BY : DNA-INDIA

The government has put in cold storage a massive joint venture for a new generation Barak missiles for Indian Air Force, as the CBI makes major breakthroughs in nailing arms agent Suresh Nanda and others in the original Barak contract for Indian Navy in 2000.

According to dependable sources, a new version of the Barak missiles, a medium range surface-to-air missiles, was to be made for the IAF under the Rs 10,000 crore project in a joint venture between the Defence Research and Development Organisation and the Israel Aerospace Industries, the makers of Barak missiles.

The Cabinet Committee on Security had cleared the JV on July 12, 2007, but sources have now indicated that the government is cautious about giving the final administrative clearance for this project. If cleared, this would be the biggest military JV of India with any other country.

The move comes amidst the CBI going full steam investigating the original Barak deal of 2000 for the Indian Navy.

On Saturday, the CBI arrested arms dealer Suresh Nanda, his son Sanjeev Nanda, their chartered accountant Bipin Shah and income tax deputy director (investigation) Ashutosh Verma.

The CBI and the income tax department are reportedly in possession of evidence to show that the Nandas received over Rs 400 crore that they believe was the commission earned by them in various arms deals including that of the Rs 1160 crore Barak deal.

The Barak anti-missile defence systems were purchased for the naval ships, after the DRDO failed to develop the indigenous system Trishul.

With the rave reviews that the Barak system received from Navy and aggressive Israeli lobbying, the Barak instantly became the favourite of the military after 2000. In the past eight years, the Navy went in for a new generation Barak missiles, under a joint venture between DRDO, IAI and Navy.

This new Rs 2500 crore JV has been under criticism from very learned military sources who say that it was not a JV but almost a costly outright purchase.

DRDO is to develop a few systems including a booster for the proposed missile. And then in 2007, the Air Force went for the Rs 10,000 crore Barak project.