AgustaWestland chopper deal fallout: Finmeccanica out, cloud over defence pacts

On Sunday, PTI quoted the Defence Minister as saying, “Wherever there is capital procurement of Finmeccanica and their subsidiaries, all Requests for Proposal (RFP) will be closed. I am very clear.”

He said that the process for blacklisting Finmeccanica and its subsidiaries has already been started and a note has been sent to the Law Ministry. “The blacklisting process has already been moved,” he said.

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Besides AgustaWestland, the decision will affect Finmeccanica subsidiaries like naval products company Whitehead Alenia Sistemi Subacquel (WASS), radar and communications firm Selex Electronics Systems (ES), aerospace major Alenia Aeromacchi and armaments giant Oto Melara. It is going to raise questions on contracts that are already under execution.

Selex ES is currently fitting the RAN-40L AESA radar system on the indigenous aircraft carrier INS Vikrant. The ship, which is in the final stages of its construction at the Kochi dockyard, will be commissioned into service in 2018.

Another project is the 76-mm naval gun, which Bharat Heavy Electricals Ltd (BHEL) is building under licence from Oto Melara. Although the guns have been produced, spares and upgrades are still required regularly.

Parrikar has said the annual maintenance and import of spare parts of already acquired defence supplies will be continued with the firm and only fresh capital acquisition will be nixed. This means BHEL will continue to deal with Oto Melara to ensure operational serviceability of the guns. Oto Melara was, however, not permitted last year to participate in the $400 million global tender issued by the Navy for 110 30mm naval guns.

Parrikar’s statement also confirms that WASS will not supply 98 Black Shark torpedoes for India’s six French Scorpene submarines being built at MDL Mumbai. WASS had won the tender to provide the torpedoes and it is feared that the first of these submarines, INS Kalavari, scheduled to be commissioned later this year, will be without a torpedo.

Also, European consortium NH Industries, which is part-owned by AgustaWestland, had been in contention for providing multi-role helicopters to the Navy. With Sikorsky as the only other contender, this tender is likely to be withdrawn by the ministry now.