Category Archives: Drdo

Tatra deal: CBI probes new company after Gen VK Singh accuses Vectra’s Ravi Rishi

Neeraj Chauhan, TNN Apr 13, 2012, 12.40AM IST

NEW DELHI: CBI is investigating Venus Projects, a second company belonging to London-based businessman Ravi Rishi of Vectra group, after the NRI was named by Army chief Gen V K Singh as the person behind a Rs 14-crore bribe offer made to him in September, 2010.

The CBI is scanning Rishi over a complaint by Gen Singh that he was approached by retired Lt Gen Tejinder Singh for a contract for supply of Tatra trucks that the Army chief has said were substandard.

Rishi is being investigated for his links with Venus Projects as agency sources said the company was used by him for purchasing spare parts for Tatra trucks. The agency believes that the deal was signed between Rishi’s Vectra Group and BEML officials within three days of their meetings in 1997.

Sources said, “There was a meeting between BEML officials, Ravi Rishi’s Vectra group, Tatra Slovakia and other associates on June 11, 1997, in Slovakia, and on June 14, 1997, the MoU for procuring 600 Tatra trucks was signed in Bangalore”. CBI suspects BEML, a defence PSU, did not have a board meeting before the hurriedly-signed MoU.

Venus Projects is being seen as another link between Rishi and the Czech firm that projected the UK-based businessman’s Vectra group as the original equipment manufacturer to ensure that it remained central to any deal signed with BEML for supply of Tatra trucks, and didn’t flout the procurement norms.

Agency sources say that they have sought time from Gen V K Singh to know more about the bribe offer. The probe team is hoping to meet the Army chief on Friday, and later call Tejinder Singh for questioning.

The agency has sought documents of Venus Projects and Tatra Sipox (UK) to know about the meetings held in June, 1997. CBI is also likely to call officials of BEML who were involved in the MoU signed on June 14, 1997. CBI is also examining a large number of documents related to contracts of BEML for procuring Tatra trucks since 1997. The agency will also be questioning BEML chief V R S Natarajan soon.

The agency is also in the process of sending Letter Rogatories (LRs) to Czech Republic (original Tatra a s is based there), Slovakia and the UK.

Gen VK Singh stalled BEML’s 1,000 truck order in 2010

TNN | Apr 14, 2012, 12.29AM IST

NEW DELHI: Bharat Earth Movers Limited (BEML), which is in the eye of the storm kicked up by the Army chief’s claim about a Rs 14-crore bribe offer, was preparing to supply 1,000 Tatra trucks in 2010 when General V K Singh stalled the entire acquisition.

Sources said BEML, the Bangalore-based defence PSU, had on the assurance of the then Master General of Ordnance (MGO) of the Army in 2010, had taken “advance action” for supply of 1,000 Tatra vehicles. All these vehicles were to of 6×6 and 8×8 variants.

It is not clear if Gen Singh refused clearance after September 22, 2010, the day he was allegedly offered the bribe by Lt Gen Tejinder Singh on behalf of Tatra.

Tatra truck purchases are usually sent by MGO directly to the ministry of defence (MoD), BEML later pointed out to the MoD. But in 2010, the Army chief had asked for the Tatra file and put the acquisition on hold. Instead, the Army moved a proposal to the Defence Acquisition Council, headed by defence minister A K Antony, for a competitive global tender for the purchase of 6×6 and 8×8 trucks.

The last order for Tatra trucks were placed with BEML in March, 2010, a few days before Gen VK Singh took over as the Army chief on March 31. The last order was for 788 vehicles out a total projected requirement of 3,296.

While the last order was placed by MGO Lt Gen Vinay Sharma, his successor told the BEML that there was no requirement for new vehicles to be acquired from revenue budget.

The Army is presently processing the global competitive tender, which could take several months to complete.

The forces’ stand on Tatra acquisition would be a key component of the ongoing CBI probe into Gen Singh’s allegation that he was offered Rs 14 crore bribe for clearing the purchase of Tatra trucks.

While many of the documents related to Tatra deal – from the Army HQ, MoD and BEML – have been handed over to the CBI, indications are that the agency is yet to get any ‘breakthrough’ documents to show corruption trail in the Tatra deal.

CBI officials would be meeting with Gen Singh, who was away in Punjab on Friday, for collecting further clarification to his written complaint about the bribe offer.

Antony talks tough, says will cancel ‘murky’ deals

TNN Mar 30, 2012, 01.32AM IST

NEW DELHI: India will not hesitate for a moment to cancel any defence deal, even if it’s in the final stages of finalization after technical and commercial evaluations, if any malpractice or corruption is found in it.

With murky wheeling and dealing in arms deals again resurfacing after Army chief General V K Singh’s allegations as well as some unsubstantiated charges of irregularities in the $20-billion MMRCA project doing the rounds, defence minister A K Antony on Thursday made it clear that action would be taken even if the contract had already been inked.

India, said Antony, had enough safeguards like the “integrity pact” to protect its “interests and money” in already-inked contracts worth over Rs 100 crore. “We will take strong action if any malpractice, corruption or lobbying is established…there will be no mercy, there is zero-tolerance for corruption,” he said while speaking at the inauguration of the ‘DefExpo-2012’ here.

