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Indigenous Construction of Indian Naval Warships

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Indigenous Construction of Indian Naval Warships 32 INDIGENOUS CONSTRUCTION OF INDIAN NAVAL WARSHIPS MINISTRY OF DEFENCE PUBLIC ACCOUNTS COMMITTEE (2015-16) THIRTY-SECOND REPORT SIXTEENTH LOK SABHA LOK SABHA SECRETARIAT NEW DELHI 1 PAC NO. 2064 THIRTY SECOND REPORT PUBLIC ACCOUNTS COMMITTEE (2015-16) (SIXTEENTH LOK SABHA) INDIGENOUS CONSTRUCTION OF INDIAN NAVAL WARSHIPS MINISTRY OF DEFENCE Presented to Lok Sabha on: 22.12.2015 Laid in Rajya Sabha on: 23.12.2015 LOK SABHA SECRETARIAT N E W D E L H I December, 2015 / Pausha, 1937 (Saka) 2 CONTENTS PAGES COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2015-16)…… (ii) COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2014-15)…… (iv) COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2013-14)…… (vi) COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2012-13)…… (viii) INTRODUCTION……………….. (x) REPORT PART- I I Introduction 1-7 II Audit Review 7-8 Iii Financial Considerations and Contract Management 8-24 IV Delivery Management 24-41 V Procurement 41-51 PART - II Observations/Recommendations 52-61 APPENDICES I Minutes of the 22nd sitting of the PAC (2012-13) held on 31th January, 2013 II Minutes of the 17th sitting of the PAC (2015-16) held on 21th December, 2015 3 COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2015-16) Prof. K.V. Thomas - Chairperson MEMBERS LOK SABHA 2. Shri S.S. Ahluwalia 3. Shri Sudip Bandyopadhyay 4. Shri Ranjit Singh Brahmpura 5. Shri Nishikant Dubey 6. Shri Gajanan Kirtikar 7. Shri Bhartruhari Mahtab 8. Shri Ramesh Pokhriyal "Nishank" 9. Shri Neiphiu Rio 10. Shri Dushyant Singh 11. Shri Janardan Singh Sigriwal 12. Dr. Kirit Somaiya 13. Shri Anurag Singh Thakur 14. Shri Shivkumar Udasi 15. Dr. P. Venugopal RAJYA SABHA 16. Shri Naresh Agrawal 17. Shri Satyavrat Chaturvedi 18. Shri Anil Madhav Dave 19. Shri Vijay Goel 20. Shri Bhubaneswar Kalita 21. Shri Shantaram Naik 22. Shri Sukhendu Sekhar Roy SECRETARIAT 1. Shri A.K. Singh - Additional Secretary 2. Shri Tirthankar Das - Additional Director 3. Shri Deepankar Kamble - Committee Officer ii COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2014-15) Prof. K.V. Thomas - Chairperson MEMBERS LOK SABHA 2. Shri S.S. Ahluwalia 3. Shri Sudip Bandyopadhyay 4. Shri Ranjit Singh Brahmpura 5. Shri Nishikant Dubey 6. Shri Gajanan Kirtikar 7. Shri Bhartruhari Mahtab 8. Shri Ramesh Pokhriyal "Nishank" 9. Shri Neiphiu Rio 10. Shri Rajiv Pratap Rudy 11. Shri Janardan Singh Sigriwal 12. Shri Jayant Sinha 13. Dr. Kirit Somaiya 14. Shri Anurag Thakur 15*. Vacant RAJYA SABHA 16. Shri Satyavrat Chaturvedi 17. Shri Vijay Goel 18. Dr. Satyanarayan Jatiya 19. Shri Bhubaneswar Kalita 20. Shri Shantaram Naik 21. Shri Sukhendu Sekhar Roy 22. Shri Ramchandra Prasad Singh * Vacant vice Dr. M. Thambidurai who has been chosen as Hon'ble Deputy Speaker, Lok Sabha and has since resigned from the membership of the Committee. iii COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2014-15) Prof. K.V. Thomas - Chairperson MEMBERS LOK SABHA 2. Shri S.S. Ahluwalia 3. Shri Sudip Bandyopadhyay 4. Shri Ranjit Singh Brahmpura 5. Shri Nishikant Dubey 6. Shri Gajanan Kirtikar 7. Shri Bhartruhari Mahtab 8. Shri Ramesh Pokhriyal "Nishank" 9. Shri Neiphiu Rio 10†. Vacant 