Make in India: Govermnent seeks CBI's views to get AgustaWestland back in Indian defence

NEW DELHI: The government has asked the CBI whether blacklisted chopper maker AgustaWestland can take part in its ‘ Make in India’ initiative, potentially the first step in the Anglo-Italian firm’s likely rehabilitation after being put in doghouse by the UPA regime amid allegations of bribery.

A no-objection from the CBI could enable AgustaWestland to participate in future government tenders besides providing yet another glimpse into the Modi government’s different approach from its predecessor in defence acquisitions.

A CBI spokesperson confirmed to ET that the agency, whose go-ahead will be crucial in okaying renewed business contacts between the company and the government, had received a letter from the defence ministry asking if AgustaWestland could participate in its Make in India initiative.

“We have received MoD’s letter and the same is being examined,” CBI spokesperson Kanchan Prasad told ET. The defence ministry did not respond to ET’s queries.

Company ready to transfer technology

This is a hugely significant move as it indicates this government’s resolve that investigations into alleged defence scandals will not necessarily stop acquisitions. CBI’s go-ahead will be crucial in okaying renewed business contacts with AgustaWestland.

Officials say while the earlier AW deal was for VVIP choppers, this time the interest is in army and navy choppers. If cleared, AW will be one of many bidders for the deal. Replying to ET’s email, AW said it is a “strong supporter of the ‘Make in India’ initiative” and that “the company is ready to transfer technology to India”.

Senior government officials, who did not want to be quoted, said MoD’s communication to CBI happened in the first week of April. Investigators familiar with the matter told ET that CBI is considering whether some executives, not the company as an entity itself, were involved in unethical practices. “No final view has been taken,” an investigator said, adding that the money trail was still being investigated and replies to the agency’s letters rogatory are still awaited. A letter rogatory is a formal request to a foreign court for information.

The AgustaWestland case is being heard in Italian courts. ET reported on April 17 that the current MoD is in the process of setting aside the UPA policy of stalling a deal on receipt of any complaint. Senior officials told ET that the defence ministry’s letter to CBI on AgustaWestland mentions the Italian firm’s keenness in sharing technology and expertise under Prime Minister Narendra Modi’s ‘Make in India’ initiative.

MoD had sought to know the status of CBI investigations and the specific role the company as an entity had in the alleged corruption case.