Norms to blacklist weapon manufacturing firms eased partially

NEW DELHI: Norms related to blacklisting of weapon manufacturing firms facing corruption charges have been eased partially as these were affecting country's security preparedness, Defence Minister Arun Jaitley said today.

"The issue (of blacklisting) has been discussed at length at the Defence Ministry. There are a large number of firms which have been blacklisted. Now that upholds consideration of probity but that narrows our buying options which can affect our security preparedness.

"The issue was referred to the Attorney General and thereafter the Law Ministry has considered it. We have eased to the extent that where supplies have already been made, you need servicing of those equipment. Now you cannot say we have blacklisted you and we won't take your spare parts. That will make the equipment redundant," he told a press conference.

He was asked about government's recent decisions on blacklisting related to Italian defence firm Finmeccannica where it was allowed to take part in already concluded deals but banned form taking part in future bids. The Minister said there are three sets of circumstances for which the Defence Ministry has come up with new rules on blacklisting. He cited circumstances where "bids have come in (including that of blacklisted players) and there are other eligible players.

The bid of blacklisted players is not opened and other bids are opened. The decision has been taken keeping a balance between security considerations and considerations of probity."