8/7/2019 Bofors scam Rs 64 cr

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8/7/2019 Bofors scam Rs 64 cr

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It is bizarre how the government could have completely bought the IAI argument. The 6%

business charges were, in fact, questioned at the CCS level and an explanation sought. The MoD

asked the Defence Research & Development Organisation (DRDO) about it, which, in turn,asked the Israelis. The Israeli explanation was apparently completely acceptable to DRDO,

which, in turn, passed this on to the MoD. No independent assessment was apparently made on

whether the government was justified in paying Rs 600 crore as business charges in thiscontract.

The defence minister then duly sent the DRDO explanation to the finance ministry for its

perusal. A dependable source told DNA that then finance minister P Chidambaram himself wrote

on the file that the charges could be agreed if MoD could justify the quantum. But the MoDsatisfied itself mainly from the Israeli firms own explanations. It made no verifications of its

own.

The MRSAM deal is a joint project in which IAI would be leading the development of a

medium-range surface-to-air missile for the air force. The DRDO is a partner in the project, but

will effectively get only a third (Rs 3,000 crore) of the Rs 10,000 crore bounty. IAI gets the bulkof it, over Rs 7,000 crore. The missile is to have a range of around 70 km.

Disappointed military sources are also appalled by the fact that despite India paying up such a

huge amount of money, there is no significant transfer of technology. Indias greatest weaknessin missile production is seeker technology, which is one of the biggest Israeli contributions to

the contract. But the Israelis wont be transferring technology for seekers. Seeker technology is

key to how missiles hit their targets.