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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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PM Modi accuses Congress of anti-Sikh bias over Rahul Gandhi’s ‘traitor’ remark

Prime Minister Narendra Modi accused Rahul Gandhi of targeting BJP MP Ravneet Singh Bittu with a ‘gaddar’ remark because of his Sikh identity while speaking in the Rajya Sabha.

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PM Modi

Prime Minister Narendra Modi on Wednesday launched a sharp attack on Leader of the Opposition Rahul Gandhi, alleging that his “traitor” remark against BJP MP Ravneet Singh Bittu reflected the Congress party’s animosity towards the Sikh community.

The Prime Minister made the remarks in the Rajya Sabha while replying to the motion of thanks on the President’s address. Referring to an incident in the Parliament complex a day earlier, Modi said Gandhi’s comment had crossed all limits of political decency.

The controversy stems from a protest by suspended Opposition MPs, during which Ravneet Singh Bittu — a former Congress leader who joined the BJP ahead of the 2024 Lok Sabha elections — allegedly made a remark suggesting the protesters were behaving as if they had won a war.

In response, Rahul Gandhi was heard saying, “A traitor is walking by, look at his face,” before approaching Bittu and extending his hand. Gandhi then reportedly added, “Hello, brother. My traitor friend. Don’t worry, you will come back.”

Bittu refused to shake hands with the Congress leader and instead described him as an “enemy of the country” before walking away from the scene.

While the Congress later clarified that Gandhi’s remark was aimed at Bittu for leaving the party, the BJP seized upon the comment, calling it an insult to the Sikh community. Protests were subsequently held by members of the Sikh community outside the Congress headquarters and at other locations.

Addressing the House, Prime Minister Modi said that many leaders had quit the Congress in the past and that the party itself had split multiple times, but none of those leaders had been labelled a traitor. “He called this MP a traitor because he is Sikh,” the Prime Minister alleged, as treasury bench members raised slogans condemning the remark.

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Manipur Assembly to meet at 4 pm today, floor test likely under new chief minister

The Manipur Legislative Assembly will convene at 4 pm today, with a floor test likely as the new chief minister seeks to prove his majority in the House.

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Manipur assembly

The Manipur Legislative Assembly will convene at 4 pm on Thursday in Imphal, a day after Yumnam Khemchand Singh was sworn in as the chief minister. A floor test is likely to be held on the first day of the session to establish the majority of the newly formed government.

In the 60-member Assembly, the BJP holds 37 seats, while its ally National People’s Party has six members, giving the ruling combine a clear majority in the House.

Singh chaired the first Cabinet meeting of his government late Wednesday evening, shortly after taking oath as the 13th chief minister of Manipur. The meeting marked the formal start of administrative functioning under the new Council of Ministers.

His appointment came nearly a year after the resignation of former chief minister N Biren Singh, who stepped down following months of ethnic violence between the Meitei and Kuki communities in the state.

After taking oath, Singh thanked Prime Minister Narendra Modi and said he would work with “utmost diligence to advance development and prosperity in Manipur,” aligning the state’s efforts with the vision of Viksit Bharat.

He said the government’s focus would be on inclusive economic growth while preserving Manipur’s cultural heritage, adding that he would discharge his responsibilities with sincerity and dedication, mindful of the trust placed in him.

The summoning of the 12th Manipur Legislative Assembly by Governor Ajay Kumar Bhalla, along with the first Cabinet meeting, signals the resumption of legislative and administrative processes in the state, officially bringing President’s rule to an end.

The sixth session of the 12th Manipur Legislative Assembly was last held from July 31 to August 12, 2024.

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PM Modi skips Lok Sabha reply as protests force repeated adjournments

PM Modi did not deliver his Lok Sabha reply today after sustained Opposition protests led to repeated adjournments over a dispute involving Rahul Gandhi’s proposed speech.

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PM Modi

Prime Minister Narendra Modi did not deliver his scheduled reply to the Motion of Thanks on the President’s address in the Lok Sabha today after sustained Opposition protests led to multiple adjournments of the House.

The disruption followed an escalation of tensions linked to Congress leader Rahul Gandhi’s proposed speech and the suspension of eight Opposition MPs a day earlier. The situation worsened after remarks made by BJP MP Nishikant Dubey during the proceedings.

Dispute over references to books sparks fresh ruckus

The controversy intensified when Nishikant Dubey responded to Rahul Gandhi’s demand to speak on national security and references to the unpublished memoirs of former Army chief General MM Naravane. Dubey said that while Gandhi wanted to quote from an unpublished book, he himself had brought several books that, according to him, made claims about the Gandhi family.

As Dubey began listing these books and their contents, strong protests erupted from Opposition members. Krishna Prasad Tenneti, who was presiding over the House at the time, cited Rule 349, which restricts members from reading out books, newspapers, or letters unless directly related to parliamentary business. Despite repeated warnings, the matter remained unresolved, leading to another adjournment.

Rahul Gandhi accuses government of silencing debate

Earlier in the day, Rahul Gandhi alleged that he was being prevented from speaking on an issue of national importance. He claimed the government was uncomfortable with references to General Naravane’s memoirs, which he said discussed the handling of the 2020 China border crisis.

In a social media post, Gandhi said he intended to present the Prime Minister with a book authored by the former Army chief, adding that some cabinet ministers had even questioned the existence of the book. He also wrote to Lok Sabha Speaker Om Birla after the suspension of eight Opposition MPs, alleging that parliamentary debate was being curtailed.

After it became clear that the Prime Minister would not speak in the House today, Gandhi posted that PM Modi had avoided Parliament because he was “scared” to face the truth. Congress MP Priyanka Gandhi Vadra echoed the allegation, claiming the Prime Minister was unwilling to enter the House.

Proceedings disrupted throughout the day

Lok Sabha proceedings were first adjourned until 2 pm amid loud protests over the issue linked to Naravane’s memoirs. Even after the House reconvened, disruptions continued, preventing normal business from resuming.

Later, Congress MPs staged a demonstration outside the Parliament complex, demanding that Rahul Gandhi be allowed to speak on the President’s address.

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