Saturday, July 25, 2009

"Undue Favours" to Armaris in Scorpene Deal

The table above, published in the latest audit report of the Comptroller & Auditor General (the Indian government's audit body) lists out what it calls "undue favours" provided to Armaris, the consortium that was contracted for six Scorpene submarines in 2005 at a cost of Rs 18,798 crore. The report finds that a minimum of Euro 58.20 million (Rs 349 crore) besides other unquantifiable benefits, were allowed as advantages to Armaris in the contract. The conclusion: "To sum up, over nine years were taken to finalise the contract. Apart from theprice escalation, it is also likely to adversely impact the operational capabilityof the Navy. The Ministry / Naval HQ scaled down the original technicalspecifications and extended undue financial benefit to the vendor."

Coming up: The India audit watchdog slams HAL


P Mukherjee said...

Delays, delays and yet more delays. Where will all this take us really? India is turning from a blue water navy into a back water navy at the speed of light with everyone looking on and cheering.

Anonymous said...

we are all fools reading what indian army,airforce and navy does ... at the end it's nothing but disappointing and discouraging ...

this bloody is corrupt from start to end ..and a loser from beginning