
C.P.V. No. ss COMMITTEE ON PUBLIC UNDERTAKINGS (THIRD LOK SABHA) TIllRTY-FOURTH REPORT Action taken by Government on the recommendations contained in the Hundred and Twenty-Fourth Report of the Estimates Committee (Second Lok Sabha) HINDUSTAN AIRCRAFT LTD., BANGALORE [RENAMED AS 'HINDUSTAN AERONAUTICS LTD'., AFTER AMALGAMATION WITH THE AERONAUTICS (INDIA) LTD.] (MINISTRY Of PEfENCE) LOX SABHA SBCRBTARIAT NEW DBLHI NovembU".1961 Kartilca,1888(,S) • u~ oP AUtitORtSBD AGENTS FOR THE SALE OF LOK SABRA SECRETARIAT PUBLICATIONS Sl. Name of Ajett\ ~ ·S1. Name of AgeDt Aacncy No. No. No. No. ANDHRA PRADESH 13. Deccan Boot Stall, Fer- 6, glllOD Collcae Road, I. A.adhra Uoi"enity General 8 P~. Cooperative Storca Ltd., Wahair (ViW:hapatoaJD). RAJASTHAN 2. G. R. Lakshmipath, Cbeu, 94 aDd SoUl, G.:aeral Mer- 38 dwlta aDd Ne'" .... '4· ~ 6ri':':::::: Newpct, ~, Tripolia, JaipUl Cill. Cblttool Diltric:t. IIlSsAM 3. WeMtl'b SOOk'Dtlpot, "ao 7 Bazar. Gaubati. BIHAR .6. Law Boot Company, Sardu Parel Mara, 40 Amar Kitab Ghar. POll 31 A.llahabad-I. Boa 78, Diqooal Road, ,amabNpar. 1#BST BnNoa. .~'r 1'0 '7•. ~'~,'=-.: S. V'lja, Storea, Stat!cmtblad, '3S AoaDd. ".., .. ,...... 6. The New Order Boot II. VI. Newman &: Compaa, Company. EWI Bridp, Ltd., 3, Old Court Houaa A.hmedabac1-6. Saeet. .<alcuaa. 19. Firma K.L. Mukhopadb,a" MADHYA. PRADESH 6/1A, Banchhuam Akrur Lane, Calcutta-J a. 7. Modem Boot Houac, Shi.. 13 Vila Palace, IDdore Cit,. DBLHI MAHARASHTRA. ~. JaiD Boot Apocy, Coo- I oauaht Place, New Delhi. 8. MIa SUDdada GIaDdwI4, 6 601, GirDum Road. Ncar al. Sat NaraiD &: SoDI, 3141, J PriDceII Street. Bombay-a. Mobd. Ali Buar, Mod ,. The lDwDatiooal Boot a:a Gale, Delhi. Houae (Privare) Umired. aa. AlIDa Ram & SoDa, Kub- 9 9 A.ah Lane, Mabatml mere Gale, Delhi-&. ~ R-. Bomba,.l. :aJ. J. M. Juaa &: Brothen, II 10. The IDlCrDIItiooal Book 26 Mori Gate, Oe!bi.. Sr.rvice, Dea:aa Gymtbaoa. PooDa-4o 240 The CeotraI News Apocy, IS ~9000e~r.m-abt 1'IaoI, II. Charlca Lambert a COm- 30 pan" 101, Mahatml Gandhi Rued, UppoeilC' ·2S. The' Bn,lisb BookStore, Clock Tower, Fon, 7..f.. Coona.Iabl Cin:ua, Bomba, ·New Delhi. Ia. Th~ CUITCllI Booll HOUR, 60 a6. Lakab tnl I:Iook Sum, ,f2, MaNti LaDe, RqbUDIth MIlolQlM1 'vlarkct, JaDPllIh, Dadlill <;treet, 'ombaY-1 'Nfw f)clhl. CONTENrs PAGa CoMPoamON OF TIE CoMMI'I'TIIII (iii) brl'RODUcnoN (v) I. Recommendations that have been accepted by the Governm.eIlt. I II. Recommendations which the Committee do Dot de.ire to Pl1llue ill view of the Goverumcnt'. reply . S ADalyaia of the action tIkcD by Govcl"DDleDt OD the recom- meadatloDl CODtaJoed in the HWidred IDd TWeatJ-Pourth Report of the Bltlmatea Committee (Secoad Lot Sabba). IS l-, ~', 'J I ! /l I,~ ::: '~i I'I RY\ ~ AR L I "'_ LJ " (Lihu•• Y ",. ;, .. f· r·, ..," ~-r ville) o.,t... 1 GIlVl. i'uLiiwlltiOIlI!l. Aeo. No. R ....... .:b.~51 ... ~~"""""~:"(:r'~'''' 2181 (ail) L.B.-I. ~. COMMl1"l'EE ON PUBLIC UNDERTAKINQS (TImm LoK SAlIBA) CBA.mMAN Pandit D. N. Tiwary- MEMBI:RS 1. Shri Homi F. Daji 3. Shri Surendranath Dwivedy 4. Shri S. Hansda 5. Shrimati Subhadra Joshi -6. Shrimati Savitri Nigam-- 7. Shri Kashi Nath Pandey H. Shri Krishna Chandra Pant 9. Shrimati Maimoona Sultant ." 