In other countries, it would have been a badge of shame for the Government, Bureaucracy, Defense Industry and the citizenry as a whole. In India, it has become an ugly no-holds-barred slugfest like none other. Endless discussions, numerous debates and multitudes of expert opinions have pervaded the national discourse on just one topic these days. Apparently, the topic on which everyone in India and apparently a few abroad, have become an expert is Dassault Rafale. Every moment, new facts, truths, half-truths, and blunt lies are being tossed about in the Print, Television & Social Media and apparently, some so-called experts have started a smear campaign to malign the name of the Prime Minister, labeling him as a chor (thief) and much more. What is the whole issue about? Pick any hundred shouting at the very top of their voices and ask them about the issue. Not one would be able to go beyond the generality and much-used catchphrases like Scam, Ambani-Adani, Modi, France. Most, if not all, detractors of the defense deal have a half-baked understanding of the fighter aircraft in general and would be unable to differentiate between an interceptor and an air-superiority fighter in any literature. Conversely, the supporters of the deal, in their standard fashion, have built walls of ignorance so high that it puts even Mount Everest to shame. While most (though not all) of the questions of the detractors are logical and valid, tagging every detractor as an Urban Naxal while ignoring his line of questioning won’t work. It’s time for the supporters and detractors of the deal to gain a meaningful insight into the entire deal and then form an opinion on the issue.
The entire fiasco has its roots way back in 2001 when the Indian Air force had projected a requirement for 126 (seven squadrons of 18 aircrafts each) aircraft. The strength of the IAF was starting to fall. It has last acquired an aircraft (Mirage-2000) in the 1980s and the acquisition of the Sukhois (-30MKI) was starting to gain steam. The initial requirements were for a 20-ton class fighter aircraft with medium role capability which would fill the multi-role niche between the heavy-hitter Sukhoi Su-30MKI (an air superiority fighter) and the MiG-21/Tejas (a smaller multi-role interdictor). Apparently impressed by the Mirage 2000s bomb lugging capability at high altitudes during the Kargil War, the IAF was keen to acquire the Mirages and had quietly made up its mind to acquire the same until the French Aerospace industry and Rafale, in particular, threw a spanner in their works. However, the French aerospace industry was winding down Mirage 2000 production due to lack of orders and preparing for the manufacture of the Rafale aircraft. Apparently, the French Air Force needed it Rafales faster (point to be noted- the Rafale is the next iteration of the Mirage-2000 fighter and the current mainstay fighter of the French Air Force). The Mirage production line was shutting down and the French could only keep it open if India gave a firm order. But we are Indians, have we ever committed to anything without first bargaining and comparing the hell out of it?
Hence, Requests for Information (RFI) were issued in 2004. In the formative years of the tendering, aircraft in the running were: Mirage 2000-5 Mk.2 (Dassault, France), F-16C/D (Lockheed Martin, USA), MiG-29OVT (Mikoyan, Russia), and JAS 39 Gripen (Saab, Sweden). Preliminary estimates pegged the costs in the neighborhood of INR 55,000 crore (US$8.6 billion), making it India’s single largest defense deal. However, the 20-ton MTOW (maximum take-off weight) limit requirement was later removed and this limit was revised to 24-tons. Given the protracted nature of the tendering and the past governmental acquisition timelines, Dassault replaced the Mirage 2000-5 with the Rafale and the MiG Company placed MiG-35 in instead of the prototype MiG-29OVT. The Eurofighter consortium entered the Typhoon into the competition. Not wanting to be outdone, the Boeing F/A-18E/F Super Hornet also joined the tendering. Given the vagueness of the clauses, all aircraft, single engine or double and both light and heavy became a part of the fray.
As per one defense analyst, this deal meant that The Indian Air force was comparing every four-wheel vehicle from a Maruti 800 and a tractor when it just needed a jeep.
