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.
The government had previously put all deals with the Finmeccanica group, its affiliates and subsidiaries on hold. The Defence Ministry decision, for which orders have been issued, will allow the group to continue with ongoing business and compete in other deals, it added.
The MoD, last March, cancelled the $770 million deal with AgustaWestland to acquire 12 helicopters for VVIP use after the CBI lodged a first information report, following a preliminary enquiry and claims of Italian prosecutors that the company paid kickbacks to clinch the deal.
According to the report, the terms, which has been cleared by the Attorney General, state: all ongoing contracts will continue unhindered; all contracts related to spares will continue; contracts with Russian manufacturers, where Finmeccanica group is involved in the back-end, will continue; Finmeccanica will be allowed to participate in all tenders but if there are multiple options, the group will not be considered regardless of the competitiveness of the offer.
The decision is a significant departure from the previous government which chose to bar every firm that came under investigations. As a result, some of the top suppliers to the Indian Armed Forces, were affected, crippling many ongoing programmes, the report concluded.
Indias long-awaited MMRCA project with Dassault could be affected in the wake of New Delhis decision to stay all future projects with Finmeccanica, its subsidiaries and affiliates. Finmeccanica holds a 25 per cent share in MBDA, a joint venture with EADS (now Airbus) and BAE Systems, which is pitching its Meteor air-to-air missile to India as a weapon for its planned fleet of 126 Rafale fighters
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
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 plans to restore ties with India after an Italian court acquitted former CEO Giuseppe Orsi and former CEO of AgustaWestland Bruno Spagnolini of alleged bribery charges. “The verdict will allow us to reopen dialogue with Indian institutions, which was interrupted as a result of the investigations linked to supply of 12 AW101 VVIP helicopters to the Indian MoD,” the CEO and General Manager of Finmeccanica Mauro Moretti said in a statement
Defense Minister Arun Jaitley Wednesday reviewed the progress of the indigenous Scorpene submarine construction and other ongoing warship building projects, including the P-15B Class stealth destroyers, Press information Bureau reported. "With all the impediments and material hurdles resolved, the construction of the submarines is progressing on schedule to meet the planned delivery schedule of September 2016," the report said
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
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