In its report, the Comptroller and Auditor General (CAG) of India has slammed the Hindustan Aeronautics Limited (HAL) saying that the quality of the helicopters that it makes is of low-quality.

They are, said CAG, of less sophisticated level and are being send to the Defense Ministry.

CAG in its observatory report said that performance of HAL has been bad. The paper was on the performance of the public sector undertakings (PSU).

The report also accused HAL of not being able to meet the already set standard of quality and this has, it claimed, threatened the capacities and capabilities of the armed forces.

Deputy CAG of India, Sunil Verma said that the on one hand the helicopters that were supplied were lesser than the aforesaid numbers and since they are less in quality they are not able to perform the tasks they are supposed to do.

Besides this, the report also mentioned that state-owned insurance companies like National Insurance Company Limited, United India Insurance Company Limited, New India Assurance Company Limited and Oriental Insurance Company Limited, are incurring losses. This is happening because of carelessness and despite the fact that they are earning high premium rates.