Defence

Govt Decides to Cancel Defence Tenders Bagged by Finmeccanica

Defence Minister Manohar Parrikar stressed that the ministry has already put on hold new transactions with the company.

The blacklisting process has already been moved. Credit: http://no.agustawestland.com/

The blacklisting process has already been moved. Credit: http://no.agustawestland.com/

New Delhi: The government has decided to cancel all ongoing tenders for defence equipment won by Italy’s Finmeccanica as a precursor to blacklisting of the firm, which is being investigated for bribery in the AgustaWestland VVIP chopper deal.

Defence Minister Manohar Parrikar said that the process for blacklisting Finmeccanica and its subsidiaries had already been started and a note for the same had been sent to the law ministry.

“Wherever there is capital procurement of Finmeccanica and their subsidiaries, all Requests for Proposal (RFP) will be closed. I am very clear,” he said. However, he said, the annual maintenance and import of spare parts of already acquired defence supplies would be continued with the firm and only fresh capital acquisition was being nixed.

The government has already withdrawn the RFP for heavy wight torpedos for Socrpene submarines which was won by WASS, a Finmeccanica subsidiary, during the UPA government. The government is now working out the alternatives.

“The blacklisting process has already been started. If there is a blacklisting for a specific number of years, which will be issued in the order, there will be no transaction by the defence ministry with that company for capital procurement for that many years,” he said.

Parrikar stressed that the ministry has already put on hold new transactions with the company.

“In revenue acquisition, where contracts have already been executed, annual maintenance and import of spare parts will be permitted where it is absolutely essential but with proper certification from concerned authority in order to ensure that platform or equipment remains operational,” he said.

Emphasising that national security “cannot be compromised” just because the company has done something wrong, Parrikar said, “I cannot put six ships of mine out of commission because one spare part is to be imported from some company of Finmeccanica.”