Projects mismanaged by Navy: CAG reports
INS Sindhukirti was awarded to the Hindustan Shipyard Limited, Visakhapatnam, in June 2005.
By : u. sudhakar reddy
Update: 2015-12-09 07:10 GMT
Hyderabad: The Comptroller General of India in separate reports tabled in Parliament on Tuesday rapped the Indian Navy for gross project mismanagement which had led to the diesel electric submarine INS Sindhukirti being stuck in a refit for 10 years at the Visakhapatnam Hindustan Shipyard. The report stated: “Ten EKM submarines were acquired by the Indian Navy from Russia between 1986 and 2000. Of the 10 submarines, medium refit of six submarines was offloaded to Russia due to lack of expertise, non-availability of spares and technical documentation.
INS Sindhukirti was awarded to the Hindustan Shipyard Limited, Visakhapatnam, in June 2005. Against the scheduled refit by January 2009, the submarine was delivered to the Navy in June 2015, with sea acceptance trials still incomplete. This escalated the cost by more than Rs 350 crore and diversion of Rs 92 crore, the CAG stated. The CAG observed deficiency in manpower deployed for the refit by the yard, non-adherence to the requirement of protection of cables and delayed supply of yard materials as well as modernisation of equipment for the reason for the delay of the refit. “Ineffective project management and lack of a dedicated project team to oversee the refit further hampered the progress of refit as planned. Cumulatively, the cost of refit was enhanced from Rs 629.50 crore in 2005 to Rs 990.52 crore in 2013, with additional liabilities of Rs 92.17 crore still being claimed in 2015. This apart, improper financial management led to diversion of funds to the tune of Rs 92 crore”.
Hyderabad firms default:
In another report, the CAG slammed the department of science and technology regarding implementation of the Drugs and Pharmaceutical Research Programme. “Deficiencies in selection, financial management and monitoring of projects sanctioned by the department has led to non-realisation of outstanding loans and interest of Rs 73.68 crore, non-receipt of final project completion reports and consequent lack of information on outcome generated from the projects. The objectives of enhancing capabilities of the pharma industry and promoting them to develop drugs at lower cost were not achieved.”
Indigene Pharmaceuticals Pvt. Ltd Hyderabad borrowed Rs 14.95 crore and has to pay an interest of Rs 1.94 crore and penal interest of Rs 3.80 crore. Sudershan Biotech Ltd. Hyderabad took a loan of Rs 1.96 crore and has to pay interest of Rs 0.25 crore and penal interest of Rs 0.3 crore, the CAG said. Some of the projects were arbitrarily closed. Biological E, Hyderabad and the department have delayed to sign an agreement for a month even after loan payment regarding a dengue vaccine project.
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