Irregularities in Purchase of Helicopters
There was a media report stating that the scope of a probe by Italian prosecutors into allegations against unethical dealings by M/s Finmeccanica, Italy has widened to include the Indian contract signed with M/s Agusta Westland for purchase of 12 helicopters. Ministry of Defence asked for a report in the matter from the Indian Embassy in Rome. The report received indicates that Italian Magistrates/prosecutors are conducting preliminary investigation about allegations of financial malpractices occurring within M/s Finmeccanica, Italy and its subsidiaries in general and there is no specific probe being conducted about India related transactions.
The procurement case was finalized in accordance with the Defence Procurement Procedure. The total cost of the contract for procurement of 12 (twelve) AW-101 helicopters was Euro 556,262,026. These helicopters would replace the ageing Mi-8 fleet.
This information was given by Minister of Defence Shri A.K. Antony in written reply to Shri Tathagata Satpathy and others in Lok Sabha today.
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Purchase of Helicopters from Russia
A contract for procurement of quantity 80 Mi-17 V-5 helicopters for the Indian Air Force (IAF) was concluded between Ministry of Defence and M/s Rosoboronexport, Russia, on 5th December 2008. A total of 27 helicopters have been delivered so far of which 24 helicopters have been inducted into the IAF. Three helicopters are under acceptance.
The total cost of the contract is USD 1.345 billion.
This information was given by Minister of Defence Shri A.K. Antony in written reply to Shri Baliram Jadhav in Lok Sabha today.