The Indian Comptroller and Auditor General (CAG) pulled up the previous United Progressive Alliance (UPA) government for changing parameters of the deal for the procurement of Long Range Maritime Reconnaissance Anti-Submarine Warfare (LRMRASW) aircraft to unduly favour Boeing.
In its report submitted in the parliament, the CAG said that Boeing is yet to fulfil the offset obligations as part of the contract for the acquisition of LRMRASW aircraft that was signed in 2011, the Hindu reported Tuesday.
“The Ministry while concluding the contract for the acquisition of LRMRASW aircraft enhanced the financial bid of EADS CASA, Spain, to cater for 20 years’ product support cost, while ignoring this element in respect of Boeing. At a later date, Boeing, USA, offered product support under a separate contract and consequently the deduced ranking of Boeing as L-1 turned out to be incorrect,” the CAG said in the report.
The commercial bid of Boeing was ₹8,700 crore (US $1.2 billion), while EADS CASA had quoted ₹7,776 crore (US $1.1 billion), which also included product support for two years.
Boeing was awarded the contract for eight aircraft in January 2009 at a cost of ₹10,773 crore (US $1.5 billion) and the aircraft were delivered between May 2013 and October 2015, with warranty of two years post-delivery.
In July 2016, India exercised the optional clause for four more aircraft at a cost of $1 billion.
Further, the critical role equipment offered by Boeing did not fully meet the needs of the Indian Navy, the report said. “Owing to capability limitations of radars installed on board, the aircraft is not able to achieve the envisaged coverage area requirements.”
For Anti-Submarine Warfare (ASW), the Naval Staff Quality Requirements (NSQR) had envisaged procurement of torpedoes and certain bombs as the ammunition.
However, the contract for procurement of the bombs had not yet been concluded, the CAG observed. The reasons for non-procurement of the bombs were yet to be intimated by the Navy as on September 2017.
Offset obligations to the tune of $640.26 million to be fulfilled by Boeing within seven years [August 2016] had not been fulfilled till date. “Boeing had claimed offset credits on mere placement of purchase orders, defeating the very purpose of offset obligations,” CAG said.
Indias Hindustan Aeronautics Limited (HAL) has demonstrated flight of 10kg Rotary Wing (Helicopter) unmanned Aerial Vehicle (RUAV). The RUAV is of a 2-stroke petrol engine, twin blade main rotor and tail rotor, payload capability of 2
The naval variant of Indias home-grown light combat aircraft (LCA) Tejas successfully snagged the jets tail hook on the arresting wire of the flight deck of the navys only aircraft carrier, INS Vikramaditya at a test facility in Goa. This was the first in a series of rigousous tests that will be carried out before the fighter can be tested for actual flight deck operations, which could take more than a year, Hindustan Aeronautics Limited (HAL) said in a statement Thursday
India will be able to purchase the Russian S-400 Air Defence System without fear of United States sanctions following a waiver granted under the US National Defence Authorization Act (NDAA). Further, India may have negotiated an attractive price for the system bringing it below US$5
Indias Combat Vehicle Research and Development Establishment (CVRDE) conducted a speed taxi trial for the landing gear for indigenously-built ‘Rustom 2, a medium-altitude long-endurance unmanned aerial vehicle (UAV). The maiden flight of the two ton UAV with the landing gear was held successfully on Thursday at the Aeronautical Test Range (ATR) in Chitradurga, Karnataka, Times of India reported Thursday
Boeing has completed the first suite of synchronised unmanned aerial vehicle (UAV) flight tests using new on-board autonomous command and control technology developed by the company in Australia. Conducted at a regional Queensland airfield, the test flights saw five UAV test beds equipped with Boeings new on-board system safely complete in-air programmed missions as a team without input from a human pilot, the company said in a statement last Friday
India has inducted its first home-grown nuclear capable Submarine Launched Ballistic Missile (SLBM) after nearly two decades of development. The SLBM code-named B-05 was secretly test fired back-to-back from an indigenously built nuclear-powered submarine INS Arihant off Visakhapatnam coast earlier this month,
Indias long-range ballistic missile, Agni-V will undergo one more test in October before being inducted into the countrys arsenal at the end of the year, according to senior defence ministry officials. The missile with a range of 5000-5500 km range underwent its penultimate pre-induction test in June and was expected to be inducted by next year
The Indian defense acquisition council (DAC) headed by the defense minister, Nirmala Sitharaman on Monday approved the acquisition of six next-generation offshore patrol vessels (NGOPVs) from Indian shipbuilders for an approximate ₹4941 crore (US $706 million) for the Indian Navy. The MoD had issued a request for information (RFI) to procure Six NGOPVs class of ships from Indian Shipyards in January this year
The Indian Navy lacks training facility for its crew on various aspects of damage control and firefighting in a submarine,
Pakistan Commissions Largest Locally-built Warship
Chinese firm Tests BrahMos-rivaling Supersonic Cruise Missile
Saab to Develops Surface-Launched Version of Gungnir Anti-ship Missile
BAE Systems Demonstrates Software for US Military Cyber Security
Two Belgian F-16 Fighter Jets Destroyed in Accidental Cannon Fire
China Reveals Hong-20, New-gen Stealth Bomber Program
China to Unveil Apache Helicopter Rival at Zhuhai Air Show
Russian Future Semi-catamaran Aircraft Carrier gets New Design Concept
Russian fifth generation fighter aircraft (FGFA) Su-57 will for the first time perform flights during the ARMY 2018 event near...
The American-made Patriot and Russian S-400 Triumf air defense systems are currently hogging international orders despite their price tags running...
The Russian ministry of defense on Thursday published a series of videos showcasing the production, deployment and installation and testing...
The market for fighter jets in countries which are expected to have open competitions is estimated at US$50 billion to...
The Indian MoD's plan to purchase 110 fighter jets may be its costliest fighter jet buy ever with the entire...
Indias plans of integrating the MBDAs meteor missile on its LCA Tejas and Su-30MKI aircraft may not happen due to...