As for the MMRCA (medium multi-role combat aircraft) project, under which final commercial negotiations are now being held to acquire 126 French Rafale fighters after elimination of other contenders, Antony said an inquiry was being conducted into an MP’s complaint of alleged wrongdoings in it since the government has to be “careful” at every stage to ensure “no foul play”.

Two of the 15 members in the defence ministry’s Contract Negotiation Committee (CNC) have questioned the methods adopted to conclude that Rafale was cheaper than Eurofighter Typhoon in lifecycle costs.

“But the matter was resolved, with the observations of the two being recorded…all committees face dissent from one or more members…it does not mean the process will come to a stop,” said a senior official.

Antony said the CNC would take at least six months to conclude. Then, there will several layers of scrutiny at different levels, ranging from finance to the Cabinet Committee of Security, to vet the deal.

“We do not throw any complaint into the dustbin. There is a parallel inquiry also going on to inquire into the MP’s complaint. If we are satisfied that there is no foul play, then only will we go forward…We will proceed only if everything is clear,” he said.

CVC probe sought in Navy’s procurement of torpedoes

Apr 08, 2012 | PTI | New Delhi – The Asian Age

The Navy’s deal for procurement of torpedoes for Scorpene submarines from an Italian company has come in for questioning with a Member of Parliament writing to the Central Vigilance Commission seeking a probe into alleged corruption in the selection.
Jainarayan Prasad Nishad, who had earlier written to Defence Minister A K Antony, has alleged that WASS heavy water torpedo was selected for procurement “without validation of critical parameters at sea for speed and range” as specified in the Request for Proposal (RFP).
The RFP clearly stated that only those vendors who could successfully perform dynamic trials of the offered torpedo would be considered but “this was totally ignored in the case of WASS, Italy and the deal was pushed in favour of WASS, thereby ignoring the technical conditions laid in the RFP, Nishad has said.

Citing “(defence) ministry sources” and articles published in some defence magazines, the JDU MP from Bihar has claimed that in the case of the deal, the Defence Procurement Procedure (DPP) was “manipulated and violated for pecuniary financial gains”.
In his letter to Antony, Nishad has contended that the then DG Acquisition had recommended re-issuance of the RFP as the Defence Procurement Procedure was “not being followed and the RFP was ab-initio defective” but later, the Navy used the “excuse” of urgency to reverse the decision and sent it to the Defence Acquisition Council (DAC) for approval to consider WASS “as a resultant single vendor”.
Alleging wrongdoings in the process that dates back to 2007 and 2008, the MP claimed that to ensure the RFP was not cancelled, the Navy had “deliberately cleared” another bidder ATLAS Elektronik of Germany at the TEC (Technical Evaluation Committee) stage and rejected it after trials.
“Creating a single vendor scenario through manipulation to overcome the DPP, which has happened in this case, and selecting an inferior product, could lead to the security of the nation being compromised for pecuniary financial gains,” he warned in the letter to Antony.
On getting no response from Antony, the MP shot off a letter to CVC Pradeep Kumar along with the one written to the Defence Minister in January this year. “This has vigilance angle,” he wrote, requesting probe into the matter “seriously” and take necessary steps to stop any possibility of corruption in the deal.
Earlier, ATLAS Elektronik had also cried foul play and sent letters of complaint to the Defence Ministry.
Meanwhile, reacting to the allegations levelled by Nishad, Navy spokesperson Commander P V S Satish said, “For the moment all I can say is that all acquisitions undertaken by the Indian Navy are done with due care and adherence to laid down procedures”.
“Trials were conducted as per the procedures approved by the DAC and were acceptable to both the vendors (in the contract),” he added. The Navy has plans of procuring around 100 torpedoes for the fleet of its six Scorpene submarines, which are being constructed by the Mazagon Dockyarads Limited (MDL) in partnership with French DCNS.

AK Antony and the problem of corruption

KP Nayar

Wednesday, 11 April 2012 09:47

“Will Minister Antony resign?” More than any other, this is the one question that I have been asked by Americans in recent weeks about the defence minister who has been in the news for the better part of this year. Most of the people asking this question have some connection with the military-industrial complex in the United States of America or the country’s defence and strategic community.

The reality, howsoever unpalatable, is that few defence ministers can survive after incurring the personal displeasure of an American defence secretary, unless they are defence ministers in Russia and China or in countries like Iran or North Korea, which are in various stages of confrontation with the US.

A.K. Antony attracted the wrath of the Obama administration last year by his determined refusal to receive the then defence secretary, Robert Gates, who tried to inject himself into a US delegation that was to travel to India for the second round of the “strategic dialogue” between New Delhi and Washington. Gates wanted to lobby with Antony on behalf of American companies, which were then in the running for 126 medium multi-role combat aircraft being sought by the Indian air force, the biggest military aviation deal hitherto.

Antony made it clear to his cabinet colleagues, who were persuaded by the secretary of state, Hillary Clinton, to plead the case of the Pentagon’s civilian head, that if Gates arrived with Clinton he would go to the remotest location in Kerala where even his mobile phone had no signal for the duration of the American’s stay in New Delhi. Kerala was then in the middle of its state assembly election campaign, which gave Antony enough of an excuse to be in his home state.

