This Article is From Feb 18, 2013

Helicopter scandal hangs over David Cameron's India visit

Helicopter scandal hangs over David Cameron's India visit
Mumbai: British Prime Minister David Cameron arrived in Mumbai on Monday on a three-day trade-focused visit clouded by a corruption scandal over British-made helicopters sold to New Delhi.

Mr Cameron's trip comes amid a raging scandal over the procurement of 12 helicopters for use by VIPs in 2010, which were bought for nearly 4,000 crores from Anglo-Italian firm AgustaWestland.

After an investigation in Italy suggested kickbacks were paid via middlemen to secure the deal, India has taken steps to cancel the contract and has started a CBI investigation.

The British prime minister is likely to face further questions about the contract -- the helicopters are being manufactured in southwest Britain -- with the Indian government keen to be seen to be acting tough on a new graft scandal.

"We did ask (Britain) in November and they said that since the Italians are investigating let us await the outcome (of that probe)," foreign ministry spokesman Syed Akbaruddin said.

Indian investigators are traveling to Italy this week as part of an inquiry into the matter.
Cameron, who is accompanied by a large business delegation, has targeted a doubling of trade with India from 11.5 billion pounds or Rs 96,278 crore in 2010 to 23 billion pounds or Rs 1,92,556 crore by the time he faces re-election in 2015.

After business meetings in Mumbai on Monday, he will fly to New Delhi for face-to-face talks with Indian Prime Minister Manmohan Singh and President Pranab Mukherjee on Tuesday. (Read)

On his first trip to the country in 2010 after his election, Cameron pressed the case for the part-British Eurofighter jet, which was competing to win a $12 billion contract for 126 aircraft.

Last January, India selected a rival French plane, the Rafale made by Dassault Aviation, but with the deal still not finalised Cameron is likely to remind the Indian government of the Eurofighter's merits.

Among his business delegation, executives from the Tesco supermarket chain are eyeing the retail sector following recent reforms to open up the market, as are bosses from the banking and insurance world.

As well as trade, Mr Cameron will also use the trip to correct any misunderstandings about his government's drive to slash immigration numbers amid concerns that young Indians could be deterred from applying to study in Britain.

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