Saturday, January 04, 2014

India Cancels AgustaWestland Helicopter Contract

India terminated its EUR750 million (USD764 million) contract with AgustaWestland for 12 AW101 helicopters on 1 January.

The long-anticipated cancellation of the VIP transport deal was announced after an extended meeting in New Delhi between Defence Minister A K Antony and Prime Minister Manmohan Singh.

The meeting followed the receipt of court documents from Italy, where the case is under investigation.

The Ministry of Defence (MoD) said in a statement that the AW101 contract had been "terminated with immediate effect ... on grounds of breach of the pre-contract Integrity Pact (PCIP)".

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