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Delay in upgrading AN-32 grounded half of fleet.

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Delay in upgrading AN-32 grounded half of fleet: CAG
Vijay Mohan
Tribune News Service


Chandigarh, July 22
The IAF’s tactical airlift capability was seriously compromised for several years, with more than half of the AN-32 fleet being grounded after 2009 because of delays in setting up upgradation facilities despite Rs 272 crore being spent on the project.

As many as 61 aircraft of the total 105 in service were grounded as of 2013. The facilities for upgradation and modernisation of the AN-32, which were to be set up at Base Repair Depot, Kanpur, by 2011, have not been completed. This has been revealed by the Comptroller and Auditor General (CAG) in its latest report tabled yesterday.

The IAF had acquired the AN-32 from the erstwhile Soviet Union between1984 and 1991 and, depending upon the year of induction, the total technical life (TTL) of the aircraft began expiring from 2009. In 2006, the IAF initiated a case for extension of TTL of the aircraft from 25 to 40 years.

The IAF initially recommended life extension and re-equipment of part of the fleet and only life extension on the remaining aircraft. Five aircraft were to be sent abroad between 2009 and 2013 and the remaining aircraft were to be upgraded in India through transfer of technology (ToT). The cost of ToT was Rs 272 crore.

As the life of 75 aircraft (71 per cent of the fleet) was due to expire between 2009 and 2012, Air Headquarters changed its plan and decided in December 2006 to re-equip the entire fleet of 105 aircraft. Under the revised proposal, IAF wanted to send 40 aircraft abroad and upgrade the remaining 65 in India. The Ministry of Defence (MoD) concluded a contract in June 2009 with a Ukrainian firm at a cost of Rs 1,964.64 crore for life extension, re-equipment and overhaul of the aircraft.

The first batch of five of the 40 aircraft was to be positioned at the vendor’s premises by November 2009 with upgradation complete by August 2010. However, the aircraft reached there in March 2010 and were done up in May 2011. By December 2013, 20 of the remaining 35 aircraft had been upgraded.

For life extension and re-equipment of the remaining 65 aircraft, the setting up of facilities at the BRD was to have been completed by June 2011. However, the project remained incomplete till the end of 2013.

“Even though the IAF knew that the existing total technical life of the aircraft would expire from February 2009 onwards and the process of life extension would take almost four to five years based on the past experience, the initiation of the proposal was ab-initio delayed by the IAF,” the CAG observed.

Pointing out that the life extension project scheduled for completion in June 2011 was yet to be completed, thereby depriving the IAF of the benefit of investing Rs 272 crore, the CAG pointed out that the MoD had failed to justify the delay in conclusion of the contract despite adopting the stipulated procedures to cater to the urgency. The MoD had maintained that the project had got delayed due to non supply of certain spares for re-equipment.
The Tribune, Chandigarh, India - Main News
 
Delay in upgrading AN-32 grounded half of fleet: CAG
Vijay Mohan
Tribune News Service


Chandigarh, July 22
The IAF’s tactical airlift capability was seriously compromised for several years, with more than half of the AN-32 fleet being grounded after 2009 because of delays in setting up upgradation facilities despite Rs 272 crore being spent on the project.

As many as 61 aircraft of the total 105 in service were grounded as of 2013. The facilities for upgradation and modernisation of the AN-32, which were to be set up at Base Repair Depot, Kanpur, by 2011, have not been completed. This has been revealed by the Comptroller and Auditor General (CAG) in its latest report tabled yesterday.

The IAF had acquired the AN-32 from the erstwhile Soviet Union between1984 and 1991 and, depending upon the year of induction, the total technical life (TTL) of the aircraft began expiring from 2009. In 2006, the IAF initiated a case for extension of TTL of the aircraft from 25 to 40 years.

The IAF initially recommended life extension and re-equipment of part of the fleet and only life extension on the remaining aircraft. Five aircraft were to be sent abroad between 2009 and 2013 and the remaining aircraft were to be upgraded in India through transfer of technology (ToT). The cost of ToT was Rs 272 crore.

As the life of 75 aircraft (71 per cent of the fleet) was due to expire between 2009 and 2012, Air Headquarters changed its plan and decided in December 2006 to re-equip the entire fleet of 105 aircraft. Under the revised proposal, IAF wanted to send 40 aircraft abroad and upgrade the remaining 65 in India. The Ministry of Defence (MoD) concluded a contract in June 2009 with a Ukrainian firm at a cost of Rs 1,964.64 crore for life extension, re-equipment and overhaul of the aircraft.

The first batch of five of the 40 aircraft was to be positioned at the vendor’s premises by November 2009 with upgradation complete by August 2010. However, the aircraft reached there in March 2010 and were done up in May 2011. By December 2013, 20 of the remaining 35 aircraft had been upgraded.

For life extension and re-equipment of the remaining 65 aircraft, the setting up of facilities at the BRD was to have been completed by June 2011. However, the project remained incomplete till the end of 2013.

