Monday, March 5, 2012

Another setback for Indian artillery acquisition programme

With the Defence Ministry debarring Singapore Kinetics, the Singaporean howitzer maker along with six other companies, from doing business in India for the next 10 years, the jinxed artillery modernisation programme of the Indian Army has suffered another setback. With India refusing to do business with Bofors following the ghost of 1984 scandal that cost Rajiv Gandhi his government and then blacklisting South African gun manufacturer Denel, the options for Indian Army have reduced a lot.

Indian Army's artillery wing is in dire need of modernisation with the force not inducting a single gun since 1987. The ban is going to have a huge boost for the US and the government might opt for procuring its artillery through government to government sales.

Here is the statement issued by the Defence Ministry-


MoD DEBARS SIX FIRMS FROM BUSINESS DEALINGS FOR TEN YEARS
New Delhi: Phalguna 15, 1933
Monday, March 05, 2012
The Ministry of Defence today decided to debar six firms- M/s Singapore Technologies Kinetics Ltd. (STK), M/s Israel Military Industries Ltd. (IMI), M/s Rheinmetall Air Defence (RAD), Zurich, M/s Corporation Defence, Russia (CDR), M/s TS Kisan & Co. Pvt. Ltd., New Delhi and M/s RK Machine Tools Ltd., Ludhiana – from further business dealings with the Ordnance Factory Board, Department of Defence Production, MoD, for a period of ten years.  
The firms were recommended for blacklisting by the CBI on the basis of evidence collected against them. These firms were issued notice to show cause as to why action against them should not be taken consequent to the filing of the chargesheet in the case related to illegal gratification against former Director General of Ordnance Factories Shri Sudipto Ghosh and others.  The decision to debar was taken today after taking into consideration their replies.

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