Chopper Scam: Italian Firm Barred from Future Defence Contracts, But Will Continue Current Deals

India will continue to buy weapon systems and hardware from Italian defence equipment firm Finmeccannica, which, along with its subsidiaries, has been accused of paying huge kickbacks to clinch a Rs. 3650-crore defence deal to supply VVIP helicopters.

But the defence ministry has clarified that Finmeccannica won't be considered for any new projects or acquisitions.

The 12 helicopters, meant to ferry VVIPs like the Prime Minister and the President, were made by Britain-based company AugustaWestland, a subsidiary of Finmeccannica. India had put on hold all purchases from the Italian firm in the wake of the alleged scam.

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