News Story: India’s $1B Deal for Light Helos Faces Cancellation

(VVIP) AW101 (Wiki Info)

By VIVEK RAGHUVANSHI

NEW DELHI — India’s $1 billion tender to buy 197 light utility helicopters (LUHs) could be canceled for the second time in five years, while Italy’s AgustaWestland may face blacklisting in India if allegations about use of a middleman in the competition are confirmed, according to Indian Defence Ministry officials.

The ministry has delayed making a selection in the competition between Russia’s Kamov and Eurocopter following reports that Italian investigators were probing a 2009 award by the Indian Air Force to Finmeccanica subsidiary AgustaWestland for 12 very very important person (VVIP) helicopters. In the course of this investigation, evidence may have been uncovered that an Indian Air Force brigadier general had sought money from AgustaWestland to revise the technical requirements for the LUH competition.

The Defence Acquisition Council, India’s top procurement body and under the chairmanship of the defense minister, deliberated on the LUH tender at its meetings the week ending Oct. 27, though no details are known.

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