India scraps 600-million-dollar helicopter deal

0 Comments | AFP, December, 2007

NEW DELHI (AFP) — The Indian government scrapped on Thursday a 600-million-dollar deal to buy 197 military helicopters after allegations of corruption in the bidding process.

"The government has decided to cancel the RFP (request for proposal) for 197 helicopters for the army. A fresh RFP will be issued soon," defence ministry spokesman Sitanshu Kar told AFP.

A fresh global tender will be issued early in the new financial year, which begins in April, an official of the policy-making Defence Acquisition Committee (DAC) said, speaking on condition of anonymity.

The deal was awarded to Eurocopter, the helicopter unit of the European Aeronautic Defence and Space Company (EADS), which makes civil and military aircraft, in February 2007.

Eurocopter is the...