The Union government has decided to cancel all ongoing tenders for defence equipment won by Italy’s Finmeccanica as a precursor to blacklisting of the firm, which is being investigated for bribery in the AgustaWestland VVIP helicopter deal.
Defence Minister Manohar Parrikar told PTI that the process for blacklisting Finmeccanica and its subsidiaries was already under way, and the Law Ministry had been sent a note.
“Wherever there is capital procurement of Finmeccanica and their subsidiaries, all Requests for Proposal [RFP] will be closed. I am very clear,” he said.
He clarified that only fresh capital acquisition was being cancelled and the firm would continue to conduct annual maintenance and supply spare parts for defence supplies already acquired.
The government has already withdrawn the RFP for heavyweight torpedoes for Socrpene submarines, which was won by Finmeccanica subsidiary WASS during the UPA regime. The government is now working out the alternatives.
“The blacklisting process has already been moved. If there is a blacklisting for a specific number of years, which will be issued in the order, there will be no transaction by Defence Ministry with that company for capital procurement for that many years,” the Minister said.
He stressed that the Ministry has already put on hold new transactions with the company. “In revenue acquisition, where contracts have already been executed, annual maintenance and import of spare parts will be permitted where it is absolutely essential but with proper certification from concerned authority in order to ensure that platform or equipment remains operational.”
Emphasising that national security “cannot be compromised” just because the company has done something wrong, he said, “I cannot put six ships of mine out of commission because one spare part is to be imported from some company of Finmeccanica.”
