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The Ministry of Defence has extended the deadline for the submission of bids in a $4.5 billion tender for 56 military transport aircraft, in an exceptional move to accommodate the bribery-accused Italian military equipment manufacturing group, Finmeccanica. The deadline in the Avro replacement tender for the Indian Air Force (IAF) has been extended by three months, up to March 2014, upon a request by Alenia Aermacchi, a Finmeccanica group company, highly-placed sources disclosed to The Sunday Guardian. This indulgence allows Alenia's C-27J Spartan aircraft to compete with Airbus Military's C-295.
Bribery charges against Finmeccanica group company Agusta Westland in India's Rs 3,546 crore VVIP helicopter deal have landed the UPA government in its biggest defence scam ever. Defence Minister A.K. Antony ordered the cancellation of the contract for 12 AW-101 VVIP helicopters on 1 January following reports in Italy of kickbacks worth Rs 400 crore (51 million euros).
This was followed up by banning the Finmeccanica group at Defexpo14, India's largest arms exhibition held in New Delhi this month. "It's a clean-up signal for industry," rasped Antony, justifying the decision to keep out the Italian group.
What has puzzled observers, and even functionaries in the Ministry of Defence and the armed forces, is the UPA's apparently contradictory position on Finmeccanica and Agusta. Contrasting with Antony's tough public posture is another signal: that it's business as usual with the Italian group, which continues to participate unhindered in several key big ticket defence tenders.
Agusta Westland itself is involved in three multi-billion dollar helicopter tenders for the Indian Navy. These are the tenders for 126 Naval Multi-role Helicopters valued at over $5 billion, and those for the acquisition of 56 Naval Utility Helicopters and 16 Navy Multi-role and Anti-Submarine Warfare Helicopters, both valued at over $1 billion.
"This reflects a complete lack of clarity," infers former IAF chief Fali Major, accusing the government of mismanaging critical defence procurements. "If Agusta Westland continues to be allowed to participate in the defence business in India, then why not keep and use the three AW-101 VVIP choppers already delivered to the IAF?" he questions.
Finmeccanica companies continue to be involved in several other key defence contracts, competing for business worth over $14 billion. These include the Black Shark torpedo order with WASS for Scorpene submarines, the Selex 40L radar for India's indigenous aircraft carrier Vikrant and its Linaps targeting systems for the M777 ultra light artillery guns for the newly-raised mountain strike corps, Oto Melara naval guns, and Alenia's bid for the $1 billion Navy tender for nine Medium-Range Maritime Reconnaissance (MRMR) aircraft.
The treatment of Finmeccanica and Agusta Westland stands in stark contrast to peremptory bans imposed on several arms companies at the mere hint of a scandal. International companies that have been shut out by the UPA without corruption charges being proven include Singapore's STK, Germany's Rheinmetall, South Africa's Denel and Israel's IMI and Soltam.
While Antony juggles with penalties to be imposed on "corrupt" arms companies, key concessions have been handed out to the house of Finmeccanica: Agusta Westland has curiously escaped blacklisting, and the Ministry of Defence has reversed its seemingly uncompromising position not to enter into arbitration over the cancelled order for VVIP helicopters. These gestures are still being deciphered both in the armed forces and the arms bazaar.
India Allows scam tainted group to bid for $4.5b deal
Bribery charges against Finmeccanica group company Agusta Westland in India's Rs 3,546 crore VVIP helicopter deal have landed the UPA government in its biggest defence scam ever. Defence Minister A.K. Antony ordered the cancellation of the contract for 12 AW-101 VVIP helicopters on 1 January following reports in Italy of kickbacks worth Rs 400 crore (51 million euros).
This was followed up by banning the Finmeccanica group at Defexpo14, India's largest arms exhibition held in New Delhi this month. "It's a clean-up signal for industry," rasped Antony, justifying the decision to keep out the Italian group.
What has puzzled observers, and even functionaries in the Ministry of Defence and the armed forces, is the UPA's apparently contradictory position on Finmeccanica and Agusta. Contrasting with Antony's tough public posture is another signal: that it's business as usual with the Italian group, which continues to participate unhindered in several key big ticket defence tenders.
Agusta Westland itself is involved in three multi-billion dollar helicopter tenders for the Indian Navy. These are the tenders for 126 Naval Multi-role Helicopters valued at over $5 billion, and those for the acquisition of 56 Naval Utility Helicopters and 16 Navy Multi-role and Anti-Submarine Warfare Helicopters, both valued at over $1 billion.
"This reflects a complete lack of clarity," infers former IAF chief Fali Major, accusing the government of mismanaging critical defence procurements. "If Agusta Westland continues to be allowed to participate in the defence business in India, then why not keep and use the three AW-101 VVIP choppers already delivered to the IAF?" he questions.
Finmeccanica companies continue to be involved in several other key defence contracts, competing for business worth over $14 billion. These include the Black Shark torpedo order with WASS for Scorpene submarines, the Selex 40L radar for India's indigenous aircraft carrier Vikrant and its Linaps targeting systems for the M777 ultra light artillery guns for the newly-raised mountain strike corps, Oto Melara naval guns, and Alenia's bid for the $1 billion Navy tender for nine Medium-Range Maritime Reconnaissance (MRMR) aircraft.
The treatment of Finmeccanica and Agusta Westland stands in stark contrast to peremptory bans imposed on several arms companies at the mere hint of a scandal. International companies that have been shut out by the UPA without corruption charges being proven include Singapore's STK, Germany's Rheinmetall, South Africa's Denel and Israel's IMI and Soltam.
While Antony juggles with penalties to be imposed on "corrupt" arms companies, key concessions have been handed out to the house of Finmeccanica: Agusta Westland has curiously escaped blacklisting, and the Ministry of Defence has reversed its seemingly uncompromising position not to enter into arbitration over the cancelled order for VVIP helicopters. These gestures are still being deciphered both in the armed forces and the arms bazaar.
India Allows scam tainted group to bid for $4.5b deal