11. Shri Janardan Singh Sigriwal ‡ 12 . Vacant 13. Dr. Kirit Somaiya 14. Shri Anurag Thakur 15§. Vacant RAJYA SABHA 16. Shri Satyavrat Chaturvedi 17. Shri Vijay Goel 18. Dr. Satyanarayan Jatiya 19. Shri Bhubaneswar Kalita 20. Shri Shantaram Naik 21. Shri Sukhendu Sekhar Roy 22. Shri Ramchandra Prasad Singh † th Vacant vice Shri Rajiv Pratap Rudy who has been appointed as Minister w.e.f. 9 November, 2014. ‡ th Vacant vice Shri Jayant Sinha who has been appointed as Minister w.e.f. 9 November, 2014. § Vacant vice Dr. M. Thambidurai who has been chosen as Hon'ble Deputy Speaker, Lok Sabha and has since resigned from the membership of the Committee. iv COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2014-15) Prof. K.V. Thomas - Chairperson MEMBERS LOK SABHA 2. Shri S.S. Ahluwalia 3. Shri Sudip Bandyopadhyay 4. Shri Ranjit Singh Brahmpura 5. Shri Nishikant Dubey 6. Shri Gajanan Kirtikar 7. Shri Bhartruhari Mahtab 8. Shri Ramesh Pokhriyal "Nishank" 9. Shri Neiphiu Rio 10**. Shri Dushyant Singh 11. Shri Janardan Singh Sigriwal †† 12 . Shri Shiv Kumar Udasi 13. Dr. Kirit Somaiya 14. Shri Anurag Thakur 15‡‡. Dr. P. Venugopal RAJYA SABHA 16. Shri Satyavrat Chaturvedi 17. Shri Vijay Goel 18. Dr. Satyanarayan Jatiya 19. Shri Bhubaneswar Kalita 20. Shri Shantaram Naik 21. Shri Sukhendu Sekhar Roy 22. Shri Ramchandra Prasad Singh ** Elected w.e.f. 3rd December, 2014 vice Shri Rajiv Pratap Rudy who has been appointed as Minister w.e.f. 9th November, 2014. †† †† Elected w.e.f. 3rd December, 2014 vice Shri Jayant Sinha who has been appointed as Minister w.e.f. 9th November, 2014. ‡‡ ‡‡ Elected w.e.f. 3rd December, 2014 vice Dr. M. Thambidurai who has been chosen as Hon'ble Deputy Speaker, Lok Sabha and has since resigned from the membership of the Committee. v COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2013-14) Dr. Murli Manohar Joshi - Chairman MEMBERS LOK SABHA 2. Shri Anandrao Adsul 3. Dr. Baliram 4. Shri Ramen Deka 5. Shri Sandeep Dikshit 6. Dr. M. Thambi Durai 7. Shri T.K.S. Elangovan 8. Shri Jayaprakash Hegde 9. Dr. Sanjay Jaiswal 10 Shri Bhartruhari Mahtab 11. Shri Abhijit Mukherjee 12. Shri Sanjay Brijkishorlal Nirupam 13. Shri Ashok Tanwar §§14. Shri Ajay Maken 15. Shri Dharmendra Yadav RAJYA SABHA 16. Shri Prasanta Chatterjee 17. Shri Prakash Javadekar ***18. Shri Ashwani Kumar 19. Shri Satish Chandra Misra †††20. Dr. V. Maitreyan 21. Shri N.K. Singh 22. Smt. Ambika Soni §§ Elected w.e.f. 14th August, 2013 vice Dr. Girija Vyas appointed as Minister of Housing, Urban Development & Poverty Alleviation w.e.f. 17th June, 2013. *** Elected w.e.f. 3rd September, 2013 vice Dr. V. Maitreyan ceased to be a Member upon his retirement as a Member of Rajya Sabha w.e.f. 24th July, 2013. ††† Elected w.e.f. 3rd September, 2013 vice Dr. E.M. Sudarsana Natchiappan appointed as Minister of State for Commerce and Industry w.e.f. 17th June, 2013. vi COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2012-13) Dr. Murli Manohar Joshi - Chairman LOK SABHA 2. Shri Anandrao Vithoba Adsul 3. Dr. Baliram 4. Shri Sandeep Dikshit 5. Dr. M. Thambidurai 6. Shri T.K.S. Elangovan 7. Shri Anant Kumar Hegde 8. Shri Bhartruhari Mahtab 9. Shri Sanjay Nirupam 10 Shri Shripad Yesso Naik 11. Shri Sarvey Sathyanarayana 12. Shri Ashok Tanwar 13. Dr. Shashi Tharoor 14. Dr. Girija Vyas 15. Shri Dharmendra Yadav RAJYA SABHA 16. Shri Prasanta Chatterjee 