Tag Archives: Antony

MoD restricts DRDO chief’s fiscal powers

Josy Joseph, TNN | Sep 23, 2012, 12.16AM IST

NEW DELHI: The government has taken an unprecedented decision to impose severe restrictions on the financial powers of Defence Research and Development Organisation (DRDO) chief Dr VK Saraswat after an internal audit report and an ongoing CAG scrutiny raised red flags over many of his decisions.

The move is unprecedented in many ways since DRDO chiefs enjoy exalted position —one of them Dr A P J Abdul Kalam even went on to become the President. DRDO also enjoys a huge amount of autonomy because of the strategic nature of its work and is rarely questioned on its financial decisions.

The government has taken an unprecedented decision to impose severe restrictions on the financial powers of DRDO chief Dr VK Saraswat after an internal audit report and an ongoing CAG scrutiny raised red flags over many of his decisions.

However, all this has changed. Sources said the ministry of defence (MoD) has issued an order saying that the DRDO chief would have to take all financial decisions in consultation with the finance division of the ministry. Until now, DRDO chief could grant financial approvals of upto Rs 50 crore on his own, without having to consult with MoD finance.

The financial powers of DRDO chief were upped in mid-2010 through an order, which now the government believes was against the norms. The enhancement of his powers, especially as DG (DRDO) of upto Rs 50 crore where he only needed the concurrence of the financial advisor within DRDO, has now raised hackles in the government. The DRDO financial advisor reports to the DRDO chief.

Sources said the enhancement of DRDO chief’s financial powers went against the recommendations of an MoD panel headed by present Chief Vigilance Commissioner Pradeep Kumar when he was the defence secretary. They even allege that defence minister A K Antony may have been misled into approving the enhanced financial powers for DRDO chief in 2010.

Dr Saraswat holds three positions concurrently—scientific advisor to the raksha mantri, DG (DRDO), and secretary defence (R&D). Under the enhanced provisions, as DG (DRDO) Dr Saraswat can approve contracts upto Rs 50 crore without referring it to MoD. While, as secretary defence (R&D) Dr Saraswat has financial powers upto Rs 75 crore but would MOD finance approval. Over the last two years, Dr Saraswat had been approving most contracts in his role as DG (DRDO) without referring them to MoD finance.

The Comptroller and Auditor General (CAG) is believed to have sent a draft para of its ongoing audit, raising questions over the way many financial decisions within the Rs 50 crore limit was approved by DRDO chief, without enough oversight.

According to the new order issued a few days ago by the M0D with the approval of Antony, Dr Saraswat has been asked to exercise his financial powers, ranging between Rs 25 crore and Rs 75 crors, “with consent” of MoD (finance).

Chief Comptrollers (CCs) of DRDO have financial powers upto Rs 25 crore. They would continue to exercise their authority in consultation with the financial advisor of DRDO, sources said.

A special audit of the DRDO on the orders of Antony has also found that the powers to sanction projects delegated to DG (DRDO), CC (R&D)s and lab directors was granted on the condition that the projects should be cleared by the Defence Research Council. “There is no government letter constituting the DRC, its functions and powers. The DRC meetings are not formal. There does not seem to be any system of circulating Agenda Briefs to members,” the audit said.

The report pointed out that in many cases the expenditure incurred on scientists and other manpower deployed on a project is not included in the project cost estimates to keep the total budget under the financial powers available to Dr Saraswat and his other officers.

A project titled “product support and product improvement of Nag weapon system” at a cost of Rs 28.35 crore was sanctioned by Dr Saraswat “even though the CCS (cabinet committee on security) approved Integrated Guided Missile Development Programme is still not closed in so far as NAG missile is concerned,” the report says.

Dr Saraswat approved a project worth Rs 49.82 crore for design and development of elctro-optical sensors for air-borne platforms such as UAVs and Aerostats. This was done “by reducing the cost proposed by the Lab (Rs 70 crore) so as to bring it just under Rs 50 crore, which is his sanctioning power,” the audit said.

DRDO chief sanctioned a facility for electro-optical system testing at a cost of Rs 35 crore by “DG DRDO to create a facility, which is essentially required to meet the objectives of an already sanctioned project. However, the old project’s cost was not revised with the approval of appropriate CFA,” it added.

