NEW DELHI: The IAF is pushing for an early decision on the VVIP chopper deal, which has been frozen pending a CBI probe in wake of bribery allegations, saying the force would soon need the helicopters to ferry VVIPs as the present ones are being phased out.
Meanwhile, Anglo-Italian firm AgustaWestland, which is facing the threat of cancellation of its contract to supply 12 choppers to the IAF, said it has taken the arbitration route to settle the issue contending that the Defense Ministry had no right to unilaterally suspend the contract.
However, the firm did not disclose the names of the organizations or the procedures adopted by for arbitration.
The Defense Ministry also stated that it was not aware of any such initiative taken by the firm.
“There is a CBI case (in the chopper scam) going on here and Italian investigations are happening in Milan. We have informed the government that the Mi-8 choppers which we were using are now going to be phased out from next year.
“So, some decision has to be taken soon on how to move forward. That particular contract has been frozen with effect from February 1,” IAF chief NAK Browne said on the status of the AW-101 chopper contract.
The Defense Ministry had frozen the contract after allegations against top officials of the Anglo-Italian firm for paying kickbacks to the tune of around Rs 350 crore to Indian officials to secure the contract.
In the contract worth over Rs 3,600 crore, there is an allegation that kickbacks were received by then IAF Chief SP Tyagi and the CAG also recently pointed out loopholes in the deal signed in 2010.
Browne said of the 12 machines ordered, three choppers have already been received by the force and two of them were in VVIP version while one was cargo variant. . The IAF Chief said the AW-101 choppers deployed at the Palam air base “have flown very little in the last two months.
We are training our boys there. The spares are also very limited. They have flown very little.”
Asked why the IAF was flying the three AW-101 choppers when there was a possibility of the contract being cancelled, the IAF chief said the aircraft have already been procured and they are with the force.
He said the money can be recovered through bank guarantees and other such things submitted by the Anglo-Italian firm. He said the contract can also be revived by imposing penalties on the firm.
Meanwhile, the Anglo-Italian firm issued a statement saying that it has been requesting the ministry since April to hold discussions on the issue of the contract for 12 VVIP choppers, but there has been no response from the government.
“Following the suspension of the contract to supply AW101 VVIP helicopters to India a sanction not provided for under the contract a request was made to India’s Defense Ministry by us in April 2013 invoking the contractual provision for bilateral discussions.
“Since then, there have been a series of further requests for discussions. Regrettably, there has been no response from India’s MoD,” the firm said.
The firm wanted to hold talks with Indian authorities in order to “resolve the issues confronting us and to allow the Indian armed forces to receive the equipment they need,” the release said.
“The need to resolve this issue has left AgustaWestland with no other option but to invoke arbitration through counsel
the next step prescribed by the contract. This is not a step we take lightly,” it said.
Arbitration proceedings are confidential, the firm noted, and questioned the unilateral suspension of the contract saying, “Neither the contract nor the associated Integrity Pact confers such rights on the Indian Defense Ministry”. -PTI
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