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By PTI | 10 Nov, 2013, 03.43PM IST 2 comments | Post a Comment

As per the proposal the Indian Rotorcraft will assemble

AW119Kx helicopters, an upgraded version of AW119Ke

chopper.

ET SPECIAL:Save precious time tracking your

investments

FIPB clears Tata, Westland proposal toassemble choppers

READ MORE ON Tata Westland| Tata Sons| Finmeccanica| Finance minister| Business Partnership|AugustaWestland|Attorney General

NEW DELHI: The FIPB has approved a

proposal to assemble upgraded version of

a military and civil helicopter in

collaboration with the Augusta Westland, a

firm which is facing corruption inquiry in

India.

The Foreign Investment Promotion Board

(FIPB) in its meetingon September 19

approved the proposal of Indian Rotorcraft,

which is a joint venture between Tata Sons

(74 per cent) andAugusta Westland(26

per cent).

As per the proposal the Indian Rotorcraft will assemble AW119Kx helicopters, an

upgraded version of AW119Ke chopper. The company expects to commence production

from March 2014.

The issue of corruption charges on Augusta Westland's parent company Finmeccanica

came up during the FIPB meeting and it was observed that "the issue which was being

investigated related to helicopter model AW101 and not this proposal", sources said.

The board, according to sources, observed in its minutes that "the law will take its own

course and the current FIPB consideration is without prejudice to any existing or future

civil or criminal proceedings against the foreign investor or its parent".

The proposal will now be placed before the Finance Ministerfor a final nod.

The Defence Ministry had issued a final show cause notice to Augusta Westland for

violating the terms of the contract on October 21 and asked the Anglo Italian firm to

explain why "all or any action as prescribed, including cancellation of the contract, should

not be taken against them for violating the terms of the pre-integrity pact and the contract

for procurement of 12 VVIP choppers".

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TheAttorney Generalhas already given his opinion to the Defence Ministry that there

was breach of contractual obligations and the integrity pact by the firm.

The government has already frozen the contract for supply of 12 AW-101 VVIP choppers

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Bizzare. How can GOI approve this proposal with a scamstar company. The excuse that

its not for the model under cloud, is to put it mildly, BS.

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