AK Antony seeks probe into allegations against Abhishek Verma in defence deals

Rohini Singh, ET Bureau May 7, 2012, 12.51AM IST

NEW DELHI: Defence minister AK Antony has asked investigation agencies to probe into charges levelled against Delhi-based businessman Abhishek Verma, by his former partner, accusing him of acting as a middleman in several defence deals and parking over $205 million in accounts in a bank in the US.

“I have asked the CBI and the Enforcement Directorate to investigate the allegations. The defence secretary has also been asked to take necessary action,” Antony said.
These allegations have been made by C Edmond Allen, head of a New York-based company called Ganton Limited, in a series of letters to Antony. His charges cover purported dealings between Ganton, which Allen – a non-practising attorney – said was incorporated in the US state of Delaware on Verma’s instructions, and major equipment suppliers to the Indian armed forces such as Rheinmettal, Augusta Westland, Hellenic Defence Systems and Hawker Beechcraft.

A top CBI official said the investigations were at a preliminary stage. “We are in touch with Allen and have asked him to submit the documents in original,” said the official. He also said the agency is coordinating with the Enforcement Directorate as there were allegations of large scale money laundering.

Verma, the son of former Congress leader Srikant Verma, is an accused in the naval war room leak case where several sensitive defence documents were stolen and allegedly leaked to Thales, the maker of Scorpene submarines.

He has denied all charges levelled against him by Allen, and said documents implicating him have been forged. Verma said he had received a notice from the Enforcement Directorate asking for an explanation for the money in the accounts but was unable to comment since the matter was sub judice.

“As several petitions filed by me against C Edmonds Allen are pending in various Indian and foreign courts and these cases are somehow connected to alleged foreign exchange violations in which trial is going on in India under FERA Act for ten years, it will not be possible for me to comment as matters are sub-judice,” he wrote.

According to Allen, the escrow accounts belong to Verma but he had the right to handle them as a result of agreements signed between the two in April 2000 and February 2004. Allen has alleged that the money in these accounts has been obtained through illegal means and that Verma has acted as a middleman in several defence deals. Verma, in turn, has issued legal notices to Allen to return the money and a case has been filed in a district court in New York, according to documents reviewed by ET.
Verma, the son of former senior Congress leader Srikant Verma and MP Veena Verma has business links with Jagdish Tytler, a Congress Working Committee member and the party’s Odisha in-charge. Tytler’s fashion designer son, Siddharth, is a founder shareholder in a company along with a former director of Ganton, Arjun Arora. Siddharth Tytler had also signed a joint venture agreement with Ganton India.

Confirming this Jagdish Tytler also told ET that he knew Verma as his parents were colleagues of his. He denied any knowledge of defence deals that Verma is alleged to be involved in.
Tytler also confirmed being an arbitrator in a dispute involving Ganton and another company over nearly hundred acre of land in Noida which belongs to the Yamuna Express Industrial Development Authority.

People close to Verma say that the allegations levelled against him were at Tytler’s behest, a charge that has been strongly denied by both Tytler and Allen. Allen, however, told ET in an email that Tytler and Verma were very close but had fallen out recently over the Noida land deal.

Allen has also alleged that Verma has often flaunted his links with several powerful politicians which has supposedly ensured that no enquiry is initiated against him. Allen also claims to posses several sensitive defence documents allegedly emailed to him by Verma which show his ‘easy access within the government’.

Corruption Charges

The letters to Antony paint a picture of labyrinthine corruption in defence deals with Verma allegedly at the centre. Some of the documents linked to the case, were publicly released by India Against Corruption (IAC) in late April, a group linked to activist Anna Hazare, after Allen sent the documents to lawyer Prashant Bhushan. In a blog posting in New York Times dated April 27, Allen was quoted as saying that he had approached it after Indian authorities showed no interest in his allegations.

In a letter to Antony dated March 28, 2012, Allen alleged that German firm, Rheinmetall AG, paid Ganton $530,000 to reverse its blacklisting by India’s defence ministry. The money was supposedly paid through the firm’s UBS account in Switzerland, according to bank statements of Ganton Limited, and an invoice generated by the company.

