New Delhi; Defence Ministry has cleared a new blacklisting policy that will do away with blanket bans on companies indulging in corrupt acts.

The Defence Acquisition Council (DAC), chaired by Defence Minister Manohar Parrikar approved the new policy at its meeting in New Delhi yesterday. As per the new policy, the focus is 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.

It can continue to pitch for projects in other segments. Defence Ministry sources said, the new policy will ensure that while companies are dealt with harshly, it will not affect the modernisation process.

The DAC also approved projects worth over 82,000 crore rupees for purchase of fighter aircraft, tanks, rockets and mini drones. Sources said, the DAC gave Acceptance of Necessity (AoN) to Indian Air Force’s plan to purchase 83 Tejas Mark 1A aircraft at a cost of 50,025 crore rupees.

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 2,911 crore rupees.

The AoN was also given for the repeat order of 464 Russian origin T90 tanks which are being manufactured by the Ordnance Factory Board for 13,448 crore rupees, besides for procurement of 598 mini UAVs at a cost of 1,100 crore rupees.