India

'No wrongdoing in buying 2 tankers from Italian firm'

PNS

Even as a political slugfest is on over the AgustaWestland helicopter scam, allegations of changing specifications for procuring two tankers for the Navy from Italian company Fincantieri have surfaced. One of the tankers INS Deepak developed cracks while escorting aircraft carrier INS Vikramaditya from Russia in 2013 and had to anchor at lisbon for repairs.

As allegations of a possible scam in the $200 million deal inked in 2009 during the UPA regime figured in a section of the media on Friday based on letters reportedly written by senior serving officers, the Defence Ministry and Navy here denied any wrongdoing and said all procedures were followed before signing the deal. The Navy also said the Board of Inquiry ruled out possibility of inferior steel used leading to the cracks. Officials also said the Ministry and the Navy did not receive letter alleging a scam.

The two tankers built by Fincantieri, a state owned shipbuilding company of Italy, were inducted into the Indian Navy in 2011. Tenders were floated in 2006 and Russia, Korea and Italian companies bid for it.  Reports said specifications were changed to favour the Italian company and allowed it to use commercial steel instead of military grade steel to build the tankers. The Comptroller and Auditor General had also raised objections over the deal in 2010, it said.

As regards using commercial steel, sources said tankers are built with this kind of steel as it is not a war fighting machine.