The Hindu : National : Centre denies irregularities in AK-47 deal

Online edition of India's National Newspaper
Tuesday, Apr 06, 2004

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National

Centre denies irregularities in AK-47 deal

By Our Special Correspondent

NEW DELHI, APRIL 5. The Home Ministry today denied allegations of irregularities in the acquisition of AK-47 rifles for Central para military forces and State forces, saying the total value of the deal with M/s Kintex of Bulgaria was Rs. 53 crores for the supply of 64,000 AK-47 rifles.

In a press note here, it said that a high-level Indian technical team, headed by the Inspector-General, Central Reserve Police Force (CRPF) along with experts from other Central forces and Defence Ministry had visited the production unit of Kintex in January this year to inspect the production of new rifles and test-fire them.

``This high-level technical team was fully satisfied with the production facilities in Bulgaria and also the quality of the rifles after putting them through firing tests.

``After this inspection, clearance was given for dispatch of the first lot of 27,000 AK-47 rifles for the Ministry of Home Affairs,'' it said.

Clarifying that M/s Kintex was a 100 per cent State-owned company of the Bulgarian Government, the Ministry said the first global tender for acquisition of rifles was issued on May 28, 2002.

The details of the tender were sent to all the embassies in India and Indian missions abroad besides publication through Indian newspapers and Indian trade journals.

``However, as only one valid tender was received, it was decided to retender the requirement. Accordingly, the second global tender was issued on September 10, 2002. Again, the tender notices were sent to all the embassies, published in the Indian trade journals and national dailies.

``In this tender, two firms — M/s Kintex, Bulgaria and M/s Romtechnica, Romania — submitted samples of AK-47 rifles while M/s Rosoboronexport, Russia submitted tender and samples of AK-103 rifles only,'' the press note said.

The technical committee that rejected the technical offer of M/s Rosoboronexport, as their rifles did not meet the specifications evaluated the submitted samples.

The two valid samples of the Bulgarian and the Romanian firms were put to extensive field trial, in which only the AK-47 weapon offered by M/s Kintex was found up to the mark. Accordingly, the technical committee recommended M/s Kintex for the deal.

The price bid of M/s Kintex quoted the price at $184 per rifle for the fixed butt version and $193 for the folding butt version. The price negotiating committee brought it down to $155 for fixed butt and $163 for folding butt rifles, ensuring a saving of over Rs. 9.46 crores.

The Finance Ministry approved the proposal on May 5, 2003.

Police forces from more than 20 States also placed their requirements for AK-47 rifles for import through the Home Ministry.

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