BJP questions ‘shift’ in defence procurement policy

[indian_foxhound]

Defence Ministry’s move to have ‘life cycle cost’
clause in tenders for military hardware, including
in one for the 126 Multi-Role Medium Combat
Aircraft (MMRCA), has come in for questioning
from BJP which fears this could be misused for
corruption. BJP leader and former Finance Minister Yashwant
Sinha has written to Defence Minister A K Antony,
raising a number of questions over the
“conceptual shift” in the defence procurement
policy. Sinha has expressed apprehensions about misuse
of the new clause close on the heels of a major
scam that unfolded in the Defence Ministry’s VVIP
helicopter deal with Anglo-Italian company
AgustaWestland. Sinha has questioned the logic behind having
such a clause and wondered what would be the
contractual obligations for the life of an
equipment. He has underlined that in the absence of an
enforceable obligation, the ‘life cycle cost’ (LCC)
could be rendered a “dead letter”. The former External Affairs Minister has
suggested that the apprehensions about the
clause being misused can be addressed by
binding the vendors by “enforceable contract” to
ensure its contractual obligations. Referring to the MMRCA, he has said that two of
the seven “elements” laid down in defence
procurement policy in June 2007 were omitted in
its case. Sinha said doubt arises that if the model
approved in 2007 is flexible, then would it not be
changed from time to time, from acquisition to
acquisition to favour a particular vendor. The two elements dropped were ‘cost of total
technical based reserves’ and ‘cost of transfer of
technology’. The government has argued that these elements
were mentioned in the Request for Proposal for
the 126 MMRCA contract under a separate head
as these fighters would have to be spread across
5-6 different locations and these have multiple
systems which require large inventory of such reserves. Sinha has questioned whether the Defence
Ministry has consulted the Finance Ministry on
this “conceptual shift” and whether the latter has
agreed to it. He has also wondered whether it would not be
advisable to consult the CAG in advance and have
the concept examined in view of the
“momentous nature” of this change to avoid any
problems in future. Sinha has also questioned how it will impact
upon the defence offset policy and the interest of
the domestic industry.

http://idrw.org/?p=20056

 

[indian_foxhound]

here we go.... Just praying no scam this time. We need rafale at any cost.

 

[Abingdonboy]

Bloody idiots, life-cycle costs are the most effective way of assessing a system's cost credentials, this is what most Western military's use as well. When the Indian military just used the cheapest unit cost as the final say look what happend- high AoG rates, poor supply of spares, cr@p equipment, low maintainability etc etc

There is a reason the equipment is so cheap.

Classy move BJP, opposing for the sake of opposing.



Effing fools. I cannot put into words how much these idiots who know nothing about defence matters infuriate me.

 

[MST]

Bloody idiots, life-cycle costs are the most effective way of assessing a system's cost credentials, this is what most Western military's use as well. When the Indian military just used the cheapest unit cost as the final say look what happend- high AoG rates, poor supply of spares, cr@p equipment, low maintainability etc etc

There is a reason the equipment is so cheap.

Classy move BJP, opposing for the sake of opposing.



Effing fools. I cannot put into words how much these idiots who know nothing about defence matters infuriate me.

You don't have to badmouth someone who is asking a question. Asking a question doesn't mean criticism or disagreement or argument. It could simply mean they want to better understand the govt. position.

Yashwant Sinha is one of the sharpest politician around and if he is asking a question there has to be some genuine reason for it. He is right that Life Cycle Cost can be easily misused and there is a high chance of falsification of information. E.g. what guarantee does the govt have that the rates quoted today by Dassault will not be changed 15 years from now when Rafale will come up for mid life upgrades. The govt should be transparent on what criteria its employing as far as life cycle costs are concerned and what guarantees it has from the vendors.

 

[Abingdonboy]

You don't have to badmouth someone who is asking a question. Asking a question doesn't mean criticism or disagreement or argument. It could simply mean they want to better understand the govt. position.

Yashwant Sinha is one of the sharpest politician around and if he is asking a question there has to be some genuine reason for it. He is right that Life Cycle Cost can be easily misused and there is a high chance of falsification of information. E.g. what guarantee does the govt have that the rates quoted today by Dassault will not be changed 15 years from now when Rafale will come up for mid life upgrades. The govt should be transparent on what criteria its employing as far as life cycle costs are concerned and what guarantees it has from the vendors.

Don't be so naive, these questions could be a prelude to all out political storm. Whilst these politicans play their petty games ivory towers, the men in the military are expected to put their lives on the line, strap into out-dated junk and serve without question.

 

[MST]

Don't be so naive, these questions could be a prelude to all out political storm. Whilst these politicans play their petty games ivory towers, the men in the military are expected to put their lives on the line, strap into out-dated junk and serve without question.

