08 April 2013

News Story: Vendors asked to extend validity of bids for 197 choppers


NEW DELHI (PTI): Amid allegations of bribery attempt in the 197 chopper deal, India has asked the two vendors in the race to extend the validity of their commercial bids till the end of this year, making it clear that the procurement is in for further delay.

The validity of the commercial bids of the two firms -- European Eurocopter and Russian Kamov -- is expiring by the end of this month.

The Director General (Acquisition) in the Defence Ministry has asked the Eurocopter and Kamov to extend the validity of their bids up to December, defence sources told PTI here.

The development makes it clear that the procurement of the light helicopters for the Army and Air Force, which has already been in pipeline for over three years, is in for further delay.

The move comes against the backdrop of the Army asking the Defence Ministry to conduct a probe into allegations that a Brigadier, who was in-charge of the trial team for 197 light choppers, demanded a Rs 25 crore bribe from AgustaWestland to swing the deal in its favour.

AgustaWestland, an Anglo-Italian company, was one of the contenders in the deal for 197 helicopters but lost out in the race during trials.

Read the full story at Brahmand