Sunday, February 17, 2013

Chopper deal investigations not to impact AugustaWestland JV:Tatas

Chopper deal investigations not to impact AugustaWestland JV:Tatas

The ongoing investigations in the
alleged bribery case against AugustaWestland's helicopter deal
with India will not have any impact on the tie-up between
Tatas and the Italian chopper maker, said a spokesperson of
the joint venture firm.
 Finmeccanica-owned helicopter maker AugustaWestland
signed an MoU in 2009 with India�s largest corporate house
Tatas for joint venture company - Indian Rotorcraft Ltd - in
GMR Hyderabad Aviation SEZ Ltd here for AW119 helicopter
assembly, completion and delivery to customers worldwide.
 According to an official of IRL, the JV will start
producing the 8-seat AW119Ke light helicopter. The production
will commence from 2014.
 "IRL has no connections with the Indian Air Force
purchase of AW101 helicopters. IRL does not envisage any
impact on the proposed Joint Venture," an IRL official
spokesperson  said  when asked if
the ongoing investigations will have any impact on the JV.
 The official said the assembly activity of the choppers
is slated to start in April 2014, and as per the agreement in
future IRL may sell the civilian choppers to Indian markets.
 "IRL will export the assembled helicopters to
AgustaWestland for it to sell to its customers. IRL business
remit does not include any selling activity for defence
related entities.
 "At a future date, IRL could sell these helicopters also
to the Indian domestic civil market for civilian usage. This
is in line with the proposed Joint Venture�s stated intent to
operate only in the civilian market," the IRL official said.
 The ground breaking ceremony of IRL for chopper
assembling facility was held on March 14 last year in the
presence of Ratan Tata, former chairman, Tata Sons and Bruno
Spagnolini, the arrested CEO of AgustaWestland.
 AgustaWestland landed in controversies both in India and
Italy following the allegations kickbacks to the tune of 362
crore paid to some of the Indian officials.
 The Indian government has issued notice to the Italian
firm asking it to explain within seven days the bribery
allegations. The notice asked the company why the Rs 3,600
crore-deal of 2010 should not be scrapped.
 India has already received three of the 12 helicopters
and paid up to 30 per cent of the amount.
 After the arrest of Finmeccanica CEO Giuseppe Orsi in
Milan on Tuesday in connection with the bribery charges, India
has put on hold the receipt of the remaining helicopters as
well as the rest of the payment.

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