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Compliance

Defence

Report No. 35 of 2014 - Union Government (Defence Services) Army, Ordnance Factories and Defence Public Sector Undertakings

Date on which Report Tabled:

Fri 19 Dec, 2014

Date of sending the report to Government:

Government Type:

Union

Union Department

Defence

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Sector Defence and National Security

Overview

In order to attain self reliance and effect savings in foreign exchange, Bharat Earth Movers Limited, a Defence PSU, signed a collaboration agreement for indigenisation of TATRA vehicles in 1986 with M/s Omnipol of Czechoslovakia to cater the continuous need of the Indian Army. The objective of attaining 86 per cent indigenisation by 1991 was envisaged by BEML. However, till 2014 the target is yet to be attained. BEML attributed the delay mainly to the failure of Ministry in placing order for sufficient number of vehicles between 1986 and 1991. The process for indigenisation of TATRA vehicles suffered due to lack of clear long term projection of orders by Army to BEML. Resultantly, the objective of self-reliance in production of TATRA vehicles was defeated.

Ministry of Defence imported 999 number of Individual Chemical Agent Detectors (ICADs) worth RS 27.32 crore between January 2010 and October 2010 for detecting the presence of chemical agents and toxic industrial compounds. Non conducting Field Evaluation Trials in conditions where equipment is likely to be deployed as prescribed by DPP, had resulted in acceptance of defective ICADs worth RS 27.32 crore. These equipment were awaiting replacement since August 2011 by the firm as of June 2014.

Failure of the Local Military Authorities at Colaba and further lack of pursuance by Defence Estate Department for obtaining Government sanction for entering into a lease for the defence land occupied by the United Services Club, Mumbai resulted in recurring revenue loss of RS 5.74 crore per annum to Government exchequer. The MoD on their part, failed to monitor the assurance given to the Public Accounts Committee of the Parliament to review the arrangements with US Club which continued to commercially exploit A-l defence land valuing RS 114.85 crore without Government sanction and paying a nominal rent of RS 0.36 lakh per annum.

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Report No. 35 of 2014 - Full Report
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