Tag Archives: Finance Ministry

Austerity a setback for DRDO projects

THE HINDU – October 5 – 2013

MADHUMATHI D. S.

A Rs. 1,000-crore or 10 per cent budget cut under the government’s austerity clamp for the second year running has kept the DRDO poorer by about 700 entry-level scientists in the last two years.

This may push back some of its prestigious missile and aircraft development programmes, according to a top DRDO official.

The DRDO’s hiring arm, the Delhi-based Recruitment and Assessment Centre, planned to induct 350 young engineers each year in 2012-13 and 2013-14, mainly for its missile and aeronautics labs.

Admitting a shortage of young scientists, RAC Chairman D.N. Reddy told The Hindu, “We have many new and important projects which will now be delayed for want of manpower.”

Frontline hits of this could be the long-range Agni-VI targeted for 2016, the Light Combat Aircraft set for completion in 2015 and the Futuristic Main Battle Tank.

The 35,000-strong DRDO, with 8,000 scientists, gets 6.5 per cent of the defence budget or about Rs. 10,000 crore; this year, the belt-tightening measures have kept back 1 per cent of the funds.

The hiring proposals were cleared by the Prime Minister’s Office. However, the Finance Ministry’s all-round slash on spending has halted the RAC’s drive until the middle of 2014, Dr. Reddy said.

Instead, it has to be content with about 70 recruits only to fill the vacancies created by retiring staff; half of them go directly into the priority areas of missiles and aircraft.

Only short-term

“The financial implications are only of short duration. After June 2014, we are confident that our needs will be met,” he reasoned on the sidelines of a conference on condition monitoring here on Friday.

Every December, RAC picks the cream of graduates from 16 IITs, the Indian Institute of Science and the Defence Institute of Advanced Technology, Pune. Now the entry-level staff are just a few hundred in number.

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DRDO hikes salary, ignores FinMin order

 ABHINANDAN MISHRA 20th Apr 2013

The Defence Research and Development Organisation (DRDO), increased on its own the pay scale of its officials, thus overlooking the objections by the Ministry of Finance (Department of Expenditure) and Audit authorities, who had turned down the request for the increase. In spite of being asked to stop this, the DRDO ignored the Finance Ministry order and continued to pay the hikes salary, thus causing an annual liability of Rs 9.6 crore.

According to a note dated 10 September 2012 and signed by an under secretary of the Department of Expenditure, Ministry of Finance, upgrading the grade pay of Technical Officers (A) from Rs 4,600 to Rs 4,800, was “irregular, contrary to the accepted recommendation of the Central Pay Commission and in violation of the allocation and transaction of business rules and was undertaken suo moto without reference, much less concurrence, of the Ministry of Finance”. An audit conducted by the defence audit branch (DGADS) for 2011-2012 passed strictures against the DRDO authorities for this action. The audit report said that DRDO officials, during the audit, agreed to recover the amount that was paid to its employees.

“The grant of Grade pay Rs 4,800 did not have the approval of the Ministry of Finance. Department of Expenditure had treated it as ‘irregular’ and asked to withdraw it. During discussion, at the insistence of audit, the DRDO authorities agreed to recover the overpaid amount of Rs 24 cr,” remarked DGADS. Some DRDO officers said that scientists who do not have the required expertise have been entrusted with managing the administration of DRDO.