Arms and our money:
The defence ministry could be bolder
http://www.financialexpress.com/fe_f...tent_id=139047
Given the scale of India’s armament purchases—we began a Rs 40,000 Crore (US $ 8.59 Billion)* -plus round of military modernisation last year, on top of the Rs 27,000 Crore (US $ 5.8 Billion)* outlay the year before—any fresh thinking on transparency in field trials and avoiding delay in decision-making is welcome. Whether the updated Defence Procurement Procedure announced by minister Pranab Mukherjee will bear out such hopes adequately remains to be seen. The DPP he announced a year before promised “the highest degree of probity and public accountability, transparency in operations..” With Bofors, Tehelka and like episodes, these phrases have been staples in officialese on the subject for years. Given the scathing remarks addressed by the office of the Union comptroller and auditor-general (CAG) on almost every aspect of procurement (and on storage) by the military, there’s substantial room for scepticism still. It was just at the beginning of this week that the Central Vigilance Commission found the need to issue new directives to the defence ministry on the need to avoid single-vendor situations and not to dilute qualitative requirements during the course of a decision.
The minister made some remarks about the new DPP leading to more participation by Indian industry, in both production and R&D. A closer reading doesn’t reveal much change; Mr Mukherjee has been speaking of the need to enhance private sector participation in military defence since he took office and officials about the “paradigm shift” that is supposed to have already taken place from the earlier near-full reliance on the state sector. Policy, however, has been cautious; some chambers of commerce had made an official suggestion last year to identify 10 major products or technologies which serve our military requirements and also generate demand in the global market and to select a consortium for each of these from both state and private sector firms. We haven’t seen much official response on worthwhile suggestions like these.
There are provisions in the new DPP to encourage indigenous content and to encourage industrial involvement in high-technology systems under the Defence Research & Development Organisation. The CAG has expressed much critical comment on the DRDO’s functioning in recent years and these need to be addressed, if the hopes on sharing of developmental costs with identified vendors are to bear fruit. Bolder steps in involving private industry seem warranted.
(* US $ 1.00 = IN Rs 46.5481)


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Will US ask india's help?