Sanjha Morcha

Defence PSUs have failed in their objective: CAG

Ajay Banerjee

Tribune News Service

New Delhi, July 28

The Comptroller and Auditor General (CAG), in a damming report on the functioning of the Defence Ministry owned public sector undertakings, has said none of the specialised weapon-carrying helicopters produced for the Army have been accepted due to deficiencies.It goes on to say that Defence PSUs failed in their objective of supplying critical weapons and equipment meant for modernisation and capability enhancement of the Army. “Inordinate delays were observed in (18 examined) contracts valuing Rs 30,098 crore, which constituted 63 per cent of the money value of total contracts concluded by ministry with DPSUs,” says the report.It cites the example of Hindustan Aeronautics Limited (HAL) which was given a contract in December 2007 for the supply of 60 Advanced Light Helicopter Weapon System Integrated (ALH-WSI) at a cost of Rs 6,295 crore.The CAG in its report tabled in Parliament on July 26 said the HAL did not supply a single helicopter till 2013. “While 17 ALH-WSI were supplied between March 2013 and June 2015, the same were not accepted by the Army (till October 2015) citing repeated snags/deficiencies,” it said.As per contract, the deliveries should have been completed by now. The Army planned to raise six Army Aviation Squadrons each equipped with 10 ALH-WSI to carry out combat support and anti-armour role and to provide close air support to armoured and mechanised forces in mobile warfare. “The delay had not only impacted the modernisation of the forces, but also had financial implications towards accrued interest on payments lying unutilised by DPSUs,” says the report.In case of the helicopters, the advance payment was made to the tune of Rs 1,916.27 crore. The helicopter production was linked to certification of the ‘Shakti’ engine (under development) by August 2008. In the event of any change in certification of Shakti engine by planned date, delivery schedule would get modified correspondingly.The CAG says in 18 contracts studied in the report valuing thus, despite making payment of Rs 10,241.19 crore, tangible supply against nine contracts did not materialise.

Many a problemwith HAL copters

  • Hindustan Aeronautics Ltd was given a Rs 6,295-cr contract in December 2007 for 60 Advanced Light Helicopter Weapon System Integrated (ALH-WSI). HAL did not supply a single helicopter till 2013, CAG said
  • When 17 ALH-WSI were supplied March 2013 and June 2015, these were not accepted by the Army till October 2015 due to deficiencies. As per contract, the deliveries should have been completed by now