NEW DELHI, July 25 (Xinhua) -- Unsatisfied with the delay of acquisition of Russian aircraft carrier Admiral Gorshkov and its unprecedented increase in the price, the Comptroller and Auditor General (CAG), a watchdog organ of government acquisitions, Saturday rapped the Indian Navy and asked why the acquisition of a second-hand foreign warship took so long and why it was decided to increase its price from the original negotiation.
The price negotiation for the aircraft carrier between India and Russia came in for sharp criticism from the CAG, whose latest report also rapped the Defence Ministry for the cost escalation of72 billion rupees crore (1.82 billion U.S. dollars) in four years.
"The CAG report for 2008, released here on Friday, questions the prudence of the Ministry in buying the second-hand Russian warship, which now comes at half its life-span and about 60 percent more expensive than a new aircraft carrier," A.K. Awasthi, additional comptroller and auditor general of the Indian government told the media Saturday.
"As a result, the Indian Navy's objective of inducting a second-hand foreign aircraft carrier was not met in time to fill the gap in its capabilities," he said.
Gorshkov deal was signed in January 2004 between New Delhi and Moscow.
The Government is now likely to pay 1.82 billion U.S. dollars for the carrier against the original contract amount of 875 million U.S. dollars. This defeats the very objective of inducting the aircraft carrier in time to fill the gap in Indian Navy, the CAG report noted.
"The cost of acquisition has almost doubled to 72 billion rupees in four years after the Navy brought it from Russia in January 2004. Most substantial increase is on account of sea trials which were originally contracted for 27 million U.S. dollars. This has increased by almost 20 times creating doubts about the exercise while estimating and negotiating cost," Awasthi said.
He further said that monitoring and supervision was lax, with no committee adhering to the frequency prescribed.
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