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CAG questions anti-submarine aircraft deal with Boeing under UPA

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CAG questions anti-submarine aircraft deal with Boeing under UPA

The Comptroller and Auditor General (CAG), in its report tabled in the Parliament on Tuesday, August 7, pulled up the then UPA government for a USD 2.1 billion deal in 2009 for procurement of Long Range Maritime Reconnaissance Anti-Submarine Warfare (LRMRASW) aircraft from Boeing of the US.

The CAG said a bid from a Spanish company was inflated to make a rival US-made anti-submarine aircraft look cheaper, and favour the American defence major over rival bidder EADS CASA of Spain for procuring a fleet of P-8I maritime reconnaissance aircraft.

In its report tabled in Parliament, the CAG said the defence ministry enhanced the financial bid of Spanish aerospace firm to provide for a 20 year “product support” cost on assumption that Boeing’s offer had similar provision.

Boeing, at a later stage, offered the aircraft maintenance support under a separate negotiable contract, the auditor said, while terming as incorrect the conclusion that the American company was the lowest bidder (L1).

It said enhancing the financial bid of the Spanish company by including its product support cost resulted in pushing it to L-2 status (second lowest bidder).

As per the report, the contract was concluded with Boeing in January 2009 at USD 2.1 billion (about Rs 14,500 crore at the current exchange rate).

“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.

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.”

The national auditor said the defence ministry had set the offset obligation by Boeing at USD 641 million (Rs 3,127.43 crore).

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.

Under India’s offset policy, foreign defence entities are mandated to spend at least 30 per cent of the total contract value in India through procurement of components or setting up of research and development facilities.

The 2009 deal was for eight P-8I (Poseidon Eight India) aircraft. The first aircraft came to India in May 2013 and all the eight aircraft have been fully integrated into Indian Navy’s operations.

The P-8I aircraft is a variant of the P-8A Poseidon aircraft that Boeing developed as a replacement for the US Navy’s ageing P-3 fleet.

Indian Navy became the first international customer for the aircraft which is equipped for long range anti-submarine warfare, anti-surface warfare and surveillance. The CAG also criticised delays in procuring bombs as part of the weapons for the aircraft.

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3 dead, 9 hospitalised after gas leak at fertiliser plant in Maharashtra

According to police, the explosion released toxic chemical fumes.

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Three individuals, including two women, lost their lives and nine others were hospitalised following a gas leak caused by an explosion in a reactor at a fertiliser plant in Maharashtra’s Sangli district, an official said on Friday.

The incident occurred at approximately 6:30 PM on Thursday at the Myanmar Chemical Company, located in Shalgaon MIDC within Kadegaon tehsil.

Sangli Superintendent of Police Sandip Ghuge stated that the gas is suspected to be ammonia.

According to police, the explosion released toxic chemical fumes. “Approximately 12 people in the facility were affected and subsequently taken to the hospital. Tragically, two female workers and a security guard have died, while nine others are currently receiving treatment,” stated Sangram Shewale, Senior Inspector at Kadegaon police station.

Seven of the injured individuals have been admitted to Sahyadri Hospital in Karad, with five of them in critical condition in the ICU.

The deceased women have been identified as Suchita Uthale (50) from Yetgaon in Sangli district and Neelam Rethrekar (26) from Masur in Satara district, PTI reported.

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Ahead of Delhi Elections, Arvind Kejriwal launches Revdi Par Charcha campaign to seek feedback on freebies

Arvind Kejriwal said 65,000 meetings will be held across Delhi at micro levels by the AAP leaders and workers.

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Ahead of Delhi Elections, Arvind Kejriwal launches Revdi Par Charcha campaign to seek feedback on freebies

The Aam Aadmi Party (AAP) on Friday launched a campaign with a tagline Revdi Par Charcha to seek public feedback on freebies. The campaign comes ahead of the assembly elections, which is scheduled to be held in February.

Former Chief Minister and AAP national convenor Arvind Kejriwal launched the campaign with his colleagues at the party office, saying while the opposition calls freebies as revdi, the party calls it services. This campaign will start on November 25 and will continue for 15 days until December 10, discussing the issues with common man.

Notably, the opposition has been targeting the AAP for providing free electricity, water and free public buses for women among other facilities. However, AAP feels freebies help citizens live a life of dignity.

Gopal Rai, AAP’s Delhi unit chief, said that so far, politicians used to enjoy the facilities, while citizens paid taxes. He continued that Arvind Kejriwal’s government decided that the people should also get the facilities like the politicians, adding the BJP called their attempt revdis. He said that AAP is launching the ‘Revdi Par Charcha’ campaign to discuss with the people in the city if the government should provide the facilities or not.

Launching the campaign, Arvind Kejriwal said 65,000 meetings will be held across Delhi at micro levels by the AAP leaders and workers. He said that AAP has six revdis for the people of Delhi. Mentioning that the Prime Minister and BJP have said several times that Kejriwal is providing freebies to the people that should be stopped, the former Chief Minister said that now people will now tell them if they want these six freebies.  He further concluded that if the BJP is elected here, they will stop these services immediately.

While listing the six services, the AAP national convenor said that Delhi is getting free electricity round the clock. He added that there was a time when Delhi used to see power cuts for 8-10 hours, but AAP ensured that the situation changed. He also noted that his party is providing free water, free pilgrimage to senior citizens, free bus rides to women, free world-class education and free medicine and treatments. Additionally, the pamphlet launched by Arvind Kejriwal also listed that soon the women in Delhi will get Rs 1,000 per month as well, later termed as the seventh revdi by the former Chief Minister.

Reports said that the paper will be circulated across the national capital. The paper also reads that if the reader feels they are getting huge water bills, they should not pay it. It mentioned that AAP will waive all water bills once Arvind Kejriwal is re-elected.

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Rahul Gandhi says air pollution in North India a national emergency, tourism declining, global reputation crumbling

“We need a collective national response, not political blame games,” the Congress leader said on his X handle.

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Leader of Opposition in the Lok Sabha Rahul Gandhi on Friday said the air pollution in North India is a national emergency that needs a collective national response and not a political blame game. The Congress leader added that due to air pollution tourism is declining and “our global reputation is crumbling”.

It is a public health crisis that is stealing children’s future and suffocating the elderly, Gandhi said, adding an environmental and economic disaster that is ruining countless lives.

“As Parliament meets in a few days, MPs will all be reminded of the crisis by our irritated eyes and sore throats. It is our responsibility to come together and discuss how India can end this crisis once and for all,” the Leader of the Opposition in Lok Sabha said.

The former Congress chief said the poorest “among us suffer the most”, unable to escape the toxic air surrounding them. Families are gasping for clean air, children are falling sick, and millions of lives are being cut short, he added.

The Rae Bareli MP noted that the pollution cloud covers hundreds of kilometres. He said cleaning it up will require major changes and decisive action from governments, companies, experts, and citizens.

“We need a collective national response, not political blame games,” the Congress leader said on his X handle.

Gandhi also shared a video on a social media platform where he discussed the capital’s air pollution with environmentalist expert Vimalendu Jha. In the video, the Congress leader said he has been facing eye-burning and breathing issues and how the last week in Delhi has been terrible.

He said, “I tell my mother to leave town this month.” Jha explains to Gandhi that the sources of air pollution in Delhi are episodic and perennial. Episodic sources are firecrackers and stubble burning, which affect the month of November. “Vehicular contributes 50 per cent of Delhi’s pollution and construction-related roadside dust is another 30 per cent,” Jha said.

The Air Quality Index in Delhi has been severe since November 16, making it five consecutive days till Wednesday. On November 15, the average AQI was 396 (very poor).

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