A BRIEF ON THE ISSUE (Compiled from Media Reports)

Eurocopter is the world's largest maker of helicopters. The Indian Army throws into doubt a USD 600m deal for 197 helicopters with Eurocopter, after complaints about the bidding process. After ending exclusive negotiations with Eurocopter, a subsidiary of EADS, Indian officials said they would issue a new tender and the contract is to be opened to other bidders.

There have been allegations of illegal use of middlemen in the deal which is part of a huge military modernisation program underway by the Indian government.

The move is a setback to EADS, which also manufactures the Airbus family of commercial jets. However, a spokesman for India's Ministry of Defense has said that it is only a matter of "broadening" the selection process so that the other companies would have a proper chance to win the contract.

Questions

1. What do you have to say about the Govt.'s decision of canceling the order?
2. What impact will this have on the process of modernization of Indian Army?
3. What impact will this delay have on the army per se?

Bytes on the issue

Gen Shankar Roy Chowdhry, PVSM,ADC, (Retd) - Former COAS

1. It has a negative impact on the army; we need to speed-up the modernization process. This decision will delay the procurement and will damage the army's preparedness.
2. At times for political correctness we have to take some decisions but the armed forces have to suffer.
3. It is important that such deals should be carried out with transparency and the deal is not stuck. There should be pre-audit and pre-clearance.
4. To avoid such instances, the CVC must pre-audit and clear these transactions, so that acquisitions can be smooth and according to its time frame.
   

Maj Gen. Ramesh chopra, AVSM (Retd)

1. The deal should have been completed and would have been good as far as the Army Aviation Corps is concerned. We need to replace the existing helicopter Cheeta and Chetak. If not better, we need the same technology.
2. If Eurocopter as a company had shown some differences in what was decided and what was shown, then why did no one from the MOD, Army and the concerned offices not realize it on their own and take corrective steps at the right time?
3. Such delays are not accepted, there should be no delays as it restricts the strategic operational matters.
4. Now to have the process started all over again we need to have a fast track method rather than following the procedures.
5. When we bank on outside technology for modernization, then the process is delayed and budgets allocated go wasted as money lapses.
6. This also affects the services' operational efficiency. The faith in the system goes down and affects the morale of the troops.
7. This shows lack of transparency and the concerned offices need to be accountable and answerable.

Maj Pankaj Saxena (Retd),

1. It is red tap-ism which has created procedures which will prolong the process and it will further delay the procurement of these helicopters.
2. Definitely this will have an adverse effect on the Army and we will not be able to have technological advancement.
3. It is not good for the morale of the troops.
4. It is not right on the part of the Govt. to have such delays when procedures are laid down by them.

Col S.P.Singh (Retd),

1. Such delays in procurement will affect and create a fear complex among the defence forces and the civil society.
2. If all decisions were taken for procurement, then procedures must have been checked to avoid such last minute crisis.
3. If there is a need for technological development and there has been delay in procurement and supply then that has a negative impact on the troops.
4. Armed forces will continue working and find other alternatives, but it will affect their technological efficiency.

Rear Admiral Raja Menon (Retd),

1. Eventually the deal arrived at a single tender which needs to be avoided. If the Govt. knew this would happen, then why did the Govt. press ahead?
2. It delays the process of modernization and procurement and eventually these delays cost more.
3. Lately, the MoD has laid down the procedures and guidelines for such procurements, but these directives are broken by the MoD it self.
4. Bureaucracy notoriously creates the process of procedures with no accountability. Essentially we need to address the way the bureaucracy functions.
5. This is nothing new; every deal till date has been delayed. We will always be unprepared for eventuality. If we need to be strategically prepared we need to address these issues, we need a process which runs in its time frame and some one needs to be accountable for it.

Maj Gen Afsir Karim (Retd)

1. No immediate impact, but the process of selection must be speeded up not postponed;
2. The Cancelation shows a bit of a flip flop, the option of broadening the choice was open before negotiating with any one dealer. If the deal was canceled because meddling by middlemen was dicovered at some stage- why talk of bradening the selection etc...
3. 3 Modernisation is important but we should not compromise on quality, however, no inordinate delay can be accepted.

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