The defence secretary did not give up. Gates used the ruse that he was demitting office in July and that he wanted to make a farewell call on Antony: at that point, April was being considered for the strategic dialogue, which eventually had to be postponed because of the defence minister’s insistence that he will not meet Gates as long as the aircraft contract was at a sensitive stage in the acquisition process.

Pentagon officials have told reporters on background that “the defence secretary was informed that it would be suicidal” for Antony to meet Gates and that this message was conveyed by Indian diplomats in Washington, who were negotiating the strategic dialogue arrangements with the Obama administration at that time.

At the end of April 2011, American companies were eliminated from the race for the multi-role combat planes, the US ambassador, Timothy Roemer, resigned the next day, and Gates lost any further interest in making his farewell call on Antony. The strategic dialogue eventually took place in July last year without a top-level defence participation.

After an unstated policy of having no ministerial exchanges in defence for 50 years — except on a solitary occasion, that too botched — US defence secretaries have lately taken exceptional interest in their Indian counterparts and senior Indian ministers in the last decade. The most famous of such exchanges was when Donald Rumsfeld, who was predecessor to Gates, called on the deputy prime minister, L.K. Advani, at his hotel on a Sunday in a well publicized effort to highlight a new chemistry in their ties.

Rumsfeld felt somewhat proprietary about the new defence relationship that the administration of George W. Bush considerably advanced with India, but luckily for New Delhi, he did not stay at the Pentagon long enough to see Washington’s hope of bagging the much-sought-after combat aircraft deal crumble into dust. There is no saying how the mercurial Rumsfeld would have reacted to such a disappointment. Gates, a man of great dignity, took the setback in his stride, at least in public.

The Pentagon is not alone in being disgruntled by Antony’s ways. He has consistently refused to visit Israel, which interchangeably shares the first or second spots with Russia among the sources of arms imports for India.

As if to add injury to insult, last month the defence ministry blacklisted Israel Military Industries for 10 years for allegedly paying bribes to secure contracts in India. IMI is not just another arms-seller. It is owned by the government in Tel Aviv, a leading weapons manufacturer for Israel’s defence forces.

It was not expected that Tel Aviv will take the ban lying down. Additionally, the ban by Antony’s ministry has cast a shadow over plans by the Netanyahu government to privatize IMI. There are now question marks about the timing of the privatization: if the world’s number one arms buyer — India — has found IMI unsuitable to do business with, it could have ramifications for investors seeking to buy into the company.

Those familiar with New Delhi’s lay of the land in such matters were not, therefore, surprised when grumblings of discontent, which began as whispers after Antony rebuffed Gates, grew louder following the rejection of American bids for the multi-role combat aircraft. It was not entirely unexpected that after the decision against the Israelis, Antony would be put in a spot by a steady flow of news stories and purportedly thoughtful op-ed articles.

The Americans and the Israelis are not alone in being at the receiving end of Antony’s efforts in full throttle to do what he can to curb corruption in defence purchases and create a level playing field. Singapore is a country with which India enjoys a relationship that is totally free of trouble. That has not, however, prevented Antony from banning Singapore Technologies Kinetics from future contracts for a decade.

This land systems and specialty vehicles company has launched an all out bid to clear its name, including recourse to the Supreme Court. It has also threatened to seek international arbitration, creating an irritant in bilateral relations.

Russian defence suppliers who have had a free run of New Delhi’s procurement process for many decades have similarly been slapped with punitive sanctions as part of Antony’s anti-graft drive. The defence minister has further angered Swiss, South African and many more arms manufacturers, lining up a formidable array of forces, all of which would be glad to see him move out of his present job.

Typically, nobody is criticizing Antony for cracking down on corruption. Instead, the strategy of those who want him out of the way is to attack Antony for slowing down the modernization of the armed forces by creating bottlenecks in arms purchases, and for creating a trust deficit between the civilian and uniformed segments of the defence establishment. All in all, the effort is to show up the defence minister as a man incapable of running an enterprise as vast and complex as the one for which he is tasked with providing leadership.

The age controversy about General V.K. Singh, the army chief, was the best thing that Antony’s detractors could have hoped for. Unfortunately for the defence minister, both propriety and constitutionality demand that he cannot truthfully tell his side of the story.

For instance, Antony personally believes that the army chief is not lying about his age and that General Singh was born in 1951. Similarly, the General has been a steadfast ally of Antony in what the latter is trying to do about corruption in the defence establishment. It may be a hard idea to sell, especially after a sensational story about troop movements, but the personal warmth and respect for each other between Antony and Singh are nothing short of total. Which is why there has been no move to dismiss the army chief or get him to resign. Even though Antony believes that General Singh made a mistake about his date of birth, an episode from his own past prevents Antony from doing anything about it except to follow the letter of the law. Antony was chief minister of Kerala when a similar controversy dogged the state government.

Raman Srivastava, an Indian Police Service officer of the Kerala cadre who became director-general of the state police and later headed the Border Security Force, was at the centre of this controversy. A mere five months separate him and his brother, Vikram Srivastava, an IPS officer of the Uttar Pradesh cadre, who became director-general of the Central Reserve Police Force: a biological impossibility since both the brothers were born of the same mother.

