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From the Editor

vol. 11, ISSUE 11-12 | FEBRUARY-MARCH 2018 Anil Tyagi | editor GS Sood | business editor Sheshadri Chari | roving editor Alam Srinivas | contributing editor Anish Gandhi | consultant, foreign affairs Narendra Kaushik | associate editor Rakesh Bhardwaj | editorial consultant Ramesh Sharma | bureau chief (north india) Ajit Ujjainkar | bureau chief (mumbai) Durvesh Singh | bureau chief (Lucknow) Mayank Awasthi | sub editor Pawan Kumar | production coordinator Nipun Jain | finance Gautam Das | legal consultant Bushchat Media | edit & design Madan Lal | webmaster Abhisshek Tyagi | director advertising & marketing $1,/ 622' | 9,&( 35(6,'(17 0$5.(7,1* +919811639632 36 685$/ | 9,&( 35(6,'(17 0$5.(7,1* +919873243950 e-mail: asps@gfilesindia.com delhi: e-mail: adv@gfilesindia.com mumbai: 48/C-1, Areshwar, Mhada, S.V.P. Nagar, Andheri(W), Mumbai 400 053 Chandigarh: SCO 5- First Floor, Zirakpur-Shimla Highway, Zirakpur, District Mohali Punjab CONTACT â&#x20AC;&#x201D; 0172-509368 e-mail: rameshsharmaemail@gmail.com kolkata: 1,/2< /$+,5, +919830071652 ranchi: 0$1,1'(5 .80$5 6,1+$ +917461999985 $1,/ 7<$*, 35,17(5 38%/,6+(5 QG IORRU GGD VLWH QHZ UDMLQGHU QDJDU QHZ GHOKL Ä&#x192; +All information in gfiles is obtained from sources that the management considers reliable, and is disseminated to readers without any responsibility on our part. Any opinions or views on any contemporary or past topics, issues or developments expressed by third parties, whether in abstract or in interviews, are not necessarily shared by us. Copyright exclusively with Sarvashrestha Media Pvt. Ltd. All rights reserved throughout the world. Reproduction of any material of this magazine in whole, or in part(s), in any manner, without prior permission, is totally prohibited. The publisher accepts no responsibility for any material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with any advertisement without explanation. All advertisements must comply with the Indian Advertisements Code. Published and printed by Anil Tyagi on behalf of Sarvashrestha Media Pvt. Ltd at Polykam Offset, C-138, Naraina Industrial Area, Phase I, New Delhi 110028. All disputes are subject to the exclusive jurisdiction of competent courts in New Delhi only

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gfiles inside the government vol. 11, issue 11-12 | Feb-Mar 2018 KWWSV WZLWWHU FRP JÂ¿OHVPDJD]LQH KWWSV ZZZ IDFHERRN FRP JÂ¿OHVPDJD]LQH

CONTENTS

COVER STORY

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LETTERS editor@gfilesindia.com

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gfiles inside the government vol. 11, issue 11-12 | Feb-Mar 2018

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Form IV (See rule 8) gfiles 1. Place of Publication: 2. Periodicity of Publication: 3. Printerâ&#x20AC;&#x2122;s Name: Whether Citizen of India?: (if foreigner, state the country of origin): Address: 4. Publisherâ&#x20AC;&#x2122;s Name: Whether Citizen of India?: (if foreigner, state the country of origin): Address: 5. Editorâ&#x20AC;&#x2122;s Name: Whether Citizen of India?: (if foreigner, state the country of origin): Address: 6. Name and Addresses of Individuals who own the newspaper and the partners or shareholders:

Holding more than one percent of the total capital Shareholders:

New Delhi Monthly Anil Tyagi Yes Not applicable 118 2nd floor, DDA Site 1, New Rajinder Nagar, New Delhi-110060 Anil Tyagi Yes Not applicable 118 2nd floor, DDA Site 1, New Rajinder Nagar, New Delhi-110060 Anil Tyagi Yes Not applicable 118 2nd floor, DDA Site 1, New Rajinder Nagar, New Delhi-110060 Anil Tyagi Abhinav Tyagi 118 2nd floor, DDA Site 1, New Rajinder Nagar New Delhi-110060 Sarvashrestha Media Pvt Ltd Quality Edumedia Pvt Ltd

I, Anil Tyagi, hereby declare that the particulars given are true to the best of my knowledge and belief. Dated. March 01, 2018 Sd/ Anil Tyagi Publisher

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Bric-a-brac crash & burns

UIDAI falls flat on its feet aadhaar updation too slow

S of February 15, 2018, the Government nt has issued over 117 crore Aadhaar cards with a countrywide coverage of over 89 per cent. In some of the States and Union Territories, such as Delhi, Goa, Chandigarh, Punjab and Kerala, the registration rate is over 100 per cent. The worst in terms of performances are the NorthEastern states of Assam, Meghalaya and Nagaland. Depending on which side of the fence–pro-privacy or antiAadhaar–you are on, it can be deemed to be a huge success or monumental malaise. But if there is one failure that was unanticipated, not-thought-through, it was in the area of governance, management, and continuation. The nodal agency, Unique Identification Authority of India (UIDAI), should have known that the real problem is invariably post-

issuanc issuance management. At any given point in time, 10-20 per cent of the card holders ti will require changes–change of names due w to marriage, new cards due to births, and change of address in an ever-migrating ecosystem. The authority seems totally unprepared to deal with such changes in 20-25 million Aadhaars on an annual basis. The number of branch offices for changes are limited even in Delhi, the nation’s capital. Queues are common; people line up at 5 a.m. reminding one the old ‘Socialist’ days of the 1970s. Government servants at UIDAI branches are ‘lazy’ or ‘uninterested’ and citizens have to make frequent visits. The issue has more critical after the Government has insisted on linking Aadhaar with almost everything– PAN, bank account, mobile number, subsidies, etc. g

Who cares about Parliament business? bjp members missing from committee

HE meeting of the Business Advisory Committees of both the Houses was recently convened to discuss which issues are to be tabled in the House. The Rajya Sabha committee meeting was chaired by its chairman Venkaiah Naidu, but no minister was present to represent the Government while the Opposition leaders were present. So the Opposition took advantage of the situation and decided the agenda of the Rajya Sabha with mutual consent. After stepping out from the meeting, Trinamool Congress’ Derek-O’Brien tweeted, “Seeing the attitude of the BJP, one can understand the honour left in them for democratic institutions.” While the

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Rajya Sabha committee meeting was underway, the meeting of the Lok Sabha committee also took place. Government representatives were absent even from that meeting. Lok Sabha Speaker Sumitra Mahajan thought the missing ministers were busy with the Rajya Sabha meeting. But when the hunt for the two began, neither Ananth Kumar nor Arjun Ram Meghwal could be found in the other meeting too. After a good half an hour, Meghwal walked into the meeting followed soon after by Ananth Kumar. Kumar reportedly tried explaining the delay by saying he was in a meeting with the PM. Opposition leaders just smiled. g

gfiles inside the government vol. 11, issue 11-12 | Feb-Mar 2018 KWWSV WZLWWHU FRP J¿OHVPDJD]LQH KWWSV ZZZ IDFHERRN FRP J¿OHVPDJD]LQH

Bric-a-brac

years

crash & burns

Kanimozhi meets Rahul advocates dmk-congress coalition

AMIL NADU is likely to be the main State which will decide the fate of the politics of 2019. The next political battle will be fought in Chennai. Kanimozhi, daughter of DMK leader M. Karunanidhi, is learnt to have met Rahul Gandhi last month after being acquitted in the controversial 2G case. During the conversation, Kanimozhi was reportedly trying to convince Rahul that Congress should talk to Kani instead of Stalin for a coalition in Tamil Nadu. She said that she, alongwith her brother Alagiri and former Union Minister A. Raja are together. And their trio has more influence in DMK politics. Sources disclosed that Kani claimed Central Tamil Nadu to herself alongwith the high influence of Alagiri in South Tamil Nadu and A Raja in North Tamil Nadu. Rahul did lend his ear to Kani but in return gave no concrete assurances. He as usual smiled and thanked Kani for meeting him. g

Railway signals piyush goel in a bind

gfiles inside the government vol. 11, issue 11-12 | Feb-Mar 2018

HERE is a fierce war in the Ministry of Railways over selection of a telecom network model for the much-needed Modernisation of Signalling and Telecom Project. The plan is to go in for European Train Control System (ETCS) Level 2. The war is among 2G and 4G network suppliers. Railway Minister Piyush Goel has ccalled three presentations in which Thales, Siemens, Alstom, Hitachi, Bombardier and Ansaldo, A An sal Nokia, Ericsson, and Kapsch (represented by Vista) presented their case. The meeti meeting was moderated by E&Y and was also attended by the Minister of State for Railw Railways and the Railway Board Chairman Ashwani Lohani. Sources disclosed that it w was decided to use Long Term Evaluation (4G) as the telecom technology for this project despite the fact that it was pointed out during the meeting that there is no n live reference of LTE usage for ETCS Level 2. This took Piyush Goel by surprise aand he asked if this was true. Two people pointed out that it was not true: DG-Safety &T of Railways said the same has been done in China and Korea while and an Als Alstom representative mentioned that they had done a project in Australia. Goel G said he would get the same checked. Sources have informed gfiles that no such project has been done in China and Korea and in Australia, a 11 km pilot project projec has been undertaken. Let us remember that the 162-year-old Indian railway system sys has more than 60,000 km (40,000 miles) of track on which ETCS level 2 is tto be implemented. Meanwhile, a budget of Rs 79,000 crore has been approved for the same. The Modi Government is keen to showcase this as one of its during the 2019 election but actually Finance Minister Arun major achievements a JJaitely has sanctioned peanuts for this mega project. Piyush Goel is now reportedly looking for financiers for this project. g

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COVER STORY defence mk shukla

Rafale deal:

