The Hindu : National : CVC to probe missile deal with Israel

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Friday, Sep 14, 2007
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CVC to probe missile deal with Israel

Special Correspondent

NEW DELHI: The government has ordered a probe into the purchase of missiles from Israel and the contract could be cancelled, said official sources. The probe comes at a time when India is planning a major upgrade of its air defence systems with Israel emerging as a major partner, edging out the old supplier Russia.

The probe into the purchase of 18 manually loaded Spyder missile systems came following allegations of illegal influencing of the purchase process. The inquiry will be conducted by the Central Vigilance Commission, said the sources.

They could not say whether the probe would affect other major deals in the pipeline including a Rs.10,000-crore pact between Israeli companies and the Defence Research and Development Organisation (DRDO) for research and development and manufacturing of missiles.

The 18 Spyder missiles, which can react quickly after locking on air targets, were contracted for about Rs.1,800 crore and would replace the made-in-India Russian-origin OSA-AKM and ZRK-BD Strela surface-to-air missile systems.

The government decided to import the missiles after the armed forces felt the parameters of the indigenously developed Trishul missile should be further improved.

The possibility of the contract being cancelled could bring back the earlier contenders, including the European firm MBDA and companies from Russia, Poland and the United Kingdom.

Fresh contract

The fresh contract could be larger, possibly in the region of over Rs. 3,500 crores, said the sources.

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