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According to a report in the ” The Hindu”, the Comptroller and Auditor General of India has flagged Three Defence PSUs selling Ordinance Factor, Trichy, Small Arms Rifle, Kanpur, and Rifle Factory Ishapore that from 2015 have been selling Indian Made Assualt Rifles to BSF, CRPF, ITBP and CISF over the cost of its production they’re by incurring a loss of ?366 crores over five years from 2015.

Three Defence PSUs have sold 12 different categories of guns and Assault rifles to Central Paramilitary forces at a loss because they failed to reduce their procurement cost of the raw material that is used to manufacture them in the country.

CAG reports largely blame it on failure to optimize the scale of production and failure to get any major orders from the Indian Army due to which it is not been able to scale up the production and scale down its operational cost of manufacturing this for the Paramilitary forces.

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