NEW DELHI \u2014 India’s Defense Acquisition Council (DAC) on Monday approved a new policy regarding the blacklisting of defense companies charged with corruption. The agency also approved $12.61 billion worth of new homemade defense projects.
The new policy permits other group companies to participate in defense projects, but the group company of a defense conglomerate found to be involved in corrupt practices will be barred from doing business for a particular period of time for the same program.<\/p>\n\n\n\n
The new policy bans specific defense products supplied by the company involved in corruption practices, but it also prevents blanket blacklisting of a defense conglomerate, noted the MoD official, adding that ” heavy penalties will be imposed and even persons involved in corruption will be debarred.”<\/p>\n\n\n\n
India canceled a $554 million contract in 2014 for the purchase of 12 VVIP helicopters from AgustaWestland following allegations of corruption. Defense conglomerate Leonardo Leronardo-Finmeccanica of Italy and its subsidiaries were are currently prohibited from participating in future defense projects in India.<\/p>\n\n\n\n
Currently, Singapore Technologies Kinetics, Israel Military Industries (now known as IMI Systems), Germany-based Rheinmetall Air Defence, and Corporation Defence of Russia have been debarred from doing business in India for the next 10 years in response to corruption allegations.<\/p>\n\n\n\n
New Approvals<\/b><\/p>\n\n\n\n
The new defense procurement projects approved by DAC and valued at about $12.61 billion will be based in India and inducted in the next eight to 10 years.<\/p>\n\n\n\n
Under the approved projects, 83 Tejas light combat aircraft Mark 1A, costing about $7.69 billion, and 15 light combat helicopters, at $447.84 million, will be manufactured by state-owned Hindustan Aeronautics Limited.<\/p>\n\n\n\n\n\n
State-owned Ordnance Factory Board will license produce Russia-made 464 T-90 main battle tanks at a cost of $206.89 million.<\/p>\n\n\n\n
Additionally, domestic defense companies will be asked to build 598 mini-UAVs at a cost of $16.92 million.<\/p>\n\n\n\n
DAC also approved the new domestic tender to procure six regiments of homemade Pinaka multi-barrel rocket launcher systems at a cost of $225.12 million to be manufactured by Indian defense companies.<\/p>\n","protected":false},"excerpt":{"rendered":"
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