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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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MK Stalin predicts frequent PM Modi visits to Tamil Nadu before assembly election

MK Stalin has said Prime Minister Narendra Modi will visit Tamil Nadu more often ahead of the Assembly election, calling the tours politically motivated and questioning the Centre’s support to the state.

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MK Stalin

Tamil Nadu Chief Minister M. K. Stalin has predicted that Prime Minister Narendra Modi will increase his visits to the state as the Assembly election, expected in April or May, draws closer.

Speaking ahead of the polls, the DMK president said the Prime Minister has already begun touring Tamil Nadu and is likely to visit frequently in the coming months. He claimed that such visits could create discomfort within the BJP-led National Democratic Alliance (NDA), as alliance partners may fear the political impact of repeated appearances.

Stalin calls visit politically motivated

The Chief Minister described the Prime Minister’s scheduled programmes in the state as “politically motivated”. PM Modi is set to attend various events in Madurai in southern Tamil Nadu, including the inauguration of the first phase of the AIIMS hospital project. He is also expected to visit the Thiruparankundram Temple amid the Karthigai Deepam-related controversy and participate in a public meeting organised by the NDA.

Stalin said he has been working for all sections of the population, including those who did not vote for his party. In contrast, he remarked that some leaders are visible in the state only during election time and increase their visits as polls approach.

Criticism over Union Budget allocations

The DMK leader also criticised the BJP-led central government, accusing it of neglecting Tamil Nadu. He pointed out that while approval was recently granted for the Gujarat Metro project, there were no major announcements or allocations for Tamil Nadu in the Union Budget.

Stalin asserted that voters would remember the lack of significant measures for the state. He framed the upcoming election as a contest between Tamil Nadu and the NDA, stating that the state should be governed from Fort St George in Chennai rather than from Delhi.

The ruling DMK is currently allied with several smaller parties and, at present, the Congress, as it seeks a third consecutive term in office. Its principal rival, the AIADMK, is aligned with the BJP as part of the NDA.

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Shashi Tharoor questions Centre over Kerala name change to Keralam

Shashi Tharoor has criticised the Centre’s decision to approve renaming Kerala as Keralam, questioning its impact and pointing to the lack of major projects for the state.

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shashi tharoor

Congress MP Shashi Tharoor has criticised the central government over its decision to approve the renaming of Kerala as ‘Keralam’, arguing that the move prioritises symbolism over development.

Reacting to the Union Cabinet’s approval, Tharoor said that the state’s name has always been ‘Keralam’ in Malayalam and questioned the practical impact of introducing the Malayalam term into English usage.

“It has already been ‘Keralam’ in Malayalam. So now, a Malayalam word is coming into English. I don’t know what difference it makes,” he said, adding that the state has not received major projects such as an AIIMS or new institutions from the Centre. He also pointed out that no significant allocations were made for Kerala in the Union Budget.

In a separate post on X, Tharoor raised what he described as a “small linguistic question” about what residents of the state would be called if the name change is implemented. Referring to existing terms such as “Keralite” and “Keralan”, he remarked that alternatives like “Keralamite” sounded like a microbe and “Keralamian” like a rare earth mineral.

The Union Cabinet, chaired by Prime Minister Narendra Modi, cleared the proposal on Tuesday. The move comes ahead of the upcoming state Assembly elections, in which 140 members of the legislative assembly are to be elected. The poll schedule is yet to be announced by the Election Commission of India.

The state assembly had earlier passed a resolution seeking the change in official records. Chief Minister Pinarayi Vijayan had moved the resolution in 2024, urging the Union government to adopt the name ‘Keralam’ in all languages listed in the Eighth Schedule of the Constitution.

He had stated that the demand for a united Kerala for Malayalam-speaking people dates back to the national freedom movement.

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Tamil Nadu potboiler: Now, Sasikala to launch new party ahead of election

Sasikala has announced the launch of a new political party ahead of the Tamil Nadu Assembly elections, positioning herself against AIADMK chief Edappadi K Palaniswami.

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In a significant political development ahead of the Tamil Nadu Assembly elections, expelled AIADMK leader V. K. Sasikala has announced that she will float a new political party and contest the polls by fielding her own candidates.

Speaking in Madurai before heading to Pasumpon for a public event, Sasikala said she would unveil her party’s flag later in the evening. She indicated that more details regarding the party’s structure and plans would be shared at the gathering.

The event venue carries political symbolism. Pasumpon is the birthplace of Thevar leader Muthuramalinga Thevar, and Sasikala herself belongs to the influential Thevar community in southern Tamil Nadu. The programme was held as part of birth anniversary events of former Chief Minister J. Jayalalithaa.

Direct challenge to EPS

Sasikala’s move is being viewed as a direct political challenge to AIADMK general secretary Edappadi K. Palaniswami (EPS). After Jayalalithaa’s death in 2016, Sasikala briefly took control of the party and had appointed Palaniswami as Chief Minister. However, following her conviction in the disproportionate assets case, she served a four-year prison term, and during that period, she was expelled from the party.

Palaniswami later aligned with O. Panneerselvam, whom Sasikala had earlier removed from the Chief Minister’s post. The two leaders subsequently adopted a dual leadership arrangement within the party and government.

Sasikala remains disqualified from contesting elections until 2027 due to her conviction. Nevertheless, she has stated that she intends to field candidates under her new party banner.

Fragmented Thevar vote base

Over the years, expulsions within the AIADMK — including Sasikala, her nephew TTV Dhinakaran and O Panneerselvam — have led to divisions within the Thevar support base. Political observers have linked this fragmentation to the party’s weakened electoral performance in the elections following Jayalalithaa’s passing.

While Dhinakaran has returned to the NDA fold, reports suggest Palaniswami is opposed to any arrangement that includes Sasikala or Panneerselvam. OPS, meanwhile, has exited the NDA.

Sasikala has repeatedly criticised Palaniswami, describing him as a betrayer, while he maintains that his leadership stems from the support of AIADMK legislators rather than her backing.

The AIADMK has not issued an official statement on Sasikala’s announcement. However, a senior party leader questioned her political standing, pointing out her disqualification from contesting elections and referring to legal issues linked to Jayalalithaa’s death.

With the Assembly polls approaching, Sasikala’s re-entry into active politics could further complicate the opposition space in Tamil Nadu and influence electoral calculations, particularly in the southern districts.

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