Manohar Parrikar clears key defence deals worth Rs 82,117 crore

A three-hour-long meeting of the Defence Acquisition Council (DAC) chaired by defence minister Manohar Parrikar on Monday, besides clearing several critical military purchases worth about Rs 82,117 crore, approved key changes in the blacklisting policy to ensure faster purchase of military hardware. The changes are also expected to salvage several ongoing deals that have been stuck because of rigid rules that have enforced blanket bans doing business with blacklisted companies.

While an MoD source did not spell out specifics of the new blacklisting norms — the details of which would be put on the ministry’s website in a few days’ time — there are sufficient indications, including Mr Parrikar’s earlier statements, that make a softer blacklisting regime a strong possibility.

As reported earlier, the government plans to levy penalties — graded from stiff to soft — on business entities and individuals found violating rules of the Defence Procurement Procedure as well as product specific bans keeping national security considerations in mind.

The approved purchases — called Acceptance of Necessity (AON) — is the first step in the acquisition process which will be followed by “request for information” and “request for proposal”.

The approvals include purchases of 83 Tejas Mark 1A Light Combat Aircraft (LCA) along with simulators and ancillary equipment for the Indian Air Force (IAF) at a cost of Rs 50,025 crore, 15 helicopters for the IAF and the Indian Army at a cost of Rs 2,911 crore, 598 mini-UAVs for the Army at a cost of Rs 1,100 crore, and 464 T-90 Russian tanks at a cost of Rs 13,448 crore.

With these latest acquisitions, while the Tejas LCA numbers will go up to more than 120, India’s T-90 tank fleet would cross the 1,300 mark.

“The DAC also cleared the way for issuance of requests for proposal for six additional regiments of Pinaka missiles at a cost of Rs 14,633 crore”, the ministry source said.

Although “discussed and considered”, no decision was taken on buying 12 Japanese US21 amphibious aircraft, the source added. There was anticipation that the deal would get approval especially in view of Prime Minister Narendra Modi’s Japan visit on November 11-12.

Green Light New blacklist norms 83 Tejas Mark 1A Light Combat Aircraft for Rs 50,025 crore 10 helicopters for IAF, 5 for Army at Rs 2,911 crore 598 mini-UAVs for Army at Rs 1,100 crore 464 T-90 tanks for Rs 13,448 crore RFP for six more Pinaka missile regiments at Rs 14,633 crore