Don't link Barak with Bofors: Pranab

The government on Thursday said no decision had been taken to blacklist the Israeli armament company that makes the Barak missile, in the sale of which the Central Bureau of Investigation filed a case against former defence minister George Fernandes and his associate Jaya Jaitley for allegedly receiving kickbacks.

A hint in this regard was given by defence minister Pranab Mukherjee who, on being asked whether the company, Israel Aircraft Industries, was being blacklisted, said comparisons could not be drawn between it and South African arms major Denel.

"These are totally different situations. The case of Denel and Barak are not comparable," Mukherjee told reporters on the sidelines of a function in New Delhi to receive a dividend cheque of Rs 3.27 crore from state-run Goa Shipyards.

"There is a specific case filed by the CBI regarding Barak missiles. It will go to the courts. Let us await the decision," he said.

Denel was blacklisted after the CBI started a probe into reports that the company had paid commissions to middlemen to clinch a deal for selling anti-material

rifles to India.

Minister of State for Defence Rao Inderjit Singh said there was a need for urgent public debate on whether banning companies for any misdemeanour in such sales was the answer.

Singh said, "If anyone has done hanky-panky, the law will take its course. But we should not have any knee-jerk reaction as this might affect the country's defence preparedness."

Only a limited number of countries have been developing anti-missile capabilities and it will be wrong to close the doors to receive such technology, he said, adding that politicians needed to put their heads together to dwell on how to go about high-technology transfers.

He said six years ago, the defence ministry had invited applications for registration of arms companies and agents. Though a lot of applications were received, the ministry had not registered even one.

The present government, Singh said, would have a fresh look at the registration of armament companies and agents.