New Delhi, Dec 18 (PTI) The Indian Navy should prepare a "standard tender document" and conduct a thorough review of "X-Engine" stock levels annually for all depots and initiate the process for procurement, maintenance, reuse and decommissioning, as the case may be, a parliamentary panel has suggested.

The Public Accounts Committee's 'Eighty First Report (Seventeenth Lok Sabha) on Procurement of X-Engines', based on a paragraph in a CAG report of 2022 relating to the Ministry of Defence, was tabled in the Lok Sabha on Monday.

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"X-Engines are used on board SS class of ships as the main propulsion plant. These have a specific period of life and are required to be replaced after exploitation for certain running hours," the report said.

These ships are missile corvettes acquired by the Navy and integrated into their fleet, it noted

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"Navy Instructions 2006 (NI-1/5/2006), inter alia, stipulate that in respect of shipborne equipment, provisioning is to be done based on Beyond Economical Repair (BER) and Anticipated Beyond Economical Repair (ABER) or against special sanction of competent authority for maintaining maximum stock ratio of R1 (between reserve and on-board)," the report said.

The panel in its report said, "Two ships viz., UU and W were decommissioned as per the decision of the competent authority (March 2015) in April 2016. However, N24 X-Engines earmarked to be fitted on board these two ships, were not excluded from the contract concluded in April 2016".

It also said that two more ships "WW and XX were decommissioned in January 2018".

"As such, the requirement of X-Engines for the remaining N13 ships in terms of NI 2006 worked out to N30 (N34 on board N13 ships and N24 as reserve) as against the holding of N31 X-Engines (December 2010)," the panel observed.

The PAC said it has taken note of the critical role played by X-Engines in achieving high navigational speeds required by the Indian Navy's SS class ships.

"The SS class ships are missile corvettes acquired by the Indian Navy and integrated into their fleet. These X-Engines have a short life time, thereby, necessitating a sufficient stock for prompt onboard replacements. The engine provisioning guidelines of 2014 were introduced to address past stock shortages and prevent future stock situations".

However, the audit has brought to light "several issues regarding the inventory holding of X-Engines, non-consideration of de-commissioned ships while placing order, and non-adherence to stock levels prescribed under NI-2006, which warrant careful scrutiny", it added.

The committee said it appreciates the decision of the Indian Navy for taking timely measures in the context of Crimea annexation.

"However, they are not inclined to agree with the decision of not reducing the number of X-Engines on account of decommissioning. In Request for Proposal (RFP), the Indian Navy could consider adding the clause that the number of items may be increased/decreased at the time of final order, if not already included which is a general clause for each tender/Request For Proposal," it said.

The committee, therefore, desires that "Indian Navy should prepare standard tender document and conduct a thorough and timely review of X-Engines stock levels annually for all depots and initiate the process for procurement, maintenance, re-use, disposal/de-commissioning, as the case may be, and implement corrective measures as per guidelines in Navy Instructions (NI)-2006."

It said that "future procurements should be based on actual needs, while simultaneously maintaining a plan for contingency/crisis keeping the national interest paramount".

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