The Indian government had initially planned to buy the first 18 aircraft directly from the manufacturer. The remaining fighters will be built under license with a transfer of technology (ToT) by HAL. After an intensive and detailed technical evaluation by the IAF, in 2011, the competition has reduced the bidders to two fighters — Eurofighter Typhoon and Dassault Rafale. On 31 January 2012, it was announced that Dassault Rafale won the competition due to its lower life-cycle cost. The deal has been reported to cost US$28–30 billion in 2014. However, the French refused to provide any guarantees for the 108 aircraft that would be manufactured by HAL. The deal went back to the chopping block and the fleet strength of the IAF continued to deplete at alarming rates. A report commissioned under the erstwhile UPA slammed the HAL’s practices and there were some serious differences between HAL and Dassault on the various fronts.
In light of this, on April 10, 2015, Prime Minister Modi declared: ‘Keeping in mind the critical operational necessity of fighter aircraft in India, I have discussed with the president (of France) the purchase of 36 Rafale fighters in ‘fly-away condition’ at the earliest through an inter-governmental agreement.’ However, the Congress party alleges that the Modi government, in buying 36 Rafales for €7.8 billion ($9.2 billion or Rs 58,000 crore/Rs 50 billion), paid more than what Dassault had quoted in the MMRCA tender but a full breakdown of figures is essential as the total cost of a fighter contract includes — besides the cost of the aircraft — costs related to technology transfer, spare parts, weapons and missiles, added-on equipment and maintenance costs. Moreover, the same aircraft Rafale has also be bought by the Governments of Egypt and Qatar.
A closer look at the costs shows that the contracted price averages out to €91.7 million (Rs 686 crore/Rs 6.86 billion) per Rafale which includes the purchase of 28 single-seat fighters, for €91.07 million (Rs 681 crore/Rs 6.81 billion) each; and eight twin-seat fighters, each priced at €94 million (Rs 703 crore/Rs 7.03 billion). That puts the cost of each of the 36 fighters at €91.7 million (Rs 686 crore) — totaling up to €3.3 billion.
Besides this, the IAF will pay €1.7 billion for ‘India-specific enhancements’, €700 million for weaponry such as Meteor and SCALP missiles, €1.8 billion for spare parts and engines, and €350 million for ‘performance-based logistics’, to ensure that at least 75 percent of the Rafale fleet remains operationally available (our Sukhoi serviceability is an abysmal 50%). We are paying extra for the India specific enhancements that were earlier not the part of the generic aircraft selected via the MMRCA process. Also, while such a direct comparison is not right, prima facie the IAF is paying more or less the same as the EAF and the QAF. The Egyptian air force has paid €5.2 billion for 24 fighters and is reportedly considering buying 12 more, a ‘fully loaded cost’ of €217 million per Rafale. Similarly, the Qatar air force has paid out €6.3 billion for a similar number of aircraft, with a ‘fully loaded cost’ of €262 million per fighter.
The opposition Congress is arguing that by reducing the buy from 126 aircraft for which a sum of (520-700 crores per aircraft, varying in every speech) to just 36 aircraft (700-1600 crores), the present dispensation is causing a scam of epic propositions. There are also serious concerns about the offer being made to Reliance instead of HAL to partner with the deal. While concerns about the apparent lack of Reliance’s experience in making aircraft is genuine, this is no excuse to mock and needlessly criticize a perfectly valid deal. One Congress legislator had even claimed that he would make a better plane than Reliance and mockingly flew a paper plane in the august presence of elected public representatives. Wish making fighter jets was only that simple. However, they seem to forget that Reliance is not going to manufacture any aircraft. It is just a part of an Indian Consortium which will be benefitted by offsets as part of the deal. Why Reliance? Yes, this is a question that needs to be asked and should be answered. The choice was primarily dictated by Dassault’s need to gain a foothold in Indian Markets and tap the rich moolah in the pockets of Indian Industrialists. Given the tie-up between Tata ASL and Lockheed Martin & Pilatus, Honeywell and HAL, Adani and Elbit Systems of Israel and Mahindra taking a heavy plunge in the aviation industry with its acquisition of Gipps Aerospace, Dassault was wary of being caught napping and needed a partner that would be accommodative for them and assertive for others. Reliance Group fit the bill perfectly and while many have been accusing the govt. for crony capitalism, the Dassault-Reliance tie-up is one of survival.
