PAC slams Def Min over Scorpene submarine deal
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Last Updated: Wednesday, March 10, 2010, 22:26
  
New Delhi: Slamming the Defence Ministry over the nine-year delay in awarding contract to French firm Thales to build six Scorpene submarines in Mumbai, a Parliamentary Committee today said the indecisiveness resulted in cost overruns and undue favour to the vendor, besides adversely impacting Navy's operational preparedness.

Referring to a Comptroller and Auditor General (CAG) report for 2008 that rapped the Ministry for the delay, the Public Accounts Committee (PAC) also noted that this led to a cost escalation of the submarines by more than Rs 2,800 crore.

The CAG report had observed that "despite the Indian Navy's depleting force level, the Ministry took nine years to finalise a contract for the construction of the six submarines."

The PAC report in this regard was tabled in both Houses of Parliament today.

The committee noted that due to the delay in the finalisation of the contract for as long as three years from 2002 to 2005, there had been an escalation in the price of submarines by more than Rs 2,800 crore and an additional Euro 27.05 million commitment on the procurement of missiles for the naval vessel.

"Such indecisiveness and systemic flaws on the procurement of submarines led to time and cost overrun and undue favour to the vendor besides adversely impacting Navy's operational preparedness," the report said.

-PTI


First Published: Wednesday, March 10, 2010, 22:26


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