Question : UNECONOMICAL RATES OF DGOF

(a) whether a study conducted by the Indian Institute of Management, Ahmedabad, in 1990 on inventory management revealed that the lead time taken by DGOF and PSUs has a direct bearing on the levels of stock holdings and the rates of DGOF have been unacceptably higher than the rates quoted by private sector; and

(b) if so, the action taken or proposed to be taken to remedy the situation?

MINISTER OF DEFENCE (SHRI JASWANT SINGH)

(a) Government are not aware of any such study conducted by the Indian Institute of Management, Ahmedabad.

(b) Does not arise in view of (a) above.