New Delhi: Comptroller and auditor general (CAG) said that government negotiators inflated the base price of 12 helicopters by a whopping 22.8 per cent contracted with Italian firm, AgustaWestland.
Hinting at massive payoffs in the helicopters deal, the CAG report made public on Tuesday also talked about several irregularities and frequent change in rules while negotiating the 560 million euros deal.
This is against the Rs 793 crore projected initially and approved by defence ministry in January 2006.
But, the government justified higher procurement costs with the contention that initially when the deal was being negotiated the price did not include development and certification costs, cost of fitments and fixtures for VVIP transportation, self protection suits or escalation of costs due to delayed delivery.
13/08/13 KA Badarinath/mydigitalfc.com
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Hinting at massive payoffs in the helicopters deal, the CAG report made public on Tuesday also talked about several irregularities and frequent change in rules while negotiating the 560 million euros deal.
This is against the Rs 793 crore projected initially and approved by defence ministry in January 2006.
But, the government justified higher procurement costs with the contention that initially when the deal was being negotiated the price did not include development and certification costs, cost of fitments and fixtures for VVIP transportation, self protection suits or escalation of costs due to delayed delivery.
13/08/13 KA Badarinath/mydigitalfc.com
