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Graded Penalties In, Blanket Ban Out For Defence Graft

Discussion in 'Indian Military Doctrine' started by seiko, Nov 9, 2016.

  1. seiko

    seiko VETERAN ELITE MEMBER

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    NEW DELHI: India will no longer impose blanket bans on armament companies suspected of corruption. In a significant change in policy, companies will be blacklisted only for one year at a time, instead of the existing norm of 10 years at a go, with fast-track investigations into the charges against them.

    Striking a balance between the need to effectively punish corruption while ensuring that military modernisation does not get adversely impacted, the defence ministry approved a new liberalised blacklisting policy on Monday with graded punishments and fines commensurate with the kind of wrong-doing committed by arms companies.


    The defence acquisitions council (DAC), chaired by defence minister Manohar Parrikar, approved the new guidelines for suspension or banning of business dealings with arms companies, which will be made public in the next few days.

    The DAC also accorded initial approvals or "acceptance of necessity" to modernisation projects worth Rs 82,117 crore.The approvals, which will eventually lead to actual contracts or deals being inked, range from the procurement of 83 Tejas Mark-1A fighters and 464 T-90 tanks to six additional regiments of the indigenous Pinaka multiple-launch rocket systems.


    But the clear takeaway was the new blacklisting policy. Under the earlier wholescale banning of arms companies, which especially became the norm under defence minister A K Antony, military modernisation projects often went for a complete toss and compromised operational readiness.


    "Under the new policy, the decision to blacklist a company will not be an executive one. It will be done in a collegiate manner by a committee, which will also include the vice-chiefs of the Army , Navy and IAF," said a source. "The operational implications of blacklisting a company will be considered before a final decision is taken. Blacklisting will be for a specific equipment or service, without blanket bans," he added.


    Under the new nuanced blacklisting norms, procurement of spares for platforms and equipment already purchased from a company under the scanner will be allowed.



    Companies already blacklisted will now also be able to appeal to the government for a review based on merits of a case. Moreover, blacklisting will be done with the aim to complete investigations into the charges against a company within six months. "If the period of suspension for blacklisting has to be extended, it will have to be recorded in writing," said the source.



    Four major global firms like Singapore Technologies Kinetics, Israeli Military Industries, Rheinmetall Air Defence, Zurich, and Corporation Defence, Russia, for instance, are blacklisted till 2022.


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    http://economictimes.indiatimes.com...r-defence-deal-graft/articleshow/55306734.cms
     
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