http://pib.nic.in/newsite/erelease.aspx?relid=90800
Blacklisting of Firms
The Government of India has signed a contract with M/s Mazagon Docks Limited (MDL), Mumbai for construction of six Scorpene class (P 75) submarines on 6th October 2005. MDL has in turn signed contracts for transfer of design and built technology, supply of combat systems and associated services with M/s DCNS, a French firm, who is the designer of the P 75 submarines. The Government has no information on contracts between M/s DCNS and M/s Pipavav with regard to submarine sale / supply to Indian Government.
Central Bureau of Investigation has informed that as per available information, they have no inputs in the matter.
There is presently no proposal to blacklist these firms.
This information was given by Minister of State for Defence Shri Jitendra Singh in a written reply to ShriJ.M.Aaron Rashidin Lok Sabha today."
http://articles.timesofindia.indiatimes.com/2012-12-17/india/35868072_1_mazagon-dock-defence-ministry-defence-sector
Mazagon JV gives self sweeping powers
NEW DELHI: In a sensational twist to the controversy surrounding the formation of a joint venture between public sector unit Mazagon Dock Limited and Pipavav Shipyard, the JV has filed a Memorandum of Association giving itself sweeping powers, far in excess of what existing PSUs enjoy in defence sector. Among the plans of the JV is a bizarre claim to act as a broker in the business of warship and weapon making, which is illegal in India.
According to sources and official documents, the MoA filed by the JV is in violation of the guidelines laid down by the defence ministry for formation of such JVs between PSUs and private sector. Besides, it has also gone far beyond what the MDL board had approved, giving rise to questions about who really controls the JV.
The latest developments in the JV formation come even as vigilance division of the defence ministry is conducting an enquiry into the entire affair. The enquiry was ordered in the face of allegations that it is being formed in violation of detailed guidelines laid down by the defence ministry in February 2012 for such ventures.
The move by the MDL board to go ahead with the JV despite the inquiry has itself surprised many within the government. TOI had reported on November 30 about the alleged violation of guidelines issued by the defence ministry, and the vigilance inquiry against it.
Even as the MDL leadership is yet to reply to the vigilance queries, it went ahead with the JV formation and approved the MoA and Articles of Association for the JV named Mazagon Dock Pipavav Defence Pvt Ltd. According to sources, the MoA and AoA filed by the JV before the Registrar of Companies Maharashtra on December 3 was not what MDL board had approved, in a further twist to the controversial move.
The MDL board approved the MoA for the JV as, "To build surface warships, including implementation of appropriate technologies and reporting systems which are consistent with the current industry standards, procure and supply the required materials/equipment required for undertaking construction of surface warships."
However, what was finally filed with the RoC Maharashtra was hugely different and sweeping in nature, bestowing the JV with an aim far bigger than what any other defence PSU has. The MoA now filed with the RoC says the company wants to undertake construction and design of warships to aircraft carriers, from seaplanes to flying boats, and also wants to act as a broker in the industry.
Surprisingly, the MoA also declares the JV's intent to make armaments, weapon systems, surveillance communication equipment etc. This declaration defies logic, because the JV doesn't have government permission to build weapon systems, and it is supposed to be only for warship building.
Further, the JV has also declared its decision to act as agent and broker in these businesses. The defence ministry doesn't recognize any brokers in the defence business, and it is criminal to be a middleman in the defence sector.
Pipavav wanted ex-Mazagon Docks chief to head joint venture
In a fresh twist to the controversy surrounding Mazagon Docks Ltd's move to start joint ventures (JVs) with private players for warship construction, the name of its previous chief has been suggested by one of the private firms to head one the JVs.Pipavav Shipyard's suggestion that Vice Admiral (retired) H S Malhi be considered for the chairmanship of the proposed JV with MDL has surprised many in the defence establishment. A senior official said it was a clear case of conflict of interest because it was under Malhi, who was CMD of MDL until January 31 this year, that the defence public sector unit processed the proposal for tying up with Pipavav.
TOI had on Thursday reported the defence ministry's decision to order a vigilance inquiry into the move of Mazagon Docks, India's biggest warship building facility with over Rs 100,000 crore worth of orders in the pipeline, to form JVs with Pipavav Shipyard, Larsen & Toubro and ABG Shipyard. Talks with Pipavav are at an advanced stage.
Allegations that the proposed JVs may be in violation of government guidelines on formation of such collaborations prompted defence ministry's vigilance wing to order the inquiry. It has sought detailed reports on all the three suggested JVs, especially details of due diligence carried out according to the ministry's guidelines. The vigilance wing has also sought details of the methodology adopted to arrive at the work allocation to the JVs, and if external consultants that were engaged to decide the work-share had any vested interest.
One of the key points of the inquiry is about conflict of interest of parties involved. It is against this background that Pipavav's latest letter to MDL suggesting Malhi among the three names for chairmanship of the proposed JV is being seen. Malhi as the CMD of Mazagon Docks revived the proposal for JV with Pipavav, which had been shelved under his predecessor, and completed most of the file work for the JV.
According to sources, Pipavav suggested three names for chairmanship of the JV, the list topping with Malhi, and the second being Vice Admiral (retd) Raman P Suthan. Pipavav also suggested the name of three people including Vice Admiral (retd) Madanjit Singh to the board of the proposed JV.
After concluding the proposed JV with Pipavav, MDL would take up the proposals with L&T and ABG Shipyard. When Pipavav made public in September 2011 for the first time the proposal to form JV with MDL, there was an instant uproar and MoD shelved the plan. Later, MoD came up with guidelines for forming such JVs with private sector companies. The allegations are that even those guidelines have been violated by MDL in now pushing for the JVs.
The nation dutifully recalls its past victorys, 1962 is conveniently forgotten, Dil Maange More is the slogan of the day and everybody is reassured that all is well with our nation's fighting forces till the next annual parade. Nobody dares question the camo'ed underlying rot, it is unpatriotic (and also prohibited) to do so and the wholesale loot and utter incompetence in the name of national security carries on year after year.Dear Fellow Indians,
Each year our Mantris and Santris ritually carry out a grand televised circus on the 26th of January. The nation is treated to visuals of neatly marching soldiers equipped with all the latest lethal paraphrernalia as befits a country with the world's largest standing volunteer army.
in disgust
B.S Azad
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