FEBRUARY 2014

» File photo of Defence Minister, A K Antony at the cockpit of Dhruv Helicopter. (For representational purpose only)
» SURYA GANGADHARAN
OOn the face of it, AgustaWestland’s
bid to supply VVIP helicopters to
India is now over and done with.
But it’s not yet the end of the story.
For one, the Defence Ministry did not
indicate if AgustaWestland (AW) was being
blacklisted. The reluctance to do so
probably stems from the need to maintain
the three VVIP helicopters delivered so far
(for which money has been paid and AW’s
cooperation is essential).
It is also intended to safeguard projects
that the Defence Ministry has okayed with
AW’s parent firm Finmeccanica and its
other subsidiaries. These include MBDA
which will supply weapons for the MMR-
CA Rafale, also MICA and Meteor missiles.
Then, Selex EKS is supplying the air
surveillance radar for India’s indigenous
aircraft carrier. WASS has to upgrade
all lightweight torpedoes for the Indian
Navy’s fleet of submarines. And NH Industries
is bidding to supply maritime
helicopters for the navy.
The Defence Ministry has therefore
appointed a retired judge “to safeguard
our interests” as the ministry stated in the
arbitration proceedings that the AW has
initiated. This comes at a time when the
government remains opposed to any arbitration
(and is moving to secure the 250
mn Euro guarantee money that the AW
had deposited).
On the other hand, AW continues
to deny any wrongdoing. In fact, despite
the barrage of publicity surrounding the
government’s prosecution of bribery allegations
case, nothing has turned up. The
word is that the CBI has not touched the
Tyagi brothers after the initial round of
interrogations last year. The investigation
agency says that the bribe money was paid
(according to Italian reports 6 mn Euro to
politicians, 6 mn to IAF officials (read Tyagis),
and 8.4 mn to bureaucrats) but has
not been able to trace where and to whom
the money went.
This is where the Swiss businessman
Guido Haschke’s notings made in 2008,
seized by the Italian investigators while
probing an entirely different case, could
prove interesting. For instance, the notings
This is where the Swiss
businessman Guido Haschke’s
notings made in 2008, seized by
the Italian investigators while
probing an entirely different case,
could prove interesting
refer to an “AP” in the “POL” list. ‘POL’
could mean politician although there’s no
certainty about this. Then there’s a reference
to “FAM” that some have interpreted
to mean family. There are also references
to “DS, JS Air, AFA, DG Acquisitions” in
the list titled “BUR” (bureaucracy?). The
CBI will get to question Haschke in Italy
once the trial there wraps up.
So, what happens to the VVIP helicopter
fleet? The original plan was to buy 12
helicopters and AW is ready and willing to
supply the balance nine still pending. Will
the government bite the bullet and buy
them? Not this government for sure. With
the general elections due, the UPA has
washed its hands off the matter by leaving
it to the next government to decide. With
so much already invested, including training
of pilots and infrastructure, it would
appear that the practical thing to do would
be to complete the buy.
Such a move maybe politically difficult
for any government. In that case,
Sikorsky which was No.2 in the VVIP
tender, gets a chance. Sikorsky has invested
in joint ventures in India including
building the S-92 helicopter cabin in
Hyderabad. Perhaps, building a VVIP
chopper in India, a venture which will
create jobs here and ensure that money
stays in the country, could be a better bet
in the long run.
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