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Sunday, August 03, 2014

Govt not to blacklist Rolls Royce for 'operational' reasons

Hawk trainerThe Modi government has decided to go ahead in its dealings with Rolls-Royce, ruling out blacklisting of the global engine-manufacturer which is under the CBI scanner for allegedly employing agents and paying hefty commissions to secure contracts in India.

Sources said the defence ministry will now give the green signal to those projects and deals with Rolls-Royce that are crucial for "operational urgency and national security", and there is no other alternative available.

"The decision was taken after consultation with the attorney general/solicitor general. The user-agency (Army, Navy or IAF) will have to certify at a senior level the operational need for the engines/maintenance contracts concerned. But the CBI will independently pursue its probe," said a source.

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