Defence Ministry on Friday scrapped a scam-tainted tender worth over six thousand crore rupees to procure 197 light utility helicopters for Army and Air Force. The helicopters were to replace the vintage fleet of Cheetah and Chetak choppers used to move troops and equipment to high altitude locations like Siachen.

A decision in this regard was taken at Defence Acquisition Council meeting headed by Defence Minister Arun Jaitley in New Delhi today. Official sources said the council also cleared proposals of over 17,500 crore rupees including the mid-life upgrade of the aging fleet of submarines.

The Council also took a decision to give opportunity to the Indian industry to produce around 400 such choppers for the requirements of the armed forces. The government decision is expected to generate business worth over 40,000 crore rupees for the domestic industry in the defence sector.

Earlier, the CBI probe was ordered into the scrapped deal in view of allegations in the AgustaWestland chopper scam that a Brigadier had asked for a bribe of 30 crore rupees from the Anglo-Italian firm for helping it in the light chopper deal.