Thursday, May 17, 2012

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  CAG raps MoD for reckless spending
Ajay Banerjee
Tribune News Service

New Delhi, August 8
The Comptroller and Auditor General (CAG) has ripped apart the Ministry of Defence for recklessly spending crores of rupees and impacting operational preparedness of the forces.

The CAG report on Army, Ordnance factories and DRDO tabled in Parliament yesterday said that the MoD purchased vintage, non-working missiles, allowed setting up of a gun-making unit that does not manufacture guns and even “maintained” products that do not exist in the inventory.
“…the Ministry does not appear to be serious about implications… of defective equipment,” the CAG report said. Pointing out the lackadaisical attitude of the Defence Public Sector Undertakings established to provide the Armed Forces with state-of-the-art equipment, the CAG says there has been a “role reversal”.
The Ministry procured outdated missiles of 1970s worth Rs 587 crore in 2008 merely to favour Bharat Dynamics Limited. “…The missiles procured were not only of lower capabilities in terms of range, but also did not meet the Army’s long-term objective of acquiring third generation missiles which were available in the market,” the Comptroller and Auditor General said.
The CAG also commented on procurement of the Multi Barrel Rocket Launcher System (SMERCH), often proudly displayed at the Republic Day parade. The Rs 2633 crore system has critical defects. Similarly, the Ordnance Factory at Korwa in Amethi was sanctioned Rs 408 crore to produce new generation carbines -- guns with rapid firing capability -- for the Army. However, the type of carbine to be produced is yet to be decided.
Unexplainably, the Army paid for the maintenance of Unmanned Aerial Vehicles that which were not even held by it. In another case, it procured spares for a particular gun and later found those to be non-compatible and hence could not be fitted in the gun.
The CAG also pointed out at defective ammunition worth Rs 245 crore lying unused for six years. Another typical case of defective purchase was procurement of oxygen mask-embedded helmets used by chopper pilots operating at altitudes of beyond 14,000 feet. The oxygen masks had to be withdrawn as pilots experienced serious defects like insufficient supply of oxygen. The masks were purchased with an evaluation.
Appallingly, assault boats required urgently by the Army could not be procured for over six years despite a budget and adequate number of vendors. 

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