The IAF is pushing for an early decision on the VVIP chopper deal, which has been frozen pending a CBI probe in wake of bribery allegations, saying the force would soon need the helicopters to ferry VVIPs as the present ones are being phased out.
Meanwhile, Anglo-Italian firm AgustaWestland, which is facing the threat of cancellation of its contract to supply 12 choppers to the IAF, said it has taken the arbitration route to settle the issue contending that the Defence Ministry had no right to unilaterally suspend the contract.
However, the firm did not disclose the names of the organisations or the procedures adopted by for arbitration. The Defence Ministry also stated that it was not aware of any such initiative taken by the firm.
"There is a CBI case (in the chopper scam) going on here and Italian investigations are happening in Milan. We have informed the government that the Mi-8 choppers which we were using are now going to be phased out from next year.
"So, some decision has to be taken soon on how to move forward. That particular contract has been frozen with effect from February 1," IAF chief NAK Browne said on the status of the AW-101 chopper contract.
The Defence Ministry had frozen the contract after allegations against top officials of the Anglo-Italian firm for paying kickbacks to the tune of around Rs 350 crore to Indian officials to secure the contract.
In the contract worth over Rs 3,600 crore, there is an allegation that kickbacks were received by then IAF Chief SP Tyagi and the CAG also recently pointed out loopholes in the deal signed in 2010.
Browne said of the 12 machines ordered, three choppers have already been received by the force and two of them were in VVIP version while one was cargo variant.
