The defence equipment procurement system in the country is structured in such a way that it is an open invitation for corruption. This is the view expressed by a retired general based in Pune
The defence equipment procurement system in the country is structured in such a way that it is an open invitation for corruption. This is the view expressed by a retired general based in Pune, who spoke to DNA on condition of anonymity.
The revelation assumes significance in the light of the expose by DNA ( July 22-24) on the siphoning out of at least Rs750 crore in bribes and commissions by the BEML in the procurement of components for Tatra trucks from Tatra Sipox (UK), which is neither an original equipment manufacturer (OEM) nor a subsidiary of the OEM.
Explaining the system of defence procurement that exists in the country, the retired general said there are five stages before defence equipment- in this case a truck and its components- is procured. Citing the Tatra trucks as an example, he said, that the Corps of Artillery which is the user of the trucks sends its qualitative requirements (specifications) to the Master general of ordnance (MGO), Corps of ordnance, the Defence research development organisation (DRDO) and the Ordnance factory board (OFB).
In the second stage, the DRDO and the OFB have three options before them: indigenous manufacture of the truck, assembling parts of the truck or outright purchase of the entire truck.
According to the general, the DRDO would have asked for 10 years time to manufacture the trucks. The user, the Corps of artillery would have then inserted an “urgency clause” of 3-4 years for procurement of the trucks. This is where the corruption begins.
According to the general, it is the “urgency clause” which allows the DRDO and the OFB to go to the open market in the third stage.
The general said that often, the DRDO and the OFB would short list a supplier and then tamper with the specifications to match the supplier’s product.
This is the first stage of the corruption.
The fourth stage of procurement, according to the general, is when price negotiations take place between the DRDO/OFB and the supplier. This is the second stage of corruption.
In the fifth stage, the Director general quality assurance (DGCA), the MGO and the Director general of ordnance (DGO) need to inspect the shop floor of the manufacturer and check the production facilities of supplier (Tatra) and apprise the user department (Corps of artillery) of the same.
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