Monday, October 10, 2011

Exclusive! First Fatality of India’s offsets?

Neelam Mathews
Oct 10, 2011
Time- 9.30am IST

The first test for the offsets policy may just be on the board. Eight VVIP AW119 helicopters supplied to India by AugustaWestland have yet to deliver on their offsets.

The helicopter was chosen over its competitor, Sikorsky. 

The company has honored a miniscule percentage. According to the contract, it must complete $160million worth of offsets by next year. Failing this, there is a penalty of 5% -which though, gets covered in the contract along with a significant fine every year, it could face the risk of blacklisting.

“It is not a well structured offsets program. They have not said where they are sourcing parts from clearly,” a defense official told Aerospace Diary.

Last year AgustaWestland proposed the manufacture of the AW119 in India following a joint venture announcement with the Tata Group for final assembly, completion and delivery. The progress of the project is not known to Aerospace Diary.

“This significant order by the Indian Air Force to meet its government transport helicopter requirement confirms the correct vision and strategy of AgustaWestland in India……. .....Additionally we now have strong industrial relations with Tatas, … but soon this will become a wider platform for our growth in the region. …..will further enhance the joint commitment to the expansion of the helicopter industry in India to satisfy various.requirements which are estimated to be valued at €5-6 billion in the short to medium term,” Giuseppe Orsi, CEO, AgustaWestland had said.


  1. Wonder if the fatality has already taken place or is on the anvil! Your experience and acumen in the field would be worthy if there are suggestions to avoid the eventuality. Or may be Agusta guys need to know that it has its costs. Albiet I subscribe to your views.

  2. I am only here to report Ashok. Though your thoughts are well taken! Thanks.