Many have also lamented that private industries are being promoted at the cost of public institutions. Well, only HAL can be blamed for this mess. Not only has HAL chronically underperformed over the years and hamstrung the IAF’s expansion plans (read Sukhoi SU-30MKI) by its ineptitude, it is also overcharging the Indian Tax-payer for basic jets like the domestic Tejas. Recent estimates show that the much-hyped Tejas (named by our former PM Atal Bihari Vajpayee during his regime) is still facing teething troubles even after 2 decades in testing & production and the costs have ballooned exponentially over the years. It is being reported that each Tejas will cost between 460-480 crores per platform which is significantly higher than other fighters for its niche (read JF-17, FC-1) and certainly not making sense in any way. It’s an irony that people accusing the present dispensation of allowing private players to siphon taxpayers’ money are either unaware or simply don’t care that the public sector undertaking is just as expensive (if not more) with the added downside of inefficiency and lethargy. It must also be pointed out that HAL Dhruvs (a light helicopter) manufactured by the PSU have had serious doubts raised about their capability and a South American nation has mothballed all its Dhruvs after a significant no. of them crashed within a short span of time. It is only logical that any foreign manufacturer would be hesitant to partner with HAL. If there is indeed something wrong in this deal, it is the sorry state of affairs at HAL and the government must take immediate steps to resolve it.
On an ending note, defense procurements in India and around the globe have always been shrouded in mist and with good reason. Given the stringent security clauses, unique modifications and country-specific costing, it is near impossible to compare figures across the board, unlike the Big Mac Index. While everyone has the right to an opinion, it should be exercised with caution and should never be misused. The fleet strength of the IAF is rapidly depleting and the Rafales are needed. The opposition is being hypocritical by painting its inability to close a deal in a decade (remember, Saint Antony of the “You can’t be accused of corruption if you do nothing” fame) as a done deal and conveniently forgetting the facts and reports, it had itself prepared. The Government, on the other hand, is doing a poor job by its high on rhetoric and low on facts media reporting. The deal is tough and not easily understandable for all because it is meant to be that way. Having a simple analogy to substitute for this deal is hilarious and plainly, uncalled for. Something must be left to the experts and not brought down to the floor. We are, after all, buying a Mach 2 capable fighter plane, not the bhaziya-tamatar of everyday use. While common sense should prevail on this issue of national importance and the cacophony should subside, it is highly unlikely in the coming days and the slugfest will continue. Meanwhile, the only casualty in this conflict will be the Indian Air Force and its brave pilots, who continue to fly old and unsafe planes for the foreseeable future to come.
War to End or War to Follow?
“It’s going to be hard to meet the May 1st deadline”. These were the recent words of US president Joe Biden in his address to the impending US withdrawal of Afghanistan. Whilst his opinion paints a ghastly picture for the forthcoming months, the negotiations run rampant to strike the common ground. However, with continued attacks being launched by the Taliban followed by incessant threats to the US regime to withdraw its troops by the agreed deadline, a hard stance seems legitimate both from the US front and the NATO: both facing a quandary that could either end the decades’ long warfare or fuel insurgency for decades to come.
The US invaded Afghanistan in the aftermath of the September 11th Attacks in 2001. Although the subsequent invasion of Iraq in 2003 followed a similar suit, the stint lasted only 26 days in a massive scale drive to disarm Iraq of the weapons of mass destruction; allegedly in tandem with the looming threat posed to the United States by the World Trade Centre debacle. However, the invasion of Afghanistan proved to be one of the costliest wars; both in terms of artillery and military men.
