Patrol Vessel Deal: Reliance Naval’s Bank Guarantees Have Been Encashed, Says Navy Chief
New Delhi, Dec 3: In a punitive action, the Navy has encashed a bank guarantee of the Reliance Naval Engineering Ltd in the Rs 3,000-crore contract for five offshore patrol vessels due to long delays in their supply, and said Monday that the deal is being examined.
"There is no preferential treatment being given to RNEL. Its bank guarantee has been encashed. Punitive action has been taken against it. The process is being taken forward," Navy Chief Admiral Sunil Lanba said at a press conference.
The Navy Chief was asked about the huge delay in delivery of the vessels by RNEL and whether Navy is under any pressure to not initiate any action against the company.
Admiral Lanba said the deal is not being cancelled at the moment, but added that it is being looked into, indicating that government may take a call on the issue.
"It has not been cancelled at the moment but the contract is being looked at and is being examined and what we need to do with it," said the Navy chief.
The Navy chief also said that the company is undergoing corporate debt restructuring.
There was no immediate reaction from RNEL about the Navy chief's comments.
Anil Ambani's Reliance Defence has been at the centre of a controversy over the Rs 58,000-crore Rafale jet fighter deal. The Congress has accused the government of favouring the company.
The company as well as the government have rejected the charges.
The original contract for the five naval offshore patrol vessels (NOPVs) was won by Pipavav Defence and Offshore Engineering in 2011. The company was bought over by Anil Ambani group in 2016.
Sources said the bank guarantee was 10 per cent of the size of the contract.
According to the original contract, the first vessel was to be delivered by early 2015. However, the deadline was pushed several times.
Two patrol vessels -- 'Shachi' and 'Shruti', were launched at the Reliance shipyard in Pipavav, Gujarat, last year.
RNEL was the first private sector company to obtain the licence and contract to build the patrol vessels.
The vessels were to be armed with 76mm Super Rapid Gun Mount (SRGM) system.
The primary role of NOPVs is to undertake surveillance of the country's vast Exclusive Economic Zone (EEZ) besides operational tasks such as anti-piracy patrols, fleet support operations, maritime security of offshore assets and coastal security operations.
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No more street vending on B’luru’s main roads, as govt plans to bring new policy for street hawkers
Bengaluru: Deputy Chief Minister D.K. Shivakumar on Friday said that the state government has decided to formulate a new policy for footpaths in Bengaluru, under which street vending will not be allowed on main roads and sub-main roads.
Addressing the media after a budget preparation meeting and executive meeting of GBA corporations at Vidhana Soudha, Shivakumar said discussions were held with MLAs from the GBA region regarding the corporations’ budgets and key civic issues.
Leader of Opposition R. Ashok also participated in the meeting and shared his views. Officials from multiple departments, including police, BESCOM, BMRCL, BWSSB and BDA, along with ministers and legislators, were present.
He stated that all five municipalities have prepared their individual budgets, while MLAs have submitted their demands, including calls for ward-wise grants.
“We have decided to bring a new policy for footpaths. Citizens are struggling to walk as footpaths are encroached upon by street vendors,” Shivakumar said.
Highlighting the need to balance livelihoods and public convenience, he added that “a separate space will be provided for street vendors, and specific roads will be designated for their business,” ensuring that pedestrians can use footpaths without obstruction. He noted that there was unanimous agreement among MLAs on this approach.
Issuing a warning to vendors, Shivakumar said that authorities will act against those violating the rules. “If vendors operate during the day and leave their carts on the roadside at night, authorities will clear them. People should be aware of this,” he said.
Providing data on street vendors, he said that around 60,000 vendors have registered so far, of which 30,000 have applied for vehicles, and a tender has already been floated.
“Only those with street vendor identity cards will be allowed to do business. Those without ID cards will not be permitted to operate on the streets,” he added.
