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Blacklisting policy for tainted defence deals approved (Relevant for GS Mains Paper II, Topic: Corruption in Defence Deals)

Govt. to blacklist firms involved in corruption
The government approved the long- pending policy for blacklisting firms involved in corruption in arms purchases.The government has stated that instead of blanket blacklisting of firms involved in corrupt practices, heavy fines could be imposed and banning would be the last resort.

In several instances in the past, banning of firms had adversely affected defence preparedness as major military platforms were grounded due to lack of spares and support.

Nod for procurement of defence equipment from Hindustan Aeronautics Limited (HAL)
The Defence Acquisition Council (DAC) also accorded approval to begin the procurement process for fighter jets, tanks and attack helicopters cumulatively worth over Rs. 82,000 crores, all produced domestically.

The DAC accorded approval for issuing Acceptance of Necessities (AON) for the purchase of 83 Light Combat Aircraft (LCA) Tejas and 15 Light Combat Helicopters (LCA), both manufactured by Hindustan Aeronautics Limited (HAL).

An AON is the first step in the long process of acquisition under the Defence Procurement Procedure (DPP).
 

 



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