“Even though the IAF knew that the existing total technical life of the aircraft would expire from February 2009 onwards and the process of life extension would take almost four to five years based on the past experience, the initiation of the proposal was ab-initio delayed by the IAF,” the CAG observed.

Pointing out that the life extension project scheduled for completion in June 2011 was yet to be completed, thereby depriving the IAF of the benefit of investing Rs 272 crore, the CAG pointed out that the MoD had failed to justify the delay in conclusion of the contract despite adopting the stipulated procedures to cater to the urgency. The MoD had maintained that the project had got delayed due to non supply of certain spares for re-equipment.
The Tribune, Chandigarh, India - Main News

Delay from IAF's part is a new thing
 
Lapses in procurement of aero-engines costs IAF Rs 227 cr
Vijay Mohan
Tribune News Service


Chandigarh, July 30
Lapses by the IAF in assessing the requirement for aero-engines for its fleet of AN-32 transport aircraft cost the force Rs 227 crore. The requirement, initially pegged at 17 engines, dramatically rose to 130 engines within a span of just two months.

In September 2005, the IAF held 292 aero-engines for the AN-32, which were completing their stipulated lifespan of 6,000 hours by August 2008. The IAF worked out a requirement of 17 aero-engines and the Ministry of Defence (MoD) procured the same from Ukraine at a cost of Rs 53.85 crore in June 2007. The contract had an option of procuring 13 additional engines by June 2008 at the same rate.

Immediately after the conclusion of the contract, a special review of the entire assets of aero-engine was carried out by the IAF and a requirement of 130 engines up to 2011 was worked out for sustaining the fleet till its technical life of 25 years that ended in 2011. After deducting 17 engines already procured and the 13 engines procured under the option clause, the net requirement was 100, which were procured by the MoD in 2009.

“As procurement of aero-engines was an inescapable requirement, the IAF should have placed the order for the entire long-term requirement for sustaining the fleet up to 25 years instead of placing the order for only 17 aero-engines in June 2007,” the Comptroller and Auditor General (CAG) observed.

The IAF claimed it could not enter into a long-term agreement in June 2007 for buying 130 aero-engines as the case for life extension of the engines from the existing 6,000 hours to 9,000 hours was under deliberation with the original equipment manufacturer (OEM).

Rejecting the IAF’s contention, the CAG remarked that the OEM had already informed the IAF in July 2004 that the life of the engines could not be extended beyond 6,000 hours. Pointing out that the IAF should have reviewed the position for life extension of engines in 2005 itself for meeting its long term requirement, the CAG revealed that the IAF had paid Rs 3.16 crore per engine in 2007, but had to shell out Rs 5.43 crore per engine in 2009, thereby incurring an extra expenditure of Rs 227 crore.

Sudden jump in demand

* In September 2005, the IAF worked out a requirement of 17 aero-engines for its fleet of AN-32 aircraft

* The IAF and the Ministry of Defence procured the same from Ukraine at a cost of Rs 53.85 crore in June 2007

* But soon after the conclusion of the contract, a special review recommended requirement of 130 engines up to 2011

* While the IAF paid Rs 3.16 crore per engine in 2007, it shelled out Rs 5.43 crore per engine in 2009, incurring an extra cost of Rs 227 crore.
The Tribune, Chandigarh, India - Nation
 
Werent they meant to be modernized in the Ukraine?
I think the Ukrainians got other problems now :rolleyes:
Indian Air Force and the Ukrainian arms export agency Ukrspetsexport signed the $400 million upgrade contract in 2009.The project envisages overhaul and re-equipment of 40 aircraft at designer certified plants in Ukraine at the rate of 10 aircraft annually, and supply of material and transfer of technology for the upgrade of remaining 64 aircraft at IAF's No. 1 Base Repair Depot (BRD) at Kanpur.
 
Delay from IAF's part is a new thing
The CAG pointed out that the MoD had failed to justify the delay in conclusion of the contract despite adopting the stipulated procedures to cater to the urgency.

The MoD as usual!! Stalling projects is part of their DNA. What do you expect when the secretary of rural welfare and sanitaion becomes defence secretary? It takes him at least 3-4 years to learn the ropes. By which time he's posted out, and secretary of Chemicals and Fertilizers or secretary Panchayati Raj takes charge!!!

Now WTF does he know anything about a specialised subject like defence? And this fellow is responsible to make policy decisions on defence budgets and defence policy matters!! :wacko: Jeeez!
 
The MoD as usual!! Stalling projects is part of their DNA. What do you expect when the secretary of rural welfare and sanitaion becomes defence secretary? It takes him at least 3-4 years to learn the ropes. By which time he's posted out, and secretary of Chemicals and Fertilizers or secretary Panchayati Raj takes charge!!!

Now WTF does he know anything about a specialised subject like defence? And this fellow is responsible to make policy decisions on defence budgets and defence policy matters!! :wacko: Jeeez!

Let's hope that the new govt will fix this Bureaucratic mess
 

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