HAL failure to anticipate EASA norms led to longer compliance checks: CAG

HAL failed to identify technical experts to avail consultancy services for timely compliance of the stringent requirements of EASA. Expenditure of Rs 108.24 cr incurred was impaired, the report said

The Hindustan Aeronautics Limited applied for European Aviation Safety Agency (EASA) certification of Helicopter 1 in 2009 to enhance its export potential to European countries, but failed to anticipate stringent requirements of EASA which took longer time for compliance and a consequential additional fee, a CAG report has found.

The Comptroller and Auditor General of India (CAG)- Union Government (Public Sector Undertakings Ministry of Defence) for the year ended March 2020 Report No 18 of 2023 was presented in Parliament on Thursday, according to an official statement.

"The Hindustan Aeronautics Limited (HAL) also failed to identify technical experts to avail consultancy services for timely compliance of the stringent requirements of EASA. The expenditure of Rs 108.24 crore incurred was impaired," it said.

As on March 31, 2021, there were nine main defence PSUs, six subsidiaries and two joint venture companies under the Ministry of Defence, the CAG has said in the report.

On design and development (D&D) in HAL, the audit has found that the "project feasibility studies, project definition phase reports and detailed project reports were not prepared".

"Technology Gap Analysis was not carried out and the Design and Development (D&D) of the projects were taken up based on inputs from customers. The meetings of the Committee of Institutions Network were not held as per the schedule mandated under the R&D Policy. The technical reviews by a separate Committee inclusive of domain experts were not carried out for all the important phases and stages of D&D projects," according to the statement.

Also, HAL "did not envisage the risks associated with the Project 1 which resulted in taking up several unplanned activities," it added.

The D&D of Project 3 was started by HAL for which "no specific requirements" from potential customers or users were obtained, the audit has flagged.

"HAL applied for European Aviation Safety Agency (EASA) certification of Helicopter 1 in 2009, in order to enhance its export potential to European countries. However, HAL failed to anticipate stringent requirements of EASA which took longer time for compliance and a consequential additional fee. HAL also failed to identify technical experts to avail consultancy services for timely compliance of the stringent requirements of EASA. The expenditure of Rs 108.24 crore incurred was impaired," the statement said.