Emails sent by ET to Rheinmetall officials did not elicit a response.

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

Tatra truck deal: Antony faces jail for neglect of duty?

Manoj Mitta, TNN Apr 1, 2012, 06.13AM IST

NEW DELHI: Defence minister A K Antony had better come up with a “reasonable excuse” for waking up to corruption allegations in the Tatra deal two years after they had been brought to his notice. For, he would otherwise be liable for a criminal offence punishable with imprisonment up to six months.

The belated registration on Friday of a CBI case related to Tatra indicates Antony violated a legal duty when the bribery allegations had first been brought to his notice in writing by his party colleague Ghulam Nabi Azad in 2009 and then verbally by Army chief Gen V K Singh in 2010.

His prolonged failure to take action on the issue till it came out in the open flies in the face of the duty cast on “every person” by Section 39 of Criminal Procedure Code (CrPC).

When anybody becomes “aware of the commission of or of the intention of any other person to commit” any of the range of offences listed in Section 39 CrPC, he “shall … forthwith give information” to the nearest magistrate or police officer of “such commission or intention”.

The offences which every person is thus required to report immediately include those related to “illegal gratification”, which come under the Prevention of Corruption Act.

Violations of Section 39 CrPC are punishable under Section 176 of the IPC, which prescribes a maximum six months is jail. It penalizes whoever is “legally bound” to give any information relating to “the commission of an offence or… for the purpose of preventing the commission of an offence”.

The only loophole available to Antony is to cite some “reasonable excuse” for his failure to refer the Tatra issue immediately to the CBI. But then, Section 39 CrPC is so stringently worded that it casts a “burden” on the person concerned to prove the reasonableness of his excuse for not performing his duty.

It is doubtful whether Antony can cite the absence of written complaint by Singh as a “reasonable excuse” for not acting promptly. The Army chief, too, is liable under Section 39 CrPC for assuming he can leave it to Antony to initiate the legal process. Since the law requires him to report the matter, he cannot cite his communication to his superior as a “reasonable excuse”.

Chavan writes to Antony, seeks his intervention

Chavan writes to Antony, seeks his intervention

By Aakriti Vasudeva  Posted: Sat Jan 07 2012, 01:33 hrs Mumbai: Indian Express

Chief Minister Prithviraj Chavan has sought the intervention of Defence Minister A K Antony in the issue of disposing toxic waste from the erstwhile Union Carbide factory in Bhopal at the incinerator facility of the Defence Research Development Organisation (DRDO) in Nagpur. Nearly 346 tonnes of toxic waste has been lying at the plant since the 1984 gas tragedy.

Chavan said in his letter to Antony that the DRDO filed an affidavit in the Jabalpur bench of the Madhya Pradesh High Court that the toxic waste could be processed at its Nagpur facility “without addressing any of the environmental concerns or taking into account the technical capacity of the plant.” He said, “It is a matter of grave concern that neither the state government nor the Maharashtra Pollution Control Board, both important stakeholders, had been consulted in this matter.”

The state government has also represented against the DRDO’s submission. The court had, on December 21, taken cognisance of the pollution control board’s objections of a non-functional incinerator and non-compliance of inter-state hazardous waste transport rules and turned down the Centre’s plea to conduct a trial run of burning waste at the DRDO facility. However, it is only a temporary relief as the Centre can file pleas on behalf of the DRDO against the board’s objections. The next court hearing is on January 17.

“I seek your personal intervention in the matter to ensure that the DRDO does not take any steps in contravention of the existing laws and regulations. I also seek your assistance to review this decision as it was taken without following the process of consultation with important stakeholders in the state and is in violation of the existing environmental laws and regulations,” Chavan wrote to Antony.

The Chief Minister took up the issue following a request from Vilas Muttemwar, the Congress MP from Nagpur.

It was on July 12, 2011, that the Madhya Pradesh High Court directed disposal of the toxic waste from the Union Carbide factory at the Nagpur facility on a 2004 public interest litigation seeking a directive to make Dow Chemicals clean up the toxic waste.