17. Shri Prakash Javadekar 18. Shri Satish Chandra Misra 19. Shri Sukhendu Sekhar Roy 20. Shri J.D. Seelam 21. Shri N.K. Singh 22. Prof. Saif-ud-Din Soz vii COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2012-13) Dr. Murli Manohar Joshi - Chairman MEMBERS LOK SABHA 2. Shri Anandrao Vithoba Adsul 3. Dr. Baliram 4. Shri Sandeep Dikshit 5. Dr. M. Thambidurai 6. Shri T.K.S. Elangovan 7. Shri Anant Kumar Hegde 8. Shri Bhartruhari Mahtab 9. Shri Sanjay Nirupam 10 Shri Shripad Yesso Naik ‡‡‡11. Shri Abhijit Mukherjee 12. Shri Ashok Tanwar §§§13. Shri Takam Sanjoy 14. Dr. Girija Vyas 15. Shri Dharmendra Yadav RAJYA SABHA 16. Shri Prasanta Chatterjee 17. Shri Prakash Javadekar 18. Shri Satish Chandra Misra 19. Shri Sukhendu Sekhar Roy 20. Shri J.D. Seelam 21. Shri N.K. Singh 22. Prof. Saif-ud-Din Soz ‡‡‡ Elected w.e.f 6th December, 2012 vice Shri Sarvey Sathyanarayana appointed as Minister on 28th October, 2012. §§§ Elected w.e.f 6th December, 2012 vice Dr. Shashi Tharoor appointed as Minister on 28th October, 2012. viii COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2012-13) Dr. Murli Manohar Joshi - Chairman MEMBERS LOK SABHA 2. Shri Anandrao Vithoba Adsul 3. Dr. Baliram 4. Shri Sandeep Dikshit 5. Dr. M. Thambidurai 6. Shri T.K.S. Elangovan 7. Shri Anant Kumar Hegde 8. Shri Bhartruhari Mahtab 9. Shri Sanjay Nirupam 10 Shri Shripad Yesso Naik ****11. Shri Abhijit Mukherjee 12. Shri Ashok Tanwar ††††13. Shri Takam Sanjoy 14. Dr. Girija Vyas 15. Shri Dharmendra Yadav RAJYA SABHA 16. Shri Prasanta Chatterjee 17. Shri Prakash Javadekar 18. Shri Satish Chandra Misra 19. Shri Sukhendu Sekhar Roy 20. Shri J.D. Seelam 21. Shri N.K. Singh 22. Prof. Saif-ud-Din Soz **** Vacancy occurred vice Shri Sarvey Sathyanarayana appointed as Minister on 28th October, 2012. †††† Vacancy occurred vice Dr. Shashi Tharoor appointed as Minister on 28th October, 2012. ix INTRODUCTION I, the Chairman, Public Accounts Committee, having been authorised by the Committee, do present this Thirty-second Report (Sixteenth Lok Sabha) on "Indigenous Construction of Indian Naval Warships" based on C&AG's Report No. 32 of 2010-11 relating to Ministry of Defence. 2. The Report of Comptroller and Auditor General of India was laid on the Table of the House on 22nd March, 2011. 3. The Public Accounts Committee (2012-13) took up the subject for detailed examination and report. The Committee took evidence of the representatives of the Ministry of Defence, the Indian Navy, Mazagon Dock Limited, Goa Shipyard Limited, and Garden Reach Shipbuilders & Engineers Limited on the subject at their sitting held on 31st January, 2013. The subject was subsequently carried forward by the successor Committees (2013-14), (2014-15) and (2015-16) for examination. The Committee considered and adopted this Draft Report at their sitting held on 21st December, 2015. The Minutes of the Sittings form Appendices to the Report. 4. For facility of reference and convenience, the Observations and Recommendations of the Committee have been printed in thick type and form Part- II of the Report. 5. The Committee thank the predecessor Committees for taking oral evidence of the Ministry of Defence, the Indian Navy, Mazagon Dock Limited, Goa Shipyard Limited, and Garden Reach Shipbuilders & Engineers Limited and obtaining information on the subject.
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