Mess by Politicians For hundreds of years, and even today, wars are strategised and fought in the boardrooms of the large industrial-military complexes, mostly privately-owned. Such conglomerates, along with their well-funded think tanks, create convincing scenarios, which are palatable and immediately accepted by policymakers across the globe. The result: a constant trade in expensive equipment, and huge and regular billion-dollar deals, which grease the wheels and gears of the global corporate-militarypolitical nexus. Rest assured, great wars are decided largely by great captains of industry, and only implemented by great generals. There is an anecdote about a powerful American media owner who, when told by his journalist-photographer friend, that there was no war in a nation in South America, roared, “You give me the photographs, and I will give you a war.” The same is true about the attitude of global equipment suppliers, both government and private. ‘Buy the guns, tanks and planes from them, and they will give you a sure-shot war.’ While the logic of being prepared for any onslaught, any attack from an enemy, seems sound in theory, in practice the moment one is so armed, one subconsciously seeks a battlefield to test them, deploy them, and use them. From the perspective of an equipmentmaker, there are two other critical components, apart from the mechanical, electrical,

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electronics and computer-aided ones. Both relate to the capitalist greed for money and the mindset to spend money to earn much more. The first is the investment required to implant the seeds of impending wars among the political and military decision-makers. And nurture them with enough nutrients and chemicals. From these come the opportunities to earn unbelievable profits in terms of arms sales and purchases. A single deal, in many instances, can sustain a company, its township, and thousands of employees. Once the deals are sealed, the grease has to be distributed among the scores of individuals and consultants, who made them possible. They oiled the various machineries involved in the decisions, they reduced the frictions between policymakers and government-military departments, and they rendered the smoothness and ease of inking the agreements. Even in inter-government purchases, these people need to be paid, even if the governments themselves are transparent and honest. And it’s not the main suppliers, who make these pay-offs. It is done by the hundreds of their vendors, situated in small towns and townships, with hundreds of employees. The vendors fudge the data, and money, and help the latter reach the right hands and accounts. In the good old days, this was done through legal (and illegal) commissions, and hidden

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bribes. Despite the sellers’ commendable roles in selling equipment, the buyers had a huge say to decide the recipients. But once the investigating agencies became adept to trace such monies, even if the paper trail was complex as long as it was there (remember Bofors!), the route was changed. The new name of the game, at least one of the several names, is the “offset” clause. It’s no longer hip and cool to receive money, either in wads of cash or in secret bank accounts in global tax havens. It’s better to get vendor contracts in the form of offset clause, which allows local manufacturers in the buyer nations to make certain components and goods. To be frank, it doesn’t matter if the buyer nation is corrupt or not. Clause by clause, the offset goes to favoured companies, be it the Tata Group, Anil Ambani Group, and Baba Kalyani Group. As someone once proclaimed ‘Military Keynesianism’ has “proved to be a bust”. ‘Military Extravagance’ had led to more wars, and depleted nations’ wealth. What is at work over the past few decades is a sense of ‘Military metaphysics’, which subconsciously and unconsciously favours wars, conventional and unconventional, real and rhetorical, which encourage nations to spend more and more, all the time, and through the decades. MK Shukla reports.

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Rafale: In the eye of the storm

HE Bofors gun proved its efficacy and lethality in the Kargil skirmishes. And the Rafale will prove its undisclosed virtues in the battle for Tibet whenever that happens. But what about our virtuous politicians who invest so heavily in domestic politics, selecting candidates, wasting time and resources on campaigning and misguiding people, and raising funds by crook to win elections and rule the people, half of whom are more malnourished than people of sub-Saharan Africa. When will India’s politicians prove their virtue by spending some time in understanding military matters and issues of national security? Perhaps Never. Look at their track records. As soon as Swedish Radio alleged on April 16, 1987, that Bofors bribed India’s politicians and defense officials to seal the $1.4 billion deal for the supply of 410 pieces of 155mm field howitzer to the Indian Army, the country’s politicians backed by a section of media set out to make the wildest allegations against the gun as well as ruling party members. While their accusations against ruling party members could be ignored as essential components of electoral politics, their knowledge about the gun was suspect from the beginning to the end. And the ruling party, whose feet was on fire, made no sensible effort to douse the fire. Instead of instituting a criminal inquiry and proceedings to uncover the truth, the Rajiv Gandhi administration opted for blacklisting Bofors—a move that compromised the Indian Army’s genuine requirement for advanced artillery systems for years to come. The logic that seemed to have prevailed over the administration was that the blacklisting of the firm would melt the corruption charge altogether. That never happened. Even in 2018, Congress’s rival BJP has found it polit-

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COVER STORY defence mk shukla

ically lucrative to reopen the Bofors scam. The blacklisting of Bofors turned out to be a truly disastrous administrative and political decision: it didn’t convince the opposition or the people of the noninvolvement of Congress Party’s first family, but it did set the worst administrative precedent in free India’s history—of blacklisting each and every foreign arms vendor if the slightest charge of corruption was made against them.

S wild allegations continued to fly thick and fast, the Rajiv Gandhi administration turned more defensive—a gesture that further convinced the opposition that the administration had something to hide. To deal with the raging political storm, the Congress administration agreed to an inquiry into the matter by a Joint Parliamentary Committee (JPC). On August 6, 1987, the JPC was accordingly set up. Two years later, it submitted its report—finding nothing and revealing nothing.

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The blacklisting of Bofors turned out to be a truly disastrous administrative and political decision...it set the worst administrative precedent in free India’s history—of blacklisting each and every foreign arms vendor if the slightest charge of corruption was made

So the opposition rejected it and kept the issue alive. It exploited it the whole hog to trounce the Congress Party at the hustings in November 1989. And its accidental Prime Minister Vishwanath Pratap Singh, who in his earlier avatar as Rajiv Gandhi’s Defense Minister had signed the Bofors agreement, barred Bofors on December 26, 1989, from entering into any defense contract with the GoI. At the same time, he also canceled the HDW contract. At one single blow, in his attempt to project himself as a ghost slayer, he compromised India’s security on land and high seas and laid to waste billions of dollars worth of infrastructure created with the taxpayers’ money to

domestically produce Bofors howitzer and HDW submarines. It wasn’t until 10 years later in the summer of 1999 that the GoI was shaken back into senses and lifted the ban on Bofors. The trigger was the June-July Kargil skirmishes in which the Indian Armed Forces were given a task—that any other army in the world could have justifiably defied— to dislodge Pakistani Army regulars from the icy heights of the Himalayas with their outdated infantry assault weapons. Faced with a lack of suitable weapons system, Indian Army commanders woke up and deployed the Bofors to pound the Pakistani positions and free its land from intruders.

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Rafale’s selection is as sound as Bofors

The guns’ performance was so outstanding during that operation that the political leadership of the country was constrained to remove the official ban on Bofors. In fact, the Army had maintained all through—ever since the Bofors scandal hit the headlines—that the gun met all their requirements and had no technical deficiency. And yet, it was the Indian Army that was made to pay the huge cost for the games that politicians gleefully played on the Bofors issue. Its artillery wing still remains critically weak. The same Bofors saga is sought to be replayed again in 2018 against the Rafale fighter jet. The only difference is that the accuser this time is the Congress and the accused is the NaMo administration. As in the case of Bofors, the accuser against the Indo-French Government-toGovernment Rafale deal has no substantive point. But Rahul Gandhi and his cronies have been repeating the charges so often that one is reminded of the attitude and behaviour of the entire opposition on

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the Bofors deal. Having been badly trounced in the 2014 national election because of its corruption and love for scandals, the Congress Party has come to believe that it must act the same way as the opposition did and raise controversy on each and every issue, whether they are sustainable or not. It may be a bad political strategy, but one can’t deny the Congress its right to commit suicide, however criminal that move may be in the light of the emptiness gripping the country’s opposition space.

RE the Congress Party’s points against Rafale substantive and credible? Briefly, Team Rahul seems to question the price, propriety and offsets parts of the deal. On price, it argues that the final agreed price represents a huge escalation and that the government’s claim of saving taxpayers’ money is a lie. On propriety, it has made three points. The first is why the second bidder (L2),

Eurofighter, was not played off against Rafale; the second is why the entire initial contract for the purchase of 126 units was dropped abruptly; and lastly, why the cabinet approval was not sought for the new deal, which involved no competition and reduced numbers. On the implementation of the offset clause, the question raised is why Reliance, with ‘no experience in defense projects’, was favoured over Hindustan Aeronautics Limited (HAL). However legitimate and plausible these questions may appear prima facie in political terms, they betray a complete lack of understanding of the government’s new and old defense procurement and acquisition policies and procedures. And, therefore, they smack of political malice and a complete contempt for the IQ level of the Indian people. According to open-source information, the acquisition cost of 126 Rafale units during the UPA-2 regime was first put at $10.4 billion in January 2012. In April 2013, the cost escalated 50 per cent

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COVER STORY defence mk shukla

to $15 billion; and in January 2014, while the UPA-2 was preparing for the election, the costs were shown in the range of $2830 Billion (300% escalation). In their piece for The Economic Times, Abhijit Iyer-Mitra, senior fellow, Institute of Peace and Conflict Studies, and Angad Singh, air power analyst, wrote that “the final negotiated per-unit price including programme costs (simulators, training, and infrastructure) and India-specific modifications of $247 million is well within the ballpark figure. What is remarkable is that this figure has been reached despite losing economies of scale and cutting the order to almost a quarter of its original size.”