10. Shri N. G. Ranga 11. Shri Arjun Aroratt 12. Shri Vimalkumar M. Chordiat 13. Shri M. S. Gurupadaswamy§ 14. Shri Ram SinghV. 15. Shri Awadheshwar Prasad Sinha@ SECRETAlUAT Shri A. L. Rai-Deputy Secretary. Shri M. M. Mathur-Under Secretary. -Appointed as Chairman w.e.f. 24-1-66 via Shri Paaampalli Govlada Menon; cased to be a member of the Committee OQ his appointment al Mlniater. --Sleeted w.e.f. 23-2-1966 In the vacancy caused by appoiDtmC;Dt or Shri Pauam- pilU Govinda MeDon IS Minister. tBlec:ted with e1fcct from 7-8-66 In the VlCIIIICy caused by the demlle of SIlrl S. V. Ramaswamy. Shri S. V. Ramaswamy was elected w.e.f.23-3-66 ID the ftICIIDC:J cauaed by the resipation of Shri Huish Chandra .M8dmr. ttBlec:ted w.e.f. 7-5-66 on the retirement of Shrl Lobmtb MJahIa froID RaJ1a Sabba on 3-4-1966. ~lected w.e.f. 7-5-66 on the retirement of Shri T. S. Pattabhlramln from Rliya Sabha on 2-4-66. lBlec:ted w.e.f. 18-5-66 in the VIICIDCy cauacd OD the rcalanation of Shri AbkI All on 6-$-66. ~ec:ted w.e.f. 18-$-66 in the vacancy c::auaed on the rea;p.doD of Sbrl M. N. Gorindan Nair on 6-5-66. @Blected w.e.f. 18-5-66 In the vacancy cauaed on the reaJpadog of SbrI M. GoriDda Reddy on 6-$-66. • (iii) INTRODUCTION I, the Chairman, Committee on Public Undertaking!!, having been authorised by the Committee to submit the Report on their behalf, present 'this Thirty-Fourth Report on the action taken by Govern- ment on the recommendations contained in the Hundrecl and Twenty-Fourth Report of the Estimates Committee (Second Lok Sabha) on Hindustan Aircraft Ltd. 2. The Hundred and Twenty-Fourth Report of the Estimates Committee was presented to the Lok Sabha on the 6th April 1961. Government furni~th.ed their replies indicating the action taken on the recommendations contained in that Report between 13th July, 1962 and 12th September, 1966. As the Public Undertakings are now to be examined by this Committee, the replies of Government to the recommendations made by the Estimates Committee in the .aforesaid Report have been considered by this Committee. The Draft Report was adopted !by this Committee on the 21st November, H,66. 3. The Report has been divided into the following two chapters:- I. Recommendations that have been accepted by Government. II. Recommendations which the Committee do not desire to pursue in view of Government's reply. 4. An analysis of the action taken by Government on the recom- mendations contained in this Report of the Estimates Committee is given in Appendix. It would be observed therefrom that out of the '20 recommendations made in the Report 30 per cent have been accepted by Government and the Committee do not desire to pursue 70 per cent of the recommendations in view of the Government's reply. NEW DELHI; D. N. TIWARY, November 21, 1966. Chairman, Kamka 30, 1888 (S.). Committee on Public Undertakings. CHAPTER I RECOMMENDATIONS THAT HAVE BEEN ACCEPTED BY GOVERNMENT Recommendation (Serial No.4) It would be obviously de8ira.ble to prescribe a tenure for Direc­ tors and make it unifonn to all Public Undertakings. (Paragraph 