Chopper Deal: Govt to Change Defence Acquisition Policy

In the wake of chopper scam, the government today announced it would change its defence procurement policy, which will be unveiled in a few months.

"Within a few months we are going to change the defence procurement procedure again," Defence Minister A K Antony told the Lok Sabha during Question Hour.

The defence procurement policy was revised as recently as 2011.

The Minister was replying to questions on the allegations of kickbacks to the tune of Rs 362 crore in the Rs 3,600 crore deal to procure 12 VVIP choppers from AgustaWestland.

His statement assumes significance as the government has come under sharp attack over the chopper scam, with allegations that former Air Chief S P Tyagi was a beneficiary in the kickbacks.

Antony said the government has to import defence equipment because the Services require the most modern equipment to meet their operational necessity.

"Because of the operational necessity of the Services, on the request that they need the most modern equipment to meet the operational necessity, government moves to import any high value equipment from foreign sources," Antony said.

Dubbing indigenisation as the "ultimate solution to the scourge of corruption", Antony said the government would give "more priority to indigenisation so that Indian public sector and private sector can play a major role in producing state-of-the-art equipment for the Indian forces."

Referring to the CBI investigation in the VVIP chopper deal, Antony said it would be early to opine on the extent to which this case was likely to affect other defence deals in the pipeline.

Antony said India had also taken up with Britain the issue of alleged involvement of a British consultant in the deal and the fact that the contract had been signed with M/s AgustaWestland, UK.

"The UK side informed the Ministry of External Affairs that they had not launched any investigation and were awaiting the results of the Italian investigation in order to ascertain whether any further action needs to be taken," he said.

The minister said AgustaWestland, UK has repeatedly denied any wrongdoing on their part in the contract for the purchase of 12 VVIP helicopters.

Antony said the procurement of the choppers was completed in accordance with the established procurement procedure in a transparent manner with all stages being followed meticulously.

"Three helicopters, delivered by the vendor, have so far been accepted after completion of Joint Receipt Inspection," he said.

Antony said the Ministry of Defence had taken prompt action to seek factual information from authorities concerned after reports of alleged kickbacks in the deal appeared in a section of the media.

"However, since no concrete information to substantiate the allegations was forthcoming, no formal inquiry was then ordered," he said.

Antony said after the reports of the arrest of Finmeccanica chief Giuseppe Orsi, who was earlier the Chief Executive Officer of AgustaWestland, appeared the Defence Ministry ordered a CBI inquiry into the matter.

"The CBI, after a visit of its team to Italy and on further examination of the documents available, has registered a Preliminary Enquiry on February 25, 2013 in this matter against 11 persons including five Indians and four firms which include two Indian firms," he said.

Emerging story. Watch this space for updates as more details come in
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2/D-144
Mar 04, 2013
03:31 PM

Total waffle. The Raksha Mantri has said nothing. As long is the govt is reluctant to gao after bribe takers, there will be no end to financial irregularities in contracts.

This BS about increased indigenisation has been going on for the last fifty years. Other than in the missile field, there has been no major indigenously designed and manufactured weapon system in any of the three armed forces - no tanks or artillery, no ships, no aircraft. The LCA is yet to enter operational service and who knows if there will ever be a true assessment of its capabilities. The ALH (Advanced Light Helicopter) has been derisively called a Backward Heavy Helicopter. God knows what has happened to the MBT Arjun.

The DRDO and defence PSUs are non productive organisations - tall on promises but short on performance. They are essentially bureaucratic. Some 30 years ago the navy introduced an indigenously designed sonar which was better than anything they had till then. The fallout was that the driving force behind the design, developement and production of the sonar, Commodore Paulraj, was hounded out of the DRDO (too pushy) and Stanford became the beneficiary of his genius.

Bonita, Chennai
1/D-139
Mar 04, 2013
02:23 PM

 Because of the operational necessity of the Services, government moves to import any high value equipment from foreign sources," >>> Liar - you bought  18 fancy luxury VVIP helicopters for just a handful of VVIPs - the President, PM, and the 3 surnames - Sonia, Rahul and Priyanka Gandhi for 3600 crores + 10% commision of 360 crores.

The recent budget allocation tells the story of skewed priorities: (Indo-Pak or Indo China border work has a smaller budget than for the VVIPs' security!

>>>> On the one hand, the Special Protection Group (SPG) , which provides security to VVIPs like Prime Minister Manmohan Singh, Congress President Sonia Gandhi, Congress vice-president Rahul Gandhi and former premier Atal Bihari Vajpayee, got an allocation of Rs 386.27 crore.


<<<< And on the other, Rs 550 crore has been earmarked for Indo-Bangladesh border works, Rs 230 crore for Indo-Pak border works, Rs 300 crore for Indo-China border works, Rs 890 crore for Indo-Nepal border works, Rs 40 crore for Indo-Bhutan border works and Rs 15 crore for Indo-Myanmar border works.
 

bharat, delhi
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