New Delhi: A Rs 13,000 crore aircraft deal has sparked a row between two central ministries.
Heavy Industries Minister Praful Patel has written a strongly-worded letter to Defence Minister AK Antony, protesting against the Indian Air Force's decision to not allow public sector units or PSUs to participate in a global tender for 56 transport aircraft.
The dispute started after the air force decided to replace its ageing fleet of AVRO planes, mainly used as transport aircraft, with new planes. Russian and European companies like Illyushin, Antonov and Airbus among others, are believed to be among those shortlisted for the deal.
The Defence Ministry reportedly bypassed state-owned Hindustan Aeronautics Limited (HAL) and said private sector firms would tie up with foreign manufacturers to produce the new aircraft.
"If PSUs meet the required criteria, it's unfair not to allow them to bid," said Praful Patel. "It's a ridiculous argument that HAL's hands are full and that's why they can't be given orders. If HAL is big, it can grow bigger," Mr Patel told NDTV.
Mr Patel, in his letter - a copy of which is available with NDTV - has argued that PSUs should be given an equal opportunity and level playing field".
"This being a government/public procurement, an equal opportunity and level playing field is required to be provided to all capable entities irrespective of being 'Public' or 'Private' in nature. There are many PSUs who meet all the prescribed criterion for participating in this tender, but are being denied the opportunity to participate in this tender only because they are PSUs," Mr Patel said in the letter, asking the Defence Minister to reconsider the decision.
Heavy Industries Minister Praful Patel has written a strongly-worded letter to Defence Minister AK Antony, protesting against the Indian Air Force's decision to not allow public sector units or PSUs to participate in a global tender for 56 transport aircraft.
The dispute started after the air force decided to replace its ageing fleet of AVRO planes, mainly used as transport aircraft, with new planes. Russian and European companies like Illyushin, Antonov and Airbus among others, are believed to be among those shortlisted for the deal.
"If PSUs meet the required criteria, it's unfair not to allow them to bid," said Praful Patel. "It's a ridiculous argument that HAL's hands are full and that's why they can't be given orders. If HAL is big, it can grow bigger," Mr Patel told NDTV.
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"This being a government/public procurement, an equal opportunity and level playing field is required to be provided to all capable entities irrespective of being 'Public' or 'Private' in nature. There are many PSUs who meet all the prescribed criterion for participating in this tender, but are being denied the opportunity to participate in this tender only because they are PSUs," Mr Patel said in the letter, asking the Defence Minister to reconsider the decision.
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