HEY arrive at this conclusion after analysing the baseline estimate cost per unit, factoring in inflation since 2009, India-specific modifications such as Active Electronically Scanned Array (AESA) radar, helmet-mounted sight as well as programme costs (simulators, training, and infrastructure). The writers contend that UPA’s so-called deal (which was actually a projection) lacked in serious due diligence and therefore its base price was absurdly low. In another piece for the same paper, Abhijit has contended that “The best way of judging, though, is to look at what other countries paid. Qatar bought its Rafales at $292 million PPU (Position Pick-off Unit), with an extensive training maintenance and weapons package, but without offsets or workshare. Egypt bought their Rafales for $246 million PPU and India paid $243 million, with a less extensive package than Qatar, but with 50 per cent offsets and significant India-specific modifications”. He concludes “On balance, this looks like an exceptionally well-negotiated deal”. Further, on the issue of propriety, the Congress hasn’t been able to cite a single point of deviation from the UPA-2’s 2013

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Defense Minister Nirmala Sitharaman told CPI leader D Raja in the Rajya Sabha: “No Public Sector Undertaking or private sector industry is involved in the Inter-Governmental Agreement with France

Defence Procurement Policy (DPP) when the Rafale contract was signed in 2016 and the DPP was in operation. Another charge hurled at the government is that the approval of the Cabinet Committee on Security (CCS) was not secured before the signing of the new contract. According to official sources, the relevant sections that deal with the Inter-Governmental Agreement for the Rafale purchase in 2016 lie in Articles 71and 72 of the 2013 DPP. Reading of the relevant sections makes it abundantly clear that no prior approval is required from the Defence Procurement Board (DPB), Defence Acquisition Council (DAC) or, indeed, CCS approval, for any purchase under this category. All that is needed is the approval of a competent financial authority (CFA). Can the Congress Party stand on its honour and say that the approval of the CFA was not taken? Finally, why Reliance and not HAL? Because the final negotiated contract is for offsets of industrial defense goods, and not an agreement to co-produce planes—which is HAL’s sole specialisation. The Defense Research and Development Organisation (DRDO) has reportedly got Rs 9,000 crore worth of offset work from Dassault, while ADAG may be the biggest, but not the only beneficiary of the remaining Rs 21,000 crore. May it be noted that under the discussed offset clauses, it is Dassault’s prerogative to select its industrial partner/s. As it is, Reliance ADAG (Anil Dhirubhai Ambani Group) along with L&T, Kalyani, Tata, Mahindra Defense, and Bharat Forge happen to be the few ones who are actually engaged in producing some defense equipment. So if Dassault prefers ADAG or any other company, the matter ends there. Further, the inter-governmental agreement between the governments of India and France provides for 50 per cent off-

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Sukhoi-30’s (above) operational problems have dictated the selection of Rafale

sets. On February 5, 2018, Defense Minister Nirmala Sitharaman told Prof M V Rajeev Gowda “The quantum of offsets in 36 Rafale IGA is 50 per cent which includes investments in terms of Transfer of Technology (ToT) for manufacture and/or maintenance of eligible products and services. Details of Indian Offset Partners have not yet been provided by the French Industrial suppliers and as per the provisions of Defence Procurement Procedure (DPP) – 2013 they need to do so at the time of seeking offset credits or one year prior to discharge of offset obligations through their Indian Offset Partners. As per the provisions of DPP2013 the Indian offset partner need not be a Public Sector Undertaking.” In another reply the same day, Sitharaman told CPI leader D Raja in the Rajya Sabha: “No Public Sector Undertaking (PSU) or private sector industry is involved in the InterGovernmental Agreement with France. In order to meet the ‘Critical Operational Necessity’ of the Fighter aircraft in the IAF, the Government decided to procure 36 Rafale aircraft through Governmentto-Government route. The Inter-

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Governmental Agreement (IGA) was signed for supply of direct flyaway 36 Rafale aircraft on September 23, 2016. It does not envisage any manufacturing of platforms in India”.

Rafale’s selection is as sound as Bofors

N the melee of ideas and viewpoints and contesting politics, the prime reason for Rafale’s selection versus other contending aircraft has been lost. What was the ‘Critical Operational Necessity’, mentioned by the Defense Minister in her above-cited reply to Raja, that persuaded the government to opt for Rafale? To unravel the Minister’s statement, one has to refer to previous Defense Minister Manohar Parrikar’s statement in Parliament in March 2015. He revealed that as many as 35 instances of Sukhoi’s engine failures were reported in 201314—that’s nearly three a month. He added overall, there were 69 instances of engine failure in the last four years. “Inquiries by the Air Force revealed that in as many as 33 instances, the engines failed because of impure fuel, in

another 11 cases, the problem was caused by excessive vibration and in eight others, engine failures were reported because of low pressure in the lubricant tanks”. In view of unending operational problems encountered with Sukhoi-30 MK1, its most important function—the ability to air-deliver a nuclear payload deep inside China—came to be suspected. Sukhoi’s operational problems and limitations dictated the selection of Rafale: heavy payload, range advantage, and the highest single-nation content among the competing aircraft. The last factor was as powerful a tilting factor as the first two because France has traditionally supported India’s nuke project and turned a blind eye to the IAF fusing its nuclear ammunition with French platforms like Mirage 2000. In an article in The Diplomat, Vasabjit Banerjee and Prashant Hosur wrote: “In terms of the Air Force and India’s nuclear capacity, the French Mirage 2000 provides India’s primary air-launched strike force, because the British SEPECAT Jaguars are slower at high altitudes and unable to deploy the unguided (gravity dropped) nuclear bombs used by India.

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COVER STORY defence mk shukla

The Kargil War of 1999 reaffirmed the capacities of the Mirage 2000-5 in ground attacks as well. However, Indian trepidation about corruption allegations prevented it from shifting the entire production facility, which France was shutting down, to India. Ironically, France has recently offered to donate 31 mothballed Jaguars, which India could upgrade with new radars, avionics, and even engines”. But why did India opt for only 36 Rafale aircraft at the cost of Euros 7.8 billion versus 126 units for $30 billion or so? That’s because the IAF considered 36 aircraft as the bare minimum to maintain its option and ability to gravity-deliver nuclear weapons in the heartland of two veritable enemies. Second, the government didn’t want to block as much as $30

in 2005 and 2007, the UPA-1 government is said to have left the Bhutanese government shamelessly to the mercy of the Chinese.

N November 13, 2005, Chinese soldiers entered Bhutan’s northern districts, including Paro, and marched 20 km inland, claiming that they had been forced by melting glaciers and heavy snowfall in Tibet to breach the border. But they also went on to infiltrate remote places like Haa, Boomtang and Wangdi Phudrang, which have no human habitation. And then the Chinese built pucca bridges in Paro and Haa districts, prompting concern among the people’s representatives from Paro, Haa, Laya, Lunana, Zhemgang, and

Without referring to what the UPA did in 2005, at a seminar on “bridging gaps and securing borders” on February 21, former National Security Adviser Shivshankar Menon, appreciated the way the NaMo administration handled the Doklam incident billion for the purchase of just one weapons system while the Army and the Navy also have the dire need for funds to meet their equipment requirements. So the government has been under usual pressure to balance the requirements of each service given the shortage of funds. And it did.

Tackling China’s low-cost mischief On the basis of its three-year track record, the NaMo administration is seen in defense circles as far more sensible and pragmatic on the issue of national security compared to the UPA-1 and 2 regimes. If any evidence is required, India’s response to the Chinese adventure in Doklam in mid-2017 is cited as one. In a similar but largely unreported case

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Thimphu. But the UPA-1 administration, despite military and intelligence inputs and call for help from Thimpu, declined to checkmate the Chinese. And this emboldened PLA soldiers to not only further intrude into Bhutan at will but also in the Indian territory. Indeed, after the 2005 and subsequent PLA intrusions (all during the UPA regime), the Bhutanese have been feeling completely let down by India. And if New Delhi hadn’t dug in its heels in Doklam, China would have literally succeeded in driving a permanent political wedge between India and Bhutan because Bhutan, without help from India, would have had no choice but concede Doklam to China. Without referring to what the UPA did in 2005, at a seminar on “bridging gaps

and securing borders” on February 21, former National Security Adviser Shivshankar Menon, appreciated the way the NaMo administration handled the Doklam incident and thwarted China’s political goal to “split” India and Bhutan. In fact, even the Bhutanese public opinion shifted from its initial disappointment as India ignored Chinese media and political and diplomatic filibustering tactics and remained steadfast in its demand that PLA must vacate the Bhutanese territory. Since educated Bhutanese could not figure out whether the Indian intervention in Doklam was triggered by India’s instinct to protect its ‘chicken neck’ or a genuine feeling of friendship for the Bhutanese people, the initial public opinion in the Himalayan kingdom was adverse on India’s role According to ENODO Global, a risk management firm that conducts population-centric analysis, its Doklam standoff analysis revealed that approximately 76 per cent of Twitter and 65 per cent of Facebook Bhutanese social media users questioned Bhutan’s over-reliance on India’s diplomatic channels to broker a deal with China. Messages on Bhutanese news websites, blogs, and Facebook revealed anxiety regarding the absence of a direct dialogue between Bhutan and China. For example, a cartoon on the Facebook group “Bhutanese Forum” indicates the scale of China’s incursion, while the associated hashtags #bullyingNeighbor and #China demonstrate the pervasiveness of Bhutanese frustration and a sense of abandonment by India. The ENODO analysis further reveals that in less than 24 hours after Indian boxing champion Vijender Singh offered to surrender his award in exchange for IndiaChina peace, thousands took to Twitter to support India’s might, which ultimately supports Bhutan. New hashtags emerged every hour including: #BattleGroundAsia, #IndiaProud, #BoycottChineseProducts,

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Cartoon by Pema Thinley from Thimpu (Bhutan) on Facebook Group Bhutanese Forum

#DoklamHisaabBarabar, and #PeaceIsPossible. To consolidate the post-Doklam groundswell of support for India in Bhutan and anticipating some sort of Chinese mischief in the coming summer of 2018, National Security Adviser Ajit Doval, Foreign secretary Vijay Gokhale, and Army Chief Bipin Rawat visited Thimpu in the first week of February to exchange notes and remove whatever doubts may exist between Thimpu and New Delhi.

