Rolls-Royce used 'adviser' to supply turbines to HAL

Bangalore-based Hindustan Aeronautics Limited (HAL) has reported to the defence ministry a letter it received from engine manufacturer Rolls-Royce admitting the use of unauthorised service of an “adviser” while selling Marine gas turbines to India.

The company informed HAL about using the service of another firm to sell these engines between 2007 and 2011. 

“HAL received the letter from the company on December 27, 2013, discussed it in the board and referred to the defence ministry following the integrity protocol,” reliable sources in the HAL told Deccan Herald.

The engines are being used by Gas Authority of India Limited. HAL looks after their maintenance. HAL is also part of the procurement programme for these turbines.

Rolls-Royce disclosed the matter to HAL following signing of the integrity pact with HAL, under which the company had to show no violation of contract clause for three years. Use of any third party as an “agent” or “adviser” is prohibited in the defence procurement system. HAL also has an agreement with Transparency International.

“The letter has nothing to do with our military programme. The deal is on the Marine turbines that Rolls-Royce supplies for civilian use,” said HAL sources, denying reports in a section of the media on Sunday that the Bangalore-based aviation major received an anonymous complaint on unfair practices adopted by Rolls-Royce in securing a Rs 10,000-crore contract to supply engines for the Hawk advanced jet-trainer.

Asked about the allegations, a Rolls-Royce spokesperson said the company could only respond on Monday.

On Sunday, a section of the media claimed Defence Minister A K Antony has ordered a probe by the Central Bureau of Investigation into the Rolls-Royce deal. But defence ministry spokesperson Sitangshu Kar said he had no knowledge of the CBI probe.

A CBI official said the agency had not received any such order yet. Also, it has no information whether the defence ministry has issued such an order.