Now, CBI to probe BEML’s ARV deal with Army

NEW DELHI: After Tatra trucks, the Central Bureau of Investigation ( CBI) is focusing on the procurement of armoured recovery vehicles (ARV) WZT-3 to the Army by defence PSU BEML, said sources. The ministry of defence had asked the agency to conduct an elaborate investigation into the entire affairs of BEML, including the supply of ARVs.

A senior CBI officer said, "Our Tatra procurement probe also focuses on ARVs. We had questioned BEML officials in connection with the ARVs as well when we called them to ask about Tatra trucks."

On ARVs too, there are complaints of exorbitant prices for spare parts and lack of efforts to indigenize the vehicle. ARV WZT-3, supplied by Bumar of Poland, is based on a T-72 tank chassis and was introduced in the force more than a decade ago. BEML has denied any such problems with the ARV supply.

An assessment shows that BEML has been charging the Army exorbitant rates for the vehicles' spare parts. The BEML offer at certain instances 20-30 times more than the estimated rates based on pervious receipts. For example, 'non-return valve', for which the estimated rate is Rs 1608.81, was supplied by BEML at Rs 39,550 in 2008-09. The 'small bolts for track links', of which the estimated rate was Rs 424.70, was sold by BEML at Rs 15,480 in the same year. A mere 'nut in the set', estimated to cost Rs 192.08, was sold at Rs 5,505.

"We are looking at exorbitant prices and slow indigenization of the vehicle, as asked by the MoD," said a CBI officer. CBI is being assisted by two Army Colonels to decipher the technical complications of the deals.

BEML has exclusive rights to manufacture and sell the ARV and its spare parts in India under a transfer of technology agreement with Bumar.

Army sources complain that the higher rates for spare parts were causing serious concern because the overhaul of ARVs was coming up soon, necessitating huge increase in demand for them. BEML would not be able to meet the requirements because they have not setup for any manufacturing facility, they complain.

Army sources also say that there are engineer-ing support issues, includ-ing jerking of crane during slowing and failure of main winch reducer assembly. Sources in CBI say that they are looking at all these irregularities.