The government is preparing a new policy that will allow foreign defence firms to legally hire agents, but with caveats. Defence minister Manohar Parrikar said changes in the Defence Procurement Policy were likely in a month-and-a-half.
The minister also said the government was open to reviewing all cases of blacklisted defence firms on merit and had partially lifted a ban on Tatra trucks.
The government would also allow these agents to participate in meetings to help the company they represent, the minister said, as it might not be possible for official representatives to attend all meetings in India. In 2003, the government had mulled a similar move, but the plan couldn’t take off as no agent registered with it.
On review of cases of blacklisted defence firms, Parrikar said the “debarment principle” was also being worked out. Based on merit and necessity, the government could “consider after proper verification, lifting the ban or restriction to a reasonable level”.
The minister said BEML had been allowed to supply spare parts for Tatra trucks as long as it did not deal with the British subsidiary of the company, which was banned by the UPA following a scandal.
Parrikar indicated the Centre would continue to push defence trade reforms to boost indigenous arms manufacturing to meet modernisation targets of the forces. Easier norms for doing business in the defence sector would be the top priority.