Defence ministry blacklists 6 firms, suspends 13 others from engaging in business | Latest News India - Hindustan Times
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Govt removes defence procurement ban on AgustaWestland, parent company Leonardo

By, Hindustan Times, New Delhi
Nov 14, 2021 04:54 PM IST

As many as six companies—Singapore Technologies Kinetics Ltd (STK), Israel Military Industries Ltd (IMI), TS Kisan & Co Pvt Ltd, New Delhi, RK Machine Tools Ltd, Ludhiana, Rheinmetall Air Defence (RAD), Zurich, and Corporation Defence, Russia—were debarred, according to the ministry’s list.

AgustaWestland and its parent company Leonardo, previously Finmeccanica, were dropped from the list of firms with which defence procurement was suspended by the Union ministry of defence.

The Union defence ministry's fresh list did not mention the name of AgustaWestland and its parent firm Leonardo,(File Photo | Representational image)
The Union defence ministry's fresh list did not mention the name of AgustaWestland and its parent firm Leonardo,(File Photo | Representational image)

The government banned Leonardo (then named Finmeccanica) from all future military contracts in 2014, following the alleged scam around the VVIP chopper deal. The ministry had issued a list of companies that were either debarred, suspended or put on hold earlier on November 12.

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As many as six companies—Singapore Technologies Kinetics Ltd (STK), Israel Military Industries Ltd (IMI), TS Kisan & Co Pvt Ltd, New Delhi, RK Machine Tools Ltd, Ludhiana, Rheinmetall Air Defence (RAD), Zurich, and Corporation Defence, Russia—were debarred, according to the ministry’s list.

Meanwhile, doing business with 13 firms has been put on hold or suspended. These include IDS, Tunisia, Infotech Design System (IDS), Mauritius, IDS Infotech Ltd, Mohali, Aeromatrix Info Solution Pvt Ltd, Chandigarh, Shanx Oceaneering Inter Spiro India Pvt Ltd, Inter Spiro India Pvt Ltd, Experts Systems, Unitech Enterprises, Kelvin Engineering, Atlas group of companies including Atlas Telecom and Atlas Defence Services, Offset India Solutions (P) Ltd and its Group companies/functionaries, Pilatus Aircraft Ltd, Switzerland and Vectra Advanced Engineering Pvt Ltd (VAEPL).

Procurement has been restricted from two companies namely Rolls Royce and its allied and subsidiaries companies and Tatra Trucks of the Czech Republic, the ministry’s statement showed.

The ministry’s notification comes as the opposition Congress party on Monday raised questions about the reported lifting of the ban on procurement from Finmeccanica, according to a report by news agency PTI.

In 2014, New Delhi cancelled its contract with AgustaWestland, Finmeccanica’s British subsidiary, for supplying 12 AW-101 VVIP helicopters to the Indian Air Force (IAF) for alleged breach of contractual obligations and allegations of kickbacks paid by the company for bagging the deal. The Bharatiya Janata Party (BJP) attacked the then Congress government for corruption, according to the PTI report.

“Earlier Agusta was corrupt, now it is clean after it got washed in the BJP laundry,” Congress leader and MP Rahul Gandhi tweeted.

“What is the 'secret deal' between the Modi Government and Agusta/Finmeccanica?” Congress spokesperson Randeep Surjewala tweeted. “Is it okay now to deal with the company which (Narendra) Modi and his government called ‘corrupt-bribe giver, fake’,” he added.

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