Our Bureau
11:43 AM, August 11, 2015

The Indian Defense Ministry has signed 18 international contracts worth INR 29,222 Crore (US $20.1 billion) between May 2014 and February 2015.

The contracts were signed with armaments manufacturers from the USA, Russia, the UK, Israel, Germany and France.

“Defense Procurement Procedure (DPP) details direct dealing with the Original Equipment Manufacturers (OEMs) or Authorized Vendors or Government Sponsored Export Agencies (applicable in case of countries where domestic laws do not permit direct export by OEM),” Defense Minister Manohar Parrikar said in an answer in parliament.

“It also provides that vendor is required to give full details of any agents / technical consultants / authorised vendors that may have been appointed by them for marketing of this equipment in India. These details should include the scope of work and responsibilities that have been entrusted with the said party in India,” Parrikar said.

Parrikar’s reply shows a possibility of changing mindset in the MoD about the employment of middlemen in potential defense deals on the basis of full disclosure. Observers believe that this can also be included in the DPP as a policy statement as a laid down procedure.