N fact, this kind of dialogue must be taken further and must be held between the two countries on a regular well-defined basis. It may also be helpful if the dialogue between the two countries is facilitated on each and every level. Despite geographical closeness, people of the two countries remain aloof from each other. And this is a matter of serious concern. Let there be no doubt: China will keep

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engaging itself in the low-cost testing of our resolve to protect our frontiers as also those of Bhutan while keeping us preoccupied on our western frontiers with Pakistan. Paul Staniland writes: “The stand-off between India and China at Doklam initially seemed like an Indian victory. Yet as time has gone on, it looks instead like the first round of a recurrent series of mini-crises as China digs in for the long haul. There is little likelihood of a major conventional war between India and China, and India has some key advantages in specific areas of possible combat. Still, India will need to devote significant resources to holding its positions and fortifying its infrastructure along its borders with China. This is a defensive reaction to growing Chinese power, not a form of leverage”. Indeed, India has steadily lost all the leverages against China ever since the latter set out to choke India in its own South Asian backyard from 2004-2005. Even in

terms of hardware, the PLA, PLAAF, and PLAN have raced ahead of the Indian Army, Air Force, and Navy. That’s because every point increase in India’s GDP has not resulted in a proportionate increase in the lethal power of the armed forces. Decisions on vital acquisitions have been delayed on fear of corruption even as politicians invested heavily in domestic politics. And the Chinese have taken the full advantage of our queasy and mudslinging politics. In the given situation, whatever Team RaGa may say, the NaMo administration has shown the guts to acquire the muchneeded fighting systems even at the risk of being accused of what he is being accused of by his political opponents. That’s wonderful news for the country and a bad one indeed for the Chinese. Hopefully, the Indian Armed Forces would not be compelled to fight their enemies empty-handed—like they were forced to do in 1962. g

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COVER STORY defence assault rifles

Army: ill-equipped to ﬁght a war The brunt of the paucity of small arms is borne by the army’s 360-odd infantry battalions. Procuring the assault rifle is critical, for the infantry bears the brunt at the borders besides undertaking counter-terrorism operations. But, procurement has witnessed significant delays due to a variety of reasons, including the Army’s failure to finalise the specifications

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by NEERAJ MAHAJAN

any years ago during the height of pro-Khalistan insurgency in Punjab, a senior police officer interrogating a captured militant received the greatest shock of his life when the militant asked the police officer to be polite and treat him (the militant) courteously. “Why?” the officer asked. “Because, you are one of the biggest beneficiaries and gained as a consequence of our armed struggle. Look at what you were and what you have gained. Till a few years ago you had World War-II army discard .303 rifles, outdated jeeps and wireless sets. Today, thanks to our armed struggle, at least you have been issued with better weapons, transport and communication equipment,” the militant replied. Needless to say the Punjab Police officer was taken aback and did not know what to say. This is a fact which cannot be denied. The same goes for all the police, paramilitary, special commando outfits and Armed Forces, irrespective of the colour of uniform they wear. Their presence and sacrifice is always taken for granted. No one bothers about their equipment, ammunition or training needs. Suddenly, after a major incident, concerned people at all levels wake up and make all kinds of promises, which are often forgotten till the next big incident awakens a few sleepy heads. Indian Army has one of the finest soldiers in world in terms of training, motivation and morale. They are soldiers

prepared to do and die for a cause. But frankly they are not magicians who can change the complexion of the battle without a proper h very gun in their hands. A soldier—at the least—needs a weapon.

First class troops–third rate guns The Indian Armed Forces havee always been expected to perform m n their miracles—without a proper gun in hand. Why couldn’t the country capaapable of sending satellites into space, producing aircrafts, ballistic missiles, and tanks cobble a decent rifle or pistol? India imports nearly 70 per cent of its military equipment from foreign supplipplid or ers. The Indian soldiers get maimed n the killed fighting an unequal battle in ndard extreme temperature with sub-standard or obsolete guns in his hand. Why? So that politicians can make money in yet another deal? In such a scenario, would it be fair to expect the soldiers to fight a war without a weapon? This has a direct and proportional impact on the operational readiness of the Indian Army. The Army doesn’t have a choice but to make do with outdated assault rifles designed in the 1980s. A majority of army units haven’t practiced firing at the field firing range in the last one year. There is an acute shortage of ammunition most of which is sub-standard. The last consignonsignment of artillery guns were purchased chased nearly three decades ago. The nett result

The Indian Armed Forces have always been expected to perform miracles—without a proper gun in their hand. Why couldn’t the country capable of sending satellites into space, producing aircrafts, ballistic missiles, and tanks cobble a decent rifle or pistol? India imports nearly 70 per cent of its military equipment from foreign suppliers

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ASSAULT RIFLE

LEE ENFIELD

INSAS RIFLE

MACHINE GUNS

ASSAULT RIFLE

WEBLEY

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COVER STORY defence assault rifles

is that the second largest standing army is ill-equipped to fight a war. This fact was acknowledged by the Comptroller and Auditor General of India (CAG) which categorically blamed the inefficiency of the Defense Research and Development Organisation (DRDO) and Ordinance Factories, amongst the top 50 defense equipment manufacturers in the world, to meet the demands of the Indian Army. According to the CAG report, rejected ammunition worth `1,618 crore is lying in depots due to manufacturing defects. Apart from this ammunition, worth `814 crore has been declared unserviceable within shelf life due to its poor quality. Further, according to the report, nearly 17.5 per cent of total ammunition is lying in segregated, repairable and unserviceable condition. Apart from this ammunition, worth `2,109 crore is lying in repairable condition due to routine failure of OFB in supply of repair components. According to the CAG report, out of total 152 types of ammunition considered critical by the Indian Army to fight a war, stock of as many as 61 types of ammunition is available for just 10 days only. The root cause of the problem is that environment of indecisiveness in the defense ministry cannot visualise the fact that wars are fought with weapons and equipment, not statistics of money saved or not being spent where it is needed.

1947: Post Independence scenario At the time of independence, the Indian Army was living in a make-believe world, playing soldier-soldier with the obsolete, world war vintage Lee-Enfield rifle and Webley Mk IV revolvers. At a time when the British were discarding the bolt action guns in favour of semi-automatic weapons after the World wars, the Indian Ministry of Defense, like a typical scrap dealer, decided to make it standard issue weapon for the Indian Army.

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Vendors wanting to capture the defence market

NDIA’S defence market is expected to cross `38 lakh crore by 2022. Over the next 10 years the three armed forces, paramilitary forces, and states police would need at least two million different types of small arms and ammunition. This is such a big demand that no armament supplier can afford to ignore. Everyone wants a piece of India’s defence business. Till a few years ago only factories owned by Ordnance Factory Board (OFB) were permitted to produce weapon systems. Private sector companies were only allowed to manufacture parts of ammunition such as the shell or fuse. The whole environment is in for a big change. For the first time the Government of India is allowing Indian private sector companies to manufacture equipment for defence services. Many overseas defence companies are negotiating joint-venture agreements with Indian private sector companies. These include, Expal (Spain), Nexter (France), Rosoboronexport (Russia), Chemring Group (United Kingdom), Saab (Sweden), Elbit (Israel), Rheinmetall Defence (Germany), Diehl Defence (Germany), Denel (South Africa), Yugoimport (Serbia), Bumar (Poland), Orbital ATK Armament Systems (United States) and Arsenal (Bulgaria).

1962: Humiliating defeat The Sino-Indian War taught us a lesson how not to go to war—unprepared, inadequately armed and clothed in extremely inhospitable and harsh mountain conditions at high altitudes. One of the primary

This is good news for private sector companies like Punj Lloyd, Chowgule Group, Kalyani Group, Reliance Defence Engineering Limited, Godrej & Boyce, Indtech Construction Private Limited, HYT Engineering Company Private Limited, Micron Instruments, Premier Explosives Limited, Solar Industries India Limited, Himachal Futuristic Communications Limited and Continental Defence Solutions Private Limited. Some of the other companies in the race to manufacture defense equipment include: Tebma Shipyards Ltd (submarines), Neco Defence Systems Ltd (unmanned aerial systems), Maini Precision Products Pvt. Ltd (rocket launchers), Pipavav Defence and Offshore Engineering Co. Ltd (aircraft and spacecraft parts), Ois AeroSpace Pvt. Ltd (aircraft sub-systems), Solar Industries India Ltd (helicopters), Titagarh Wagons Ltd (armoured vehicles), Modest Infrastructure Ltd (warships) and JSW Projects (unmanned aerial vehicles). The list of firms that have applied for license to make military equipment makes interesting reading: Punj Lloyd Raksha Systems Private Limited (PLR): Punj Lloyd has tied up with Israel Weapon Industries (IWI) to develop and manufacture Small Arms in India like Tavor assault rifle, Galil sniper rifle and the Negev light machine gun.

reasons why India suffered a humiliating defeat in the 1962 war was because the soldiers were ill-equipped, un-acclimatised and totally unprepared to fight the war. The Indian land forces fought the one month-long war at a height of 14,000 feet

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IWI’s product basket include TAVOR assault rifles, three calibre X95, NEGEV light machine guns, UZI SMG and JERICHO pistols. The IWI TAVOR Assault Rifles are in service in India with the Special Forces units of the Indian Army (Para SF), Navy (MARCOS), Air Force (GARUD) and CRPF (CoBRA) and multiple State Armed Police Forces. They are battle proven around the world under extreme and adverse environmental conditions. Punj Lloyd has strategically established itself as a credible player in the Defence and Aerospace sector. The group’s objective is to become a supplier of choice to the Indian Armed Forces and provide impetus to the 'Make in India' programme. Israel Weapon Industries is a world leader in innovative small arm systems for over 80 years. The weapons are widely used by military and homeland security agencies worldwide. As per the 'Make in India' joint-venture arrangement – Punj Lloyd and IWI will manufacture these weapons in India and also export them to other countries friendly with India and Israel. Kalashnikov Concern: The manufacturer of AK-47 rifles—Kalashnikov Concern—is working out a business agreement with Indian companies for the joint licensed production of advanced versions of AK-47 assault rifles in India. Kalashnikov Concern is Russia’s largest manufacturer of automatic and sniper weapons. The AK-47s is a popular weapon with great demand in India. Tata Group: One of India’s largest private sector conglomerates—with

more than 98 companies in various sectors—the Tata group is on a look out for new partners to take its 60 year old relationship with the MoD to a next higher level. The Group is looking at collaboration with foreign partners to develop sophisticated weaponry, like amphibious armoured platforms, blastproof vehicles, unmanned aerial vehicles, multi-barrel rocket launchers, electronic warfare systems and nuclear submarine control centres. Tata Motors has orders in hand for about `900 crore, for specialist vehicles related to the defence and security forces. Another Group company Tata-Boeing has signed up a joint venture agreement to develop Apache helicopters in 2018. The Tata group’s defence and aerospace revenues are expected to touch `2,650 crore. Bharat Forge Limited: Bharat Forge Limited, a subsidiary of Kalyani Group, has signed a joint venture agreement with BF Elbit Advanced Systems Private Limited—to manufacture different variety of ammunition and smart bombs in India. Currently, the annual ammunition market in India exceeds $1 billion, there is scope of additional annual capacity of approximately $250 million in private sector. Himachal Futuristic Communications Ltd: Himachal Futuristic Communications Ltd (HFCL), is interested in making airplanes, weapons and ammunition. The group has already been granted industrial license to produce electronic fuses, electro optical devises, electronic warfare devises and helicopters.

