Reasons for under-utilisation of funds include high rates of manpower attrition, non-supply of some critical and state-of-the-art components by vendors (in developing countries) due to strategic reasons including sanctions imposed by such countries, the report added.

Asking C-DOT to devise some alternate strategy to accomplish targets, the committee has also recommended acceleration of research and development (R&D) activities by C-DOT. "The committee strongly recommends that C-DOT should accelerate its R&D activities to fully utilise the funds allocated to it and whenever possible, alternate suppliers should be identified to be taken recourse to, if necessary," the report said. In yet another significant observation, the report also said the funding pattern of C-DOT be laid down at an early date, in consultation with the ministry of finance, to ensure that C-DOT continues to get the required funds in time and does not encounter any problem on this account.

The committee has noted DoT's contention that after the corporatisation of DTS/DTO, the surplus of DoT would accrue to Bharat Sanchar Nigam Limited and that C-DOT would be funded by means of accruals coming into the corpus of DoT in the form of licence fee, pension charges from PSUs etc. "The shortfall, if any, would be met from the general exchequer," the report added.

In a written reply, C-DOT told the committee that the reasons for under-utilisation of allocated funds include high manpower attrition because of highly lucrative offers, both within and outside the country, for trained manpower.

"It is not only difficult for us to recruit the best brains for a national cause but also it has become next to impossible to complete projects on time," C-DOT said. With the attrition rate of almost 40 per cent annually of R&D engineers, most project plans had been thrown out of gear, it added.