CLARIFICATION
ON ALLEGED FAILURE OF AIR FORCE TO DISPOSE OFF SURPLUS STORES
This is with reference to recent
media reports on the so-called failure of Air Force to Dispose
off surplus stores. The reports apparently have presented a one
sided version. The clarification by this Ministry is as follows:
- The Hunter fleet of Aircraft (fighter and trainer) used by Indian
Air Force (IAF) was introduced in service during 1957 and was
being considered for phasing out during 1994-95. Accordingly,
about 9520 items of spares costing Rs. 9.90 Crores (book value),
stocked at 25 Equipment Depot, Devlali that were found to be 'non-moving'
were declared surplus and Ministry of Defence (MoD) sanctions
to this effect were obtained in April 1994 and February 1996.
However, because of non availability of alternative aircraft,
the Hunter fleet, which was to be phased out in June 1996, was
allowed to keep flying until much later and extensions in the
life of this fleet were given by MoD in phases upto 1998, and
then upto 2000 and lastly upto 2002. Under the circumstances,
the disposal of surplus spares (sanctioned in 1994 and 1996, based
on considerations of phasing out of Hunter aircraft by June 1996
itself) had to be kept in abeyance, since when the fleet is operational,
any item(s) of spares could be required for its maintenance. Had
the spares been disposed off, the aircraft would have been grounded
for want of certain items and/or, it could have cost IAF heavily
to re-purchase/procure such item from the world market because
of obsolescence of the Hunter aircraft and their production having
been stopped over 15 years back. Besides, availability of required
spares could not have been assured. Now that the Hunter fleet
has actually been phased out since Oct 2001, instead of 2002 the
job of disposal of surplus spares of this fleet has been taken
up in right earnest and will be completed as early as possible.
As regards the inventory carrying cost of spares, it is incorrect
to say that it was avoidable. In any case, since the spares were
found to be 'non-moving', and declared surplus in 1994 and 1996,
they were placed in the category of "inactive stores" for which
normal care, warehouse hygiene and stock audit etc are done under
relaxed conditions, as provided in the rules. The inventory carrying
cost for inactive spares could at best be taken as 10 per cent
of the disposal value of stores. This value, is anywhere between
three and five per cent of book value. Thus, the actual inventory
carrying cost has been of the order of about Rs five Lakh annually
only and not Rs One Crore annually, as mentioned in the newspaper
reports. This cost is more than offset, considering the fact that
the IAF would have had to pay much more in the event of items
having been disposed off, before the Hunter fleet was actually
phased out and having to buy some items for its maintenance, if
and when required from the world market, which has already been
dried up.