Mahindra Group: Maker of the wellknown Willeys jeep, the Mahindra Group is looking to regain its presence as Indian army’s leading supplier of trucks, armoured vehicles and other equipment. The group has created two verticals to focus on land defence and naval defense. Hero Group: Once a leading manufacturer of bicycle components and the world’s largest two wheeler company, the Hero group is planning to get a toehold in the Indian defence market. Anil Dhirubhai Ambani’s Reliance Group: Anil Ambani’s Reliance Defence and Engineering Ltd is planning to manufacture Kalashnikov class of weapons for Indian armed forces in a joint venture with Kalashnikov Israel an Israeli company. Reliance Defence and Aerospace, a Group subsidiary, is expected to bid for 387 Army reconnaissance and surveillance helicopters and 100 Naval utility helicopters, together valued at `25,000 crore. Mukesh Ambani’s Reliance Industries: Mukesh Ambani’s Reliance Industries has partnered with Boeing to build P8I naval reconnaissance aircraft for Indian Navy. Reliance has also signed a deal with Dassault aviation to build medium multi role combat aircrafts (MMRCA) for Indian Air Force. Hinduja Group: The Londonbased maker of Ashok Leyland buses and trucks has set up Ashok Leyland Defence Systems, which has shown interest in manufacturing armoured vehicles for the armed forces.

only at God’s mercy. The Indian side was over-confident that there would be no war and hence made no preparations. Nehru firmly believed that ‘not a blade of grass grows there’. As a result when the Chinese Army

launched an attack in October 1962, the Indian jawans didn’t even have enough guns, ammunition or warm clothes to wear for fighting in extreme cold. The troops were ready to fight but there were no weapons, ammunition and maps for

directions. On the other side, almost three months before the war, the Chinese side had started augmenting its combat readiness and started stockpiling ammunition, weapons and gasoline. The Chinese troops were acclimatised for high altitudes

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COVER STORY defence assault rifles

combat. They had proper clothing, shoes and weapons to fight in the mountains. After the war, bodies of Indians soldiers were recovered buried in the ice, frozen, but with weapons in their hand. The biggest blunder in the 1962 war was that while the Army was taking the bashing, the Indian Air Force and Indian Navy were not even deployed. They kept watching the ‘game’ from the pavilion. As a result when the Chinese declared ceasefire, India had suffered heavy casualties—4,885 soldiers killed, 3,968 taken prisoners of war and 1,697 wounded. On the other hand, China only had 722 soldiers killed and 1,696 wounded. It was a Himalayan blunder.

Militancy in Punjab & IPKF Ops (Sri Lanka)

ATE 1970s and early 1980s added a new dimension to warfare. The army now had to face—the AK-47 wielding militants in Punjab and Kashmir as well as LTTE guerrillas in Sri Lanka. The army now wanted a rifle with a longer barrel— that would give the bullet higher speed and greater power of impact. No such product was given to them. As a result, the Indian Armed forces and police started equipping themselves with AK-47s captured from insurgents. In Punjab some police officers used their own resources to develop a bullet-proof tractor which could offer armour protection and mobility in rugged terrain.

Kargil 1999, another war—a bigger jolt The Indian Army was caught ill-equipped and off-guard during the Kargil opera-

tions when Mujahedeen fighters, backed by regular Pakistani Army, intruded into the Kargil-Batalik sector. Indian troops who went to fight in the high-altitude war in Kargil-Dras sector were issued INSAS (Indian Small Arms System) rifles for the first time. The INSAS repeatedly got jammed while its magazine and metal parts cracked due to the extreme cold. The rifle went into automatic firing mode when it was set for three-round burst. Apart from this, oil sprayed by the rifle caused many eye injuries to troops. That was until some Indian troops, including some Gurkhas, picked up the Kalashnikovs of the fallen Pakistanis because they were better and more accurate than their own guns. Typically, the Indian troops, among

In 2011, the Army had issued a global tender for 44,618 CQB carbines and 3,36,11,500 rounds of ammunition. However, even after six-years of rigorous tests the weapons haven’t been brought into service

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other things, ran out of ammunition for the Bofors guns. Home production could not be undertaken overnight. The political system had cancelled all deals for purchase of equipment from abroad. They vehemently supported transfer of technology and production of ammunition in India. No arms supplier was ready for this. India virtually went door-to-door, begging for ammunition. Luckily South Africa agreed but at its own price. India didn’t have any option.

Post Kargil: Counter Insurgency Operations Immediately after the Kargil war, the Indian Army floated a tender to replace the outdated INSAS, which still has not materialized. A majority of troops still have to carry the INSAS rifles. DRDO tried to plug the gap by the pushing forward its home-grown Excalibur guns. A similar effort was made by the Ishapore Rifle Factory, which tried to offload another indigenous weapon. Both the

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The Indian Army was caught ill-equipped and off-guard during the Kargil operations. Indian troops, who went to fight in the high-altitude war in Kargil-Dras sector, were issued INSAS rifles (below) for the first time. The INSAS repeatedly got jammed while its magazine and metal parts cracked due to the extreme cold

guns failed miserably at the firing tests. In India, police forces armed with INSAS 5.56 mm rifles have frequently complained of the rifle’s lack of stopping power in anti-Maoist operations. In Jammu and Kashmir too, Army soldiers prefer using a captured AK-47 instead of unreliable INSAS. Army troops involved in active operations have complained about frequent jamming of INSAS rifles. The Army rejected the indigenously made 7.62mm rifle on the grounds that it was poor quality and had ineffective fire power. The brunt of the paucity of small arms is borne by the army’s 360-odd infantry battalions and 106 units involved in counterinsurgency ops, like the Rashtriya Rifles and Assam Rifles. Procuring the assault rifle is critical for the infantry bears the brunt at the borders besides undertaking counter-terrorism operations. Hence, it is important for India to acquire modern and sophisticated assault rifles, light machine guns and CQB carbines.

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Procurement of assault rifles has witnessed significant delays due to a variety of reasons, including the Army’s failure to finalise the specifications for it. Ideally, the development of rifles is a scientific process. Every rifle has to go through extensive and simulated battlefield environment before being brought into service. Researchers developing these rifles look at fire power, ease of use, weight and number of bullets required to kill a single enemy under adverse conditions.

N 2011, the Army had issued a global tender for44,618 CQB carbines and 3,36,11,500 rounds of ammunition. However, even after six-years of rigorous tests the weapons haven’t been brought into service. The Army’s quest narrowed down to two rifles, Beretta’s ARX-160 and Israeli ACE. According to sources, the defense ministry scrapped the tender for the 7.62 calibre guns as there was only one vendor left after a series of field trials. Though the proposal to purchase 7.40

lakh 7.62 mm assault rifles, 5,719 sniper rifles and light machine guns was cleared by the Defense Acquisition Council (DAC)—the induction of the assault rifles is getting delayed due to change in the GSQR. Initially some 20 firms responded to the RFI issued by Indian responde Army. T The request for information (RFI) iis a means to collect information about capabilities of various vendors. A few years later the ministry of defense reissued a request for information for a 7.62x51mm assault rifle that can “shoot to kill” instead of a 5.56mm INSAS. DRDO was previously developing a 7.62x45 mm gun but the Indian Army was then interested in a 7.62x51 mm assault rifle. Indian Army now wants to procure an assault rifle with 500-m range with night vision capability. The Indian Army (IA) has finalised plans for acquisition of about 800,000 assault rifles. This includes acquisition of around 250,000 7.62x51 mm rifles from overseas manufacturers and the remaining 550,000-odd indigenous rifles for units, who are not in direct contact with enemy forces. One of the factors behind this compromise is the fact that the state-of-the-art assault rifles are expected to cost around `200,000 each in the global market. As Napoleon once said, “God is on the side of the battalions with the bigger cannon.” Two of the greatest lessons to be learnt from this is: one, never go to war without doing your homework; two, never underestimate your enemy and always have a gun in hand and adequate ammunition in your pocket. g

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GOVERNANCE scam policy

All that glitters isn’t Modi Harshad Mehta, CR Bhansali, Ketan Parekh and now Nirav Modi—they all had two things in common. One, their gluttonous appetite to make money oney and two, their ability, even willingness, to spot loopholes in n ploit overall financial system, and exploit them to the hilt. Ironically, they — were undone by ‘minor’ things— Mehta by his flashy ‘Lexus’, Parekh by his K-10 and Modi by a curious low-level banker by ALAM SRINIVAS

UCHCH din to gujaro Gujarat main! Only then can you visualise the entrepreneurial spirit of moneymaking adventures that grips the soul of a Gujarati. You will be able to listen to her dreams of wads of cash, not to show off, or spend in a wild spree of conspicuous consumption. The cash is not a means, but an end in itself. There is no cause and effect between the money earned, and the manner in which they live, think and behave. In fact, there is no effect at all. The two are related randomly. Obviously, when entrepreneurship and money-making go hand-in-hand few unscrupulous elements emerge at regular intervals. They can take various shapes,

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and acquire varying contours. It can come in a personality like Big Bull Harshad Mehta, under-the-radar CR Bhansali, Tech Bull Ketan Parekh, and Glittering Scamster Nirav Modi. They had several things in common. The first was their gluttonous appetite to make money.

Once you acquire wealth and power, you think of yourself as undefeatable and never figure out new forces that act against you, waiting for a ‘small’ excuse to bring you down and drag you into Earth’s underbelly

Money for the sake of money; it didn’t matter whether it was thousands of crore, tens of thousands, or hundreds of thousands. The second was their ability, even willingness, to spot loopholes in overall financial system, and exploit them to the hilt. Without fear or favour! Without any element of guilt! In their minds, the loopholes existed to be exploited, the system was theirs to bend, amend, and manipulate. Thanks to their never-ending energy and enthusiasm, they picked up willing partners and abettors within the system, who willingly introduced them to more loopholes and how to exploit them more efficiently. There was enough grease to keep the fraud machines in running order. Finally, they knew how to prey on other

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people’s greed—for money, material desires, lavishness, pomp and show, and entry into the social, eclectic circles of wealth and power. Mehta and Modi assiduously worked on the insatiable hunger of the bankers; Bhansali and Parekh on the voracious urges of the middle-class investors. Ironically, they were undone by ‘minor’ things—Mehta by his flashy ‘Lexus’, Modi by a curious low-level banker, and Parekh by his K-10. Not surprisingly, they never realised that there were larger forces at work against them. This is the way it begins and ends. Larger-than-life factors act in your favour. Once you acquire wealth and power, you think of yourself as undefeatable and never figure out new forces that act against you, waiting for a ‘small’ excuse to bring you down and drag you into Earth’s unliveable, burning, and volcanic underbelly that destroys you as unrecognisable dust. As they say, ashes to ashes, dust to dust, if greed doesn’t get you, hubris must. In April 1992, when Mehta’s fall began, his ‘Lexus’ was well-known. Very few people had it and a younger scion of a powerful business family was mightily impressed by it. When Mehta offered to gift it to him, it was taken as a slight. A mere stock exchange broker had the temerity to ‘gift’ something to the family which moved governments, as if the latter couldn’t afford it. When the same ‘Lexus’ was spotted outside the office of the State Bank of India, the rumour, which was in fact a fact, started that the Big Bull had a bullish problem. Mehta, as the tip to a senior journalist went, had to return `500-600 crore to India’s largest bank, and was finding it a bit difficult. This was the beginning of a series of crashes in the Big Bull’s china shop of stocks that had soared over the past couple of years. The tsunami sucked him up, as it became clear how he had used the banking sector’s lackadaisical and antiquated system to regularly borrow

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money to fuel his stock market ambitions. Now, everyone knew the ‘illegal’ source of his money that was used to control the stock exchanges.

