India has terminated the contract signed with Anglo-Italian helicopter maker AgustaWestland on 08 February, 2010 for the supply of 12 V...
The deal has not been cancelled, but terminated- meaning the Indian Air Force (IAF) will retain the three AW-101 helicopters which has been already delivered.
India suspended the deal in 2013 after Italian investigators arrested Finnmeccanica CEO Giuseppe Orsi following allegation that AgustaWestland paid bribes to win the contract.
Under the contract, valued at around € 560 million, India has so far inducted three of the 12 AgustaWestland-101 helicopters. The deal now will be solved through arbitration.
In August 1999, the Indian Air Force (IAF) which is responsible for carrying out VVIP transportation task, proposed the replacement of aging Mi-8 VIP helicopters due to severe operational constraints, such as, inability of Mi-8 to operate at night and in adverse weather, inability to operate safely at places in elevation beyond 2000 meters. IAF felt the need for the replacement of Mi-8 helicopters as they were completing their total technical life.
