Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  India bans Finmeccanica from bidding for govt contracts
BackBack

India bans Finmeccanica from bidding for govt contracts

India cancelled a $751 million order with Finmeccanica's AgustaWestland, after Italian prosecutors alleged that Indian officials were bribed

Finmeccanica declined to comment on the defence ministry’s decision to ban the company from bidding. Photo: AFPPremium
Finmeccanica declined to comment on the defence ministry’s decision to ban the company from bidding. Photo: AFP

New Delhi: India has banned Finmeccanica from future contracts, a defence ministry source said on Tuesday, as it presses on with an investigation into a scrapped helicopter contract with the Italian company.

In January, India cancelled a €560 million ($751 million) order with Finmeccanica’s AgustaWestland unit for 12 helicopters after Italian prosecutors alleged the defence group had paid bribes to Indian officials to win the contract.

“Where a tender process is yet to commence, a company under the Finmeccanica group of companies should not be given tender papers for purposes of bidding," a defence ministry source said.

The source asked not to be identified in line with defence ministry policy.

Finmeccanica has denied the allegation of wrongdoing and on Tuesday declined to comment on the decision to bar the firm for now from the Indian defence market, one of the world’s fastest growing.

India will continue with contracts involving the Italian firm that are under execution, the source added. The government will also honour contracts that have been completed but require follow-through service, such as spares and upgrades, the source said.

The case involving the helicopters has embarrassed the Indian government and put AgustaWestland at risk of a blanket ban from the huge Indian market.

India, where a number of defence deals have been hit by corruption allegations over the past two decades, took delivery of three of the helicopters before the deal stalled. REUTERS

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 26 Aug 2014, 05:58 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App