The Government on Monday came out with a new blacklisting policy that does away with blanket ban on companies indulging in corrupt acts, and cleared Defence deals worth over Rs 80,000 crore — including procurement of Tejas light combat aircraft, T-90 tanks, unmanned aerial vehicles(UAV) and Pinaka missiles.
All these deals were cleared by the Defence Acquisition Council (DAC) chaired by Defence Minister Manohar Parrikar. The DAC is the apex body to give the nod for the armed forces’ plans to procure weapons systems.
However, the DAC 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. Sources said there could be some forward movement on this issue during Prime Minister Narendra Modi’s upcoming visit to Tokyo on November 11-12.
Defence Ministry officials remained tight-lipped about the features of the new blacklisting policy maintaining it will be put up on website in the next few days, but 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.
The biggest deal worth over Rs 52,000 crore to get the nod was 83 Tejas Mark-II light combat aircraft(lCA). The public sector Hindustan Aeronautics limited(HAl) is manufacturing the indigenously-designed aircraft.
The HAl at present is manufacturing 40 Tejas for the IAF and they are likely to be inducted by the end of 2018. The DAC has now asked it to make 83 more Tejas, which will take at least four years for induction.
The DAC also cleared an order worth over Rs 3,000 crore for 15 light combat helicopters for the IAF and the Army. These helicopters too are manufactured by the HAl.
Besides these two orders, the DAC cleared the procurement of 464 T-90 tanks worth over Rs 13,000 crore from Russia. The Army plans to induct 1,657 T-90 tanks by the end of 2018. Half of them are manufactured in Avadi, Tamil Nadu while at least 200 of them were bought off the shelf from Russia. The DAC nod for 464 tanks will allow the army to speed up induction.
The DAC also approved the Army proposal for raising six more Pinaka regiments involving a cost of Rs 14,633 crore. The Army already has six regiments of Pinaka and the defence ministry will soon issue global tender for new regiments.
The other deal to get the nod was for 598 UAVS worth nearly Rs 1,100crore. The Army will have to procure it from an Indian manufacturer in the Buy Indian clause.