Defense News ,India :- A parliamentary panel in New Delhi has emphasized the crucial role of the Army's inventory management in the country's defense readiness. The panel recommends the government to address issues by disposing of large volumes of "non-moving" items, simplifying the procurement process, and taking strict action against those causing delays.
The Public Accounts Committee (PAC) presented a report in the Lok Sabha, highlighting the need to urgently address shortcomings in managing the extensive inventory of approximately 4.5 lakh items by the Indian Army. A significant 31% of the authorized inventory in central ordnance depots consists of non-moving items, including obsolete, obsolescent, and surplus items that haven't been demanded or issued for more than five years.
The committee expressed alarm at the value of non-moving inventory, amounting to Rs 272.05 crore, along with non-moving/surplus inventory valued at Rs 32.50 crore in central depots. It calls upon the Defence Ministry to streamline procurement processes, reduce delays, and take strict action against accountable individuals for any delays in the procurement process.
The report also urges the ministry to inform the committee about actions taken against defense public sector undertakings (DPSUs) and ordnance factories for failing to meet targets. The committee recommends strengthening the monitoring mechanism and forming expert teams to expedite procurement through training and upgrading specifications.
A performance audit from 2014-15 to 2018-19 revealed deficiencies and surpluses in Class A stores (major and minor equipment and ammunition) and discrepancies in data for Class B stores (spares, accessories, general stores, and clothing). The committee stresses that inventory management plays a pivotal role in the country's defense preparedness.
The committee expresses disappointment that, despite over 23 years, the issue of deficient storage accommodation has not been resolved. It urges the Ministry/Army to review their inventory, dispose of non-moving inventory to reduce holding costs, free up storage space, and adhere to ISO certifications for storage management. The committee also recommends preparing and following Standard Operating Procedures (SOPs) for managing stocks.
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