Don’t miss the latest developments in business and finance.

The Ministry said during the contract negotiations, the

Image
Press Trust of India
Last Updated : Feb 14 2013 | 8:40 PM IST
Air Headquarters recommended inclusion of more systems on-board the chopper including Traffic Collusion Avoidance System (TCAS-II) and Enhanced Ground Proximity Warning System (EGPWS) for all 12 helicopters and SPG/PMO recommended inclusion of Medevac System for 8 VVIP helicopters. After agreeing to induct these systems on board the choppers, the Contract Negotiations Committee (CNC) thereafter, recommended conclusion of the contract at a negotiated price of EURO 556.262 million (around Rs 3,600 crore). "On completion of CNC the proposal was submitted for approval of the Cabinet Committee on Security (CCS), which considered the proposal in its meeting held on 18 January 2010 and approved the proposal and a contract was signed on February 8, 2010," the Ministry said. The Defence Ministry said the contract signed with AgustaWestland includes "specific contractual provisions against bribery and the use of undue influence. Article 22 of the contract deals with penalty for use of undue influence. This clause entitles the �Buyer� to cancel the contract with the �Seller� and recover from him the amount of any loss arising from such cancellation." "Article 23 of the contract entitles the �Buyer� to consider cancellation of the contract without any entitlement or compensation to the �Seller� who shall be liable to refund all payments made by the �Buyer� in terms of the contract along with interest," it said. The Ministry said any breach of the provisions of the Integrity Pact entitles the �Buyer� to take actions against the �Seller� which includes forfeiture of the earnest money, performance bond, cancellation of the contract without giving any compensation, to recover all the sums already paid with interest, to cancel any other contracts. It also debars the bidder from entering into any bid from the Government for a minimum period of five years which may be extended.

More From This Section

First Published: Feb 14 2013 | 8:40 PM IST

Next Story