Cited as one of the rarest areas of agreement between President Biden and his predecessor, Mr. Donald Trump, both favoured the ‘Bring an end to the endless war’ slogan. Before leaving the office, Mr. Trump signed a waiver to ordain the Pentagon to level down the US troops in Afghanistan to 2500 troops, bypassing the reservations of the congress to retain the level at 4000 troops. President Biden, despite being prudent of the hasty withdrawal, rejoiced the idea to bring the soldiers back. In line with his narrative, the US recently proclaimed to withdraw the remaining combat forces from Iraq whilst retaining only the training forces in the country. The 3rd round of talks between Washington and Iraq culminated with the joint statement: “Based on the increasing capacity of the ISF [Iraq Security Forces], the parties confirmed that the mission of U.S. and Coalition forces has now transitioned to one focused on training and advisory tasks, thereby allowing for the redeployment of any remaining combat forces from Iraq, with the timing to be established in upcoming technical talks”.
It is evident that the US wants to enact the plan to bring back the troops, however, Afghanistan poses a paradox in comparison to Iraq. While alleged Iran-backed militants continue to lock horns with both the ISF and the US troops, the US has consolidated a stronger hold evidenced by the recent rebuttal via airstrikes against the Iran-backed militants in Syria. The US holds the premise that Iran seeks economic relief and thereby has no incentive to disrupt the peace but to maintain it. Similarly, the US wants to make a compromise with Iran via renegotiating the JCPOA accord, with a possibility of stretching the ambit to include Iran’s Ballistic Missile Program and the regional proxy wars purportedly financed by Iran, before a hard-line administration takes over the Iranian parliament later this year. So, with a fledgling Iraqi military and expanding prospects of negotiation with Iran, the US could safely pull out the troops whilst still maintaining pressure and presence in the guise of militaristic training in Iraq.
Afghanistan paints a graver reality in contrast. Despite rounds and rounds of negotiations over months, the continued violations of the agreement by the Taliban are making it riskier to draw out the troops. While the US wants to maintain its presence in the country, the wavering Ghani-administration adds oil to fire. A war that has claimed more than 2500 US soldiers and millions of civilians could face an impasse as the 3-week timeslot narrows over the decision-makers. Gen. Frank McKenzie, head of U.S. Central Command, has repeatedly claimed that the Taliban have not fully lived up to the commitments they made in the February 2020 agreement: “Violence levels are too high for a durable political settlement to be made”.
The Biden administration, CIA, and NATO face a dilemma to decide the mechanism of withdrawal before the clock ticks through. As the terror groups propagate in the neighbouring Middle East, an unplanned withdrawal could drive the entire region into jeopardy. This might be the primal concern of president Biden and the Pentagon. The flailing ISIS could find haven in the political fiasco the unravels after the US completely withdraws from the country, leaving the Afghani government at the whims of the insurgents. However, expecting a complete withdrawal is just naivety. The US is known to covertly operate hundreds of secret bases in cahoots with NATO throughout the infringed nations. While it’s supposedly claimed that the Taliban are privy to the location of the bases in Afghanistan, nothing definitive could be added in edgewise to the argument.
An alternative, and quite a plausible notion at present, could be an outright refusal to withdraw the troops before the Taliban strictly adhere to their side of the deal. The resulting warfare would subsume the past 2 decades of mayhem. The deal would most likely completely crumble and perish. The evidence is scattered over the last three months. In March, the attack on the Afghan security checkpoint in the northern Afghan province of Kunduz left 6 soldiers dead. An attack a few days ago in the province of Herat left 9 Afghan police personnel dead when the Taliban militants targeted two police checkpoints. The recent blow came when the Taliban attacked the NATO airbase in Kandahar: a base frequented by 100s of US troops. The brazen attitude and timing of the attacks could not send a clearer message of warning to follow the deadline.
President Biden faces a choice now. While the cards are clustered and the consequences are muddled, the foremost decision hangs: How to go about the negotiations? Whilst made abundantly clear that the troops might not withdraw completely from Afghanistan, he confidently patched his perspective by adding:“Can’t picture the US troops still being in Afghanistan next year”. So, while the agreement stands to make a safe withdrawal, the deadline of May 1st poses a challenge if the exceeding violence alludes to any clue. With mounting pressure from the republicans and a synonymous example of withdrawal in Iraq, President Biden should ideally emphasize on withdrawal of the troops, even if not entirely. This would allow the Biden administration to elongate the negotiations to quench violence instead of retreating without question. However, execution is the key. Deviating from the agreement forged by Mr. Donald Trump or taking an aggressive stance could easily incite the chaos further: making the Afghan war translate into Biden’s war for decades to follow.
