Irregularities in Defence Purchases- Highlights the CAG.

The Comptroller and Auditor General submitted its report on Defense Ministry to both the houses of the Parliament on September 23, 2020.

Findings of the Report

  1. CAG highlights that, the modernization of Mi-17 medium lift helicopters has not been achieved till date. It was proposed in 2002.
  2. According to the report, It took 15 years for the defense ministry to enter into upgradation contract for 90 Mi-17 helicopters with the Israel because of  poor planning and indecision at various stages of procurement.
  3. Report says, delay in procurement of the purchases is shortening the deployment period. For instance, delivery of the upgraded ninety Mi-17 helicopters from Israel was supposed to start from July 2018 and has to be completed by 2024. But the auditing says, 56 of these helicopters will be left with less than two years of life before phasing out in 2024.
  4. As per the Report, French aircraft maker Dassault Aviation and weapons has not  yet confirmed the transfer of technology to the Defense Research Development Organization which was a part Rafale contract.
  5. Approval for acquisition of fleet tankers at a cost of Rs 9,045 crores was provided in 2014 by the Defense Ministry. But, the contract is yet to be concluded.

Issue with the UAV Rotax Engines

CAG highlights that,  In March 2010, the Israel Aerospace Industries contracted to supply five 914F certified UAV Rotax Engine worth Rs 87.45 lakhs per engine. But the same engine was procured by DRDO at Rs 23.30 lakh per engine in 2012. Also, the average price for engine in the international market is Rs 21 lakhs to Rs 25 lakhs.  The audit accused that the vendor has gained Rs 3.16 crores in supplying five UAV engines. CAG has recommended an investigation in to the matter.