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Union Defence Ministry allowed armed forces to do business with the Rolls Royce

The Union Defence Ministry on 3 August 2014 allowed armed forces to do business related to essential requirements with the Rolls Royce.

Aug 4, 2014 19:04 IST
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The Union Defence Ministry on 3 August 2014 allowed armed forces to do business related to essential requirements with the Rolls Royce.

The decision of the Union Defence Ministry came after Attorney General Mukul Rohtagi opined that IAF and the Navy can procure from the Rolls Royce the systems essential for their maintenance and operational requirements of the two services and not allowing the procurement would affect the defence preparedness of the two forces.

Moreover, the aircraft such as the C-130J Super Hercules transport aircraft, SeaKing multi-role helicopters, Hawk advanced jet trainer and the Jaguar fighter of the two forces fly on Rolls-Royce engines.

Hence, they will have to procure essential equipment from the firm to continue their operations.

Background
 
In March 2014, the Union Defence Ministry had put on hold all the deal with the British engine manufacturer Rolls-Royce over the allegations of corruption in contract with Hindustan Aeronautics Ltd (HAL).

In the contract, Rolls – Royce has to supply aircraft engines to HAL for its trainer aircraft during 2007-2011. The contract is of worth 10000 crore rupees.  

CBI found the allegations of unauthorised use of an outside commercial adviser and the use of middlemen by Rolls-Royce in fetching the contract.

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