The government auditor has charged the Defence Public Sector Undertakings (DPSUs) of delaying the supply of critical weapons and equipment, hampering the much-needed modernisation plan of the Indian armed forces.
The "inordinate delay in supply of critical weapons and equipment by Defence PSUs during XI Army Plan (2007-12), hampered the modernisation and capability enhancement plan of Indian Army," the Comptroller & Auditor General of India stated in its report - Union Defence Services Army, Ordnance Factories and Defence PSUs - that was tabled in Parliament on Tuesday. It said contracts worth ₹30,038 crore, which accounts for 63 percent of the total value of DPSU contracts, concluded by the Ministry of Defence during XI Army Plan, were delayed.
"Major reasons for delay were undue time taken in development, delay in successful evaluation of the pilot sample, heavy dependence of DPSU on foreign vendors, ambiguity in contractual terms," the auditor said.
Besides impacting defence preparedness, the delay had financial implications towards loss of interest on payments made to DPSUs.
The CAG also observed that HAL did not supply a single Advanced Light Helicopter (ALH) during the XI plan. It supplied 17 such helicopters between March 2013 and June 2015, all of which were discarded by the Army due to deficiencies and technical snags.
"Failure in timely supplies was despite advance and progressive payment of ₹3,550.85 crore made to HAL between December 2007 and July 2015, which included an advance payment for the helicopters to be supplied during XII Plan," the CAG noted.
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By IndianMandarins - 2016-07-27 08:22:46
The government auditor has charged the Defence Public Sector Undertakings (DPSUs) of delaying the supply of critical weapons and equipment, hampering the much-needed modernisation plan of the Indian armed forces.
The "inordinate delay in supply of critical weapons and equipment by Defence PSUs during XI Army Plan (2007-12), hampered the modernisation and capability enhancement plan of Indian Army," the Comptroller & Auditor General of India stated in its report - Union Defence Services Army, Ordnance Factories and Defence PSUs - that was tabled in Parliament on Tuesday. It said contracts worth ₹30,038 crore, which accounts for 63 percent of the total value of DPSU contracts, concluded by the Ministry of Defence during XI Army Plan, were delayed.
"Major reasons for delay were undue time taken in development, delay in successful evaluation of the pilot sample, heavy dependence of DPSU on foreign vendors, ambiguity in contractual terms," the auditor said.
Besides impacting defence preparedness, the delay had financial implications towards loss of interest on payments made to DPSUs.
The CAG also observed that HAL did not supply a single Advanced Light Helicopter (ALH) during the XI plan. It supplied 17 such helicopters between March 2013 and June 2015, all of which were discarded by the Army due to deficiencies and technical snags.
"Failure in timely supplies was despite advance and progressive payment of ₹3,550.85 crore made to HAL between December 2007 and July 2015, which included an advance payment for the helicopters to be supplied during XII Plan," the CAG noted.
