British government officials have waded into a dispute between Anglo-Italian helicopter manufacturer AgustaWestland and Indian authorities in an effort to salvage a £465m contract.
Last month the aerospace company warned it was preparing a “mitigation plan” that would involve cutting some of its 3,300 workers in the UK. It followed the Indian government’s decision to terminate a deal to buy 12 AW101 transport helicopters, amid claims that officials were bribed to win the contract.
However, a Government spokesman has confirmed to The Telegraph that officials have held regular meetings with their counterparts in India in an effort to resolve the matter, with the latest discussions taking place as recently as last week.
Up to this point, the Prime Minister, David Cameron, and the Government have said they would not intervene in the dispute because it was thought to be “a matter for the company and the Indian government”.
“We have been keeping the Government very much informed,” said Graham Cole, chairman of AgustaWestland. “The Government have been understanding and supportive wherever they can.”
In a recent positive development for AgustaWestland, authorities in India have appointed an arbitrator to enter into talks.
The company, based in Yeovil, Somerset, hopes to have the contract reinstated, or to be able to recover funds that it claims are owed for three helicopters that have already been delivered to India and a further three aircraft that have been built.
Daniele Romiti, the Italian head of company, has said he “hoped” the process would start quite soon.
01/02/14 Rebecca Clancy/Telegraph
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Last month the aerospace company warned it was preparing a “mitigation plan” that would involve cutting some of its 3,300 workers in the UK. It followed the Indian government’s decision to terminate a deal to buy 12 AW101 transport helicopters, amid claims that officials were bribed to win the contract.
However, a Government spokesman has confirmed to The Telegraph that officials have held regular meetings with their counterparts in India in an effort to resolve the matter, with the latest discussions taking place as recently as last week.
Up to this point, the Prime Minister, David Cameron, and the Government have said they would not intervene in the dispute because it was thought to be “a matter for the company and the Indian government”.
“We have been keeping the Government very much informed,” said Graham Cole, chairman of AgustaWestland. “The Government have been understanding and supportive wherever they can.”
In a recent positive development for AgustaWestland, authorities in India have appointed an arbitrator to enter into talks.
The company, based in Yeovil, Somerset, hopes to have the contract reinstated, or to be able to recover funds that it claims are owed for three helicopters that have already been delivered to India and a further three aircraft that have been built.
Daniele Romiti, the Italian head of company, has said he “hoped” the process would start quite soon.
01/02/14 Rebecca Clancy/Telegraph