Dual Use Technology Imports Aiding Pakistan’s Covert Nuclear Programme
A recent threat assessment report by the Norwegian security agencies reportedly highlighted the unhindered exploitation of dual use technology by Pakistan. Norwegian authorities have determined Pakistan to be among the countries posing greatest threat to them. With this report, Norway became the latest country to raise alarm about the ‘Pak’ practice of bypassing all international safeguards in gaining latest nuclear technology on the pretext of using it for education and health.
However, Norway is not the only country to realise the immense risk stemming from transferring critical technologies to Pakistan. Its assessment follows several other countries’ public acknowledgement of the nuclear threat posedby Pakistan. Czech Republic in its report titled “Annual Report of the Security Information Service for 2019” also drew global attention towards Pakistan misleading the world in procuring internationally controlled items and technologies to aid its nuclear programme.
The evidence of Pakistan’s covert nuclear programmes go well beyond these reports. In 2019,the US Department of Justice indicted five persons associated with a Pakistan based front company for operating a network that exported US origin goods to Pakistan. The indictment identified 38 separate exports involving 29 different companies from around the country between September 2014 and October 2019. The network used to conceal the true destinations of the goods in Pakistan by showing front companies as the supposed purchasers and end users. However, US Justice Department statement disclosed that the goods were ultimately exported to Pakistan’s Advanced Engineering Research Organization (AERO) and the Pakistan Atomic Energy Commission without export licenses. Both AERO and PAEC are on the US Commerce Department’s Entity List, which imposes export license requirements for organizations whose activities are found to be contrary to US national security or foreign policy interests.
Similarly, German authorities disclosed in 2020 that Pakistan had sought technology for weapons of mass destruction (WMD) “in order to retain a serious deterrent potential against ‘arch enemy’ India”. The agency provided a detailed account of Pakistan’s efforts to steal information and material about nuclear weapons.
However, to fulfill its destructive agenda, Pakistan does not shy away from using the name of its poor public and students. Its government has repeatedly claimed that it seeks the dual use technologies for social and economic upliftment of the country by utilizing the technology in its health and education sectors.
But, these baseless arguments no longer seem to cut the ice with western countries. Meanwhile, on their part, Pak officials have complained against the latest Norwegian report on grounds that other countries may deny access to technology to Pak students for their advanced studies and Pakistani researchers would be refused admission to International institutes and universities. However, the Norwegian authorities have maintained their stance as based on independent assessment of the issue, including confidential inputs.
Several instances of Pakistan having gained access to dual technology in the garb of peaceful purposes have come to light in the recent years. And the risk continues considering Pakistan’s terror background and its history of stealing technologies from different parts of the world. It is the unsavory reputation of Pakistan as a troublemaker that has gone global and the country is viewed with suspicion even when humanitarian considerations come to fore.
Given the poor governance standards and history of failure of civil institutions in Pakistan, these observations provide a justification for apprehensions of the western countries. It remains to be seen whether these disclosures lead to sanctions or new export controls against Pakistan or the country again succeeds in misleading the world by playing victim’s card.
Kickbacks in India’s defence purchases
Prime minister Narendra Modi of India boasts his government of being corruption- free. But, his claim has become questionable in the light of recent audit of Rafale purchase in France.
India had ordered 36 of these fighter aircraft from France in September 2016. The 7.8 billion government-to-government deal for 36 fighter jets was signed in 2016. The Indian Air Force has already raised its first squadron of the Rafale jets at Ambala and is due to raise the second one at Hasimara in West Bengal.
India expects to receive more than 50 percent of these fighters by April-end. The first batch of five Rafale jets had arrived in India on July 28 and was officially inducted on September 10 by the government.
