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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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Congress, BJP attack Bhagwant Mann over remarks on Punjab blasts

Congress and BJP have jointly criticised Punjab CM Bhagwant Mann after he linked recent blasts near defence sites to political motives, triggering a controversy.

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Bhagwant Mann

A political row has erupted in Punjab after Chief Minister Bhagwant Mann linked recent blast incidents to political motives, drawing sharp criticism from both the Congress and the Bharatiya Janata Party (BJP).

The controversy follows two low-intensity explosions reported within a short span of time — one near the Border Security Force (BSF) headquarters in Jalandhar and another close to an army cantonment area in Amritsar. The incidents raised concerns over security, particularly given the sensitive nature of the locations.

In response, Mann suggested that the blasts could be part of a larger political strategy. His remarks triggered a strong backlash, with opposition parties accusing him of politicising a serious security issue.

Leaders from the Congress criticised the Chief Minister’s statement, calling it inappropriate and alleging that such comments undermine the gravity of the situation. They stressed that matters related to national security should be handled with caution and responsibility.

The BJP also joined the criticism, questioning the basis of Mann’s claims and urging the state government to focus on investigation and law enforcement instead of making political allegations.

The developments have led to an unusual moment where both Congress and BJP appear aligned in their criticism of the Aam Aadmi Party-led government in the state.

Meanwhile, the blasts themselves have intensified concerns over safety in border regions, with authorities continuing their investigation into the incidents. No casualties were reported, but the proximity to defence establishments has made the issue particularly sensitive.

The episode has further escalated political tensions in the state, with security and accountability emerging as key points of debate.

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Himanta Biswa Sarma resigns as Assam chief minister, oath ceremony likely after May 11

Himanta Biswa Sarma resigns as Assam Chief Minister after BJP-led NDA’s victory. He will continue as caretaker CM until the new government is sworn in after May 11.

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Himanta sharma

Assam Chief Minister Himanta Biswa Sarma resigned from his post on Wednesday, paving the way for the formation of a new government after the BJP-led NDA secured a decisive victory in the 2026 Assembly elections.

Sarma submitted his resignation to Governor Lakshman Prasad Acharya at Lok Bhawan in Guwahati. The Governor accepted the resignation and asked him to continue as the caretaker Chief Minister until the new government takes charge.

The resignation comes after the NDA’s strong electoral performance, where the alliance won a clear majority in the 126-member Assembly, ensuring its return to power for another term.

Oath ceremony expected after May 11

Speaking to reporters after submitting his resignation, Sarma said the swearing-in ceremony for the new government is likely to be held after May 11.

He indicated that Prime Minister Narendra Modi has been invited to attend the ceremony but is unavailable until May 11, which has influenced the tentative schedule.

Decision on next chief minister soon

Sources suggest that central observers, including senior BJP leaders, are expected to arrive shortly to oversee the selection of the legislature party leader. The newly elected MLAs will then decide on the next Chief Minister.

Despite the formal resignation, party sources indicate that Sarma is likely to continue in the role for another term, given the BJP’s strong mandate in the state.

The move marks the beginning of the government formation process in Assam following the election results declared earlier this week.

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Rahul Gandhi and Vijay alliance took shape through backchannel talks, early signals from Congress leaders

Congress outreach and political calculations led to Rahul Gandhi and Vijay coming together after the Tamil Nadu 2026 election results.

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The coming together of Rahul Gandhi and actor-politician Vijay in Tamil Nadu after the 2026 Assembly elections was not sudden, but the result of behind-the-scenes political manoeuvring and early signals within the Congress.

According to media reports, some leaders in the Tamil Nadu Congress had already sensed the scale of Vijay’s surge during the campaign, anticipating what was later described as a “wave” in favour of his party.

After the results, where Vijay’s Tamilaga Vettri Kazhagam (TVK) emerged as the single largest party but fell short of a majority, communication channels between the Congress leadership and Vijay quickly became active.

A key moment in this evolving political equation was a phone call from Rahul Gandhi to Vijay, congratulating him on the party’s strong performance. The conversation was seen as more than a courtesy, signalling the possibility of cooperation at a time when government formation required additional support.

Reports indicate that discussions within Congress weighed the political benefits of supporting Vijay, especially given the shifting dynamics in the state where traditional dominance by major Dravidian parties has been challenged.

With TVK needing allies to cross the majority mark, Congress emerged as a potential partner, leading to a broader political realignment in the state. This development also triggered tensions within opposition alliances, highlighting the strategic importance of the decision.

The evolving partnership reflects a mix of electoral pragmatism and changing voter sentiment, particularly the growing influence of younger voters, which leaders acknowledged as a key factor in the election outcome.

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