6,000 cr wasted, 10-yr delay & they want 150,000 cr more

Express Investigation: Delayed Research; Delayed Organisation – Part – One

 6,000 cr wasted, 10-yr delay & they want 150,000 cr more

Amitav Ranjan

Posted: Sun Nov 12 2006, 00:00 hrs

New Delhi, November 11:

Make India prosperous by establishing a world-class science and technology base…provide our Defence Services the decisive edge by equipping them with internationally competitive systems and solutions… design, develop and lead to production state-of-the-art weapons systems…

That’s the “vision” and the “mission” the Defence Research & Development Organisation (DRDO) has proudly spelt out for itself.

An investigation by The Sunday Express into official records that include detailed testimonies by the Ministry of Defence to a Parliamentary Standing Committee — its report is yet to be tabled in Parliament — shows that if there’s one thing this behemoth of 50 laboratories with a staff of about 33,000 has developed to almost perfection, it’s this: wrapping itself around the flag to hide a record of delay and non-delivery in virtually all major weapons programmes.

At a time when China is rapidly modernising its armed forces through international collaboration and acquiring advanced technology from abroad, the DRDO has become a prisoner of its own misleading slogan on self-reliance. In preventing the armed forces from buying urgently needed weapons with brave talk, “we can make it here”, and failing to deliver, the DRDO has introduced uncertainty into the government’s defence planning.

According to latest official records, obtained by this newspaper, in 12 of its showpiece projects, none of which is anywhere near completion, the DRDO has overshot sanctioned estimates by Rs 6,013.43 crore in just the last 10 years. The projects include the crucial guided missile programme, the Arjun tank, the Light Combat Aircraft (LCA Tejas), the Samyukta communication system and Kaveri jet engine.

To put this in perspective, this cost overrun is larger than DRDO’s budget of Rs 5,356 crore for the current year. And this is reflective of just 12 projects. It speaks nothing of 427 others, all in varying states of drift. And yet DRDO claims, “Global level R&D and any world-class defence product can be brought out in competitive time and cost.”

These were the words used in a September 22 presentation to the Standing Committee especially in the year of the organisation’s biggest symbolic failure, the Agni-III strategic missile.

But if cost overruns were not enough, consider this: Records show that for all major projects, DRDO’s average time overrun is 10.11 years (see chart). For example, a 16-year delay for the Arjun tank and 12 years for just Phase I of the LCA Tejas.

Responding to a written questionnaire from The Sunday Express, DRDO chief M Natarajan, who has also been involved with one of DRDO’s biggest failures, the Arjun tank, says: “This is a complaint which I hear very often. But one should understand these are all R&D projects. All advanced countries face similar situations. If you say that we are always late, then it would not be fair to us. We generally deliver the goods on time.”

If that were true, Natarajan must have had a trying time explaining that on October 29 at the very first DRDO presentation to new Defence Minister A K Antony. Drawing comparisons with the China-Russia relationship, Defence Secretary Shekhar Dutt reportedly wanted to know why there were such “massive delays” in DRDO projects and persistent technological gaps.

Former IAF chief Air Chief Marshal S Krishnaswamy was more direct. Called in a year after he retired to give testimony, he told the Parliamentary panel: “For improvement in DRDO’s working, it is essential to make fundamental changes in organization and structure with accountability to the user and to do work in time.”

Krishnaswamy couldn’t have been more spot on. For, although DRDO defended its performance by blaming the three services — they change their requirements while development is in progress, they spend too much time on trials — here’s just how bad the current situation is: In the 7th, 8th, 9th and 10th Plans, with DRDO’s failures a compelling factor, according to the Defence Ministry, the country has spent an average of 24.25% of the Defence budget on imported systems to fill in holes caused by DRDO’s non-delivery. That translates into roughly Rs 42,376 crore since 1991-92.

Even the “self-reliance” index, the one plank the entire DRDO justifies itself on, has remained static for the last 15 years. Ironically, in 1991, it was President A P J Abdul Kalam, then DRDO chief, who charted out a plan to push self-reliance up to 70% by 2005. Today’s self-reliance index, according to the Ministry’s own estimate: 30 per cent.

