CAG raises concerns over delay in defence indigenisation

NEW DELHI: The comptroller and auditor general has raised concern over the delay in indigenisation of defence equipment as 87% of the naval projects taken up during 1991 to 2010 did not finish in time, as per the audit report tabled in Parliament on Friday.

CAG in its report pointed out that of the 24 naval projects sanctioned during 1991 to 2010 at a cost of Rs 731.51 crore, 21 projects could not be completed in the original time schedule. Seven of these projects witnessed cost overruns ranging from 38% to 348%. Further, a scrutiny of 12 projects related to naval technologies showed delays and technological obsolescence, it added. Recently, the matter of low domestic production of defence equipment was raised in Parliament.

Replying to it defence minister Arun Jaitley said production of defence equipment entails large initial investment and in an effort to strengthen the indigenous production, the government has announced a Defence Production Policy in January, 2011.