Italy firm threatens to ‘assess’ projects

Amid moves by the Indian government to blacklist Finmeccanica because of the AgustaWestland VVIP helicopter scam, the Italian defence major has said it may “assess” its ongoing projects of supplying components and essential services if “agreed and transparent solution” to the current uncertainty was not found.

Terming India as an “interesting market” for it, the company hoped that “an agreed and transparent solution” was found as soon as possible, in order to shed light on current initiatives and future business opportunities.

“Should this not be the case, the company will not refrain from assessing the situation given the limited size of the ongoing business in the country,” a statement by Leonardo-Finmeccanica said.

A major player in the Indian defence and civilian market space, Finmeccanica, supplies spares and components to a vast array of products to the Army, Navy and Air Force, including that of 127mm guns and 76mm guns, on various naval ships and spare parts for Seahawk helicopters to radars on several ships and helicopters.

Stating that its business to India was “very marginal”, the company said that “despite the context of uncertainty”, the company “in the spirit of cooperation”, has over the past few years continued to supply components and services essential to ensuring the operation of platforms and equipment for the Indian armed forces.

Defence minister Manohar Parrikar had said that the government has decided to cancel all ongoing tenders for defence equipment won by Finmeccanica as a precursor to blacklisting of the firm, which is being investigated for bribery in the AgustaWestland VVIP helicopter deal.