India Today Group Online
 


March 26, 2001
Issue


 

COVER
   

Shamed And Crippled
With Tehelka.com's spy-camera taking a heavy political toll after the damning revelations of corruption in defence deals, the beleaguered Atal Bihari Vajpayee Government will have an uphill task restoring its credibility and undoing the damage to its image.

BJP: Old Hype

Interview:
Bangaru Laxman

Jaya Jaitly:
Jhola To Purse

Opposition: On A Roll

INDIA TODAY-ORG-MARG Poll: Outraged !

Defence Establishment
: Surgery For Graft


Interview: G. Fernandes

Barak Missiles:
Off The Mark


Tehelka:
Sting Theory


Highlights Of The Findings

Rakesh Kumar Jain: Gasbag Man

 

 
STATES
   

Wheeling A Good Deal
The battle for BALCO degenerates into a political chess match between Chhattisgarh Chief Minister Ajit Jogi, and Union Disinvestment Minister Arun Shourie. Jogi holds most of the aces at the moment--but will he play them all when it could mean loss of investments to the state?

 

 
STATES
   

The New Targets
The 60,000 policemen in Kashmir are caught in a dilemma. On the one hand, they are the target of militant attacks, and, on the other, the Army sees them with suspicion. It is not just themselves, but their families that the policemen worry about as they struggle to battle militancy and falling morale.

 

 
ECONOMY
   

Crisis Of Confidence While stock prices haven't recovered since the collapse of March 2, the panic has spread from Mumbai to Kolkata. Underlying the fear is a deepening fear of the Securities and Exchange Board of India's will or capacity to regulate the stockmarkets.

 

 
SPORTS
 

Escape to Victory
Down and virtually out, India create a miracle at the Eden Gardens to stun the Australians and break their winning streak.

 

 
THE ARTS
 

Mixing Metaphors Music, dance, and tourism synthesise in the famed textile centre of Maheshwar to provide sustainable synergies for its growth.

 

 
OTHER STORIES
     
 



 
  Home  
 

COVER STORY: DEFENCE ESTABLISHMENT

Procedural Flaws

Interview: George Fernandes
Deals: The Right Way...
And The Wrong
Barak Missiles: Off The Mark

The system to procure such equipment was then twisted. In normal course, the Planning and Perspective Directorates in each of the forces kicked off the process by assessing needs and then working out a qualitative requirement (QR) or specifications about the performance of equipment being purchased. These then followed a tedious procedure of routing through the WED and finally the MOD (see box). While it looks good on paper, in practice, as a retired lieutenant-general who was master general for the ordnance reveals, it can be easily manipulated. He says, "The aim is to delay the exercise and get vendors of equipment come to them with lollies for clearing orders." With single vendors like Russia who earlier used to sell defence equipment to India on favourable rupee terms, however, it was far more difficult to make cuts.

 

  FERNANDES' HAUNT: As defense minister he undertook 18 trips to Siachen

The extent of official corruption is not, as Fernandes would like India and the world to believe, confined to just a few "black sheep". The Tehelka revelations establish that they are part of a brazen chain that starts at the bottom (section officers) and goes up to the top. For instance, Major-General Choudhary's post of additional director-general in the WED is a highly sensitive one. Says General Shankar Roychowdhary, Rajya Sabha member and former army chief who retired in 1997: "Only officers with unimpeachable integrity are selected for this post, after a careful scrutiny of their track record and professional competence." And yet...

He built a rapport with jawans but the brass was unhappy over pace of reforms.

 

The scandal comes just when the MOD was planning to implement major reforms in its procurement procedures. Much of it had to do with bringing greater cohesion and speeding up the process rather than cleansing it. A separate purchase wing was to be set up in the MOD headed by a special secretary. The Weapons Equipment Directorate of the three forces would report to him instead of their respective chiefs and all the existing units would be transferred to the new wing. These changes were expected to bring about a greater accountability. What was also needed was much more transparency. Admiral Bhagwat believes that among the primary faults in acquisition of defence hardware is the veil of secrecy in which they are cloaked. Even the price break-up of deals could be made public. "It is only the negotiating strategy and tactical deployment of weapons-where and how I plan to use my ships-which is to be kept secret," says Bhagwat.

Others agree. Says Lt-General N.S. Malik, a former deputy chief of army staff: "The whole system continues to be murky and despite Fernandes' efforts, hasn't changed." He believes that merely banning agents is not a solution and points out that they do play an important role in identifying equipment. If rules are strict and everything is out in the open then the chances of misuse are minimised.

Others suggest the British model where the purchasing authority is outside the MOD. Senior officials in the ministry talk of involving the CVC and CAG in concurrent audit of all ongoing deals rather than investigating deals once these are struck. Former naval chief Admiral Jayant Nadkarni believes the scandal to be a godsend opportunity to cleanse the system of defence procurement. Now all it needs is a determined government to make the decisive changes. Does Vajpayee still have it in him?


 

 
 
 
Care Today
     METRO TODAY
 
   

MetroScape
Pop Corn
"You are the best audience in the whole world," the Vengaboys tell raving crowds
in Delhi.
more...

Looking Glass

Delhi Exhibition:
Pop To Classic

Delhi Restaurant:
San Gimignano

Mumbai Accessories Store: Watches Of Switzerland

 
    Web Exclusives
DESPATCHES
 

A bloody crackdown on Naxalites in the south-eastern fringes of Uttar Pradesh proves that only developmental programmes, not guns, can help fight the menace. INDIA TODAY's Special Correspondent Subhash Mishra explains why in
Despatches.

 

 
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