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EXCLUSIVE: Naval officer red-flagged purchase of ships with inferior steel from Italian firm

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EXCLUSIVE: Naval officer red-flagged purchase of ships with inferior steel from Italian firm



India Today exposes a bigger scam than the AgustaWestland VVIP chopper deal. The government has ordered inquiry into alleged favours given by the previous UPA government to an Italian shipbuilding firm which provided two naval tankers to India.

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Gaurav C Sawant | Posted by Shashank Shantanu
Follow @gauravcsawant AgustaWestland VVIP chopper deal , the government has ordered a probe into alleged 'favours' done by the previous Congress-led UPA government in awarding defence contract to an Italian shipbuilding firm. The naval scam could have far bigger implications than the Agusta deal.

According to exclusive details available with India Today, Defence Minister Manohar Parrikar has ordered a "discreet inquiry" into the alleged naval tanker scam.

The Indian Navy has two fleet tankers INS Deepak and INS Shakti, that provide the Indian Navy's frontline warships with fuel, water and all other essentials while out in the sea. But the deal signed in 2009 to acquire them is now under scrutiny.


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A serving 'whistleblower' naval officer has now raised a red flag over the way these ships were acquired from an Italian firm - Fincantieri.


What's the scam


  1. Italian firm - Fincantieri - reportedly favoured by the UPA government. The company won deal from the government for two naval tankers in 2009.
  2. The UPA government approved use of inferior quality of steel in the naval tankers manufactured by the firm.
  3. The government is now scrutinising details of the contract awarded to the Italian firm.
  4. The lid over the scam has been blown off by a former naval officer who has demanded an investigation into the 2009 purchase of two fleet tankers, crucial for Indian Navy's deep water capabilities.
  5. These tankers had to be bought in 2009 and 2011 because INS Vikramaditya, Indian Navy's biggest aircraft carrier, was coming on from Russia.
  6. At that time, the then Defence Minister AK Antony had hailed this as one of the fastest procurements of a fleet tanker manufactured with Indian specifications.
  7. There are allegations that instead of using weapons grade steel, commercial grade steel was used.
  8. When one of the tankers was coming to India from Russia escorting INS Vikramaditya, it ran into rough seas and hull of the brand new ship developed cracks.



Naval scam: A timeline

- 2006: India floats bids for navy tanker ships

- Three countries - Russia, Korea and Italy - file respond to the tender.

- Only Russian firm offers required military-grade steel (DMR 249A)

- India relaxes steel requirement, Russia backs out

- 2009: Italian firm Fincantieri wins deal for 2 tankers

- 2010: CAG criticises the deal, says 'undue' favours were done

- 2016: Navy officer sounds alarm, Ministry of Defence begins discreet inquiry



Naval veterans react
Vice Admiral Shekhar Sinha, former flag officer commanding in chief of the Western Naval Command, was in service when the murky deal was signed.

"When she (INS Deepak) was in passage and crossed the Atlantic, the sea had turned very rough and the vessel was keeping difficulty in sea keeping. We know that the tankers can keep to bad sea. I have commanded a tanker myself. The captain reported that he has seen some crack developing along the expansion joint on the hull. We told him to keep a watch," Vice Admiral Sinha told India Today.

"It (cracks) alarmed me and the entire operations team. When the captain told us that the cracks are developing, we got in touch with the naval headquarters and requested them to take the ship to Lisbon, Portugal, which was not a scheduled halt," he added.

Admiral Raja Menon told India Today," I have never come across warships made of commercial grade steel. I don't know whether conditions were deliberately relaxed because it happened to be a tanker."

"I have never come across a case where shipbuilding specifications have been watered down. This should be investigated. I can't believe that the people in authority would have deliberately allowed military grade steel to be downgraded to commercial steel without giving reasons," Admiral Menon said.



Ready for any probe: Congress
Reacting to the India Today expose, senior Congress leader and former Commerce and Industry Minister Anand Sharma said that his party is ready to face probe in the matter. Sharma said the BJP should stop vendetta politics.

"I would like to caution this government of not to enter in deception by selective leaks. It should realise that defence acquisition is a complex matter and it should not be used to target previous acquisitions," Sharma said.

"What is the ministry of defence doing? They should be doing their job correctly. They don't need a whistleblower to tell them what is happening. We are always ready for anything," he said when asked about is the Congress is ready for a thorough probe into the issue


http://indiatoday.intoday.in/story/...ed-inferior-steel-in-naval-ship/1/667443.html
 
Defence Ministry has not opened any inquiry into navy tankers

NEW DELHI: Contrary to reports, the Defence Ministry has not opened any other deal for investigation besides the AgustaWestland chopper contract, defence sources said today.

The remarks came in backdrop of media reports that the MoD has opened an inquiry into a 2009 purchase of two naval tankers.

The allegations were that inferior quality of steel was used by the Italian firm which caused an incident on board the tanker in 2010.

"MoD has not opened any inquiry into navy tankers with so called sub standard steel," sources said.

However, the deal had come under criticism of the CAG in 2010.

A Navy spokesperson said necessary procedures were followed diligently prior to acquisition of these tankers.

The official said a few minor cracks were observed on the superstructure when the ship was coming back from Russia with aircraft carrier Vikramaditya.

"The cracks probably occurred due to a combination of factors like sub-zero temp in the region, heavy sea, stormy conditions among others. The repairs were carried out in Lisbon by original equipment manufacturer and the ship was made ready in a few hours.

"Board of Inquiry to investigate the cause was conducted and there was no material failure found. The ship is fully operational since and has been deployed extensively," the official said adding the ship is on deployment in the Persian Gulf as of now

http://www.newindianexpress.com/nat...to-navy-tankers/2016/05/13/article3431252.ece
 
Typical Congress response. You Myers have no choice but to accept an investigation, because you Myers can't police yourselves you corrupt SOBs
 
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