Question : WORKING OF MASTER GENERAL OF ORDNANCE SERVICES

(a) whether it is a fact that CAG in their Report No. 7 A of 2000 (Defence Services) on page 11 and thereafter brought out the fact of the improper working and functioning of the Master General of Ordnance Services Branch resulting into procurement of spares worth Rs. 180.72 crore by circumventing the established procedure;

(b) if so, the facts thereof;

(c) the reasons for deviating from the laid down procedures; and

(d) the number of cases causing pecuniary loss to the Government have come to fore with details and action taken thereon?

MINISTER OF STATE IN THE MINISTRY OF DEFENCE (SHRI U.V. KRISHNAM RAJU)

(a) Yes, Sir.

(b) & (c): Spares worth Rs. 153.63 crores were procured, of critical items of an equipment, based on a study carried out by Army HQrs., keeping in view Operation Vijay. Procurement was made in accordance with the laid down procedure and after obtaining the approval of the Competent Authority. In addition, sanction for procurement of spares amounting to Rs. 27.09 crores was accorded by the Government based on Life Time Buy study of an equipment carried out by Army HQrs. Action to procure these spares is at various stages of contracting.

(d) No such cases has come to the notice of the Government.