The Indian Ministry of Defense yesterday confirmed that it would indefinitely put on hold all projects with Finmeccanica and its subsidiaries, although the order has already been in place nearly a month.
Defenseworld.net has learned that the advisory letter from the MOD’s vigilance department were issued in the first week of July to all the Defence Services, ie, the army, navy, air force, coast guard and DRDO (Department of Defence Research and Development Organisation) to put on hold all procurements and acquisition cases in the pipeline with the Finmeccanica Group.
"An internal circular/advisory has been issued to not further process any acquisition project in which Finmeccanica is in the fray as a vendor till we get the attorney general's opinion on the entire blacklisting issue in the VVIP helicopter case (the 556 million Euro contract was scrapped on January 1)," according to the Press Trust of India.
The ban could impact India’s defense eco-system at large and possibly cripple and wide range of procurements including the naval gun-127 mm procurement from OtoMelara, the Navy has already bought ship borne long range surveillance radar from SELEX ES for the indigenous aircraft carrier INS Vikrant under construction, on-going UAV programs such as the DRDO’s RUSTOM will be affected as it uses the most modern AESA RADAR from SELEX ES.
The Navy, which has taken deliveries of 300 sets of NAVAL HF Communication systems from Selex ES, will be further affected should it require spares, etc.
Long-pending projects like the deal to procure 98 Black Shark' heavy-weight torpedoes, manufactured Whitehead Alenia Sistemi Subacquel (WASS), for the six Scorpene submarines being built at Mazagon Docks in Mumbai will also be disturbed.
The competition to procure naval multi-role helicopters (MRHs) could be shaken, with the contenders being European NH-90 helicopters, which have Finmeccanica as a partner, and the American Sikorsky-70B choppers. The first contract for 16 MRHs was to be followed by a bigger one for 123 choppers at a cost of over $3 billion.
According to reports, deals worth an estimated $6 billion could be affected by the ban.
The Indian Ministry of Defense on Tuesday said that all new deals with Finmeccanica, parent company of AgustaWestland, will be put on hold until further notice. "An internal circular/advisory has been issued to not further process any acquisition project in which Finmeccanica is in the fray as a vendor till we get the attorney general's opinion on the entire blacklisting issue in the VVIP helicopter case (the 556 million Euro contract was scrapped on January 1)," an MOD official was quoted as saying by The Times of India newspaper
The Central Bureau of Investigation (CBI) said that it would go ahead with its probe into a scrapped helicopter contract with Finmeccanica on Wednesday, a day after prosecutors in Italy agreed to settle legal proceedings against the defense group. Kanchan Prasad, a spokeswoman for CBI, told Reuters the development in Italy did not affect India's probe of the deal
The Italian Prosecutor has discontinued investigations relating to the 12 AW101 VVIP helicopter contract signed with the Indian ministry of Defense in 2010, Finmeccanica said in a press release on 29 July. “AgustaWestland together with the Prosecutor, have agreed to apply for a negligible fine, whilst confirming the appropriateness of their internal control systems and specifically their non-involvement in the misconduct alleged by the Prosecutor
Gianni De Gennaro, chairman and other board of directors of Finmeccanica approved guidelines to implement new Group Organizational and Operating model. The new model includes new perimeter operating companies, 100% owned by Finmeccanica, of the Aerospace and Defense core business
Finmeccanica-AgustaWestland and Beijing Automotive Industrial Corporation (BAIC) have signed a Memorandum of Understanding (MoU) to pave the way to industrial cooperation for the marketing, maintenance and training for helicopters to be used exclusively for public purposes. The contract was signed at the Italy-China Business Forum held in Beijing, in the presence of Italian Prime Minister, Matteo Renzi and Chinese Premier, Li Keqiang
Finmeccanica, through its companies AgustaWestland, Selex ES and OTO Melara, takes part in DSA 2014, which is held in Kuala Lumpur, Malaysia, 14-17 April. AgustaWestland is showcasing a full scale mock-up of the new generation AW149 medium twin multirole military helicopter on static display, and presents its comprehensive portfolio of commercial and government models
HAL on Friday inaugurated Su-30 MKI repair and overhaul (ROH) project stores at Nashik, the company said in a statement. The facility was inaugurated by Secretary Defence Production, G
After cancelling an international tender to procure 197 utility helicopters, the Indian MoD has fallen back on Hindustan Aeronautics Limited (HAL) to fill the gap with its Light Utility Helicopter (LUH). The Defence Acquisition Council (DAC) reported approved a proposal to allow HAL to manufacture 440 light utility helicopters to be supplied to the Army, Navy and Air Force earlier this month
Hindustan Aeronautics Limited is suggesting the formation of Indian Aeronautics Commission and bring various organizations and institutes currently functioning under different ministries under one umbrella. “This will ensure greater cohesion, synergy, understanding and speeding-up decision making in aerospace related activities”, Dr
Initial findings reveals that a design flaw in the Indian Air Forces advanced light helicopter, Dhruv, may have caused the crash killing seven crewmen dead on July 25. The advanced light helicopter crashed in Sitapur, Uttar Pradesh barely an hour after it had taken off from Bareilly resulting in one of the worst accidents involving a Hindustan Aeronautics Limited (HAL) chopper
Finmeccanica today clarified in a statement that it has not received any official communication from any relevant authorities from India regarding the recent media reports on decisions made by the Ministry of Defense pertaining to its existing and future contracts in India. Local media reported Monday that Finmeccanica and its subsidiaries will be allowed to continue doing business in India and will not face blacklisting
Finmeccanica and its subsidiaries will be allowed to continue doing business in India and will not face blacklisting, according to a report published by India Today magazine. The Indian government has placed conditions, which will disallow the company from getting any new order where there is another vendor option, the report said
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