Wednesday, May 2, 2012

EXCLUSIVE! The A to Z of blacklisting

Neelam Mathews
May 2, 2012

With the Tatra-BEML deal under the scanner, the time has come to ask some questions. Who gave Tatra the order and resold at a higher price? Will the government consider blacklisting BEML? If this were to happen, would other defense PSUs shudder? Ofcourse, what about the most obvious candidate- OFB in the case of six companies blacklisted in March?

"We need to introspect a bit here and be clear on our policy objectives,"  an official told Aerospace Diary. "We cannot have one rule for government-associated companies and the other for the rest of the world."

In March , the Ministry of Defense blacklisted six firms- Singapore Technologies Kinetics Ltd. (STK), Israel Military Industries Ltd. (IMI), Rheinmetall Air Defence (RAD), Zurich, Corporation Defence, Russia (CDR), TS Kisan., New Delhi and  RK Machine Tools Ltd., Ludhiana - from further business dealings with the Ordnance Factory Board, Department of Defense Production, MoD, for ten years.

Despite the wording, what is still not clear is if these companies are debarred from dealing with only the ordnance factory board or all wings of the ministry of defense? Or is the government leaving some loopholes open?

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