New Delhi, Feb. 19: The Italian conglomerate Finmeccanica said in a statement today that “it has acted correctly throughout the 40 years it has operated in India, one of the most strategically important markets for the entire Group”.
Finmeccanica or its subsidiaries sell warship systems, radars, avionics and designs to the Indian Navy, air force and the army. If the conglomerate were to be “blacklisted”, it potentially risks losing billions of dollars in business.
The Finmeccanica statement follows a showcause notice by the defence ministry of India to AgustaWestland that is contracted for 12 VVIP helicopters in a deal worth euro 556 million (Rs 3,550 crore).
Today, defence minister A.K. Antony said he was considering cancellation of the contract pending the response to the notice, a CBI report and the findings of a CBI team and defence ministry officials who are now in Italy.
“Finmeccanica underlines that its companies have operated for many years and continue to operate in India, with managerial and operational autonomy, complying fully with Indian law and the ethics principles of the Group,” the company statement said, adding that “AgustaWestland will demonstrate that it has fully complied with Indian law and the above mentioned ethics principles”.
The company offered its co-operation to the Indian government to clarify its position.