No middleman to be allowed in defence contracts: Antony

NEW DELHI: India on Saturday said no middleman would be allowed in defence contracts and companies could face action if complaints of kickbacks were found true.
    
"Whenever we receive any complaint of kickbacks, we take action," Defence Minister A K Antony said.
    
He, however, ruled out cancellation of 1.2 billion dollar deal with Israel for acquisition of three Falcon Air Control and Early Warning Control System (AWACS) with Israel.
    
The Minister's comments came after he inaugurated the fifth Indian Defence Expo here in which 479 companies from 30 countries are participating.
    
Asked about Israeli media reports that India had nearly paid three times more for AWACS than the price quoted by China and that commissions were paid in the deal, Antony said "the Defence Ministry has received no such complaints."
    
Companies like Boeing, Lockheed Martin and Raytheon from the US and Thales, Gican, DCNS from France are participating in the Expo.

To a question, Antony said the government had acted fast in the past to scrap negotiations after complaints that a bidder company had circumvented laid out procurement procedures.
    
"Even in this instance, pressure was brought at government to government level but we stood our ground," he said.
    
Though Antony did not name the company, it was an apparent reference to the cancellation of contract with European Aviation Consortium EADS for purchase of 197 light helicopters.
    
"In all our acquisitions, transparency and performance of weapon systems will be the guiding mark," he said.
    
Asked if huge participation by the US in the Defence Expo outstripping exhibits put up by India's traditional weapon suppliers like Russia and France was indication of any new tilt, Antony said as far as weapon acquisitions were concerned, "we won't favour anybody."
    
"Our agenda is to get the most advanced technology at a reasonable price," Antony said, adding that all negotiations would be done in a transparent and honest manner.
    
The participation in the fair indicates the position India has acquired in the eyes of major advanced countries, he said.
    
The Minister rubbished talks that his Ministry would surrender funds earmarked for capital acquisitions in the current financial year.
    
"All our procurements are on track. We will spend the money allocated and hopefully get more next year," he said.
    
Antony also indicated that the Defence offset policy is in for modifications and these would be carried out as the Defence Procurement Policies (DPP) was revised. He said the new DPP would be released by April this year.
    
The Minister said changes in offset policy and other procurement procedures was being undertaken on the suggestion sought from industry, chambers and vendors.
    
Asked when the key decision would be taken on nominating leading private companies as Raksha Udyog Ratna (RUR), which will enable them to be recipients of the offset from foreign vendors, the Minister said discussions on this were still underway with stakeholders.
    
Though the government has notified the policy of naming RURs, the implementation of the plans has bogged down due to strong opposition from the Defence PSUs Trade Unions.
"Even without RURs, the participation of private industries in Defence sector has shown a quantum jump since 2001," he said.
    
According to CII estimates, Indian Defence market would shoot up to 30 Billion US Dollars in the next three years as New Delhi undertakes major modernization of its Army, Navy and Air Force.