When the 1999 Kargil War exposed the vulnerabilities of the Russian Mi-8 helicopters, used for VVIP duty, the Indian Air Force (IAF) decided to acquire a new fleet of VVIP choppers. At the time, another decade of operational life was available to the Mi-8 helicopters. In 2000, the IAF wrote to the Defence Ministry and proposed to the Prime Minister’s Office (PMO) that a suitable and modern replacement for the Russian helicopters be explored on priority. Air Chief Marshal A Y Tipnis was at the helm then. Watch what else is in the news The proposal Six companies responded to the Request for Proposal (RFP) issued by the Defence Ministry, which stipulated that the helicopter must be able to fly at an altitude of 6,000 metres at full load. Only one, Eurocopter’s EC 225, met the criterion. In 2003, the IAF sent its evaluation report to the PMO. Brajesh Mishra, then National Security Adviser and Principal Secretary to Prime Minister Atal Bihari Vajpayee, asked the Special Protection Group (SPG) for its views on the EC 225. The SPG found the EC 225 unsuitable as its cabin height of 1.39 metres would make it difficult for a person to stand upright inside the aircraft. The NSA wrote to then Air Chief S Krishnaswamy highlighting two issues: the SPG’s inputs on cabin height, and the single vendor situation because of the 6,000-metre altitude norm. The PMO requested the IAF and the Defence Ministry to work out fresh specifications in consultation with the SPG. Recalibration In 2003, the IAF, in consultation with the SPG, drew up the Air Staff Qualitative Requirement for VVIP helicopters. The new specifications stated that the helicopters must be able to fly at an altitude of 4,500 metres and that their cabins must be at least 1.80 m in height. In 2004, Air Marshal S P Tyagi took over as IAF chief and approved the new requirements. The Defence Ministry issued a fresh RFP in 2006. The new RFP, with the 2003 specifications, was issued to 6 vendors. Three companies — the makers of the Russian Mi-172; Sikorsky, which made the S-92 helicopters; and AgustaWestland’s AWA101 — responded to the Defence Ministry’s invitation to participate in the competition. In 2007, the Russian company withdrew from the competition by refusing to sign the integrity contract, which had been made mandatory under the Defence Procurement Procedure (DPP) introduced by the UPA government. That left AgustaWestland and Sikorsky in the fray. Tyagi had by then been succeeded (in late 2007) by Air Chief Marshal Fali Major. The evaluations and trials of the S-92 and AW-101 continued over the next couple of years. The S-92 did not meet the IAF’s requirements as it could not reach 15,000 feet without maximum power. The AW101, with its three engines, had an advantage, as the failure of one engine still meant it had two to fall back on. The deal In 2010, AgustaWestland signed a Rs 3,546 crore contract to supply 12 AW101 helicopters to the IAF. Eight of these helicopters were to be used to transport VVIPs such as the President, the Prime Minister, the Vice-President and others, while four were to be used for other duties. The first of the AW101s arrived in India in late 2012; two more followed subsequently. On February 24, 2012, The Indian Express reported that an investigation begun by the Italian attorney general’s office into alleged unethical dealings by the state-backed defence major Finmeccanica had widened to include alleged corruption in the over Rs 3,500-crore deal. AgustaWestland is one of the group’s subsidiaries. The Indian Express subsequently reported the investigation and arrest in Switzerland later that year of Guido Ralph Haschke, a middleman who allegedly got 51 million Euros from AgustaWestland to swing the contract in its favour. In February 2013, the Italian police arrested the chief executive and chairman of Finmeccanica, Giuseppe Orsi. The arrest warrant charged him with paying bribes of Rs 360 crore to intermediaries to secure the sale of the helicopters to India when he was head of the group’s AgustaWestland unit. The day after the first report appeared in The Indian Express, then Defence Minister A K Antony ordered a probe into the corruption allegations, and subsequently promised to “seriously pursue the inquiry”. The Defence Ministry said any wrongdoing would attract the strict integrity clause. Following Orsi’s arrest, India froze payments for the choppers, although it had already paid Rs 1,620 crore — 45% of the contract value — and accepted 3 helicopters. The Ministry also ordered a CBI inquiry and the agency filed an FIR against 13 people in March 2013. The Enforcement Directorate too began a probe under the Prevention of Money Laundering Act. The CBI arrested Air Chief Marshal Tyagi last week. CBI spokesperson Devpreet Singh said: “It was alleged that Chief of Air Staff (Tyagi) entered into criminal conspiracy with other accused persons and in 2005, conceded to change IAF’s consistent stand — that service ceiling of VVIP helicopters (of) 6,000 metres was an inescapable operational necessity — and reduced the same to 4,500 metres.”
