Israeli Military Industries (IMI) and Singapore Technologies (ST) Kinetics were blacklisted after the Central Bureau of Investigation (CBI) arrested Sudipta Ghosh, chairman of the Ordnance Factory Board on corruption charges in May, 2009.
The decision to lift a part of the ban was taken about a week back on the “the request of the Army” after consulting the Union Law Ministry and the Central Vigilance Commission, said a defence ministry official.
The two companies are allowed to take part only in those trials where there are more vendors.
ST Kinetics will participate in the trials of 155 mm towed guns, light strike vehicles for the para-commandoes in Special Forces and light weight assault rifles. The Israeli firm will be in the trials of ammunition for Bofors guns, armoured fighting vehicles and tank protection systems.