NEW DELHI — Even after the public release of its new blacklisting policy, India's Ministry of Defence (MoD) has not set a timeline for lifting the ban on those defense companies already blacklisted, with a top MoD official saying that in "some cases" the blacklisted status may continue.
The MoD on Monday released its new policy, "Guidelines of the Ministry of Defence for Penalties in Business Dealings with Entities," meant to ensure that scrutiny and transparency exist in future defense deals.
Under the new guidelines, current blacklisted companies that are under investigation, as well as former blacklisted businesses, will be examined and a new grading system of penalties will be determined, the MoD official noted.
"That does not mean they will be taken out. Don't interpret ... they will be examined. What is the status, how many years they have been blacklisted for and why they were blacklisted," said Defense Minister Manohar Parrikar on Tuesday, according to Press Trust of India.
The MoD has blacklisted six overseas companies from doing business here over allegations of corruption since 2005.
Four overseas defense companies — Singapore Technologies Kinetics, IMI (formerly Israel Military Industries), Rheinmetall Air Defence of Singapore and Corporation Defence of Russia — have been blacklisted by the MoD from doing defense-related business in India for 10 years over allegations of corruption.
In 2014 AgustaWestland's contract for purchase of VVIP helicopters was canceled following allegations of corruption. Leonardo-Finmeccanica of Italy and its group companies are now kept out of future defense
projects.
Under the new guidelines, there will be more flexibility with defense companies that are already under intense scrutiny and with new cases in which impropriety has been found. Though those news case will still receive a penalty of sorts.
Vivek Raghuvanshi is the India correspondent for Defense News.
