The Union government has decided to cancel all ongoing tenders for defence equipment won by Italy’s Finmeccanica
Reason: Firm is being investigated for bribery in the Agusta Westland VVIP chopper deal
Announced by: Defence Minister Manohar Parikkar 
Speeches by Defence Minister:
- Annual maintenance and import of spare parts of acquired defence supplies will be continued with the firm and only fresh capital acquisition is being cancelled.
- The government has cancelled the Requests for Proposal for heavy weight torpedoes for Socrpene submarines which was won by WASS, a Finmeccanica subsidiary
- If there is a blacklisting for a specific number of years, there will be no transaction with that company for capital procurement for that many years
- Ministry has already put on hold new transactions with the company
Advantages of Finmeccanica over other companies:
Finmeccanica would play a crucial role in supply of equipment over Russian companies, American companies are slightly costlier and difficult to get
Current Projects:
- Naval platforms under construction like four destroyers of the 15B (Visakhapatnam-class)
- Seven ships of the Shivalik class stealth frigates are designed to be armed with the 127mm Otomelara main gun, which was to be inducted into the navy’s training schools
- Joint programme of state-run Bharat Dynamics and Finmeccanica on network centric warfare prototype
- Finmeccanica subsidiary Selex ES is involved in the supply of RAN-40L 3D air surveillance radars for the 40,000- tonne indigenous aircraft carrier which is under construction at Cochin Shipyard
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