CAG report says Hindustan Aeronautics helicopters not up to standard

New Delhi, Aug 6 (ANI): The Comptroller and Auditor General (CAG) of India slammed Hindustan Aeronautics Limited (HAL), state-run aerospace company, for rendering less sophisticated helicopters to the Defence Ministry.

This observation was a part of the report that the CAG released on the performance of the public sector undertakings (PSUs) here on Thursday.

The report underlined the fact that the HAL failed to meet the standard promised by it as a result the capabilities of armed forces, to an extent, have been compromised.

"See it is like this, helicopters were supplied less (in number) and those which were supplied - what they had promised in terms of facilities - helicopters aren't performing those functions. Helicopters are flying with concession. It can be definitely said that Ministry of Defence as a buyer has suffered a bit- its capabilities, to some extend, have been harmed," said Sunil Verma, Deputy Comptroller and Auditor General of India.

The report also pointed out that government-owned insurance companies (National Insurance Company Limited, United India Insurance Company Limited, New India Assurance Company Limited and Oriental Insurance Company Limited) have incurred losses despite higher premium earnings.

"The premium earned by the four PSUs nearly tripled in four years. The claims incurred by the PSUs were higher than the premium collected. The companies suffered loses in the segment - rupees 417 crore (rupees 4.17 billion) from individual policy and rupees 622 crores from group policies," said Yashwant Thakre, Principal Director, Comptroller and Auditor General of India.

The report lauded the 392 federal PSUs for reaping huge profits. Among these are 300 directly under the control of the federal government and the rest 92 deemed as government companies.

The Comptroller and Auditor General (CAG) of India - mandated by the Constitution of India - audits all income and expenditure of the Government of India and government-owned companies including grants and other assistance rendered by the government. (ANI)