New Delhi, Nov 8,2016: The Defence Acquisition Council (DAC), supervised by Defence Minister Manohar Parrikar, on Monday finally cleared its new blacklisting policy for “suspending or banning” arms contractors for malpractice and gave its go-ahead to proposals worth Rs 82,117 crore for buying fighter planes, tanks, helicopters and drones.
The new policy does away with blanket bans and will have a pointed product-specific ban, aimed at punishing the corrupt among the foreign suppliers and not hold to ransom the country’s military and defence needs, sources said.
However, the Defence Acquisition Council did not decide on the Indian Navy’s proposal to purchase 12 US2I amphibious aircraft from Japan.
For the first time, the DAC cleared two proposals under the Indigenous Design Development and Manufacturing (IDDM) category for Light Combat Aircraft (LCA) Tejas and Light Combat Helicopters (LCH).
For Tejas, an Acceptance of Necessity (AON) for 83 LCAs at a cost of Rs 50,025 crore was cleared for the Indian Air Force (IAF). This will include simulators and ancillary equipment and is in addition to the 40 Tejas fighters that the IAF is getting.
The second proposal cleared in the IDDM category was for 15 LCHs — 10 for the IAF and five for the Indian Army — at a cost of Rs 2,911 crore.
The new blacklisting policy was earlier supposed to come with the Defence Procurement Procedure (DPP), which was released in March this year, and came into effect from April.