In a startling disclosure, the French Anti-Corruption Agency, Agence Française Anticorruption
has announced that their inspectors have discovered an unexplained irregularity during their scheduled audit of Dassault. According to details, “the manufacturer of French combat jet Rafale agreed to pay one million euro to a middleman in India just after the signing of the Indo-French contract in 2016, an investigation by the French publication Mediapart has revealed. An amount of 508,925 euro was allegedly paid under “gifts to clients” head in the 2017 accounts of the Dassault group ( Dassault paid 1 million euro as ‘gift’ to Indian middleman in Rafale deal: French report India Today Apr 5, 2021). Dassault tried to justify “the larger than usual gift” with a proforma invoice from an Indian company called Defsys Solutions. The invoice suggested that Defsys was paid 50 per cent of an order worth 1,017,850 for manufacturing of 50 dummy models of the Rafale jets. Each dummy, according to the AFA report, was quoted at a hefty price of 20,357. The Dassault group failed to provide any documentary evidence to audit about the existence of those models. Also, it could also not explain why the expenditure was listed as a “gift to clients” in their accounts.
Shady background of Defsys
Defsys is one of the subcontractors of Dassault in India. It has been linked with notorious businessman Sushen Gupta. Sushen Gupta. He was arrested and later granted bail for his role in another major defence scam in India, the AgustaWestland VVIP Chopper case.
The Enforcement Directorate charged Sushen Gupta for allegedly devising a money-laundering scheme for the payouts during the purchase of the helicopters.
Rampant corruption in India
Corruption in defence deals is a norm rather than an exception in India. They did not spare even aluminum caskets used to bring back dead bodies from the Kargil heights (“coffin scam”). Investigations into shady deals linger on until the main characters or middleman is dead. Bofors is a case in point.
Why investigation of defence deals since independence recommended
India’s Tehelka Commission of Inquiry headed by Mr. Justice S N Phukan had suggested that a sitting Supreme Court Judge should examine all defence files since independence.
Concerned about rampant corruption in defence purchases allegedly involving Army personnel, he desired that the proposed Supreme Court Judge should by assisted by the Central Vigilance Commission and the Central bureau of Investigation.
He stressed that unless the existing system of defence procurement was made more transparent through corrective measures, defence deals would continue to be murky. He had submitted his report to then prime minister Atal Behari Vajpayee, but to no avail. The Commission had examined 15 defence deals including the AJT, Sukhoi, Barak missiles, T-90 tanks, tank navigation systems, simulators, hand-held thermal. imagers, Karl Gustav rocket and Kandla-Panipat pipeline. The irregularities in the scrutinised defence deals compelled the Commission to suggest de novo scrutiny of all defence purchases since independence.
The courts have absolved Rajiv Gandhi of involvement in the BOFORS scam. However, a considerable section of Indian people still believes that ‘Mr. Clean’ was not really so clean. The BJP exploited Rajiv’s acquittal as an election issue. Kuldip Nayyar, in his article “The gun that misfired” (Dawn February 14, 2004) laments, “There was practically no discussion on Bofors-guns kickbacks in the 13th Lok Sabha which has been dissolved for early elections. Once Rajiv Gandhi died the main target – the non-Congress parties lost interest in the scam”.
According to analysts, the mechanisms of public accountability in India have collapsed. Corruption has become a serious socio-political malady as politicians, bureaucracy and Armed Forces act in tandem to receive kickbacks. The anti-corruption cases, filed in courts, drag on for years without any results. To quote a few case: (a) There was no conviction in Bofors-gun case (Rs 64 crore), because of lethargic investigation (the case was filed on January 22, 1990 and charge sheet served on October 22, 1999. Among the accused were Rajiv Gandhi, S K Bhatnagar, W N Chaddha, Octavio, and Ardbo. The key players in the scam died before the court’s decision). (b) No recoveries could be made in the HDW submarine case (Rs 32.5 crore). The CBI later recommended closure of this case. (c) Corruption in recruitment of Armed Forces.
