2 deals during Gen VK Singh tenure under scanner
Two defence procurement processes initiated during the tenure of former army chief Gen VK Singh are under the scanner following allegations of irregularities.delhi Updated: Oct 09, 2012 09:45 IST
Two defence procurement processes initiated during the tenure of former army chief Gen VK Singh are under the scanner following allegations of irregularities.
While the process to procure anti-aircraft ammunition from a Bulgarian firm is under the defence ministry's scanner, the other related to the manufacture of Armoured Recovery and Repair Vehicles (ARRV) is being reportedly looked into by Polish authorities.In the first case, the army had floated a tender to procure ammunition during Gen Singh's tenure last year for Russian-origin ZU-23 anti-aircraft guns to meet operational requirements, defence sources said.
The Bulgarian firm had emerged as the lowest bidder but before the contract could be finalised, it was found that the company was not manufacturing ammunition. The defence ministry is looking into the allegations, the sources said.
Gen Singh had highlighted the shortage of ammunition for tanks and obsolescence of air defence equipment in a secret letter written to the Prime Minister.
After the matter was highlighted, the defence ministry has taken several steps to do away with the shortage of ammunition and equipment.
In the second instance, Polish authorities are probing a deal where Bharat Earth Movers Limited (BEML) was to manufacture 204 ARRV vehicles under full technology transfer from Polish arms firm Bumar for the army's T-72 tanks, Polish media reports suggested.
The procurement was given a go-ahead by the Cabinet last year. Polish media reports suggest that the deal is non-profitable as the Indian partner, BEML, was cornering a significant amount of the deal worth over Rs. 1,000 crore.