As chief minister, Antony did not allow the Kerala cadre officer to change his date of birth. There is no way he would have acted any differently with General Singh. What is more, it is Antony’s estimate that there are at least 3,000 such cases of incorrect birthdays in government service records. That is a Pandora’s Box, which is best left shut.

-The Telegraph, Calcutta

Corruption will not be tolerated: AK Antony

PTI | Apr 11, 2012, 02.42PM IST

KOCHI: In the backdrop of the recent storm over alleged corruption in defence procurements, defence minister AK Antony today said the country’s interests were paramount and there will be “no cover up and no vendetta”.

“India’s interests are our only concern. We are not against any company or country. But India’s interests are paramount”, he told reporters on the sidelines of a function at the Indian Coast Guard here.

Replying to questions in the light of Army chief General V K Singh’s recent claim about alleged attempts to bribe him to favour a sub-standard contract, he said “Corruption will not be tolerated. Even if there is suspicion, a probe will be ordered”.

“No cover up, no vendetta is our policy,” he said, adding if there is an iota of doubt, it would be looked into.

Antony said efforts were on to make defence procurement more transparent. “When people do not get contracts, there will be criticism and allegations. Some companies do try to influence officials and if it is proved action will be taken”.

He said six companies from Israel, Russia, Germany and Singapore and two from India had recently been blacklisted.

The Defence acquisition council meeting last week had sanctioned Annual projects, five-year projects and Long Term Plan from 2012-27, he said.

On reported differences between the Army and the Defence Ministry, he said, “Both are functioning from the same building. There is no communication gap, no confrontation. I function as a joint family. I am very comfortable. I respect the armed forces, their commitment, their dedication. I am proud of it”.

Antony said there was so much demand for joint exercises with the Indian defence forces that “everyone wants to do (it) … ,”

Call for action against ‘coup’ scaremonger ‘Mischief’ By An Insider, Admits Govt

TIMES NEWS NETWORK

New Delhi: With the government admitting that “mischief ” by an insider was responsible for the scare over a routine movement of two Army units, the demand for a probe into the matter is gathering momentum amid indications that Army headquarters may itself seek an inquiry.
The issue figured in the meeting of Parliament’s standing committee on defence on Monday. Asaduddin Owaissi of UPA component MIM demanded a probe to get to the bottom of the manner in which a normal military exercise on the night of January 16 was portrayed as a sinister development. TOI had reported on April 5 that the alarm may have been raised by insiders ranged against the Army chief in a bitter factional feud.
Owaisi made the pitch to defence secretary Shashikant Sharma who had to appear before the panel for the second time to clear the air over the way sections of the government cranked up a routine military movement into an extraordinary and dangerous maneuver.
Owaisi’s demand coincided with a similar stand by the BJP. “What has the government done about the mischief makers?” asked party spokesperson Prakash Javadekar. The defence secretary repeated to the House panel the government’s stand: The suggestion that Army units in the exercise were actually flexing their muscle was based on “wrong inference” drawn from “conjectures”.
Tank ammo stocks low, Parl panel told
Presenting a sobering account of long-term as well as immediate challenges, senior IAF and Army brass told a parliamentary committee that while India’s window to catch up with China’s defence modernization thrust could close by 2017 or earlier, stocks of certain tank munitions are down to four days of reserves. Meanwhile, in an extraordinary step, the committee decided to call the three service chiefs to give an account of the state of preparedness of the forces. P 10 ‘MoD nod not mandatory for routine troop movement’
New Delhi: Defence secretary Shashikant Sharma rejected the premise of panic in the government that the concerned Army units did not inform the defence ministry in violation of protocol. Sharma said there was no procedure requiring units to inform MoD of routine movements.
The day also saw retired Army and Navy chiefs, Gen V P Malik and Admiral Arun Prakash, respectively, asking for a probe.
On Sunday, minister of state for defence Pallam Raju confirmed the widespread suspicion in the top echelons of the government that it was somebody, seen as reliable, who misrepresented an exercise by a mere two units consisting of a few hundreds of soldiers as a potentially dangerous situation.
The subsequent alert saw police being directed to slow down the “advancing” columns. Although CRPF sources have denied that their elite COBRA units were deployed and a ‘lookout’ was mounted at railway stations, many in the government consider it frightening that insiders could precipitate such a situation.
Eventually, it took an intervention by defence minister A K Antony to quell the panic. Antony is learnt to have dismissed the alert sign hoisted by the authorities as misplaced.
Significantly, Congress spokesperson Abhishek Singhvi parried a question on Raju’s statement in a TV interview.
Sections in the government seem to have come around to suspect that the artificial scare may have been scripted to prejudice the government against the Army chief, General V K Singh As it happened, January 16 was also the very day when General Singh had, in an unprecedented development, moved the Supreme Court to challenge defence ministry’s rejection of his claim for the revision of his date of birth.
Several senior military officers are of the belief that the government should promptly fix responsibility and take action against those who created the unnecessary scare over routine military movements. The “apolitical and disciplined” Army has been “insulted”, either because of ignorance or deliberate design, they contend.

The Lab Optimists

Open Magazine – feature

BY Madhavankutty Pillai 31st March 2012

From battle tanks to mosquito repellents to dosas in space, the DRDO is a laboratory of sweeping ideas, many of which will take a lifetime to execute.