 

Kalam, in fact, started the Self-Reliance Implementation Council (SRIC) in 1992 and monitored it to check for slippages and gaps. But that was more an academic exercise than anything else. For five years now, the council hasn’t met once.

Papers are only “activated” when Parliamentary questions are asked. In what has the armed forces on tenterhooks now, on October 29, the DRDO recommended to Antony that a “certain percentage of defence acquisitions be earmarked exclusively for DRDO and indigenously developed products.”

The total cost of 439 projects currently in progress with DRDO adds up to Rs 16,925 crore, with just 17 of those adding up to Rs 13,560 crore, most of them on time and cost extensions. In September, DRDO asked, in its testimony to the

Parliamentary committee, for an assured allocation of Rs 1,50,000 crore at the rate of Rs 10,000 crore per year for the next 15 years starting 2010.

It’s time Antony asked the DRDO a few questions, beginning with the Integrated Guided Missile Development programme. There is no indigenous weapons project as prestigious as this, neither is there one that matches its record of repeated and expensive failures.

Every project has to fructify within a given timeframe, otherwise it will just begin to drift and lose focus

Air Chief Marshal S Krishnaswamy

DRDO needs greater accountability. We have not been able to get the maximum out of DRDO, even though self-reliance should be our core

Gen V P Malik

 

Antony asks DRDO to build credible missile defence system

Antony asks DRDO to build credible missile defence system

Agencies – Indian Express

Posted: Fri Jun 03 2011, 15:01 hrs

New Delhi:

Defence Minister A K Antony today asked the DRDO to prioritise the development of 5,000-km range ballistic missile while building a credible missile defence system for the country.

He also congratulated the Defence Research Development Organisation for developing the interceptor missile allowing India to join an elite club of nations possessing such advance technology.

“DRDO must demonstrate the capability to develop missiles of the range of 5000 km at the earliest. This is a challenge for the DRDO and I hope they will successfully meet this challenge at the earliest,” he said here.

Antony was addressing a gathering of defence scientists who received the DRDO’s annual award for excelling in their respective areas.

“The interceptor missile defence program has taken India into the elite club of nations that possess the capability to demonstrate this technology. DRDO should now concentrate on developing a credible ballistic missile defence for the country,” he added.

He also asked DRDO scientists to focus on the development of Mark II version of the Main Battle Tank (MBT) Arjun for the Indian Army and Kaveri Engine.

“The development of MBT Arjun and Kaveri Engine has been hit by delays. Development of MBT Arjun is a major milestone. But Mark II is another area of challenge. That challenge you have to meet,” he told the gathering.

Antony also asked DRDO and Indian Air Force (IAF) to ensure on schedule the induction of the indigenous Light Combat Aircraft (LCA) Tejas into the force.

“After getting the Initial Operational Clearance (IOC) for the LCA Tejas, we are moving towards its Final Operational Clearance (FOC). I am sure DRDO and IAF will work together to deliver Tejas on schedule,” he said.

He added that the delays in the development of indigenous engine for the fighter jets had given more time for the induction of the LCA and the Advanced Medium Combat Aircraft (AMCA) for the IAF.

Antony tells defence PSUs to get their act together

Antony tells defence PSUs to get their act together

TNN Feb 15, 2007, 01.36am IST

NEW DELHI: Perform or perish. defence minister A K Antony used the platform of an awards function on Wednesday to deliver this blunt message to defence PSUs, ordnance factories and, of course, the Defence Research and Development Organisation (DRDO).

In fact, the minister virtually asked DRDO — which is into making juices and mosquito repellents as well as tanks and missiles, as earlier reported by TOI — to concentrate only on “high-technology” areas of “strategic importance”.

“I am not satisfied with the work of some PSUs, ordnance factories and others. They must change. Otherwise, it will become difficult for them to survive in this era of competition,”said Antony, addressing an audience of chiefs and chairpersons of defence PSUs, shipyards and DRDO.

After handing over “awards for excellence”to Hindustan Aeronautics Ltd and Bharat Electronics Ltd, which are being conferred with the “navratna” status, Antony said defence organisations “must adapt and transform to the changing environment of the defence industry brought about by globalisation”.