The money spent is more than twice of the approved project cost, which was pegged at Rs 430 crore in 1999 when the MiG-27 upgradation package was sanctioned, the Comptroller and Auditor General says in its latest report tabled in the Parliament on Friday.

Though the initial operational clearance (IOC) was scheduled to be completed by December 2001 and modifications were to be finished by December 2004, the conditional IOC came only in 2006 and modifications are likely to be completed by December 2008.

The upgradation comprises modern navigation facilities to make MiG-27 capable of flying in the night as well as attack and electronic self-defence systems.

However, the product support from the original equipment manufacturer – MiG Corporation – is available only till 2012. As a result the upgraded MiG-27 will be useful for the IAF for only four years after spending Rs 900 crore, the CAG says, blaming time and cost overrun for the expensive delay.

Inherent flaws
The aircraft has inherent design deficiencies resulting into loss of 17 fighters between 1988 and 2001. The utilisation rate of the aircraft was almost half compared to other fighters.

In 2001, serious doubts were expressed at IAF headquarters about the viability of the upgrade project because of the problems associated with the aircraft.

The officials recognised that if a realistic time scale of seven to eight years is factored into the deal, the benefits of the deal get further diluted.

LEFT UNHAPPY OVER US SHIP PURCHASE
New Delhi, DHNS: The Left parties on Sunday have come down heavily on the UPA government for buying the US amphibious naval ship INS Jalashwa in a controversial deal. The ship was about to end its life in the US navy when the deal was concluded.

In the process, New Delhi has accepted a restrictive US clause which forbids Indian Navy to use the ship in war or war-like situations and allow US inspectors to come on board to conduct “an inspection and inventory of all articles transferred from the USA.”

What adds to the controversy is the fact that the Navy purchased INS Jalashwa, joined the service in 2007, at a cost of Rs 202 crore ($50.6 million) without a physical assessment of the ship, which was scheduled to be decommissioned in the US navy – in the absence of a buyer – in 2006.

The revelations brought out by the Comptroller and Auditor General (CAG) in its report tabled in the Parliament on Friday, have incensed the Left parties so much that they are demanding a thorough enquiry into the deal.