We have alternative for Finmeccanica's torpedos: Parrikar

Image
Press Trust of India Mumbai
Last Updated : May 28 2016 | 8:42 PM IST
Defence Minister Manohar Parrikar today said the government had found an alternative source for procuring torpedos following the blacklisting of Italian company Finmeccanica SpA in the VVIP Chopper scam.
"Now since we have decided to blacklist Finmeccanica and group companies, immediately we can't even think of this torpedo but we've alternative plans," Parrikar told reporters at the Mazgaon Dock Shipbuilders here.
"For purpose of secrecy, commercial importance of price, I will not inform you the alternative at this stage. Let the decision be taken by the government, then it will come (to you)," he said, and added that the country needs the torpedos at the earliest.
In Finmeccanica's case, the price bid was not opened, and because of keeping the acquisition on hold the whole process had to be stopped, he said.
Earlier this week, the government withdrew a tender for purchasing 98 torpedos for Scorpene submarines which a subsidiary of the chopper scam-tainted Italian defence conglomerate Finmeccanica had won during the UPA regime.
The government action by default means that Finmeccanica will not be considered for the over Rs 1,200 crore deal for which a fresh tender is likely to be issued.
If the matter is not resolved fast, the Navy would be inducting the first Scorpene submarine without its main anti-ship attack system.
Black Shark torpedoes, made by Whitehead Alenia SistemiSubacquei (WASS), a subsidiary of Finmeccanica, had emerged the lowest bidder to arm the Scorpene submarines, the first of which will be handed over to the Navy by September.
Parrikar today said six of the Scorpene class Kalavari submarines are being made at the MDL, and the first of them is undergoing sea trials and will be ready for induction into the Navy in the last quarter of the year.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: May 28 2016 | 8:42 PM IST

Next Story