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Large quantity of indigenously designed and manufactured ammunition valuing RS 408.06 crore was declared unserviceable without thorough investigation and analysis to determine the causes of failure. This resulted in import of ammunition costing RS 278.88 crore.
Audit scrutiny of Project sanctions issued by the Defence Research and Development Organisation revealed procedural irregularities relating to non-communication of sanctions to Audit, non-maintenance of database of sanctions issued, misleading nomenclature of sanction issuing authority, splitting of sanctions to bring them within the delegated powers, etc. leading to lack of transparency and objectivity in functioning of the organisation.
Scrutiny of staff projects undertaken by R&DE(E) during the last 15 years revealed that out of 19 closed staff projects, only 3 underwent production, 2 partly achieved the project requirement and the remaining were not accepted by the users. Many of the projects failed as these were taken up without firming up General Staff Qualitative Requirement. Time overrun, development of improper deliverables, etc contributed to project failures.