The Congress on Wednesday alleged the Narendra Modi government was planning to overrule a navy decision to favour the Adani Group in the purchase of a Rs 45,000-crore submarine, violating the defence procurement policy (DPP).

The allegation by Congress communications chief Randeep Surjewala, which he levelled citing “informed sources”, carried echoes of the Rafale controversy.

“Dost hit (a friend’s interest) is more important than desh hit (national interest) for the Modi government. Hence the defence minister has been pressured to consider the Adani Defence joint venture for the submarine project even as the empowered committee of the Indian Navy found it unsuitable,” he said.

The Congress had earlier accused Prime Minister Modi of personally ensuring that the offset contract in the Rafale fighter deal went to Anil Ambani’s fledgling company at the expense of the public-sector Hindustan Aeronautics Limited.

It had also flagged allegations that the PMO had conducted parallel negotiations overruling the defence ministry in the Rafale deal.

Giving details of the procedures relating to the submarine purchase, Surjewala said: “An ‘empowered committee’ of the Indian Navy was constituted and headed by the navy’s controller of warship production and acquisition. Five responses were received from Larsen & Toubro Limited, Mazagaon Dock Shipbuilders Limited (PSU), Reliance Naval & Engineering Limited, Hindustan Shipyard Limited (PSU) and Adani Defence-Hindustan Shipyard Limited (HSL) Joint Venture.

“Adani Defence has zero experience of making a ship or submarine. It seeks to manufacture submarines based on a clause wherein its experience of setting up and running a power plant is counted. On examination of manufacturing facilities, financial records and other criteria, the empowered committee short-listed two entities — Mazagaon and Larsen & Toubro. We learn that the government is now pushing for Adani Defence JV and a meeting could be held soon, this Friday or over the next few days, to overrule the empowered committee.

“The defence ministry is required to mandatorily approve the ‘special purpose vehicle’ (SPV) and scrutinise it thoroughly. Adani Defence or HSL had not constituted any such SPV till the last date of submission of the expression of interest, September 11, 2019. News reports suggested the empowered committee had rejected the Adani bid because of this.”

Surjewala added that according to the DPP, “the assessment of the capacity of shipbuilding entities requires that the credit rating of every entity bidding for a contract above Rs 1,000 crore should be categorised as ‘A’. The defence ministry, while issuing the expression of interest, has decided to dilute this to ‘BBB’ for a project valued 45 times higher. Has this been done to suit the Adani Group?”

Adani Power (the parent company) has a credit rating of BB+ and its subsidiary companies mostly have the credit rating BBB with the exception of Adani Power Maharashtra Limited, which has an A- rating.

Asked if the Congress wanted the project given to a government-owned company, Surjewala said: “We are fighting for transparency and fairness, not for any company. The main concern is that the government is trying to bulldoze the decision of the empowered committee.”