Last year, the Indian Air Force got a taste of something they didn’t much like. The newspaper DNA reported that IAF officials had been to the Defence Food Research Laboratory (DFRL) in Mysore, where they were shown a tube from which food could be squeezed out. It might sound odd that anyone would eat like that but this was a necessity stemming from the IAF’s induction of long-range aircraft into its fleet—the pilot would have to be fed if he was going to be in air for hours. But the tube-food wasn’t what they expected. It wasn’t a paste or even semi-liquid; it was solid. Negotiating it would not only mess up the cockpit, it would be a minor battle in itself. The IAF rejected it and the DFRL went back to the lab to make it pastier. The same laboratory is also working on something equally unusual—what to feed Indian astronauts when they eventually go up in space. The lab director was quoted as saying that they were exploring all options—from north Indian chapatis to south Indian dosas, albeit in bits and bites.

The DFRL is part of what is known as the Defence Research and Development Organisation (DRDO), an umbrella for over 50 laboratories that make everything from tube-food to tanks to combat aircraft to mosquito repellents. Even toilets. In his recent Railway Budget speech, former Railway Minister Dinesh Trivedi announced that from next year, 2,500 rail coaches would have what he called green toilets to replace the holes that now exist in train latrines. These ‘bio-toilets’ have been developed by the DRDO. The DRDO’s mandate, however, is not to cater to the Railways or India’s space programme. It is to make India self-reliant in defence systems and equipment. Stated ends and realities do not always meet. The main criticism of the DRDO—and it comes mainly from its primary clients, the armed forces—is that its scientists are a bunch of optimists. This is why we hear announcements from them that seem fantastic. Consider this public statement by DRDO Director General VK Saraswat just a few months ago: “We are working on building soldier robots that can work like a human soldier. Such a robot needs a database and artificial intelligence to carry out its activities and the DRDO is planning to build such a robot.” Is he talking of the Terminator? In the same exchange with reporters, Saraswat also talked about robotic mules, which then leads to the question: why would anyone need robotic mules? If the purpose is to transport cargo, won’t a suitable vehicle do?

All this would not be so suspect if the DRDO did not have a reputation for routinely shooting off its mouth. We asked a former Chief of Army and a former Chief of Navy whether it was true that the DRDO was quick with announcements and slow with execution. Says former Army Chief General VP Malik: “I tend to agree with critics who say that. The track record of the DRDO so far, primarily on account of delayed/non-delivery of weapons and equipment promised to the armed forces, does not inspire confidence.”

And this was former Chief of Naval Staff, Admiral Arun Prakash: “That impression is correct. They are very optimistic and don’t live up to their time schedules, cost schedules, etc. They don’t consult the armed forces enough. They spend the budget the way they think best.”

The Navy, ironically, is the institution that has managed to get the maximum benefit (relatively speaking) from the DRDO and that’s because it made a practice of embedding naval officers into DRDO projects. Admiral Prakash said, “Whenever there’s a naval project going on, there are always naval officers associated with it. Even otherwise the Navy makes available some of its bright officers to the DRDO.”

The two projects for which the DRDO has got the most brickbats are connected to the Air Force and Army—the main battle tank Arjun and light combat aircraft (LCA) Tejas. The Arjun project took off in 1972. In 1974, Rs 15 crore was set aside for its development. The project, which finally cost around Rs 350 crore, got delayed by decades and even now many of its components are imported. The DRDO had initially hoped to make 2,000 tanks and, after about 40 years, has 124 operational. The Army is not happy with these and is pinning its hopes on the impending upgrade, the Arjun Mark II. Similar delays have plagued the LCA Tejas. It has been in the making for just under 30 years and is yet to become operational. Its second phase is now scheduled for completion by December 2012. The indigenous engine, Kaveri, for the LCA didn’t live up to standards and an imported engine is being used.

The problem, according to one view, stems from the DRDO wanting to reinvent the wheel. It was a patriotic thing to build everything from scratch, but, as everyone now recognises, it didn’t have the capability in most areas. This can have consequences. General Malik was Chief of Army when the Kargil war happened. In 2009, when he said in a television interview that Kargil casualties could have been lower if the DRDO had delivered on time, it instantly led to a furore. He elaborated on it in an email interview, ‘I was referring specifically to the non-availability of weapons-locating radars, which were required to engage Pakistani artillery and mortars quickly and effectively during the Kargil war. This would have reduced the effectiveness of Pakistani artillery and mortars. In 1997, after long negotiations with a manufacturer, some of these radars were about to be purchased. At the last moment, the DRDO caused this deal to be scuttled, with a promise that it would develop and produce these radars in the next two years; a promise that was never fulfilled. Incidentally, these very radars were purchased from the same manufacturer in 2003.’

There are areas in which the DRDO has been successful, like the missile programme. In the development of naval sonars, weapons avionics and torpedoes too, it is recognised to have done useful work. There is the counter-view that it is unfair to blame it for everything and that the DRDO has become a favourite punching bag. Wing Commander Ajay Lele, a weapons expert and Research Fellow with the Institute of Defence Studies and Analyses, says the gestation period in military technology is always long. The Lockheed Martin-developed F22 Raptor aircraft went to the drawing board in the Cold War era in the early 70s, but it formally entered the US air force in 2005. “Also, components for defence technology are not easy to come by. The DRDO cannot create everything on its own. It needs industrial back-up and our country lacks in that,” he says.

