Nov 20, 2013
Even as AgustaWestland is nominating former Supreme Court Judge Justice B.N SriKrishna in accordance with the rules of Arbitration under the Indian Arbitration and Conciliation Act 1996, India might invoke the 5% Integrity Pact Bond, AerospaceDiary learns.The surety of 5% is of the commercial bid value.
While India has paid 45% of the value of 12 AW101s, in effect, it is 40% if the bond is taken into consideration.
Referring to press reports related to the possible cancellation of the contract for the supply of 12 VVIP AW101 helicopters to India, Finmeccanica confirmed its subsidiary company, AgustaWestland, has received no such communication from India’s MOD.
AgustaWestland's representatives confirmed the meeting with India’s MOD remained scheduled for Wednesday 20th November. There has been no news from MoD on this at time of going to print.
The DPP 2011-under which this deal is not covered- also includes a 5% Performance Bond.