It is not done exclusively at even the defence minister’s level. The union cabinet approved the deal after supposedly examining all relevant key technical and financial aspects. Here lies the catch, which the government is painstakingly trying to circumvent by routinely ordering the CBI to investigate into the kickback allegation. It is now almost quarter-of-a-century since Westland’s first junk helicopter supply deal got unfolded. But, nothing much changed in the intervening period. Except that Westland has now become AgustaWestland.

What about AgustaWestland’s growing engagement with other wings of India’s defence services, most notably Indian Navy? Is it true that AgustaWestland is eyeing multi-billion dollar defence contracts in India offering a complete range of maritime helicopters ranging from the three-tonne AW109 right up to the 16-tonne AW101 to meet all future Indian Navy and Coast Guard requirements. Is it also true that AgustaWestland has offered the naval variant of the NH90 to the Indian Navy for its new anti-submarine and anti-surface warfare helicopter requirement? The Italian company has already roped in one of India’s biggest business groups to promote a joint defence venture to promote its future business interest in the country. Who is moving Westland’s Indian Navy deals in the defence ministry or in the government?

A key fact in the Finmeccanica deal is that the helicopters are being manufactured in England by erstwhile Westland Helicopters, a UK aerospace company which changed hands several times since its inception in 1935 before becoming part of GKN Plc and, thereafter, Italy’s Finmeccanica through the later’s subsidiary Agusta to form AgustaWestland. Did the union cabinet raise the question: why another Westland helicopter purchase deal again, especially after the horrendous experience with earlier 21 Westland helicopters between 1986 and 2000. Although those helicopters were purchased under British overseas development assistance (ODA) programme, it cost both its domestic owners, ONGC, and operators, Pawan Hans, over the next 14 years dearly as there is no free lunch in business.

As in the case of AgustaWestland, the Westland-30 helicopter scandal involved the supply of 21 technically substandard helicopters between 1986 and 1988. The deal courted controversy not just in India but also in Britain. In Britain it was seen as a deal by Margaret Thatcher’s government to unethically benefit the ailing Westland Helicopters. Defence Minister Michael Heseltine and Trade and Industry Minister Leon Brittan had to resign in June, 1986. The late Rajiv Gandhi, then the prime minister, who approved the 80-million-plus pound sterling deal, soon got himself enmeshed in a much bigger defence purchase controversy involving the kickback in the purchase of Bofors guns and paid the political price for it in 1989 Lok Sabha election. The ghost of Westland helicopter deal painfully chased the ONGC, Pawan Hans and the government till 2000 AD, turning the public sector helicopter company almost terminally sick.

Technically-weak Westland-30 helicopters and their high operational costs made the deal controversial right from the beginning. The first Westland helicopter crashed in 1988 and another met with serious accident, the next year. The ONGC and Pawan Hans decided to ground the remaining fleet of 19 helicopters. A high-level technical committee led by Dr SA Hussainey found the helicopters suffering from design and manufacturing defects reducing safety standard. Operational costs were extremely high. The helicopters had to be permanently grounded grounded for 12 years until they were sold back to Britain for a scrap value of £900,000. A global tender invited for sale of the grounded fleet in 1993 failed to elicit a response.

Therefore, the pertinent questions are: why Westland again; why did the union cabinet ignore the tinkering of the original technical specifications and flying parameters suggested by the buyer to suit, instead, the manufacturer of the flying machines; why did poor India need so many high-cost helicopters for its VVIP movement; why didn’t it go for two or three such choppers instead of 12; and who pushed the Westland case at the highest decision making level in the government? Defence purchase deals are rarely clean. Governments all over the world are aware of it. Ask BAE Systems, the world’s top defence exporter, a 10 per cent commission or bribe in defence supply contracts are common in the industry. Ironically, Italian AgustaWestland followed exactly the same practice to pay Rs. 350-crore kickback to grab the Rs. 3,546-crore contract from the government to supply 12 helicopters for India’s VVIP protection.

Interestingly, AgustaWestland has a joint venture company in India with the Tatas. It was believed to have been set up also in 2010 when the Italian company inked the controversial helicopter deal with India. Encouraged by the latest business success in India, Geoff Hoon, Managing Director International Business, AgustaWestland recently said: “India is an important and growing market for AgustaWestland, so at Aero India we are promoting the most modern and capable rotorcraft available today, confident that we can build on our past successes and fulfil the future requirements of both the Indian armed forces and commercial customers.”

Added Hoon: “We will also be using Aero India to help pursue our strategy to expand and develop our relationships with Indian companies to ensure we are a part of India’s growing aerospace industry. Indian Rotorcraft Limited, our joint venture with Tata Sons, is a prime example of this strategy and our long term commitment to India.”

In fact, AgustaWestland is eyeing much bigger defence deals in India offering a complete range of maritime helicopters ranging from the three-tonne AW109 right up to the 16-tonne AW101 to meet all future Indian Navy and Coast Guard requirements. Will AgustaWestland involvement with India’s defence sector remain ‘business as usual’ after the current kickback exposure in the VVIP helicopter supply deal which the defence minister threatens to scrap now? (IPA Service)