There is no clear accessible overview of the research DRDO does because there is no proper audit of it. A cloud called ‘Classified’ hangs over it. Prabhu Dandriyal, who worked in the DRDO from 1982 to 2003, is a whistleblower. After being forced into retirement when he started to expose corruption in the institution, he has been on a relentless mission. He says it has reached a stage where he is now called to assist the CBI and IB in corruption cases in DRDO labs because they don’t understand engineering concepts. He filed an RTI application asking how many technical papers DRDO scientists had published in international scientific journals between 1990 and 2010. He didn’t get it until the Chief Information Commissioner passed an order in his favour. “What is the surest way of showing that fundamental research is on? Publishing papers. The reply I finally got was ‘nil’. There had not been a single published paper. All these announcements they make, not one thing happens. All they do is talk,” he says.

Another criticism of the DRDO is that it expends time, money and focus on things that should not really be in its ambit. One journalist who went to a DRDO laboratory 15 years ago as a student was shown a banana that had been reduced to a tenth of its normal weight, the size reduced by 20 per cent. There are high altitude barfis for soldiers to partake of during festivals. There is a medicine for leucoderma. There are cockroach-killing tablets, instant idlis, betel leaf juice and chickenpav bhajis. A fungus found on a caterpillar has been cultured, which among other things is supposedly beneficial in the treatment of impotence. And so on goes the vast and bewildering list.

But, according to Ajay Lele, there is method to this madness. “The armed forces have set requirements. Until and unless the Government tells private industry ‘you provide us an alternative, this is the money, put it into R&D and give us the returns over a period of time’, the DRDO will have to make these things. Take the mosquito repellent. Anyone who is aware of conditions in the Northeast will tell you that the mosquitoes there are very different. Battle casualties are far lower than casualties from malaria. Good Knight [the repellent brand] is not going to develop such a mosquito repellent unless there’s some incentive for it,” he says.

The DRDO is now spinning these technologies commercially. Since 2008, it has a tie-up with Ficci to market products they think have demand. It goes by DRDO-FICCI Accelerated Technology Assessment and Commer- cialisation. Says Shyam Sunder, Deputy Director at Ficci’s Centre for Technology Commercialisation, “The DRDO has nominated more than 200 technologies to this programme. We shortlist them based on our assessment. We then contact Indian companies to introduce these technologies for manufacture or licensing. The response has been very good.”

Nearly everyone save the DRDO itself agrees that the institution has to be reinvented. A committee headed by P Rama Rao, former secretary, department of science and technology, made a number of recommendations. The main thrust of the recommendations was that the DRDO should focus on key areas like missiles, unmanned aerial vehicles, electronic warfare and so on. Its laboratories should be restructured and those not central to the new mandate must be hived off to civilian scientific bodies. The report is yet to be implemented because of opposition from the DRDO.

Another way to reinvent the DRDO, say some, is to make it like DARPA in the US, which does no research but instead mediates between the armed forces and the private sector. Unless the DRDO is remodelled, there will inevitably be situations in which the kit for the soldier in Siachen has to be imported while the DRDO works on a robotic mule.

GENERAL V K SINGH’S CRUSADE AGAINST CORRUPTION DESERVES NATIONAL RECOGNITION

From: Kapoor, Pramod (NSN – IN/Gurgaon) <pramod.kapoor@nsn.com>
Date: Wed, Mar 28, 2012 at 9:26 PM
Subject: Fwd: Tatra Scam
To:
The latest media hot spot is the revelations by General V K Singh, Chief of Army Staff, about the bribe offer made to him for signing on the purchase order for Czech made Tatra Vehicles. He informed of the bribe offer to his senior, the defense minister, A K Anthony –a man with a reputation for honesty like his big brother, Man Mohan Singh. Neither V K Singh nor Anthony acted on the matter at that time.

Here is a scoop in the attachment by Arun Agrawal, who has dug information about the case filed against an Indian (origin?) business man in Czech republic for causing loss to the tune of some CzecKč 270 million
to vehicle manufacturer Tatra by under recovering the cost of manufacture of these vehicles and also foregoing the profits. The Indian Businessman is Vice-Chairman of the Czech firm and also the owner of UK company –Vectra- through which the sales to India were routed. Arun Agrawal’s writings in the past have shown that he is to be trusted over what he writes.

SCOOP 

CRIMINAL CASE FILED AGAINST TRUCK SCAMSTER RISHI IN CZECH ONE YEAR BACK

GENERAL V K SINGH’S CRUSADE AGAINST CORRUPTION DESERVES NATIONAL RECOGNITION

REFER www.czechposition.com

It should be clear, by now to every moron who went on defending the government in the tussle between the army chief and the Minister that it was the General who upright and honest. And that he was made to pay the price for his honesty in trying to clean up the system..

 

Fighting corruption in the army is not easy. It means war on three different fronts. The politician who is above you, corrupt colleagues who are with you and the moneybags of the arms mafia..  Fighting your own is very different from fighting the enemy.

And here we had the most comical situation of a honest general working under a honest Minister. It is a rarity. However, the clash of two honest personalities can be very dangerous, more so if one is manipulated by the corrupt.

