Defense Minister Arun Jaitley said this in parliament in his reply to a question on the S-400 deal following news reports. Indian newspaper Economic Times and US-based Defensenews reported that the $10 billion defense purchase contract, including stealth frigates and S-400 systems, with Russia would be hampered by US sanctions. Jaitley said that in spite of US imposed sanctions, Russian firms will face no hurdles in furnishing requisite guarantees from Indian banks.
“Capital procurement of defense equipment is carried out as per provisions of the Defense Procurement Procedure (DPP). In accordance with the extant DPP, in cases involving expenditure above $3 million (Rs 20 crore), Indian and foreign vendors are required to sign a Pre-Contract Integrity Pact and have to furnish an Integrity Pact Bank Guarantee (IPBG) for a stipulated amount from an Indian public sector bank, along with the commercial bid. This requirement does not apply to certain categories of capital procurements, including those from certain Russian government agencies,” said Jaitley in his reply.
“India and the Russian Federation enjoy a special and privileged strategic partnership. Russia has been our long standing and trusted defense partner and Government is committed to continuing the relationship to the mutual benefit of both countries,” he said.
The Indian armed forces possess 70 percent equipment of Russian origin. It is widely expected that defense ties will be further improved with the recent commitment made by Russian defense firms, regarding long-term supply contract of spare parts and manufacture of spare parts through joint venture and technology transfer with Indian companies.
By: SPUTNIK News
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