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Defence ministry clears new blacklisting policy, projects worth Rs 82,000 cr

The DAC also gave Acceptance of Necessity (AoN) to Indian Air Force's plan to purchase 83 Tejas Mark 1A aircraft at a cost of Rs 50,025 crore, Defence Ministry sources said.

By: PTI | New Delhi | Updated: November 7, 2016 8:41 pm
Blacklisting policy, Defence ministry, Defence acquisition council, Defence Ministry meeting, Manohar Parrikar Union Defence Minister Manohar Parrikar.

The Defence Ministry on Monday cleared a new blacklisting policy that will do away with blanket bans on companies indulging in corrupt acts and approved projects worth over Rs 82,000 crore for purchase of fighter aircraft, tanks, rockets and mini drones. Contrary to expectation, the Defence Acquisition Council, chaired by Defence Minister Manohar Parrikar, did not take a decision on the Navy’s proposal to purchase 12 US2I amphibious aircraft from Japan, though the issue came up for discussion. However, it is expected that there would be some forward movement on this issue during Prime Minister Narendra Modi’s upcoming visit to Tokyo on November 11-12.

The DAC also gave Acceptance of Necessity (AoN) to Indian Air Force’s plan to purchase 83 Tejas Mark 1A aircraft at a cost of Rs 50,025 crore, Defence Ministry sources said. It also accorded AON for the purchase of 15 Light Combat
Aircraft being manufactured by HAL for the Army and Air Force for a tentative cost of about Rs 2,911 crore.

AoN was also given for the repeat order of 464 Russian origin T90 tanks which are being manufactured by the Ordnance Factory Board for Rs 13,448 crore, besides for procurement of 598 mini UAVs at a cost of Rs 1,100 crore. However, the most significant take away from the DAC is the clearance of the new blacklisting policy. Though Defence Ministry officials remained tight-lipped about the features of the new policy maintaining it will be put up on website in the next few days, sources said it will ensure that while companies are dealt with harshly, it will not affect the modernisation process.

As per the new policy, the focus is on graded blacklisting and fines. This means that if a defence conglomerate is caught doing wrong in a particular project, it will be banned for a specific number of years from dealing in that particular segment only.

It can continue to pitch for projects in other segments. “It will be a product specific ban rather than blanket
blacklisting. Also, there will be an option for heavy penalties besides those in contract and even individuals can
be banned,” a source said.

The new policy would also allow many of the stuck programmes, like the heavy weight torpedos for the six
Scorpene submarines, to move ahead with clarity.

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  1. S
    Satendra kumar
    Nov 8, 2016 at 12:12 am
    The defence ministry's constructive implementation of strict guidelines guardiance for quality high standard hi- teac latest nano generation hardware for Indian army is great achievement within the framework of defence policies.
    1. A
      Nov 7, 2016 at 7:07 pm
      The report is not clear if the new rules will curb the corruption or encourage the corruption.lt;br/gt;Also, it appears, we are still focused on buying mode and not on developing our own (unless it is carried out secretively).
      1. Bhupendra K
        Nov 7, 2016 at 11:49 pm
        When India will make its own weapons! India is like buying machine. Kickbacks defense deals may not allow India to be self sufficient in this field. So called jagadguru will always buy from outside.
        1. S
          Support Modi
          Nov 8, 2016 at 12:14 am
          83000 Crore in the Link and 82000 Crore in the news item. Looks like no one in IE has faced an auditor?
          1. P
            Nov 7, 2016 at 5:18 pm
            The report did not say how much of the bulk expenditure would be on purchasing Russian ware.lt;br/gt;-lt;br/gt;Even in doing global realignments we should not forget that Russia is our trusted friend of more than half a decade.lt;br/gt;Moreover, it's defence ware are either at par or better than the US or the EU defence ware.lt;br/gt;So, it will augur well for us if we kept the Russian defence industry busy.lt;br/gt;-lt;br/gt;Trying to appease the US defence industry will bring us only short term benefits.lt;br/gt;The US is known for ditching any ally (barring Israel) at the snap of the fingers and for its selfish gains.lt;br/gt;-lt;br/gt;I also just hope not a single rupee goes to the Chinese defence industries.lt;br/gt;This is one way we can make China feel the heat.
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