The Hindu Business Line : BEML denies violation in Tatra components purchase norms

BHARAT Earth Movers Ltd (BEML) today denied that there was violation in the components purchase procedure relating to the Tatra trucks it makes for the Armed Forces.

At a news conference here, its CMD, Mr V.R.S. Natarajan, refuted reports saying, "There is no Defence scam or dubious deal... We suspect that it has been done at the behest of competitors, including an international player who is desperate to make an entry into the Indian Defence supplies market."

BEML was making the trucks under licence from Czechoslovakian company, Tatra, which became Tatra Sipox a.s. in Slovakia after that country split into two. The company sources its components from a legitimate, fully owned subsidiary, Tatra Sipox (UK) Ltd, since 1997 under a fresh, 10-year agreement. The scope of the MoU, he said, was extended in March 2003 to increase indigenisation of almost all parts and a possible joint venture.

No agent or trading company was involved in the purchase of components as alleged, he said. The Tatra 8x8 trucks made by BEML had reached 44 per cent indigenisation.As for the fate of its tie-up with the South African Denel, BEML was awaiting instructions from the Centre. BEML and Denel had entered into an MoU in 1996 to jointly make a prototype of a gun to be fitted on the main battle tank Arjun. The South African company has in the recent months been in the eye of a storm for allegedly making irregular payments to a British agent for an Indian rifles deal. Mr Natarajan said BEML would wait for the controversy to end.

Sri Lankan order

A Rs 1,000-crore order is expected from Sri Lanka which is reconstructing its rail sector after the December 2004 tsunami havoc.

The order would include setting up rail lines, supply of rail coaches and signal equipment. BEML had orders worth Rs 2,015 crore at the beginning of the fiscal. This was set to cross Rs 4,000 crore by September this year.

BEML, which registered Rs 1,860-crore turnover in2004-05, is due to get a Rs 200-crore R&D centre catering to the growing metro infrastructure projects. Of this, the Centre has allocated Rs 83 crore this year. This would ensure that coaches for all metro projects coming up after the Delhi metro would be indigenously made, Mr Natarajan said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Lok Sabha passes SEZ Bill

Farming out

With Parliament passing Aquaculture Bill — Banks, insurance cos may support shrimp farming

BEML denies violation in Tatra components purchase norms

DRDL seeks 2,000 acres for expansion