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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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Four militants killed as rival Naga groups clash in Manipur village

Four militants were killed in a gunfight between suspected rival Naga groups at Taodaijang village in Manipur’s Noney district on Wednesday.

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Manipur violence

At least four militants were killed in a gunfight between suspected rival Naga militant groups in Manipur’s Noney district on Wednesday, November 4.

The exchange of fire took place at Taodaijang village in the Khoupum area of the Naga-majority district. According to officials, the cadres involved were suspected to belong to rival Naga militant outfits, including the Zeliangrong United Front-Jenchui (ZUF-J) and the Zeliangrong United Front-Kamson (ZUF-K).

Initial reports indicated that the gunfight continued for several hours, leaving three cadres of ZUF-J and one cadre of ZUF-K dead.

The bodies of the deceased militants were subsequently recovered by local residents.

Residents appeal to armed groups to stop firing

Following the gunfight, local residents, including women, reached the spot in an attempt to prevent further violence between the rival groups.

They also used a public address system to appeal to the armed cadres to stop firing and prevent the situation from escalating further.

Further details about the circumstances surrounding the clash were awaited.

Manipur government reviews security situation

In a separate development, Manipur Chief Minister Yumnam Khemchand Singh directed senior security officials to identify active armed groups suspected of involvement in recent incidents of violence in the state.

The directive excluded groups engaged in peace talks with the state government.

The Chief Minister issued the instructions during a review meeting on the state’s law and order situation on Tuesday night.

He also asked security agencies, including the Army and central paramilitary forces, to submit a detailed report on the involvement of the suspected groups.

The Chief Minister said the state Cabinet could consider declaring such groups unlawful if their involvement in violence against innocent civilians was established.

He also emphasised that necessary action would be initiated against groups continuing to perpetrate violence against civilians.

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Agnipath scheme gets 2-year extension for Agniveers, tenure may rise to 6 years

The Centre has introduced a two-year extension for the remaining 75% of Agniveers under the Agnipath scheme, creating another opportunity for them to seek enrolment in the regular armed forces.

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The Centre has introduced a significant change to the Agnipath recruitment scheme, offering a two-year extension to Agniveers who were earlier expected to leave the armed forces after completing their initial four-year service.

Chief of Defence Staff (CDS) General NS Raja Subramani announced the decision on Wednesday following a Union Cabinet meeting. Under the revised arrangement, the 75% of Agniveers who were not initially selected for absorption into the regular armed forces will be offered an additional two-year engagement period.

The development creates another opportunity for these personnel to continue serving in the armed forces beyond their original four-year tenure.

What changes under the revised Agnipath scheme?

Under the original Agnipath framework, Agniveers were recruited for a four-year service period, including training. At the end of this tenure, up to 25% of each batch could be selected for permanent enrolment into the regular armed forces, while the remaining 75% were expected to return to civilian life.

The revised arrangement introduces an additional two-year engagement for the latter group. This means their potential service period could increase from four to six years.

The extension also creates another opportunity for Agniveers to seek enrolment into the regular armed forces after completing the additional two years.

What happens after the additional two years?

According to General NS Raja Subramani, Agniveers completing the extended engagement period and willing to continue serving will be considered for enrolment in the regular armed forces.

Their selection will be based on objective criteria.

This creates an additional pathway for those who are not absorbed into the regular forces after their initial four-year tenure. However, the revised arrangement does not mean that every Agniveer will automatically receive permanent enrolment.

Why has the decision been taken now?

The announcement comes as the first batch of Agniveers recruited under the scheme approaches the completion of its initial four-year service period.

The Agnipath scheme was introduced on June 14, 2022, to recruit personnel into the Indian Army, Navy and Air Force for a fixed four-year engagement.

General Raja Subramani said the scheme had been undergoing periodic reviews, with the performance of Agniveers being continuously evaluated. He also indicated that feedback on their performance had been very positive.

The latest Cabinet decision creates an additional route for retaining personnel beyond the initial engagement period.

What was the original Agnipath arrangement?

Under the original framework, the armed forces could retain up to 25% of Agniveers in the regular cadre after their four-year service period, subject to selection.

The remaining 75% were to complete their engagement and transition to civilian life.

With the latest revision, this group will receive an additional two-year engagement opportunity before being considered for enrolment into the regular armed forces under the prescribed selection criteria.

The change therefore modifies the earlier arrangement by providing an additional opportunity for Agniveers to continue their military careers.

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Hardeep Singh Puri set to win Rajya Sabha bypoll unopposed

Union Minister Hardeep Singh Puri is set to be elected unopposed to the Rajya Sabha from Madhya Pradesh after the returning officer rejected the nomination papers of two independent candidates.

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Hardeep Puri

Union Petroleum Minister Hardeep Singh Puri is set to enter the Rajya Sabha unopposed from Madhya Pradesh after the nomination papers of two independent candidates were rejected during scrutiny on Tuesday.

The two candidates whose nominations were rejected were Kante Sayanna and Rajkumar Lohani, the latter being backed by the Congress. Their rejection leaves Puri as the only candidate in the contest for the vacant Rajya Sabha seat.

According to an official, the result will be announced on November 5, which is also the last date for withdrawal of nominations.

The Returning Officer, Umesh Sharma, examined the nomination papers on the last day of scrutiny and rejected the two independent candidates’ applications.

Objections raised against Hardeep Puri’s nomination

The nomination papers submitted by Puri also faced objections from the two independent candidates and Congress leader Hemant Katare.

They questioned the validity and completeness of Puri’s affidavit filed in Form 26, raising concerns over whether the mandatory details had been properly furnished.

However, after examining the objections, Returning Officer Umesh Sharma concluded that Puri had not violated any requirements under the Representation of the People Act.

Sharma stated in his order that no defect had been found in Puri’s nomination papers that could justify their rejection.

Following the decision, Katare and Congress MLA Atif Aqeel announced that they would approach the court against the order.

Calling the decision an attack on Indian democracy, the Congress leaders said in a statement that Puri’s nomination should have been rejected despite what they described as significant errors.

Why the Madhya Pradesh Rajya Sabha seat fell vacant

The by-election was necessitated by the resignation of Union Minister L Murugan, which left a Rajya Sabha seat vacant in Madhya Pradesh.

With the nomination papers of both independent candidates rejected and Puri’s nomination cleared, the Union minister is set to be elected unopposed.

The final announcement is expected on November 5, the last day for withdrawal of nominations.

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