HELO SCANDAL: A day after barring AgustaWestland and parent company Finmeccanica from participating in the country’s biennial military exhibition, India says no decision has been made whether to to blacklist the firms from future business for breaching a pre-contract integrity pact concerning the now-canceled purchase of 12 VIP transport helicopters for the Indian air force. The contract for 12 AW101s, signed with AgustaWestland International Ltd. on Feb 8, 2010, was terminated by the government on Jan. 1.
NEW DELHI — India’s defense ministry has barred AgustaWestland and parent company Finmeccanica from a biennial military exhibition as the two companies are “under investigation” for breaching a pre-contract integrity pact concerning the now-canceled purchase of VIP transport helicopters for the Indian air force. “As per our policy, any company under blacklist ... [or] under investigation will not be allowed to participate in the DefExpo,” says G.C. Pati, ministry secretary for defense production.
As efforts to strengthen India's defense-industrial base have fallen far short of the country's self-reliance target, the military is continuing to look abroad for its defense hardware. That is encouraging to international equipment manufacturers from the U.S., Russia, France, Israel, the U.K. and Germany, which have been establishing relationships in India to sell aircraft, tanks, howitzers, unmanned aerial vehicles, combat vehicles, missiles, infantry weapons, submarines and support equipment.