Says such delays in supplies could harm national security

CAG pulls up Defence PSUs for long delays

In a scathing report on the Defence Ministry’s Public Sector Undertakings (PSUs) for inordinate delays in supplies that too with deficiencies not acceptable to the Armed Forces, the Comptroller and Auditor General (CAG) has expressed concern over the national security put to risk by them as it affected preparedness for any possible war.

In a report tabled in Parliament early this week, the CAG blasts the defence PSUs for failure in their objective of supplying critical weapons and equipment meant for modernisation and capability enhancement of the Army. It said none of the specialised weapon-carrying helicopters produced by Hindustan Aeronautics Limited (HAL) met the requirements of the Army due to deficiencies.

In 18 contracts studied by the CAG in its report, the tangible supplies did not materialise in case o nine contracts despite the advance payment.

“Inordinate delays were observed in 18 contracts examined that were valued Rs 30,098 crore, which constituted 63% of the money value of total contracts concluded by ministry with Defence PSUs,” the CAG said, citing how HAL did not supply a single helicopter till 2013 after getting a contract in December 2007 for supply of 60 advanced light helicopter weapon system integrated (ALH-WSI) at a cost of Rs 6,295 crore.

"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," the report said, pointing out that the contract was to complete the delivery of all 60 choppers by now.

The CAG pointed out how this lapse of HAL sabotaged the Army’s plan of raising six Army Aviation Squadrons, each equipped with 10 ALH-WSI helicopters, 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 Defence PSUs,” said the CAG report. It pointed out that in case of the helicopters, an advanced payment of Rs 1,916.27 crore.