Modi government allows Finmeccanica and AgustaWestland to do business

Discussion in 'Indian Air Force' started by Zebra, Aug 23, 2014.

  1. Zebra

    Zebra Senior Member Senior Member

    Joined:
    Mar 18, 2011
    Messages:
    6,009
    Likes Received:
    2,251
    Modi government allows Finmeccanica and AgustaWestland to do business with India : India, News - India Today

    Pranab Dhal Samanta New Delhi, August 22, 2014 | UPDATED 23:14 IST


    In a major shift from the UPA regime's blacklisting policy, the Narendra Modi government has decided against barring Finmeccanica and AgustaWestland from doing business with India. However, it has placed conditions, which will disallow the company from getting any new order where there is another vendor option.

    As of now, all deals with the Finmeccanica group, its affiliates and subsidiaries are on hold. The Defence Ministry decision, for which orders have been issued, will allow the group to continue with ongoing business and compete in other deals.

    Finmeccanica, it may be noted, came under investigation in the VVIP chopper deal in which its subsidiary AgustaWestland has been accused of corrupt practices.

    This, sources said, may well be the template for all the firms blacklisted by the UPA government. The principle at play is to ensure that there is no impact on the country's defence requirements while still imposing some penalty on the firm under scanner.

    The terms, which has been cleared by the Attorney General, state:

    * All ongoing contracts will continue unhindered.

    * All contracts related to spares will continue

    * Contracts with Russian manufacturers, where Finmeccanica group is involved in the back-end, will continue

    * Finmeccanica will be allowed to participate in all tenders but if there are multiple options, the group will not be considered regardless of the competitiveness of the offer.

    * However, where the group is the single vendor with no other firm providing options, the government is empowered to go ahead with the deal.

    While giving these allowances, sources said, criminal investigations will continue and remain delinked from the procurement processes.

    The decision is a significant departure from the previous government which chose to bar every firm that came under investigations. As a result, some of the top suppliers to the Indian Armed Forces, were affected, crippling many ongoing programmes.

    It may be recalled that the new government had given indications in its first days of power that the blacklisting procedure would be reviewed, given its implications on the modernisation process of the armed forces.
     
    Daredevil likes this.
  2.  
  3. Daredevil

    Daredevil On Vacation! Administrator

    Joined:
    Apr 5, 2009
    Messages:
    11,613
    Likes Received:
    5,670
    Re: Modi government allows Finmeccanica and AgustaWestland to do busin

    Smart move. It will remove policy & procurement paralysis caused by banning of major arms manufacturers by AK Antony. He literally crippled our defence forces.

    Hope other companies take the cue & stop involving middle men. Deal directly with the government if you think your product is superior.
     
    AVERAGE INDIAN and jackprince like this.
  4. Meriv90

    Meriv90 Regular Member

    Joined:
    Jan 18, 2013
    Messages:
    220
    Likes Received:
    123
    Location:
    Venice
    Re: Modi government allows Finmeccanica and AgustaWestland to do busin

    Useless, I prefer to be still banned than:

    -Finmeccanica will be allowed to participate in all tenders but if there are multiple options, the group will not be considered regardless of the competitiveness of the offer.

    The VVIP corruption investigation started on Italian side, now that it has been completely cleared of charges on Italian side it should happen the same on the Indian one in place of a half ban like this.

    This is a giant gift to Sikorsky.
     
  5. pmaitra

    pmaitra Moderator Moderator

    Joined:
    Mar 10, 2009
    Messages:
    31,663
    Likes Received:
    17,163
    Location:
    EST, USA
    Re: Modi government allows Finmeccanica and AgustaWestland to do busin

    What they are saying is that only if there is no other option or alternative, Finmeccanica will be considered.

    This will give the government the excuse that they had no other choice but to buy from Finmeccanica for "operational reasons," like they did with Rolls Royce. This is done to shield the government from criticism.
     
  6. Meriv90

    Meriv90 Regular Member

    Joined:
    Jan 18, 2013
    Messages:
    220
    Likes Received:
    123
    Location:
    Venice
    Re: Modi government allows Finmeccanica and AgustaWestland to do busin

    But it means also that for your Navy helicopter you will forced to choose the SH-60 without even considering other options like the NH-90 or the Wildcat.

    This also means that the Arx-160 won't be considered also

    I was writing from the italian point of view, I would have preferred still a complete ban. Now I know what to do first in the morning monday, going short on Finmeccanica.
     
  7. pmaitra

    pmaitra Moderator Moderator

    Joined:
    Mar 10, 2009
    Messages:
    31,663
    Likes Received:
    17,163
    Location:
    EST, USA
    Re: Modi government allows Finmeccanica and AgustaWestland to do busin

    I understand you are saying from the Italian point of view.

    If GoI imposes a complete ban, and no one submits a tender, then GoI might have to go back and lift the ban on Finmeccanica, which would make it look silly. From a pragmatic PoV, this is a strategy taken by GoI to shield itself from criticism, not lose face, and also not be in a position where it cannot buy much needed helicopters.
     
  8. fyodor

    fyodor Regular Member

    Joined:
    Apr 18, 2014
    Messages:
    295
    Likes Received:
    244
    Location:
    India
    Re: Modi government allows Finmeccanica and AgustaWestland to do busin

    Yehi to scam hai

    -Yugpurush Arvind Kejriwal
     
    Sameet Pattnaik likes this.
  9. Zebra

    Zebra Senior Member Senior Member

    Joined:
    Mar 18, 2011
    Messages:
    6,009
    Likes Received:
    2,251
    Re: Modi government allows Finmeccanica and AgustaWestland to do busin

    Defence News - Finmeccanica ready to pay penalty to repair ties with India

    Tuesday, October 07, 2014
    By : Hindustan Times

     
  10. Zebra

    Zebra Senior Member Senior Member

    Joined:
    Mar 18, 2011
    Messages:
    6,009
    Likes Received:
    2,251
    http://www.defensenews.com/story/de...ry/2016/04/28/leonardo-finmeccanica/83671264/

    It's Official: Finmeccanica Is Now Leonardo


    Tom Kington
    , Defense News 6:28 p.m. EDT April 28, 2016

    Finmeccanica’s name change to Leonardo was confirmed on Thursday after the Italian group’s shareholders approved the switch.

    Finmeccanica first announced the decision in March by management to drop its historic title in favor of Leonardo, after the 15th century artist and inventor Leonardo da Vinci.

    To help the switch to the new name, the firm said on Thursday it would call itself Leonardo-Finmeccanica until Dec. 31, 2016, before changing to just Leonardo on Jan. 1, 2017.

    The gradual change “is aimed at granting the Company a suitable time frame to ensure the required continuity, mainly in relationships with foreign countries,” the firm said.
     

Share This Page