CAG report acknowledges country’s credible capacity in warship building

New Delhi: The ministry of defence has clarified in Parliament that the Comptroller and Auditor General's (CAG) report acknowledges that the country has attained credible capacity in warship building over the years. It has also said the CAG report does not contain any observations on an alarming fall in the productivity of Indian shipyards.

Minister of state for defence, MM Pallam Raju, informed the Rajya Sabha that the CAG report includes a number of observations and recommendations relating to more efficient project management, better coordination amongst various agencies involved in the process, and improved financial controls.

He said that the report acknowledges that warship building, on its own, is a complex, time- consuming and iterative activity. This situation becomes more complex as a result of the country's dependency on foreign sources for procurement of major weapons and sensors, as well as aspirations for increased indigenous content in Indian warships.

These on their own, or cumulatively, lead to delays in the delivery of ships.

To meet the growing requirements of indigenous shipbuilding, defence PSUs have launched yard modernization projects with the support of the ministry of defence. The DPSUs have also taken initiatives, with the support of the defence ministry, to induct modern technologies for faster construction of naval warships.