Audit Reports
Defence
Report No. 34 of 2014 - Compliance Audit on Air Force and Navy, Union Government, Defence Services
Overview
The total expenditure of the Defence Services during the year 2012-13 was RS 1,87,469 crore. Of this, the Air Force and Navy spent RS 51,118 crore and RS 29,879 crore respectively. The combined expenditure of the two services amounts to 43.21 per cent of the total expenditure on the Defence Services. The major portion of the expenditure of the Air Force and Navy is capital in nature, constituting 62.64 per cent of their total expenditure.
This Report contains major findings arising from the test audit of transactions of the Air Force, the Navy, Defence Research and Development Organisation, the Coast Guard and the Military Engineer Services. Delay in development and supply of a trainer aircraft even after a lapse of 14 years by Hindustan Aeronautics Limited (HAL) had adversely affected stage II training of the pilots. Besides, the aircraft under development would be heavier compared to Indian Air Force (IAF) parameters which may affect training related performance.
Moreover, advances released to HAL to the extent of RS 2953.88 crore against the contract of March 2010 remained unutilized so far. Due to ambiguous contractual provision, IAF had made substantial second stage payment amounting to RS 926.15 crore to HAL against nominal value of purchase orders valuing RS 6.04 crore.