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10:37 AM, July 28, 2016
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Indian Air Force Considers Penalizing Firms For Discrepancies In Defense Supplies
Air Vice Marshal M Baladitya (Image: The Hindu)

The Indian Air Force is considering a penalty clause for defense firms in case there is a qualitative and quantitative discrepancy in supplies of goods and services.

"We are very strongly considering a green-channel procedure for dealing with established vendors and are considering very seriously with the government for doing away with any kind of inspection in between, it will only be self-certification and there would be a penalty clause in case there is a qualitative or quantitative discrepancy in the supplies," Air Vice Marshal M Baladitya told reporters during an event,  '10th public procurement summit on enhancing transparency, efficiency and accountability', organised by industry body Assocham in Delhi Wednesday.

Baladitya said there is a need to further improve upon arbitration and dispute resolution consultancy mechanism being followed by the force. This will be a major step in ensuring ease of doing business and speeding up the procurement process. 

Stressing upon the need to increase the confidence level in the field, he said that it will not only help in getting better value for money but the kind of infrastructure India has in various fields can help in getting much better products and achieve government's dream of Make in India in a big way. 

Baladitya said that blacklisting of firm is a "very extreme step". "Rather than you take the step of blacklisting, we need to come out with a better way to stop dealing with that firm in a more organised manner," he said. 

Baladitya said that the Air Force for the first time has decided to conduct "reverse auction" for procurement of goods and services through tendering to help country save money. 

In this kind of auction, the role of a buyer and seller is reversed with the primary objective to compete purchase prices downwards. Several bidders participate in it to offer competitive price. 

The Air Force does procurement worth about Rs 2,000 crore approximately in an year, he said, adding that the amount keep fluctuating. 

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