Thursday, August 9, 2018

CAG Slams Indian Navy's Boeing P-8i Deal Over Irregularities

The early deal was for eight aircraft signed in 2009 and later in 2016 the current Govt signed for four more aircraft under the same terms and conditions.

It is mentioned in the CAG report that “The Ministry enhanced the financial bid of M/s EADS CASA, Spain to cater for 20 years product support cost while ignoring this element in respect of M/s Boeing, USA. The contract was concluded with M/s Boeing, USA in January 2009 at MUSD 2,137.54 (US $2.177 billion). At a later date, M/s Boeing, USA offered the product support under a separate negotiable contract and consequently the deduced ranking of M/s Boeing, USA as L-1 turned out to be incorrect.”

The CAG says in response to the Indian navy that Boeing had not specified any amount in its commercial offer, the CNC considered the 20-year product support as ‘nil’ and concluded it was included in the overall acquisition price. The CAG said, “lack of proper internal checks on the part of the CNC resulted in Boeing being adjudged L-1 incorrectly.”

CAG report also adds that, “the Offset obligations of MUSD 641.26 ($641.26 million), to be fulfilled within seven years (August 2016), had not been fulfilled till date. M/s Boeing, USA had claimed Offset credits on mere placement of purchase orders defeating the very purpose of Offset obligations”.

The CAG criticises the equipment in P-8I aircraft, saying, “The critical role equipment offered by Boeing was not fully meeting the needs of the Indian Navy. Owing to capability limitations of radars installed onboard, the aircraft is not able to achieve the envisaged coverage area requirements.”



Lt Gen Dr Soni, General Officer Commanding-in-Chief (GOC-in-C) Southern Command Visits Indian Naval Academy


Lt Gen Dewan Rabindranath Soni, GOC-in-C (Southern Command), accompanied by Mrs. Suman Soni,  President, Army Wives Welfare Association (Southern Region) visited Indian Naval Academy (INA), Ezhimala on 07 August 2018. The General is an alumnus of the National Defence Academy, Khadakwasla and Indian Military Academy, Dehradun.

The GOC-in-C was briefed on the training processes and facilities at INA. The General also interacted with Commandant, Deputy Commandant and officers of INA. He visited the training facilities in the academy.

Mrs. Suman Soni, President AWWA (SR) visited the Navy Wives Welfare Association (NWWA) facilities at station Ezhimala.

Joint cycling cum Trekking expedition by Indian Army & Royal Bhutan Army


A joint Cycling cum Trekking Expedition of Indian Army and Royal Bhutan Army was conducted to commemorate “Fifty years of Establishment of Diplomatic Relations between India and Bhutan”. The expedition began on 31 July from Haa Dzong in Bhutan and was flagged-in at Thimpu on 07 August 2018.  A total of seventeen personnel of both armies participated in the expedition which covered a total of 384 kms of distance across challenging mountainous terrain in both India and Bhutan.

The expedition team passed through Binnaguri in India during the final phase of expedition.  The expedition has furthered the strong bonds of bonhomie between the two armies, adding yet another glorious moment in the relations between the two nations.

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