Sukhoi cost escalation irks CAG

New Delhi, May 19 (UNI) Licensed production of the Indian Air Force's multi-role Sukhoi-30MKI fighter aircraft in the country was running into huge cost overruns and some of them in the latest batch were flying without some advanced critical airborne systems.

And to add to this, the indigenous manufacture of the Russian frontline fighters was working out to more than the cost of imports, says the latest report of the Comptroller and Auditor General (CAG).

Three critical airborne systems of the fighters -- electronic warfare system, reconnaissance system and direction finding modular radar -- had not not been integrated with the latest batch of aircraft delivered by Russia under a November 1996 contract, the report -- placed in Parliament today -- said.

''There has been sharp slippage in delivery schedules and the fighters delivered had customisation only partly,'' the report pointed out.

Rapping the Government for huge cost esclation risks in the project, CAG said the total cost of 140 aircraft projected by the Ministry in 2000 was Rs 22,122.78 crore at 2000 price-levels while a detailed project report prepared by HAL in July 2005 put the amount as Rs 39,224.9 crore -- almost a hundred per cent price rise.

''Even this is open ended as the 2.5 per cent cost esclation agreed to by India is applicable only till 2007,'' the report noted.

UNI DG VD HS1922