Adani Defence JV — a defence company owned by PM Modi’s close friend, Gautam Adani with zero experience in submarine manufacturing JV — has been allowed to participate in a ₹45,000 crore submarine project, the Congress has alleged

In a sensational revelation, the Congress has accused Modi government of tweaking rules in favour of Adani. Congress also alleged that the Modi government has flouted the clauses of Defence Procurement Procedure - 2016 (DPP) in order to include Adani in the bidding.

Addressing a press conference in Delhi, head of the Congress media cell, Randeep Surjewala said Modi government and the PMO overruled suggestions made by the empowered committee, set up by the Indian Navy. Although the deal has not been finalised yet, he further alleged:

  • An empowered committee of the Indian Navy headed by Navy’s Controller of Warship Production and Acquisition rejected Adani’s bid because his company was not found to be eligible but by overruling the empowered committee, the Modi government allowed Adani’s company to take part in the bid from the backdoor.
  • Adani’s company sought to manufacture submarines based on a clause wherein its experience of setting up and running a power plant is counted which is in complete violation of the procedure.
  • Empowered Committee of the Indian Navy shortlisted two entities – 1) government-owned Mazagaon Dock Shipbuilders Limited and 2) Larsen and Toubro but, Modi directed consideration of Adani.

Demanding answer from the Modi Government, Congress asked:

  • Adherence to DPP 2016 is compulsory. Why has the government violated the rules?
  • Adani Defence or HSL had not constituted any special purpose vehicle till the last date of submission of the request, which is mandatory for such bidding. Then, why has Defence Ministry not scrutinised it thoroughly?
  • Why has the government diluted the credit rating categorisation? It’s Important to mention here that Adani’s company was given “BBB” for a project valued at ₹45,000 crores while A or A+ category is mandatory for a project worth ₹1000 crore.