Defence ministry clears blacklisting policy, proposals worth Rs 82,117 crore | Latest News India - Hindustan Times
close_game
close_game

Defence ministry clears blacklisting policy, proposals worth Rs 82,117 crore

Hindustan Times | By, New Delhi
Nov 08, 2016 09:28 AM IST

The defence ministry on Monday finally cleared its new blacklisting policy for “suspending or banning” arms contractors for wrongdoings and gave its go-ahead to proposals worth Rs 82,117 crore for buying fighter planes, tanks, helicopters and drones.

The defence ministry on Monday finally cleared its new blacklisting policy for “suspending or banning” arms contractors for wrongdoings and gave its go-ahead to proposals worth Rs 82,117 crore for buying fighter planes, tanks, helicopters and drones.

File photo of defence minister Manohar Parrikar. The defence ministry cleared its new blacklisting policy for arms contractors over wrongdoings.(PTI Photo)
File photo of defence minister Manohar Parrikar. The defence ministry cleared its new blacklisting policy for arms contractors over wrongdoings.(PTI Photo)

Sources did not disclose the details of the much-awaited blacklisting policy cleared by the defence acquisition council (DAC) but said it would be uploaded on the ministry’s website in a few days. The policy has been cleared at a time when firms such as Finmeccanica, Embraer and Rolls-Royce are embroiled in controversial deals.

Hindustan Times - your fastest source for breaking news! Read now.

HT had reported on August 19 that the policy contained new penalties that would debar firms from conducting business with the government for a period ranging from one to 10 years to remove corruption in the defence sector. These provisions would be invoked in case criminality is proved or there’s evidence of kickbacks being paid.

Sources said in case a defence firm is found guilty of paying bribes to bag an order, the duration of the investigation against it will be taken into account while prescribing the ban. However, if no criminality is found, the punishment will be less harsh. Firms guilty of procedural lapses, oversight or omission will be allowed to conduct business with the government if they agree to pay hefty fines.

Read | India needs more than Rafale to match China: Defence experts

The DAC, headed by defence minister Manohar Parrikar, has accorded acceptance of necessity (AoN) for buying 83 light combat aircraft for the Indian Air Force at a cost of Rs 50,025 crore, the sources said. The AoN is the first step towards buying a weapon or platform.

Sources said the council also set the ball rolling for buying 464 T-90 tanks for the army at a cost of Rs 13,488 crore, six additional regiments of Pinaka multi-barrel rocket launchers worth Rs 14,633 crore and 15 light combat helicopters for Rs 2,911 crore. The DAC also approved an army proposal to buy 598 mini unmanned aerial vehicles for Rs 1,100 crore.

Since coming to power in 2014, the NDA has focused on bringing out a blacklisting policy that strikes a balance between the need to punish defence contractors who may have violated the law and to keep the military battle-ready.

Read | From Russia with love: Deals worth over $8 billion to boost India’s defence

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal Arrest Live Updates, Bihar Board 12th Result Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Wednesday, March 27, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On