Blacklisting of firms not to hinder procurement: Parrikar

Defence firms that have committed corruption-related offences will face action under a proposed blacklisting policy but the government will not hesitate to buy a product from another company even if any equipment or software manufactured by the blacklisted entity was embedded into it.

"Globally, many products have components from various companies. While a company which falls under the blacklisting purview will face action, we will also ensure that the policy does not affect any procurement from another company not related to the blacklisted one," Parrikar told PTI here today.

He said the government is taking into consideration global trends and practices while finalising the blacklisting policy to ensure that it does not affect the procurement process.

The USD 750 million planned procurement of M777 ultra light howitzers from the US under the Foreign Military Sales route illustrates the government's stand.

The guns use a fire control system of a subsidiary of the scandal-hit Italian firm Finmeccanica.

The government has already started the process of blacklisting Finmeccanica and all its subsidiaries, including AgustaWestland, over the VVIP chopper scam.

Parrikar had earlier made it clear that there would be "no relaxation" for those who had already been blacklisted and that "bribe givers" would be punished.

He had said existing blacklisted firms would be allowed to appeal before a vigilance committee of the Defence Ministry for delisting under the new policy.

Parrikar said the blacklisting of defence suppliers was not the only solution to root out corruption and hinted at going for heavy penalties against erring firms.