Relations had not soured between the two, when the General reported the bribing incident to his Minister,. Yet all that the Minister did was beat his forehead ( for lack of a better phrase).. Both admit to the reaction..

The Minister counseled that such people should be kept out and the General did not want to pursue the matter further.

While the General’s reaction in being reluctant to take on  senior colleagues is understandable, the reaction of the Minister is not.

Defence purchase falls within his domain. In the age of internet it was not difficult for anyone  to know that Vectra of U K was not the producer of Tatra trucks but was a middleman. It was also not difficult  to know that Tatra was a Czech company , the original manufacturer. It was also not difficult to know the price at which the trucks were being  sold by Czeck company Tatra and the price paid byIndia..

 

All this information was with the General and that is why he did  not sign on the purchase order and wanted to purchase the trucks directly. He knew thatIndiahad been procuring the trucks at more than twice the price sold by the parent company.

The General had done his homework.. It may be a conjecture but there is reason to believe that he informed the Minster and the reason for keeping out the supplier was over invoicing of over 100% which would have compromised their integrity. It was also the reason for the Minister beating his forehead !

 The scam was not in the bribe offered to the General but in the purchase price of the equipment. Could he or his advisers not understand this simple truth.

 

If a  product was being bought  at twice the price for which it was available in the open market then it does not require a genius to divine that bribes had been paid!  Not only bribes but large bribes have been paid to lots of people because each one knows the quantum of profit being made by the middleman.

However only a small percentage of the bribe  ( which is large in absolute terms- 14 crores in this case) was to be paid to the men in uniform, which the  General refused.

The large chunk of bribe was to be paid to those who were not in uniform. And all these persons were within the jurisdiction of the Minister.

 

Hence the matter was squarely within the domain of the Minister and it was a major omission on his part not to order investigation on defence purchase worth thousands of crores  which were procured for twice the market price.

The scam has been going on for a decade and hence the unity of the political parties demanding the resignation of the General Singh.

Contrast the ignorance of the Minister with the discovery made by the author ( with no resources or staff ) in two hours of net surfing. The following information which is a news report fromCzech republicis most damning.:

Ravinder Kumar Rishi, the chief scamster in the deal, was not only swindling the Indian government but also the Czech government.

A criminal case was filed against him in the country where Tatra trucks were manufactured almost a year back for the supplies made toIndia! .

The article dated 27/4/11 on a Czeck website states:

Tatra faces tunneling and tax evasion allegations

Anonymous plaintiff accuses the major owner and management of Tatra truck maker of tunneling profits and tax evasion

The management and a major shareholder in the iconic Czech truck producer Tatra face a criminal complaint for allegedly failing to ensure proper oversight of assets. The anonymous plaintiff claims that the sale of truck parts at knock-down prices toIndiavia an intermediary British company has damaged the company.

Václav Láska, a former high-ranking police investigator, lawyer and one-time head of the local branch of watchdog Transparency International, has lodged a criminal complaint against the management of Tatra trucks and one of the firm’s major shareholders, Indian businessman Ravinder Kumar Rishi, on behalf of plaintiffs who wish to remain anonymous due to fears of “labor persecution,” the daily Právo reported on Wednesday.

Vectra allegedly profits from Tatra’s loss

Since 2005, Tatra has supplied so-called complete knock-down kits (CKD), containing all the components of haulage  Láska claims that between 2005 and 2010 Tatra lost profits of around Kč 270 milliontrucks to the Indian state-owned firm Beml Limited, which then assembles the vehicles in India. The transactions have been conducted through British-registered intermediary firm Vectra Limited, which, according to the charges, has frequently purchased the CKD kits at below production cost, thus causing losses to the Czech company running into millions of crowns.

“The Tatra company sells kits to the British company Vectra Limited without a profit margin, and even at prices lower than the cost of manufacturing. All margins from this business, i.e. all profits from these transactions, go only to the accounts of the British company,” Láska told Právo. “The fact that the representatives of Tatra allow these transactions clearly contradicts the principles of sound economic governance.”

Láska claims that between 2005 and 2010 Tatra lost around Kč 270 million in potential profit. The calculation is based on a profit margin of 10 percent per kit, which he says the management intentionally forfeited in order to sell the goods to Vectra Limited at a knock-down price. Láska also says that through the transactions the company also avoided paying tens of millions of crowns in tax.

“By transferring the considerable profits to the British company, the Tatra company reduced its income tax payments by tens of millions of crowns,” Láska said.

Alleged misuse of information

Ravinder Kumar Rishi, deputy chairman of Tatra’s supervisory board, is also the owner of Vectra Limited and thus de facto represents both Tatra and Vectra in business negotiations — and the transactions in question. According to Láska, Ravinder Kumar Rishi may have misused information in these business relations.

In 2010, Tatra supplied 600 CKD kits to the Indian company Beml — which assembles the trucks and has large orders with the Indian army — and according to Láska, Tatra has committed to deliver a further 460 kits this year. “If the criminal complaint is deemed to be justified, steps could be taken which will curtail further losses and also stop additional tax evasion,” Láska told Právo

The question to be answered is this:

If a criminal complaint was filed against the company and Ravinder Kumar Rishi by the Czech republic for merely causing a loss of 10% on profits foregone due to under invoicing a year back, then what action did the defence Minister take against Vectra whch as a middleman had supplied trucks at more than 100 %  the amount for which Tatra sold in the open market? This scam was going on for the past ten years.