The storm is not without any basis. The govt. has changed the norms and the opposition has every right to questions them. How can you take that right away from them? It is govt's responsibility to come out clean on this. Regarding military men lets not bring that to discussion. There is a very long list of fuckups from everyside including sleeping through the 90s. So no one is saint here.

 

[arp2041]

@Abingdonboy I quite agree with @MST here, yes we all want these planes in the IAF's inventory asap, but that doesn't mean that we should be biased in analyzing any development that take place vis-a-vis MMRCA deal. Both Congress & BJP are national parties & quite mature so to speak. Many laws passed in Parliament & some good clauses among them are because of voices from the opposition benches, in a Democracy you cannot take away the right of opposition to QUESTION the GOI's policies, this is how a Healthy Democracy works & this is how it should work.

Mr. Sinha is only QUESTIONING why this "shift", & being an MP & leader of the principle opposition party, he has every right to do so.

 

[Abingdonboy]

The storm is not without any basis. The govt. has changed the norms and the opposition has every right to questions them. How can you take that right away from them? It is govt's responsibility to come out clean on this. Regarding military men lets not bring that to discussion. There is a very long list of fuckups from everyside including sleeping through the 90s. So no one is saint here.

So this guy can't get his head around life-cycle costs so he starts creating this storm, for what?


Yes the opposition have the right to do this but let's be honest the way things have been playing out of late the opposition is creating a state of paralysis where they oppose everything just for the sake of it. It is political opportunism.

Come one @arp2041, you know the merits of life-cycle costs over just selecting thew cheapest unit cost. You are a keen defence-minded member, keep politics out of it. You understand this "shift" right? It is completely fair and merited that India has made this shift, if the BJP wants India to go back to the retarded unit-cost measure then things are going to go bad really fricking fast. The only people who would be happy about this are the Russians.

 

[Koovie]

If this had been proposed by the Congress, this thread would have been full of anti Congress ranting and insults

 

[arp2041]

@Abingdonboy mate, I totally agree with you on the life cycle costs, but how would you answer Mr. Sinha's GOOD point which he has raised that life cycle costs are based on ASSUMPTIONS/PREDICTIONS to a large extent, it is very much possible that someone within the Armed Forces/MOD/GOI leadership will select a weapon system based on personal interests & not keeping interests of armed forces in his/her mind??

 

[Abingdonboy]

+ @arp2041 you know I have no political affiliation, I am speaking objectively here. If it had been a Congress guy who made this comment I'd be just as vocal. It is Indian politicians in general I have a problem with, endlessly throwing a spanner into the works at the last second for whatever reason. These guys are damaging their own nation.

 

[BRICS]

+ @arp2041 you know I have no political affiliation, I am speaking objectively here. If it had been a Congress guy who made this comment I'd be just as vocal. It is Indian politicians in general I have a problem with, endlessly throwing a spanner into the works at the last second for whatever reason. These guys are damaging their own nation.

but adongbingboy, your hero is woManmohan Singh.

 

[Abingdonboy]

@Abingdonboy mate, I totally agree with you on the life cycle costs, but how would you answer Mr. Sinha's GOOD point which he has raised that life cycle costs are based on ASSUMPTIONS/PREDICTIONS to a large extent, it is very much possible that someone within the Armed Forces/MOD/GOI leadership will select a weapon system based on personal interests & not keeping interests of armed forces in his/her mind??

Lol, @arp2041 this is the challenge that faces EVERY nation that tries to conduct these complex and intricate calculations. OF COURSE these calculations are based on assumptions/predictions, how else can it be done? Unless you have a crystal ball it is impossible to know for sure. Yes this process can be said to open room for wrong-doing but I find this questionable these days when there anti-graft procedures around defence deals are so stringent.


But because there is room for wrongdoing does that mean don't even bother using life-cycle costs?

but adongbingboy, your hero is woManmohan Singh.

"hero"? Not really, do i respect him? Yes. I think most Indians regardless of their own political beliefs have a lot of respect for MMS and what he has done for his nation.

+ I respect him but not necessarily his party.

 

[MST]

If this had been proposed by the Congress, this thread would have been full of anti Congress ranting and insults

That is an assumption . I don't think people here are that biased. If Congis raise a proper point I am sure they will find support here including mine.

 

[arp2041]

but adongbingboy, your hero is woManmohan Singh.

Don't talk rubbish here, if you don't have anything to say.

I also don't like him much, but a fact is a fact, MMS is our PM, he has taken some great decisions in his 9 years as PMship, including the Indo-US nuke deal.

You don't have to hate him for the sake of hating.

EDIT: Atleast, we din't had to change our PM for the last 9 years, unlike some in our neighborhood who has to change 3 PM's in 5 years. Thats called POLITICAL STABILITY.