11). REPLY OF THE GOVJ!llU(MENT The recommendation of the Estimates Committee is already being followed in respect of the Undertakings, viz. BEL, GRW, MDL and Praga Tools. This ·recommendation will be taken into account while drawing up the constitution of the single Corporation, comprising HAL, AIL and AMD, which will be responsible for the activities con- nected with aircraft production and repairs. [Ministry of Defence U.O. No. 5 (3)/61/HAL/D (HAL) PC-XIV, dated the 1st May. 1964]. Recommendation (Serial No.8) It is obvious that adequate attention has not 'been paid towards development of ancillary industries by the HAL. In view of the importance of the aircraft industry to the country and its speedy expansion in the foreseeable future the requirement. of components are bound to go up very much. Increasingly more and more compo­ nents will also ha.ve to be produced indigenously. The Committee, therefore, recommend that steps should be taken by HAL, without delay for the development of ancillary industries. (Paragraph 15). REPLY OF THE GoVERNKENT HAL i$ already sub-contracting a number of its requirements mostly plutic and rubber products which have been developed indi- genously to meet aircraft specifications. Some raw materials like aluminium specification L59, dopes, thinners and paints are also obtained through indigenous sources. The requirements of air- • At the time of factual verification, the Ministry of Defence lias stated thus:- " ...... This recommendation has been accepted and BU!table provision made in the construction of a Single Corporation Comprising ~'!t~~. ~~onautics (India) Ltd., and Aircraft Manufacturing (Minist", of DefeflCe lette1' No. 26(l3)/66ID(HAL-l), date4 the 16th Novem- ber. 1968]. craft parts and components of HAL being small, and the specification for the aircraft parts being necessarily high, it is d.i1Bcult to develop Bub-contract sources. for most of the aircraft parts at present. The value of the items of accessories etc. prodUCed in India is naturall,. rather ~ at thi, Itare. This Ministry has set up a Directorate of Technical Development and Production (Air) fOf the indigenous manufacture of raw materials, instruments parts and other accessories required for the Aircraft Industry. HAL is maintaining close liaison with this organi- sation in prescribing the requisite standards and specifications and ensuring the ultimate production in conformity with the prescribed standards ~uired for the aircraft industry.:\: [Mim.ftty of Defence U.O. No. S(3)/6I/HAL/PC-III/D (Air-I), dated the lOt" December, 1962]. a'CQ$Q.endadpQ. (Serial No.8) The practice of debiting expendituTe \in.cuTTed on. new pro;ects to old projllCts qJ.Teady un4eT production does not appeaT to be quite correct as S'Uch a pTactice will not 'give a clieaT pictuTe of the cost of production. The Committee feel that it wouH be desira'ble to make at least a profoTma allocation between the ,projects alTeady estab­ lished and those u.ndeT development so that a mOTe Tealistic cost of pr..oduction is available. (Paragraph 19).
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