Private Sector

Israel Aerospace Industries got undue benefit from sale of UAV engines to IAF

A Comptroller and Auditor General (CAG) report tabled in Parliament Wednesday pointed out irregularities in the purchase of aero engines for Unmanned Aero Vehicles (UAVs) by the Indian Air Force from Israel Aerospace Industries (IAI).

The report states that the IAI gained undue benefits of Rs 3.16 crore from the contract.

It says that the IAF concluded a contract in March 2010 with IAI for five 914 F (certified) UAV Rotax engines for Rs 87.45 lakh per engine even as Aeronautical Development Establishment (ADE), a DRDO laboratory, had procured the same variant of the engine at Rs 24.30 lakh per engine in April 2012.

The average price of the engine in the international market is between Rs 21-25 lakh, the report says.

“As a result, the vendor gained an undue benefit of Rs 3.16 crore as it supplied the five contracted UAV engines at more than three times the market price or the price offered to the DRDO unit,” reads the report.

The auditor also accused the vendor for mislabelling and supplying uncertified engines to the IAF which reportedly led to several accidents, including loss of one UAV in a crash.

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