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CAG reports major shortcomings in defence procurements

Posted on Nov 29, 09:55PM | IANS

India's official auditor Thursday reported major deficiencies in defence procurement process that could have implications for the nation's defence preparedness.

The Comptroller and Auditor General's (CAG) report on the air force and navy tabled in parliament points to several shortcomings, including "inordinate delay in procurement and integration of a Radar Warning Receiver system" by the defence ministry and "procurement of unsuitable Navigation Computers" by the navy.

The report highlights cases involving substantial expenditure in which either the procurement has been delayed or has failed to achieve its objective.

In the case of procurement of 336 Radar Warning Receivers (RWR), the Indian Air Force failed to derive intended benefits out of an investment of Rs.521 crore as the performance of the integrated RWRs was found unsatisfactory, leading to a decision to integrate these as an interim measure till development of an advanced system.

The CAG said the Indian Navy could derive no tangible benefits from an investment of Rs.167.64 crore made about a decade back, on procurement of a system for commissioning on board four submarines. Only two of these systems could be commissioned in 2011, which impacted the operational preparedness of the Indian Navy.

"Failure on the part of Integrated Headquarters (IHQ), Ministry of Defence (Navy) to synchronise the creation of a critical test facility with the procurement of a equipment led to continuous disuse of test equipment worth Rs.10.72 crore for over three years," the report said.

The CAG also underlined the need for the defence ministry and services headquarters to improve their decision-making processes to deliver value for money.