April 09, 2001
Issue


India Today, April 2, 2001

 

COVER
   

Victims Of The Crash Small investors like Girish Patel of Ahmedabad have lost much of their life's savings in the stock market crash. A profile of some middle-class investors who burnt their fingers.

Villains Of The Crash SEBI Chairman D.R. Mehta along with bankers, and brokers must share the responsibility for allowing yet another scam by their acts of commission, and omission.

What's Next For The Economy?
For the third time since 1997, a combination of sliding stock markets, political instability, and global slowdown threatens to turn the hopes of an economic take-off into despair.

 

 
THE NATION
   

Numbed By Disgrace
The BJP, still in shock, begins life after the Tehelka expose with a new president and a combination of hope and bluster. A swot analysis.

 

 
INTERVIEW
   

"I'd choose Musharraf"
Former Pakistan prime minister Benazir Bhutto talks about her relations with her country's politicians, Indo-Pak relations and Kashmir in an interview to Aaj Tak.

 

 
BUSINESS
 

Official Obstacle
Chhattisgarh Chief Minister Ajit Jogi eggs on workers to go on a strike that is adversely affecting production, and profits.

 

 
DEFENCE
 

Fire Fighting
As the Tehelka controversy slows the defence deals, the Government takes steps to revamp the set-up and streamline the weapon procurement system.

 

 
OTHER STORIES
     
 



 
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DEFENCE: THE ESTABLISHMENT

Fighting Fire

As the bribery scam stalls routine defence procurement, the Government tries to shake the paralysis by pushing through plans to revamp the ministry

March, the month that marks the end of the financial year, is the time when files move quickly especially in the Ministry of Defence (MoD) which, with a budget outlay of Rs 58,587 crore, is the highest spending government wing. This year, however, the on-camera bribery scandal has put a freeze on spending and few want to have anything to do with files involving defence deals. Last year too, the Rs 1,000 crore earmarked for capital expenditure remained unused because of the Central Vigilance Commission (CVC) probe ordered by former defence minister George Fernandes.

 

ON THE DEFENSIVE: Singh (left) works to undo the damage that forced out Fernandes

This year, all procurement-be it big projects like the UK Hawk Advance Jet Trainers worth $1.6 billion (Rs 7,360 crore) or smaller purchases involving spares-has come to a standstill. In fact, representatives of a Russian firm who were in Delhi when the Tehelka scandal broke and who hoped to hawk a multi-barrel rocket-launcher system worth Rs 600 crore, had to return without any business being conducted. Similarly, three manufacturers were shortlisted for a deal involving 5.56-mm self-loading rifles for counter-insurgency operations, but their tenders are still awaiting appraisal. No one is keen to touch these files. Says former army chief Shankar Roychowdhary: "My fear is that this will affect the two key areas of modernisation and defence preparedness." A similar slowdown was witnessed after the Bofors scam and the Kargil war showed up both these deficiencies.

But even as three independent probes were ordered by the Government, Prime Minister A.B. Vajpayee moved to dispel the impression that the ministry was in a state of paralysis. The only file that moved quickly related to recommendations on national security made by a Group of Ministers before the scandal broke out. Acting on the advice of External Affairs Minister Jaswant Singh, who holds additional charge of defence, Vajpayee moved to implement some key recommendations. These were actually drawn from voluminous reports by four committees formed post-Kargil to look into issues like improving defence management, restructuring border security, revamping the intelligence set-up and more coordinated efforts in dealing with internal security. After the submission of reports, Vajpayee had asked four cabinet ministers-home, defence, finance and external affairs-to sift through them and reduce them to a manageable number. Now they came in handy for the Government to show that it meant business.

Vajpayee homed in on two key recommendations and asked Singh to get cracking on them. One dealt with major restructuring of the command structure, which could see the emergence of a chief of defence staff (CDS), in addition to the three service chiefs who would continue to be in operational command of the forces. The new CDS is likely to be the single-point adviser to the government on military affairs, apart from heading the country's nuclear forces. Last week, National Security Adviser Brajesh Mishra held a long meeting with Chief of Army Staff S. Padmanabhan to see how best to evolve the structure.

As discussions continued, the Government moved to streamline the much maligned defence procurement system. The current system has led to duplication and delay, with little accountability. The new plan envisages setting up a super Procurement Board within the ministry that would have the weapon equipment directorates of the three forces. Currently, the directorate of each force reports to its respective chief.

Meanwhile, the three chiefs tried to stem the demoralisation in the forces. According to a senior officer, Padmanabhan is disturbed because "the level of greed is apparent from the fact that fictitious arms dealers were able to penetrate a system despite not having any knowledge of military hardware''. The transcript is, indeed, replete with examples of officers wanting to help West End (Tehelka's non-existent company) sell thermal imaging cameras when the order for the same had already been placed. Within 48 hours of the scandal Padmanabhan got into action. He asked the officers who had accepted money on tape to give an explanation. Simultaneously, a signal was sent to commanding officers of all the units involved in counter-insurgency operations to dispel the notion among the troops that while they were sacrificing their lives for the country their seniors were accepting bribes.


 
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Care Today
     METRO TODAY
 
   

MetroScape

Collaborative Class
Italian designer and architect Tarshito Nicola Stripoli has been busy rearranging world geography.
more...

Looking Glass

Delhi Salon:
Jacques Dessange

Mumbai Theatre:
IMAX dome

Mumbai Restaurant:
Watering Hole

 

 
    Web Exclusives
DESPATCHES
 

The ambitious Anandgarh township proposal stirs another round of controversy as a high court order foils the Punjab Government's plans of acquiring land for the project. INDIA TODAY's Special Correspondent Ramesh Vinayak reports in
Despatches.

 

 
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