The Defence Acquisition Council headed by Defence Minister Arun Jaitley put off its decision on the procurement of the helicopters for the Navy from vendors including American Sikorsky and European NH Industries, which has Finmeccannica as one of its partners, highly-placed sources told PTI here.
Finmeccannica is the parent firm of AgustaWestland firm, whose Rs 3,600 crore contract for supplying 12 VVIP choppers to the IAF has been scrapped by the Government over the charges of paying kickbacks to Indian agents.
In its July 19 meeting, the DAC, which is the highest body in the Ministry to decide on procurements, the members had to decide on deviations sought by the two vendors in offsets proposal and the road ahead for the deal, sources said.
The deal has been hanging fire for several years now and has seen a series of anonymous complaints leading to a delay in the procurement of helicopters required by the Navy for its warships.
The first DAC meeting under Jaitley cleared proposals worth over Rs 21,000 crore including a go ahead for a tender to produce transport aircraft by indigenous private sector companies.