HAIN Roop Bhansali—the word’ Chain’ in his name is relevant, ironical and apt—played with the hearts of 300,000 depositors, including bigwigs like SBI. He raised over `1,200 crore and his intentions were backed by real and apocryphal stories about his largesse and money-making abilities. But he was decimated by a ‘small’ fraud; he encashed fraudulent dividends worth a mere `59 crore. It is truly coincidental that Bhansali emerged, in 1991-93, from

Harshad Mehta

Ketan Parekh

When entrepreneurship and money-making go hand-in-hand few unscrupulous elements emerge at regular intervals. They can take various shapes and acquire varying contours. They can come in a personality like Big Bull Harshad Mehta, underthe-radar CR Bhansali, Tech Bull Ketan Parekh, and Glittering Scamster Nirav Modi

Mehta’s ashes. He offered high returns, an annual interest of 24 per cent to depositors, and maintained it till the ‘paper’ house came crashing down, almost with a whimper, and with little noise. Sadly, Parekh never learnt the key lessons from his predecessors. He kept a lowprofile until he “threw” a millennium bash that was attended by politicians, business magnates and film stars. In addition, there was this all-round jealousy about K-10, his favourite stocks that zoomed to stratospheric levels—Visualsoft from `625 a share to `8,448 and Sonata Software from `90 to `2,150. Parekh successfully dumped these stocks, at regular intervals, on Stateowned institutions, like the UTI. But when

CR Bhansali

an angry bear cartel successfully hammered K-10 in early 2001, the party ended with a bang, rather the arrest of the Big Bull-in-works. Aided by a mid-level banker, Modi drew limits through PNB guarantees from the foreign branches of other banks, without any or adequate collateral. Only when someone, out of sheer curiosity, decided to check the limits and state of collateral, did the cycle end. PNB was left with a bad taste of `11,000 crore. These diamonds were not forever. These diamonds turned out to be mere glittering glasses. The lights made them seem what they were not. But Modi, and his other family members escaped in the nick of time. Probably, they had an inkling of the future events. g

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STATE SCAN special report delhi

Uncivil ﬁght Nomad List, which claims to be the “largest crowd-sourced database of cities in the world” and a global guide for youthful millennial souls, ranks Delhi at 837, lower than Bareilly and Agra. This is in terms of lifestyle, infrastructure and societal attitudes. If it had considered governance as one of the points, or the only point, India’s Capital’s rank would have gone beyond the 1,000 mark. There is little doubt today that Delhi is a townplanning, governance and political disaster. In terms of administration, it operates like a threestar slum. For most experts, it’s a mystery that the administration runs and the city operates. Its air pollution is among the highest in the world. It was ranked 11th as per a WHO list based on particles’ pollution. But, on some days, especially during Diwali, the levels are the highest. Housing and basic services (water and sanitation) are in disarray, what to talk about premium services like wi-fi and mobile connections. Most visitors from any other Indian city, be it Mumbai, Bengaluru, Kolkata, Hyderabad and Chennai, end up hating the Capital for some reason or the other. Safety and security is pathetic, and incidents around the Holi festival proved it. However, the most damning aspects of Delhi are the political and administrative wars over the past almost three decades—legislature versus executive in the State; legislature (State) versus legislature (Centre); executive (State) versus legislature (Centre); and, executive (State) versus executive (Centre). Each one or most of these stakeholders are to be blamed for the administrative mess and governance muddle for the past few decades.

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Arvind Kejriwal

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Meeting of Civil Servants protesting against Kejriwal

In 1991-92, the city’s semi-State status resulted in a separate State Assembly, and sharing of powers between the two legislatures (State and Centre), executives (State and Centre) and legislature (State)-executive (State and Centre). The LG (Lieutenant Governor) is still the undisputed governance head of Delhi. This was duly decided by the Supreme Court, after the current AAP (Aam Admi Party) government decided to legally claim a stake over the decision-making powers. It’s the LG who writes the CR for the Chief Secretary and, hence, wields control over Delhi’s civil servants. The current LG, Anil Baijal, has to take over the reins, control them emphatically and holistically and ensure effective and efficient administrative machinery. Constitutionally and legally, he has the powers. He has to use them comprehensively to work in the interests of the citizens. For the ruling AAP regime, and specifically for Chief Minister Arvind Kejriwal, the problems are of a higher magnitude. A former civil servant, Kejriwal thinks that he understands the working of the Executive, but clearly he doesn’t, as recent events proved. He feels that his anarchist and radical attitude towards politics will work through ‘fear’, ‘media’, and ‘will of an individual’, but it hasn’t, and cannot. The fact is that the CM doesn’t run a democratic set-up, but more like a communist one, where the State doles out favour to a single-party cadre.

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Governance, in Kejriwal’s lingo and jargon, has to benefit his party members, volunteers and loyalists, both in cash and kind. His several wars with the civil servants are related to schemes, decisions and actions that stink of crony capitalism, crony socialism, and corrupt communism. A complete audit, through CAG or any other mechanism, can highlight this ‘grey’ aspect of AAP’s governance and government. Hence, Kejriwal needs to change radically and force his band of anarchists to transform themselves as democratic politicians. Although the State’s executive has rightfully taken up the cudgels against Delhi’s government after violence against Chief Secretary Anshu Prakash—and civil servants across India and across services have supported it—there is a need for a dialogue to evolve workable, practical solutions to run the city better. The legislature and executive cannot be at loggerheads; there has to be give-and-take. In this case, though, more ‘give’ by the State’s legislature. Today, it’s time for the Centre to take a final stand. Should this multi-dimensional sharing of powers be done away with it and should the Centre take complete control over the administrative destiny of the Capital? Should Delhi be given complete statehood, so that its governance can proceed along the lines of the established federal structure? Everybody in the system of governance has to realise that Delhi can no longer be taken for a ride. Alam Srinivas reports

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STATE SCAN special report delhi

HE ugly face-off and the violent fallout between the Civil Service and Delhi government remind us of EV Lucas’ short story, Face on the Wall. The plot isn’t important. Still, “There are three extraordinary, three most remarkable things” about the fiction. The first is the association between a face-like patch on a damp wall and the life and death of a person. Second is the link between the name of the living person and the place where the patch existed. Finally, as the narrator concludes, “The third extraordinary thing about the story is that I made it up about half an hour ago.” Similarly, there are three astonishing and exceptional things about the physical assault on Delhi’s Chief Secretary, Anshu Prakash, by Delhi’s elected MLAs (and exMLAs) of the ruling Aam Aadmi Party (AAP) in the presence of the Chief Minister, Arvind Kejriwal, and Deputy Chief Minister, Manish Sisodia. It doesn’t matter where the meeting was held, and at what time, or what its agenda was. It doesn’t matter who gets bail, or goes to jail for the criminal offences. For the issues involved are much bigger, larger than what mere voters can make sense of. Ever since Delhi became the National Capital Territory and a part-State with its legislative assembly, but power-sharing with the Centre and with Lieutenant Governor in command, the progress towards complete statehood went through a process of chaotic and confused patchwork on an ever-dampening political wall. It acquired a weird life-like reality of its own; in fact, there were several realities that played out on the ground. Tussles between the two legislatives, State versus Centre, and between the legislative and executive, State versus Civil Service, were common. These only deepened, and turned virulent and physical since AAP came to power. A former senior official in Delhi administration contends that this wasn’t

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Tussles between the two legislatives, State versus Centre, and between the legislative and executive, State versus Civil Service, have been common. These only deepened, and turned virulent and physical since AAP came to power the first time that AAP took on cudgels with its officials. Ashish Joshi, MemberSecretary (finance), Delhi Urban Shelter Improvement Board, was given the additional charge as Member-Secretary, Delhi Dialogue Commission (DDC), which was set up immediately after AAP government assumed office. He was asked to quit within a month by the Delhi government. The reasons differ. AAP’s Ashish Khaitan,

Vice-Chairman, DDC, was angry when Joshi invited applications for the appointment of volunteers on the official website. Khaitan, or rather AAP, had a different idea—under the veener of volunteers they wanted to engage their cadre as advisors on reportedly hefty pay. Khaitan, as alleged by Ashish, had asked to issue appointment letters, which he refused being devoid of any sanctity under any of the government rules or procedure. Some sane vioces had suggested to ask Ashish to seek premature repatriation to his own P&TFS cadre. Kejriwal allegedly wanted to get rid of the bureaucrat with a “scar and stigma”, inorder to send strong signal to the civil servants. After few days, Joshi sought revenge, and revealed many secrets, including those of Kejriwal’s Secretary which led to raids on the CM’s offices and a few arrests. Several corruption charges were levelled against Rajender Kumar,

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Civil Servants meeting Minister of States Jitendra Singh (left) and protesting against Kejriwal (below)

Kejriwal’s principal secretary. Next episode occurred when, KK Sharma, the then Chief Secretary, flew to USA on personal visit for a few days. Kejriwal and Co. wanted Sanjeev Sahay to become the acting Chief Secretary. However, the senior-most bureaucrat in Delhi at that time was Shakuntala Gamlin, who was duly given charge by Najeeb Jung, the then Lieutenant Governor of Delhi. The CM then fought with Jung and went to the extent of humiliating a lady officer, alleging in a public meeting of auto-rickshaw drivers that Gamlin ‘lobbied’ for power distribution companies whereas his own principal secretary, Rajender Kumar, earlier as power secretary had issued letter of comfort to the same power companies. Piqued by the temerity of the then principal secretary (services), Anindo Majumdar, who had circulated LG’s directions to all secretaries by-passing the CM, Kejriwal

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The game of AAP was to trap the Union Government by using the power of government machinery. A cabinet note was prepared to constitute DAW (Delhi Analysis Wing) on the pattern of RAW (Research and Analysis Wing) went to the extent of locking his office and appointed another officer as principal secretary (services).

