Improper storage of container by Ordnance factory caused Rs 4.48 cr loss: CAG

Improper storage of a container box by an Ordnance factory resulted in a loss of Rs 4.48 crore, the Comptroller and Auditor General (CAG) said in its audit report on Ordnance Factories and Defence Public Sector Undertakings, tabled in the Parliament on Wednesday.

“Improper storage of Container Box C-51A by Gun Carriage Factory Jabalpur, resulted in a loss of Rs 4.48 crore which was yet to be regularised as of May 2021,” it said.

Besides, the factory also injudiciously manufactured 5,385 boxes despite timely communication made by the sister factory to discontinue the issue of these boxes, it added.

Further extra expenditure of Rs 2.74 crore was incurred by Ordnance Factory Varangaon for rectification of discoloration of 7.62mm belted ammunition, it said.

Deficiency in framing specification of the packing box, inadequate quality check checks of the millboard during inspection along with delay in taking up process audit to address the quality complaints of users led to persistent blackening of ammunition. Ordnance Factory Varangaon had incurred an expenditure of Rs 2.74 crore for rectification of 3.63 crore cartridge cases.

Furthermore, suspension of production during 2015-17 and short-supply of ammunition by factory during 2017-19 led to deficient holding of ammunition against the Army’s authorised holding during the period from 2014-15 to 2018-19.

The report also flagged that there was over provisioning of stores valuing Rs 9.89 crore.

The Ordnance Factory Kanpur procured steel billets for four years’ requirement at one go without any target allocation by the OFB and adequate covering demand from the sister factory for supply of forging bodies.

OFC had also delayed short close of the order. This resulted in idling of stock of 1,099.078 MT of steel billets valuing Rs 9.89 crore.

“The prospect of utilisation of stores is uncertain as there is meagre demand for the forging bodies from the sister factory,” the report stated.

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