The Comptroller and Auditor General (CAG) has pulled up the Ordnance Factories for delays, especially for supplying weapons to the Army, and said it affected the operational preparedness of the force. The factories achieved the production targets for only 49 per cent of items, and the exports decreased by 39 per cent in 2017-18 over 2016-17.
Making these observations in its report tabled in Parliament on Friday, the CAG also expressed concern over pending production orders and said the oldest such order pertained to 2009-10. The report reviewed the performance of the Ordnance Factory Board (OFB)for the year ended March 2018.
The OFB is producing weapons for the armed forces for the last 150 years and at present has 41 factories spread all over the country with its headquarters in Kolkatta. It manufactures the entire range of weaponry including tanks, rifles, ammunition besides stores like clothing.
In its report, the CAG said the OFB received a budgetary grant of Rs 14,793 crores for capital and Rs 804 crore for revenue expenditures in 2017-18. The ordnance factories supplied material of Rs 14,251 crores to its different indentors in the same period. The Indian Army being the major consumer accounting for nearly 80 per cent of total items.
The report said the factories achieved the production target of only 49 percent of the items and a significant quantity of the Army’s demand for some principal ammunition items remained outstanding as on March 31, 2018 thus adversely impacting their operational readiness.
In addition, the exports by the OFB decreased by 39 per cent in 2017-18 over 2016-17. In fact, the watchdog remarked the exports by the OFB during 2013-14 to 2017-2018 was very ‘meager” compared to total items produced by the factories.
The OFB exports brake parachutes, Prahari guns and Kavach launchers. These items are exported to Italy, Mauritius, Indonesia, Malaysia and Tajikistan. Underlining the need for a road map for enhancement of export activity, the CAG said value of exports decreased by 39 percent from Rs 22.69 crores in 2016-17 to Rs 13.94 crores in 2017-18.
As regards pending orders, the CAG said work-in-progress constituted 32 per cent of the total inventory and noted this as area of concern. The report said the oldest pending order pertained to 2009-2010.