Rishi cheated Czechs by 10% but the Indians by more than 100% !

I will bet top dollar that the anonymous plaintiff referred to in the article is an Indian source who had no faith in the Indian system to act and therefore chose to go through the head of Transparency International.

Could it be the good General  or a source close to him? Your guess is as good as mine!

It is difficult to believe that the Czech authorities did not correspond with the Indian government within the past one year. They do have an embassy in India! Where are the records of the correspondences?

 

The General was made to pay the price for his anti corruption crusade in the Sukhna land scam and the Adarsh Society scam, including the court marshalling  of  Lt. Gen. Avdesh Prakash, who was Military Secretary under Gen. Deepak Kapoor.

It is time that Mr Anthony realizes his mistake. He is e surrounded by corrupt people who are using his  reputation as a shield.

What is at stake is the loss of faith of the people in honest ministers. Manmohan Singh and then Mr Anthony ! What good is the virtue of honesty? Is there any hope of redemption left for the country?

The General will go in a blaze of glory but the Minister will not.

And for those who are aligned with the arms mafia and ask for the reason as to why the General did not take action on the Tatra scam ? Against whom would he take action? Procurement of defence equipment is not under his charge. Did you expect him to take on the retired generals and ex Chiefs who were paid off for signing the document that he refused to sign ? Would there be any proof? Where would that get him? Would you take on a ex defence Minister or a corrupt Minister in the Cabinet? Was the issue of Bofors pursued by the Army Chief?

A General is not a General if he is not a good tactician. General V K Singh proved to be a master tactician in the manner in which he took on the entire system of corruption in the Army and in the Ministry.

This General showed that he had earned all his stars. The nation could give him one more.

General V K Singh a big salute to you..

Even if you could not win the war against corruption with Anthony as your Minister!

In the end the General proved to the nation that even the most honest politician of our times is not good enough to prevent the huge corruption that infests  defence deals.

 

Tatra trucks are fine, says DRDO Chief

Surinder Jeet (USA)
01 Apr, 2012 02:03 AM
V K Saraswat has not answered the general’s allegations. The general has said that Tatra is too expensive. DRDO has not disputed it. That Tatra is delivering the service is like saying Bofors Guns are firing. They should. Can Tatra or similar truck be bought from other suupliers? Will they give more for the same money or will they cost less. DRDO would be wise not to drag itself into lime light. As it is it is in trouble for its own scandals and poor performance. My question now is,”why did they enter the fray?. What is their interest”?

jk (delhi)
01 Apr, 2012 01:48 AM
Everybody is trying to cover their as***, DRDO is a joke, even after many decades what indeginious product has come out of their stable?, even if there is one or two, are they being mass produced and are they world class that they are being exported?. This and other public sectors are a drain on the economy. I have a feeling DRDO’s palm has been greased and money exchanged to go for these trucks.

RAhul (Delhi)
01 Apr, 2012 01:35 AM
DRDO is scinetists are just feeding on tax payers money.If we need to procure defense equipment from pverseas suppliers…Why not close down DRDO.

subhash (h.pur)
01 Apr, 2012 01:23 AM
Mr. VK Sarasvat, The strength of the elephant is not under the clot but the cost.We are paying the price of 5 elephant to get only 3 . Kickback; corruption and nazrana ,whatever you call is the issue.

aks (USA)
31 Mar, 2012 11:43 PM
EXcept one or two divisions in DRDO all others are either doing nothing or are useless for nation, the so called scientists go to office to search internet play computer games and to gossip… I have tonnes of friends in DRDO and what I am saying here is there daily routine Most of the things made by DRDO is either obselete or useless for army and airforce… therefore we have to go for an MMRCA or BARHMOS as DRDO is incapable ….even the engine for LCA has still to come …DRDO is a political agency , where people know how to make comments like our incapable , despicable politicians

dkddn2 (delhi)
31 Mar, 2012 11:35 PM
Saraswat should be ashamed of heading of an organisation that cannot create anything but rebrand the foreign products. Is he not ashamed of the fact that DRDO had not been able to identify an Indian manufacturer for these missiles ? DRDO is infact a middleman now.

Abihshek (India) replies to dkddn2
01 Apr, 2012 12:29 AM
I don’t know about now but atleast in 2005, even to sit for an interview with DRDO/ISRO, the candidate had to be among the top 3 or 5 of his class. It was dream to work for them but I couldn’t even sit for the interview. And I’m sure everybody knows what kind of people are USUALLY among the top 3, especially in India. So a majority of people who work for these organizations are rote-learners who can memorize and score in exams but are not creative. I’m now working abroad in an Aerospace company who were happy to accept me. There would be thousands like me who would be dying to work for these organizations but can’t due their stupid recruitment policies.

Arif (India)
31 Mar, 2012 11:28 PM
That shows intelligence of DRDO chief. Either he is on drugs or does not understand issue. Issue is about :(1) Bribe (2) Middleman (violation of rule) (3) When Tata and Ashok Leland can produce better trucks then why Tatra?