New Delhi: In a report on the mode of functioning of the inventory management process of Central Ordnance Depots (COD) and Ordnance Depots (OD), the Comptroller and Auditor General (CAG) has blasted CODs and ODs for the inability to adequately meet demands and requirements of the military end-users.
In its report “Inventory Management in Ordnance Services” recently submitted in the Lok Sabha, the national auditor has said: “Audit analysis of the demand satisfaction level with reference to the demands received at the selected CODs/ODs revealed that the depots were unable to issue the stores demanded by the units and the average actual inability percentage for the period 2014-15 to 2018-19 ranged between 48.80 per cent and 77.05 per cent.”
It is pertinent to point out that while the average inability percentage reported by depots ranged between 11%-35%, the CAG’s figures range 48.80% to 77.05%. “The actual inability percentage was, therefore, much higher than the inability percentage reported by the depots,” the CAG said in its report. As per existing provisions, all demands from the users’ units are to be honoured within 22 days of receipt of the indent. Stores that are not available for issue from stocks in that depot are maintained as “dues-out” by the depot.
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As of March 2019, the number of users’ demands that were outstanding after having crossed the 22-day timeline stood at a staggering 6,49,045. According to the CAG findings, the demands outstanding up to six months ranged between 14%-62% whereas the same beyond six months was 38%-86%, indicating inability of the depots in sourcing the required spares.
On its part, the defence ministry stated in February 2021 that in order to arrest high “dues-out” with forward ordnance echelons, initiatives like procurement at regional depot level, identification of additional sources of supply, the ‘Make in India’ initiative, etc were being taken up. While acknowledging the ministry’s action, the CAG pointed out that considering the high percentage of user’s unmet demands (dues-out), the ministry should take effective and sustained steps to reduce the quantum of unmet demands.
The Army Ordnance Corps (AOC) is responsible for providing material and logistics support to the Indian military during war and peace. The supply of the stores to the armed forces is carried out through a network of depots and store-holding units. At the field level, there are CODs located at different stations to deal with specified items of stores being provisioned, procured, stocked and managed. The performance audit covered the five years from 2014-15 to 2018-19 and comprised only Class ‘A’ stores or weapon systems and complete equipment such as tanks, radars, guns, vehicles and helicopters.
