Blacklisted defence firms may approach govt seeking reprieve

Some of the blacklisted firms are likely to approach the Defence Ministry soon seeking reprieve as the government prepares a new list of banned companies following the new policy which proposes a mixture of heavy fines and graded banning.

Defence Minister Manohar Parrikar had last month said the Director General (Acquisition) would draw up a list as required under the new policy and hence old cases would also be looked into.

"That does not mean they will be taken out. Don't interpret... They will be examined. What is the status, how many years they have been blacklisted for and why were they blacklisted?" Parrikar had said.

Since 2005, the Defence Ministry has blacklisted six overseas companies, including Singapore Technologies Kinetics, IMI (formerly Israel Military Industries), Rheinmetall Air Defence of Singapore and Corporation Defence of Russia, from doing business here over allegations of corruption.

In 2014, AgustaWestland's contract for purchase of VVIP helicopters was canceled following allegations of corruption.

Leonardo-Finmeccanica of Italy and its group companies are now kept out of future defence projects.