Thursday, May 18, 2006

No wrongdoing in Embraer jets' purchase: minister

New Delhi: The Indian government Wednesday maintained there was no wrongdoing in the purchase of Embraer executive jets for the defence and paramilitary forces, saying correct procedures had been followed.
'Negotiations were held by Price Negotiation Committee (PNC) with the L-1 (winning) vendor. After conclusion of the negotiations and approval by the government, the contract was concluded,' for the purchase of five Embraer jets for $145 million, Defence Minister Pranab Mukherjee said in a written reply in the Rajya Sabha.
Four aircraft are deployed with the Indian Air Force (IAF) and one with the Border Security Force.
According to the Comptroller and Auditor General of India, 'while the propriety of the (Embraer) acquisition was open to question, commitment of an additional expenditure of Rs.126.90 crore (Rs.1.26 billion) for providing upgraded facilities in the aircraft did not reflect adequate concern for deriving value for money'.
17/05/06 Indo Asian News Service/DailyIndia.com
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