The Defence Ministry on Monday cleared a new blacklisting policy that will do away with blanket bans on companies indulging in corrupt acts and approved projects worth over Rs 82,000 crore for purchase of fighter aircraft, tanks, rockets and mini drones.

Contrary to expectation, the Defence Acquisition Council, chaired by Defence Minister Manohar Parrikar, did not take a decision on the Navy's proposal to purchase 12 US2I amphibious aircraft from Japan, though the issue came up for discussion.

A file photo of Manohar Parrikar | Source: PTI


However, it is expected that there would be some forward movement on this issue during Prime Minister Narendra Modi's upcoming visit to Tokyo on November 11-12.

Here are the key points:

  • The DAC gave Acceptance of Necessity (AoN) to Indian Air Force's plan to purchase 83 Tejas Mark 1A aircraft at a cost of Rs 50,025 crore.
  •  It also accorded AON for the purchase of 15 Light Combat Aircraft being manufactured by HAL for the Army and Air Force for a tentative cost of about Rs 2,911 crore. 
Pinaka rockets | Source: WikiCommons


  •  AoN was also given for the repeat order of 464 Russian origin T90 tanks which are being manufactured by the Ordnance Factory Board for Rs 13,448 crore.
  • 598 mini UAVs at a cost of Rs 1,100 crore will also be procured.
Tejas aircraft | Source: PTI


  • The DAC also cleared the way for the issuance of tender for six additional regiments of the Pinaka rockets for Rs 14,633 crore.
  • While the IAF will receive 10 LCH, the Army will get 5 to begin with. No decision was taken on the Navy's proposal to purchase 12 US2I amphibious aircraft from Japan.
  • For the first time, the Ministry accorded AoN for two Indigenously Designed, Developed and Manufactured (IDDM) products - LCA and Tejas. The LCA cost will include those for simulators and auxiliary equipment.
Russian origin T90 tanks | Source: Reuters


New blacklisting policy

  • A new blacklisting policy has also been cleared and its features will be posted soon on defence ministry's website.
  •  It will focus on graded blacklisting and fines. This means that if a defence conglomerate is caught doing wrong in a particular project, it will be banned for a specific number of years from dealing in that particular segment only.
  • There will be an option for heavy penalties besides those in contract and even individuals can be banned.
Scorpene submarine | Source: PTI


  • It may also allow many of the stuck programmes, like the heavy weight torpedos for the six Scorpene submarines, to move ahead with clarity.
  • The guidelines for suspension or banning of business dealings with entities has also been approved.

(With inputs from PTI)