India places IAI, Rafael on restricted procurements list

The Indian Ministry of Defense has clarified the sanctions to be taken against domestic and foreign defense manufacturers allegedly engaged in corrupt practices, US magazine "Defense News" reports. Three categories have been created for companies: debarred, suspended and restricted procurement.

Both Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) and Rafael Advanced Defense Systems Ltd. which have been caught up in alleged affairs of corruption have been placed on the restricted procurement list. According to "Defense News," they are permitted to carry out business dealings on account of operational urgency, national security and the lack of alternatives.

This makes unclear the fate of Rafael's $900 million deal to sell 8,000 Spike missiles to India about which Prime Minister Benjamin Netanyahu was expressing optimism during his visit to India in January.

IMI Systems, on the other hand, is suspended from doing business in India until 2024 for alleged corrupt practices.

Published by Globes [online], Israel business news - www.globes-online.com - on February 22, 2018

India places IAI, Rafael on restricted procurements list

"Defense News" reports these companies can sign deals supporting operational urgency, national security or lack of alternatives leaving Rafael's missile deal unclear.