

BIG STORY: India Cancels €556m VVIP Chopper Deal

For the first time ever, India has scrapped a military hardware contract. Less than a year after the Indian government suspended a Euro 556 million deal for 12 AgustaWestland AW101 VVIP helicopters, the deal has finally been formally cancelled. Execution of the deal was frozen mid-course in February with the delivery of three helicopters, currently in a hangar at Delhi's Palam air force station. A formal statement from the MoD has just been issued:



Most of us reporting the story have heard for months that the MoD and Law Ministry have agreed that there is enough evidence and material to suggest that AgustaWestland violated the Integrity Pact embedded in contractual document, as mandated by the Defence Procurement Procedure.

Big day. Lots of speculation and details coming in. Will update this post later today. Oh, and have a great new year, all!

13 comments :

Anonymous said...

The cancellation comes after one day of retirement of NAK. Now some one should study the Tyagi / NAK combo for the MMRCA when NAK was the DCAS. Lot of skeletons will come tumbling out. Poor AK will have a tough time to carry forward any deal now except FMS.

Anonymous said...

The whole thing from the beginning is a fuss. Instead of vvip helos we need attack helos, transport helos, multi-role helos.

Anonymous said...

was it... out going... chief... delayed... inevitable... ???...

Anonymous said...

Yes right...NAK was the guy who changed the specs for this one...and also one should investigate his role in the spec change for the BTA as well...the chief with max imports....am sure he goes the Tyagi way..

Anonymous said...

what will happen to the money already paid? Did we only pay enough money for 3 helis or did we pay for more than 3 helis?? What will happen to the support of 3 helis that are already delivered, if after this corruption scandal broke, i believe that we cannot do any more business with finmechanica, then how is the govt going to keep these helis running??

Anonymous said...

3 helicopters is for keeps or it has to be returned?

Anonymous said...

Shame these are good machines

Anonymous said...

I could never really understand the logic behind purchasing 10-12 unique helios.

As if IAF had a small problem dealing with the logistics - add to it a totally new aircraft type. At least the Russian Mi range has some degree of commonality between types. We really need to look at the logistical and operational footprints of these a/c.

Our netas do not need a totally new a/c. Even the mighty US Marines landed in hot water when in June 2009, the VH-71 program was canceled due to cost overruns. Right now, they are running an AOA - an analysis of alternatives. In simple terms they are looking for an existing military aircraft and they will upgrade it to meet the specific security and comms needs to the POTUS's Marine One.

With all of us taxpayers shelling out the moolah, no wonder CoAFS SP Tyagi and Co went about buying a brand new jazzy aircraft.

My 2 cents :: buy some brand new Mi17's or equivalent, modify them to meet security and other requirements, jazz them up with comfy interiors:: Voila!

Maybe, I am being too simplistic.. but lets have a look around- everyone seems to have executive helios with modifications: http://en.wikipedia.org/wiki/Air_transports_of_heads_of_state_and_government

Frankly this was a wild goose chase... with all parties interested feeding off the gravy train.

Anonymous said...

Better late than never. To hasten indigenous R&D allVIP,units need to equipped with Locally developed ALH, SPG armed with trichy assault carbines.

Anonymous said...

Deal Cancelled ,
3 helicopters To be return back,

then what who is the new contender for VVIP contest.....??????

will it be Sikorsky S-92******

victor raj said...

Good decision. There should be some sort of scam involved in this deal.

Also don't sign any deals for the next 1 year, let Rupee value gain to 45 against US dollar and simultaneously against POUND and EURO. Then sign all our military deals.

S. Suchindranath Aiyer said...

Hopefully, India will spend the money on buying fighter aircraft it sorely needs (such as a combination of the Euro Fighter and the Draken) instead of finding yet another way of pampering its VVIPs, bribing the US by buying transport aircraft (C 17) it does not need, or the rentiers of its DRDO-PSU cartel who manufacture the obsolete and unfit for purpose LCA:

Anonymous said...

If the Italians paid the bribe, howcome no names are mentioned on who was involved on the receiving end of this transaction/s?