"The issue (of blacklisting) has been discussed at length at the defence ministry. There are a large number of firms which have been blacklisted. Now that upholds consideration of probity but narrows our buying options which can affect our security preparedness," said finance and defence minister Arun Jaitley on Saturday.
As was first reported by TOI earlier this month, the MoD ruled out blacklisting of global engine manufacturer Rolls-Royce, which is under CBI scanner for allegedly employing agents, on the grounds of "operational urgency and national security".
READ MORE: Govt not to blacklist Rolls Royce for 'operational' reasons
Then, earlier this week, the MoD imposed just "a partial ban" on Italian conglomerate Finmeccanica, all dealings with which were earlier put on hold after its UK-based subsidiary AgustaWestland got enmeshed in the infamous VVIP helicopter kickbacks case.
The MoD decided that while ongoing contracts and follow-on deals for spare parts with Finmeccanica will be allowed to continue unhindered, fresh deals will not be inked if other armament companies can provide the same equipment.
"The issue was referred to the attorney general. Thereafter, the law ministry considered it. We have eased to the extent that where supplies have already been made, you need servicing of those equipment. Now you cannot say we have blacklisted you and we won't take your space parts. That will make the equipment redundant," said Jaitley.
Asked if the rules would be applied to all blacklisted firms or only Finmeccanica, which is supplying a whole host of equipment to the Indian armed forces from Selex radars or Otomelara naval guns, Jaitley said this was a common principle and would be applicable in all cases.
This marks a major shift from the earlier UPA era, under A K Antony as defence minister, where there was "indiscriminate blacklisting" of armament companies after allegations of corruption and bribery. Among the armament majors blacklisted for 10 years were Singapore Technologies Kinetics, Israel Military Industries, Rheinmetall Air Defence, Corporate Defence of Russia and BVT Poland.
http://timesofindia.indiatimes.com/followceleb.cms?alias=Rolls-Royce,Finmeccanica,CBI,AgustaWestland
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