The modernization of the Indian Air Force Mi-17 medium-lift helicopters, proposed in 2002, has not been achieved, compromising the operational readiness of the fleet, India’s chief auditor said in a report presented at Parliament on Wednesday.
The Comptroller and Auditor General (CAG) said the helicopters were flying with limited capacity, attributing the situation to “poor planning and indecision.”
“The Ministry of Defense, due to poor planning and indecision at various stages of the procurement, took 15 years to enter (January 2017) into the 90 Mi-17 helicopter upgrade contract with an Israeli company. Contracted delivery of these upgraded helicopters was to begin from July 2018 and be completed in 2024. However, the audit noted that after the upgrade, 56 of these helicopters would be left with less than two years of useful life and would be phased out for 2024. ”The CAG said in a report on the Air Force, one of three reports presented in Parliament.
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The report also highlighted irregularities in the purchase of aeronautical engines for UAVs, citing a case in which a foreign supplier, Israel Aerospace Industries, supplied such engines at more than three times the market price.
In another report on defense offset management, the CAG said that French aircraft maker Dassault Aviation and arms supplier MBDA have not confirmed the transfer of technology (ToT) to the Defense Research and Development Organization (DRDO). , which was part of the 59,000 crore Rafale contract, the Hindustan Times reported Thursday.
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The auditor doubted that ToTs were carried out for a key engine, noting that multiple offset contracts embedded in multiple defense agreements have not produced the desired results. India’s compensation policy stipulates that on all capital purchases above Rs 300 crore, the foreign supplier has to invest at least 30% of the purchase value domestically to boost local capabilities. In the case of the Rafale deal, it was 50%.
In a third report, the CAG raised concerns that the strength of the Indian Navy’s auxiliary vessels is not increasing proportionally with its combat fleet. “In fact, it was declining,” the CAG said, attributing it to excessive delays in the procurement process and failure to meet prescribed deadlines in the conclusion of contracts.
The CAG found that the Navy’s existing Landing Platform Dock (LPD) capacity was inadequate to meet the requirements of amphibious / expeditionary operations. These warships are used to transport troops, defense equipment, and helicopters to the war zone by sea.
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“The Indian Navy therefore decided to acquire this vital warship in October 2010 at a cost of Rs 16 billion. However, even after a lapse of nine years, the contract has not been concluded. This was due to the fact that one of the participating firms did not set a specific deadline to obtain the exit certificate for corporate debt restructuring, ”said the CAG.
The auditor said that the fleet’s inadequate availability of tankers with the Indian Navy forced it to contract commercial vessels.
Oil tankers provide water, ammunition, and supplies to warships at sea. “Approval for the acquisition of tankers at a cost of Rs 9,045 crore was granted in 2014. However, the contract had not yet been concluded until August 2019,” the report says.
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