India may scrap 600-mln-dlr Eurocopter deal
India's army may scrap a 600-million-dollar deal for 197 helicopters from an EADS unit because of complaints about the bidding process and the role of agents, an official said Sunday.
India's policy-making Defence Acquisition Committee is expected to issue a fresh tender for the helicopters in the next financial year, said an official with the committee who did not want to be named.
An Indian army spokesman declined comment on the deal, awarded in February 2007 as part of an army modernisation programme.
The official said New Delhi was probing links between an army general and Indian agents of Eurocopter, part of the European Aeronautic Defence and Space Company, which makes civil and military aircraft.
The deal was suspended in June 2007 on the recommendation of a federal watchdog overseeing major government purchases.
"Some aspects of the deal probed by the Central Vigilance Commission also included complaints from (US-based) Bell Helicopter that it had been rejected on flimsy grounds," the committee official said.