HE game of AAP was to trap the Union Government by using the power of government machinery. A cabinet note was prepared to constitute DAW (Delhi Analysis Wing) on the pattern of RAW (Research and Analysis

Wing). It was also proposed to procure restricted sophisticated surveillance equipment, when Arun Baroka, the then Secretary PWD—holding additional charge of Department of Administrative Reforms—refused to implement the Machiavellian plan by signing the cabinet note. He was shown the door in the month of March when the services of PWD secretary were needed the most. These plans to trap the central government needed full control of the ACB of Delhi Police. The then DCP was reportedly dancing to their tunes and had even registered a FIR against Reliance. Alarmed by these developments, Mukesh Meena was appointed head of ACB by removing the incumbent. The then principal secretary Home, Dharam Pal, had issued the order and invited the wrath of Kejriwal in fashion similar to as in the case of earlier officers. The latest incidence involving

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STATE SCAN special report delhi

Rajendra Kumar: Kejriwal’s principal secy

Ashish Joshi: Asked to quit by AAP

Shakuntala Gamlin: Faced Kejriwal’s ire

manhandling of the Chief Secretary is the culmination of an accumulated and welldesigned strategy to bring the entire bureaucracy to its knees. Many civil servants complain that they were ‘deliberately’ not allowed to work. After the Chief Secretary episode, such complaints have flooded select Whatsapp groups. One of them, who is on temporary duty outside Delhi, wrote, “Since December 2017, I have been debarred from seeing files of my own office because I did not succumb to their (government’s) illegitimate demands. I was asked to remove important facts from the Cabinet note which I refused to do.” This was as candid as it can get.

allegedly twisted and massaged facts to suit their interests and garner votebanks. Take this example, which doesn’t deal directly with the civil services. One of them reminisced, “They (government) issued fee hike order of private schools for reasons best known to them. That order was issued after it was seen by the Chief Minister himself. “And then when public got agitated, they directly instructed the government counsel to admit to the high court that the fee hike order is being kept in abeyance. And then came a note with drafted adver-

tisement under signature of the Deputy CM stating that the high court has passed injunction order on the fee hike order.” For the civil servant concerned, the last wasn’t true. ********* In Reykjavik, Iceland (Europe), there is a statue which is faceless with slightly-distorted body, called “The Unknown Bureaucrat”. According to several Indian civil servants, who commented on Whatsapp groups, it is “humorous and provocative”, and a “perfect metaphor of how everyday life crushes down on them while at the same time depicting the narrative of the faceless official who is a cog in the wheel.” In some existential manner, the statue depicts the state of civil service vis-à-vis Delhi government. Former civil servants see the latest assault as an onslaught against democracy, and Indian Constitution. As a retired official says, “This is not about the Chief Secretary, egos of the various individuals involved, or the Indian Administrative Service. It is about upholding the traditions of governance, the Constitution and the democratic framework of the country. The violence against the highest official in Delhi cannot be treated as a mere criminal act.”

ANY of the officers are convinced that Kejriwal wants to make the established norms of the civil services irrelevant. They claim that precisely for this reason all departments have been flooded with AAP cadre in the guise of advisors, so called experts defying all established norms of governance within the framework of Constitution of India More importantly, civil servants maintain, as is reflected in their hundreds of text exchanges in private social media groups, that the Delhi government has

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There is a bid to deliberately construct a narrative and scenario to belittle the civil services. The events, as are indicative, are being propped up as a part of a sinister move. This explains why the central government hasn’t said much on the subject

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Ashish Khaitan: Behind Joshi’s ouster

Najeeb Jung: Former LG of Delhi

Anil Baijal: Current Delhi LG

Another one explained on social media, “CS (Chief Secretary) is the head of bureaucracy of the State and the assault on him is tantamount to attack on the executive branch. The bureaucracy works tirelessly, fearlessly and silently under the Constitution of India and any attack on it is going to erode the morale and ethics of the hard-working and sincere government servants.” Therefore, it is the deliberate erosion of one of the pillars of democracy. For most of the IAS and other civil services, which have together protested across the country, this wasn’t a one-off incident, this was the final straw, the final offensive against the civil servants over the past few decades. In Delhi, many officials have been shifted and shunted back to their parent cadres over the past four years. This was especially true at the levels of joint secretaries and additional secretaries. “The whole idea possibly is to make the civil services surrender and become subservient to the political machinery.” A few issues related to the CS-MLAs event are enough to hint at evidence behind such a thought. This is explained succinctly by a former civil servant. No CM ever calls the CS for a meeting at midnight unless, of course, the matter

concerns a “grave emergency”. Even if there is such a meeting, the CS is the head of a State’s civil service and, hence, MLAs and ex-MLAs are not invited to it. The norm is that the CS sits on a separate chair, next to the CM, and not between two MLAs. In this case, the former sat between two MLAs, one who came from a minority and the other a Dalit. Later, the political administration revealed that the issue under discussion related to ration cards. But the secretary (food and civil supplies), or the minister concerned were not present at the meet-

ing. “It was clearly an afterthought in a bid to misrepresent the issues to a possible gullible public,” says a former civil servant. In any case, the presence of nearly a dozen MLAs and ex-MLAs was not under any administrative protocol.

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For most of the IAS and other civil services, which have together protested across the country, this wasn’t a one-off incident, this was the final straw, the final offensive against the civil servants over the past few decades. In Delhi, many officials have been shifted and shunted

HE third extraordinary thing, and a crucial point of contention, is that there is a bid to deliberately construct a narrative and scenario to belittle the civil services. The events, as are indicative, are being propped up as a part of a sinister move. This explains why the central government hasn’t said much on the subject. The actions, or the lack of them, on the part of the central legislative are revealing in some senses. Several plots, mostly semi-fictional, and several narratives, mostly semi-truths, are being weaved in to prove certain falsehoods. It’s like the short story, Face on the Wall. The protagonist, as revealed in the end, made up the entire story of extraordinariness and remarkability. In a bid to prove that his piece was the best among the ones being discussed among friends, he invented the characters and events. The CM-CS spat and spatter is part of a fictional reality that’s’ being weaved by the vested interests. g

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GOVERNANCE

union budget tn pandey

Standard deduction, a mere delusion While the Finance Minister, on the one hand, has provided for standard deduction to salaried taxpayers, on the other hand, he has nullified it by withdrawing transport and medical expense allowance

N the budget speech, the Finance Minister, in para 151, under the caption ‘relief to salaried taxpayers’, has accepted the contribution of such persons to the income-tax revenues of the country saying: “There is a general perception in the society that individual business persons have better income as compared to salaried class. However, income-tax data analysis suggests that major portion of personal income-tax collection comes from the salaried class. For AY 2016-17, 1.89 crore salaried individuals have filed their returns and have paid total tax of `1.44 lakh crore, which works out to average tax payment of `76,306 per individual salaried taxpayer. As against this, 1.88 crore individual business taxpayers, including professionals, who filed their returns for the same AY, paid total tax of `48,000 crore, which works out to an average tax payment of `25,753 per individual business taxpayer”. After accepting the solid contribution of such taxpayers, who pay taxes honestly—more than businessmen and professionals—he made this declaration as a gesture of appreciation: “In order to provide relief to salaried taxpayers, I propose to allow a standard deduction of `40,000 in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses. However,

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the transport allowance at enhanced rate shall continue to be available to differently abled persons”.

Appraisal of the proposal Against the Standard Deduction (SD) of `40,000, the following reliefs, already being availed of, stand withdrawn: [i] Transport allowance : `19,200 [@ Rs.1,600 per month] [ii] Medical expenses reimbursement : `15,000 Total `34,200 The SD amount that remains after such deductions is `5,800 per annum only, which translates to a total tax saving of Rs.1,810 on tax payable in the highest slab (@30% + 4% cess tax). On lower slabs, the tax saving would be marginal—for 2.5 lakh to 5 lakh slab, `301.60; for `5 lakh

The Finance Minister, it seems, has forgotten to take notice of the rationale behind Standard Deduction… he has ignored the fact that tax under the Income Tax Act is levied on net income— not on gross receipts

to `10 lakh slab, `1,206.04. These savings in tax get further reduced by 1 per cent extra cess and hence, there seems to be no basis for Finance Minister highlighting this in his budget speech and claiming that he has given SD of `40,000 to salaried taxpayers.

Rationale for SD ignored while making announcement The Finance Minister, it seems, has forgotten to take notice of the rationale behind SD. While making the announcement that it is to be given in lieu of ‘employment-related expenses’ incurred by an employee, he has ignored the fact that tax under the Income Tax Act is levied on net income—not on gross receipts. Income under the IT Act is to be taxed under five heads: ■ salaries ■ house properties ■ business and profession ■ other sources ■ capital gains Income from business and profession is taxed u/s 28 of the Act on residue left after deducting the expenses incurred for earning it. Section 29 of the Act provides that ‘income referred to in section 28 shall be computed in accordance with the provisions contained in sections 30 to 43D of

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the Act’. These sections deal with various arious expenses deductible from total income— ome— rent, rates, taxes, repairs and insurance nce for buildings (Section 30), repairs and insurrniture ance of machinery, plant and furniture (Section 31), depreciation (Section on 32) and so on. U/s 37(1) of the Act, titled ce, ‘general expenses’ on conveyance, including on petrol, driver’s salary, ry, depreciation, interest on loan taken en for purchase of vehicles, etc., can be claimed by businessmen and professionals without any limit, provided it is reasonable. Sections 22 to 27, dealing with income from house properties, provide vide Section 24 that from the Annual Value (AV) of a property, the following deductions are permissible: ■ A sum equal to 30 per cent of ALV ■ Interest on borrowed capital taken in the context of acquiring, constructing, repairing, renewing a property. From incomes assessable under the head ‘other sources’ u/s 56, Section 57, gives a list of expenses which are deductible for arriving at the taxable amount. After mentioning some specific expenses, the section provides a general clause for deduction, saying that any other expenditure (except capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income, shall be deductible. Capital gains are taxable u/s 45. Section 48 states about the expenses that can be deducted in arriving at the taxable figure. Thus, income from ‘salaries’ is the only section where receipts are taxable on ‘gross’ basis. Such discrimination is perpetuated since AY 2005-06 when P Chidambaram was the Finance Minister. In fact, SD was conceived of as a simpler way to allow salary earners employment-related expenses, which were of varied nature, like on books, travel, training, etc.

