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
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.