The 2011-12 Comptroller and Auditor General’s (CAG) report on the union government (Defence Services) Army and Ordnance Factories has heavily criticised defence research organisations for their high rate of failure in completing projects. The CAG reports reveal that the Armament Research and Development Establishment (ARDE), Pune completed only 13 projects of 46 closed projects in the last 15 years.

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The report also points out that in many cases, delay and failure of the projects led to dependence on imports.

The audit further points out that of the total 55 staff projects taken up on the basis of specific demands from the armed forces in the last 15 years, only 46 projects have been closed. The 13 projects were completed at a cost of Rs67.83 crore.

The audit has pointed out lack of coordination between the laboratory and the armed forces, and mentions that both the laboratory and the armed forces are parts of the Ministry of Defence and yet there is no authority to reconcile their differences. The autonomous functioning of these organisations was responsible for the slow progress of these projects according to the audit.

The report has also revealed that of the 46 staff projects, 37 projects did not adhere to the original time schedule. It also mentions that many projects were not successful, due to the frequent extensions in the date of completion. The CAG report mentions that before taking up such projects, the formulation of General Staff Qualitative Requirements (GSQR) should have been done, as in some cases, the projects were taken without these qualitative requirements or frequent changes were made in the qualitative requirements.

The report also states that ARDE has no mechanism to relate success or failure of projects with personnel deputed on them, which could facilitate the assessment of the output of scientists or the technical officers.  The report also states that the credibility, which Defence Research and Development Organisation (DRDO) needs, will be at risk due to the high failure rate of staff projects.

The report also mentions that the ministry in its reply on February 2011 has broadly agreed with the facts brought out in the report, though it differed in some cases. Despite repeated attempts, ARDE spokesperson Kashinath Deodhar couldnt be contacted.