This Article is From May 15, 2012

Antrix-Devas deal: CAG report slams Madhavan Nair

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New Delhi: The Comptroller and Auditor General (CAG) has come down heavily on the former Department of Space Secretary G Madhavan Nair in the controversial Antrix-Devas deal.

The CAG report, which was tabled in Parliament today, highlighted the alleged conflict of interest in the multiple roles exercised by Mr Nair, saying this could have been avoided if different persons were appointed to crucial posts to ensure checks and balances.

"The Antrix-Devas deal is a classic instance of failure of the governance structure in which selected individuals, some serving and some retired public servants, were able to successfully propel the agenda of a private entity by arrogating unto themselves, powers which they were not legitimately authorised to exercise," the CAG report said.

The report said, as the Chairman of Indian Space Research Organistaion (ISRO) Mr Nair appointed the Shankara Committee to examine the proposals of M/s Forge Advisors and as Secretary, DoS, Nair submitted a note to the Union Cabinet in which critical facts were concealed. It said, as the Chairman, Space Commission, he chaired meetings where approval to GSAT-6 adn 6A satellites were accorded.

The report also criticised the Department of Space (DoS) for its failure to explore the revenue potential of 70 MHz of S-Band spectrum earmarked for Devas for an infinite period.

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The CAG report alleged that to avoid obtaining of approval of the Union Cabinet, DoS estimated the cost of GSAT-6A, the subsequent satellite of a similar configuration after GSAT-6 at Rs 147 crore so that it fell within the financial competence of the Space Commission. The cost of GSAT-6 was Rs 269 crore.

Antrix had signed a deal with Devas in January 2005 to provide it crucial S-Band space segment for running digital multimedia service by leasing 90 per cent transponders on two satellites - GSAT6 and GSAT6A.
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