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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
India Scraps South Korea Minesweep Deal
Nov 25, 2014

The Defence Ministry scrapped the Rs. 2,700-crore proposed deal for acquiring two minesweepers for the Navy from South Korea following allegations of involvement of agents. India’s Defence procurement procedure does not allow agents in Defence deals and the Government has already en-cashed Rs. 3 crore bank guarantee furnished by the South Korean manufacturing firm Kangnam.

The deal was not inked after the allegations about agents surfaced and the Government decided to scrap it after Attorney recently recommended the scrapping of the entire selection process for minesweepers. These specialised small ships detect and neutralise anti-ship mines.

The South Korean firm was to build two ships while the remaining six were to be manufactured by Goa Shipyard Limited under the transfer of technology pact. The shipyard will now build all the eight vessels and the entire contract is worth over Rs. 6,000 crore.

The price negotiation with the South Korean was completed in 2011 after the tender was floated in 2005 followed by trials. The previous Government did not sign the deal after coming to know about involvement of agents.

Goa Shipyard is permitted to collaborate with a foreign manufacturer for this project and the South Korean firm can participate in the bid as it is not blacklisted.

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