NEW DELHI, Nov 6: The Defence Ministry is yet to take a decision on re-tendering the contract for construction of the Seabird Naval complex at Karwar, near Mangalore. It has been reported that Project Seabird is a move to shift the Mumbai-based Western Naval Command to coastal Karnataka for strategic reasons.

As reported in The Indian Express on Thursday, the stalling of Project Seabird figured at the Defence Consultative Committee meeting held in Delhi today.

The issue was raised by independent Rajya Sabha MP Jayant Malhoutra. ``There has been a lot of speculation and information about the project in the Press, which must be clarified immediately,'' Malhoutra told The Indian Express.

Malhoutra raised the issue with Defence Secretary Ajit Kumar and was told that the issue was `under active consideration'. Sources said that Malhoutra was requested by the Defence Secretary not to raise the issue in Parliament which begins on November 19.

Ajit Kumar said the project involved a joint decision between the Defence and Finance Ministries.

The Project Seabird controversy centers around Defence Minister Mulayam Singh Yadav allegedly wanting to favour Hyundai, a South Korean bidder despite objections from the Navy. Moreover, Larsen and Toubro, another bidder, was reportedly lower by Rs 100 crore than Hyundai.

The Rs 1,200 crore contract comprises quarrying, construction of a break water structure, dredging and reclamation of land.

Official sources confirmed that this question was raised at the meeting and the matter was under process. Otherwise the Defence Ministry has ordered an inquiry into documents pertaining to the contract which was leaked to a newspaper. Mulayam indicated that pay scales of soldiers would be improved further although it could take some time.

APJ Abdul Kalam, scientific adviser to the Defence Minister stated that the MBT Arjun had been cleared for production after extensive user trials over 20,000 kms. The Defence Minister also announced that the `Agni' programme will not be halted. Dismissing reports of shelving the programme under pressure, he said India cannot be cowed down and the programme is to proceed on priority.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.