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.

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.



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.



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.