Legal cover for middlemen
Central Vigilance Commissioner P Shankar had alleged (October 2003): “The CVC had submitted its defence deals report on March 31, 2001. Yet a year later, the government has not conducted the mandatory departmental inquiry to fix responsibility”. Shankar explained that the CVC had examined 75 cases apart from specific allegations made by former MP Jayant Malhoutra and Rear Admiral Suhas V Purohit Vittal. Malhoutra’s allegations were about middlemen in defence deals. After his report, the ministry lifted the ban on agents in November 2001 to regularise the middlemen. Purohit, in his petition in the Delhi HC on a promotion case, had alleged unnecessary spare parts were bought from a cartel of suppliers instead of manufacturers, at outrageous prices and at times worth more than the original equipment.
Past cases forgotten to continue business as usual
There were ear-rending shrieks about the Taj-heritage corridor case, Purulia-arms-drop case and stamp-paper cases. Indian Express dated November 11, 2003 reported that the stamp-paper co-accused assistant Sub-Inspector of Police drew a salary of Rs 9,000, but his assets valued over Rs 100 crore. He built six plush hotels during his association for 6 years with the main accused Abdul Karim Telgi. The ASI was arrested on June 13 and charged under the Maharashtra Control of Organised Crime Act. Investigations by the Special Investigating Team (SIT) probing the stamp scam had found that the ASI Kamath accepted Rs 72 lakh from the scam kingpin, Abdul Karim Telgi, on behalf of IGP Sridhar Vagal.
The problem is that the modus operandi of corruption ensures that it is invisible and unaccounted for. There are widespread complaints that the politicians exercise underhand influence on bureaucracy to mint money. For instance, the Chief Vigilance Commissioner complained to Indian Prime Minister (November 8, 2003) that at least “six cabinet ministers, handling key infrastructure ministries, are harassing chiefs of public sector undertakings for ‘personal favours’, and in some cases even for pay-offs”.
For example, one PSU (Public Sector Udertaking) chief is said to have complained that he was asked to get Rs 20 crore delivered to his minister’s party office and when he refused, he was “denied” an extension. Indian Express dated February 19, 2004 reported, under reportage titled “Figuring India” that ‘Rajiv Pratap Rudy is only one in a long line of ministers who have misused the funds and facilities of Public Sector Undertakings”. The newspaper appended the following bird’s-eye view of the funds (available for corruption) at the PSUs command: Rs 3, 24,632 crore total investment in PSUs, Rs 36,432 crore profits, 12,714 crore profits of monopolies in petroleum, Rs 5,613 CRORE profits of monopolies in power Rs 7,612 crore, profits of monopolies in telecom Rs 10,388 crore, Rs 61,000 crore invested in PSUs in 1991-1998, Rs 19,000 crore returns during 1991-1998.”
Corruption as proportion of gross Domestic Product
Professor Bibek Debroy and Laveesh Bhandari claim in their book Corruption in India: The DNA and RNA that public officials in India may be cornering as much as ₹921 billion (US$13 billion), or 5 percent of the GDP through corruption.
India 86th most corrupt (Transparency International corruption ranking Jan 29, 2021)
India’s ranking on the Corruption Perception Index– 2020 is 86. The index released annually by Transparency International ranks 180 countries by their perceived levels of public sector corruption according to experts and business people. It uses a scale of zero to 100, where zero signifies the highest level of corruption and 100 is very clean.
In India, anti-corruption focuses on big ticket graft. But it is petty corruption that hurts common people more. Both need to be weeded out. A former World Bank president Robert Zoellick once said, “Corruption is a cancer that steals from the poor, eats away at governance and moral fibre, and destroys trust.”
According to Transparency International, CPI-2020 shows that corruption is more pervasive in countries least equipped to handle Covid-19 and other crises. “Covid-19 is not just a health and economic crisis. It is a corruption crisis. And one that we are currently failing to manage,” Delia Ferreira Rubio, chair of Transparency International said. “The past year has tested governments like no other in memory, and those with higher levels of corruption have been less able to meet the challenge. But even those at the top of the CPI must urgently address their role in perpetuating corruption,” she added.
Click Wikipedia to know that Narendra Modi’s “Net worth” is “₹ 2.85 Crore” (June 2020). This figure defies his humble financial background. He has a penchant for hobnobbing with “crony capitalism”. It appears he is worth a lot more. Those who make illicit money have a knack to hide it.
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