NEW DELHI, July 31: The Comptroller and Auditor General of India (CAG) has severely criticised the “inordinate delay” in supply of critical weapons and equipment by Defence PSUs during XI Army Plan which hampered the modernisation and capability enhancement plan of Indian Army.
The national auditor observed that contracts valuing `30038 crore which account for 63 per cent of the total value of DPSUs contracts concluded by the Ministry during XI Army Plan, were delayed.
“Major reasons for delay were undue time taken in development, delay in successful evaluation of pilot sample, heavy dependence of DPSU on foreign vendors, ambiguity in contractual terms, etc. Besides impacting the Defence preparedness, the delay had financial implications towards loss of interest on payments made to DPSUs,” the CAG said in its latest report tabled in the Parliament this week. The objective of self reliance in defence production had also not been achieved, it said. (UNI)
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