Has anybody noticed that comments of CAG on HAL where they record that HAL wasted Rs 1100 crores paying for Shakti Engine technology and got nothing in return. Note the present value of Rs 1100 crores would be around Rs 1600 crores due to USD appreciation.
Hindustan Aeronautics Limited
(HAL) signed (January 2003), a Cooperation
Agreement (agreement), with
Turbomeca, France (TM) at a cost of
`878.08 crore for co-development and
indigenous production of 320 Shakti
engines in five phases (0 to 4) by 2013.
The assembly kits for various phases were
to be supplied by TM at the agreed prices
subject to escalation (with 2002 as base
year) valid up to the year of delivery.
Audit observed that even· after more than
a decade, the self-reliance in manufacture
of an engine to suit requirements of ALH
has not been achieved as envisaged. The
need for variants of engines to operate at
different climatic conditions and altitude
was not foreseen leading to frequent
modifications requiring more investment
in terms of time and money. HAL had to
bear additional burden due to the failure of
TM, indicating undue favours extended to
the foreign partner in the development and
production of Shakti engines. Failure to
ensure compliance to offset obligation by
the foreign collaborator has so far denied
an opportunity to the Indian industry
to contribute towards self-reliance.
Acquisition of additional technical knowhow
without optimal usage of free technical
assistance has further contributed to extra
cost on the project.
Thus, inability of HAL to absorb the
technology and non-assessment of the
available in-house capacity to manufacture
Shakti engines impacted timely induction of
ALH into Defence forces and also resulted
in avoidable extra expenditure of 204.27
crore to HAL.
