India's scrap copter sale may land Thatcher in trouble

The Indo-British bilateral aid programme is likely to run into rough weather following the allegation that India misused funds granted for ''humanitarian development''.

The Guardian, London, on Tuesday reported that 65 million pounds, which came as humanitarian aid to India, was spent to purchase British helicopters. These helicopters are now being sold to a British company as 'scrap metal' for 900,000 pounds, the paper said.

"I will immediately set up a departmental inquiry on how this gross misuse of aid funding was allowed to take place,'' said British International Development Secretary Clare Short.

The Guardian said the aid package was given on the condition that India would buy helicopters from the troubled Westland company, which the Margaret Thatcher government was trying hard to prop up.

The 21 helicopters were delivered in 1987, and were earmarked for transporting personnel and supplies to offshore Oil and Natural Gas Company rigs. However, the government decided to ground the entire fleet in 1989. Reason: "Inadequate maintenance on the ground."

The choppers were put out of service in 1991, following which the government tried to sell them off. But there were no takers, and the authorities were finally forced to pass them off as ''scrap metal'' to the Sussex-based AES Aerospace.

According to The Guardian, the sale has put Whitehall in a tizzy and thrown up a plethora of questions for Thatcher and company, particularly whether humanitarian funds could be used for commercial development.

The sale, diplomatic circles feel, may well lead to a review of Britain's future aid policy.

UNI

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