The Hindu : National : Ordnance factory will not be shifted: Pranab

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Wednesday, Aug 31, 2005

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National

Ordnance factory will not be shifted: Pranab

Special Correspondent

NEW DELHI: Defence Minister Pranab Mukherjee on Tuesday sought to allay the fears of Lok Sabha MPs from Bihar that there was a move to shift out of the State the ordnance factory coming up at Nalanda. Denying any such move, he admitted to a delay in the project owing to suspension of all transactions with the South African arms manufacturer Denel, which was to supply the equipment.

Stating that apprehensions expressed by members in the House was the figment of "somebody's imagination," Mr. Mukherjee said transactions with Denel were suspended after it became evident that the company had engaged an agent against contractual obligations. The Government, he said, was in discussion with the South African Government on the matter.

The issue was raised by Janata Dal (United) MPs Nitish Kumar and Prabhunath Singh through an adjournment notice soon after proceedings began for the day. Though the notice was rejected, Speaker Somnath Chatterjee allowed them to speak. Their concerns over reports suggesting that there was a proposal to shift the factory to Panagarh in West Bengal were also echoed by Sushil Modi (BJP) and Devendra Prasad Yadav (RJD), who said Mr. Mukherjee should clear the air on the issue.

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