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URING the period the books were checked by the AOs, their checking involved strenuous work with little revenue impact. Hence, it was decided that an adhoc amount, called SD, will be deductible on graduated basis with maximum fixed for various income slabs u/s 16(1) of the Act. The scheme was working well, but suddenly on untenable grounds, Chidambaram withdrew it and from the AY 2005-06 salaries are being taxed on gross basis without allowance of any expenditure relating to employment. The present Finance Minister in his previous budgets never looked at this problem and when, in the last full budget of the NDA Government, he thought of it, he has provided for it in the most unsatisfactory way, even without

Income from ‘salaries’ is the only section where receipts are taxable on ‘gross’ basis. Such discrimination is perpetuated since AY 2005-06 when P Chidambaram was the Finance Minister

aappreciating what expenses need tto be covered by it. It is undisputed that an employee has h to incur considerable expenditure on books, journals, computit eers, laptops, websites, internets, ttravels, training, etc., in present ttimes to continue in the employment. When businessmen and m professionals can claim deduction p for such expenses, there does not seem to be any ground why salary see earners should be denied such earn deduction; and when given, it ded should be nullified by adjusting against it expenditure which is allowed to other taxpayers, like expenses on conveyance and on health insurance premium (which is proposed to be raised from the present `30,000 to `50,000). Such discrimination in the context of income from salary is wholly unfair and unjustified.

Conclusion It is sad to see that the present Finance Minister perpetuated the injustice meted to salary earners by his predecessor— Chidambaram—for four years in his tenure. And when he felt the need for allowing SD to salaried taxpayers, he did it by giving by one hand and taking it back from another. Hence, my suggestion is that an amendment be moved to set right the injustice to 1.89 crore honest taxpayers, whose contribution to the tax kitty of the country per head is much more than businessmen and professionals, according to the Finance Minister’s own figures. The amount of deductible SD should be worked out on a graduated basis, more in the cases of higher groups and less in the cases of lesser income groups, with a cap of maximum amount, and not an adhoc figure in all cases as the quantum of expenditure will differ in such cases. g The writer is former Chairman, CBDT

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STATE SCAN mining goa

Caution! No mines ahead If the Goa government and the industry fail to convince the apex court through a review petition on the ban on mining in Goa beyond March 15, 2018, fate of Goa looks very grim

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by K SUBRAMANYAM

NDIA received a not so envious accolade last week when the Fraser Institute (one of world’s top think tanks) dropped the country from its list of top mining destinations, based on policy and social frameworks. Juxtapose the above with the developments in the mining sectors in the recent past. It is mired by social and judicial activism, resulting in not just economic loss to the institution of State, but also the degradation of whole socio-economic ecosystem. Of course there are cases where irregularities were found and it those should be addressed. The top Court of the country duly did it by ordering closure of mines in the beginning of this decade in Karnataka,

Odisha and Goa. However, never before the court put an absolute ban in mining activities. The Supreme Court was kind enough to allow mining to an extent where the social-economic ecosystem doesn’t crumble to an extent that an entire generation faces the danger of reaching a point from where no revival would be possible. A case in point is Goa, where the Supreme Court has ordered no extension of mining leases beyond March 15, 2018. The honourable Court probably only followed the rule book and reached to a conclusion where the arguments of the social activists prevailed over others. However, what is more appalling is the indifference shown by the State Government when stakes are so high for Goa. Take for example roughly about 70,000 people employed by the Goa mining industry (miner, truck operators, barge operators and many others). Considering a family of 4-5 people, the industry supports about 300,000 people— that makes about 20 per cent of Goa’s population of little over 1,450,000. At a time when opposition parties on the national level are training guns against Prime Minister Narendra Modi, alleging BJP government’s somewhat failure in creating new jobs, the numbers/table above should ring alarm bells. However, the Goa government looks to be busy highlighting petty issues rather than addressing this grave issue. Chief Minister Manohar Parrikar and his ministers seem to be busy either

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commenting on beer-drinking habits of girls or how north Indians are so called ‘scums’ for Goa. Anything on the mining crisis seems to being trivialised and the CM seems to be missing the forest for the woods. Goa government is only accounting for loss of `300-400 crore in royalty payments. However, the government is not accounting the loss of equity in socio-economic fabric that includes loss in employment, school dropouts, nourishment, cultural diversity and overall loss to local economy. Apart from direct loss of royalty to Goa, the overall loss is much bigger.

Collateral Damage ■ $1billion loss to the country (20 million tonnes of iron ore export @ $40-45/tonne)

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Roughly about 70,000 people are employed by the Goa mining industry… Considering a family consists of 4-5 people, the industry supports about 3 lakh people—about 20 per cent of Goa’s population of little over 14.5 lakh. At a time when opposition parties on the national level are training guns against Prime Minister Narendra Modi, alleging BJP government’s somewhat failure in creating new jobs, the numbers/table above should ring alarm bells People employed Number of people in mining supported by industry (direct/ people employed indirect)

Total number of people dependent on mining

Goa’s Percentage of population Goan people dependent on mining

~70,000

4-5/family

2.8-3.5 lakh

14.5 lakh

~20%

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STATE SCAN mining goa

■ `1,000 crore loss of income to State and Central Government (District Mineral Fund, VAT on diesel, GST related, etc.) ■ `1,000 crore loss on account of logistics infrastructure (over 12,000 trucks, nearly 150 barges, ancillary units.) ■ `1,200 crore loss of production costs @ `600/tonne (operators, escavators drilling) ■ Growing NPA loans given to truck operators and mining equipment ■ Half of `2.74 lakh kids may have to dropping out of school ■ Spurt in crime rate because of unemployment The bureaucracy and political class need to correct few things where they have probably erred earlier and because of which the Supreme Court probably ordered for non-extension of leases beyond March 15. First among those mistakes was a crucial section of MMDR Act (Mineral and Mining Act), which was probably not highlighted by the industry and the Goa government. Section 8A(6) introduced by

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Goa Judgment: A Further Blow to India’s Mining Image

HE Mining Lease Renewal Judgment by the Supreme Court on Goa will have far reaching impact not only on Goa, but on India’s image as an investment destination. When Piyush Goyal took charge of Ministry of Mines in July 2016, he announced to work towards raising the mines and minerals sector’s contribution to the country’s GDP by an additional 1 per cent in the next 2-3 years. But, on the contrary, the share has come down from 2.2 per cent to 2.1 per cen in FY17-18. According to the Fraser Institute Annual Survey of Mining Companies 2016 report, India stands in the bottom 10 countries (97th rank out of 104 countries) in terms of Investment Attractiveness Index along with the

countries like Afghanistan, Zimbabwe and Mozambique. China is ranked at 54, much ahead of India. One of the major reasons for such a poor score is perception about India’s policy factors that affect investment decisions, which include uncertainty concerning environmental regulations, regulatory duplication, the legal system and taxation regime, socio-economic and community development conditions, trade barriers, political stability, etc. These parameters are captured in the Policy Perception Index of the Survey in which India ranks 84th out of 104 countries.The international perception about India’s mining industry and its attractiveness is definitely going to be maligned further from the recent incidence of Goa.

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India might have fared nicely in terms of improvement in Ease of Doing Business —jumping 30 notches from 130thto 100th—however the volume of restrictions put by Indian legislative system on mining industry in the form of cap on iron mining (in Goa and Karnataka), high export duty, permission for export (of iron ore from Karnataka) are already sending negative message against the so-called Ease of Doing Business. The latest bout of order from the Supreme Court to wind up iron ore mining in Goa actually sent the chill through the spine of any entrepreneur. For the last five years, FDI inflows to India have grown every year, thanks to relentless effort of Prime Minister Narendra Modi to attract investment across the globe. FY 2016-17 witnessed the highest inflow of FDI of $43,478 million. However, mining sector could attract only $56 million in FY16-17. Mining in India is still carried out in dated method and it needs high-end technology and equipment to increase extraction, productivity, safety and surveillance. And for that, India badly needs FDI in mining sector. But, who will invest in mining business in India where the very ownership can be snatched away giving just one month’s notice? Mining is a capital intensive project. To meet the domestic demand for iron ore only, India will require around 437 mt of iron ore by 2030-31, as the National Steel Policy, 2017, which is roughly 240 mt more from current level. India needs around `36,000 crore investments to augment iron ore supply in order to meet such demand. While the country’s banking sector already reeling under the cloud of NPA,

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it’ll be really difficult for serious players to raise funds to develop mining assets under such negativity around mining sector. When India’s Ministry of Mines is redrafting National Mineral Policy and Ministry of Steel is aiming at having 300 mt steel capacity, such developments puts a big question mark on the authenticity of the numbers and plausibility of delivering those. Iron ore from Goa is mainly exported to countries like China and Japan, which requires enormous effort to establish confidence on timely and regular supply of material as the production and raw material procurement plan cannot be changed frequently. For Goan miners to re-establish that confidence following the three-yearlong mining ban is at stake now. Such incidents tarnish India’s image as a reliable supplier which may impact export potential of India. When India’s growth story is marred by shrinking job creation, a complete halt of mining in such a short notice can make thousands of people become jobless. Moreover, there will be huge amount of loss to the national exchequer in terms of royalty and other taxes while loss of forex earning is estimated to the tune of $600 million from Goa alone. This is high time that Indian government wakes up and realises that to make ‘Make in India’ happen, ‘Mine in India’ is a must. However, the way India’s mining sector is being intervened by the judicial system, days will not be far when India’s manufacturing industry will lose all its competitive advantage of secured supply of mineral.

The Goa government is only accounting for loss of `300-400 crore in royalty payments. However, it is not accounting for the loss of equity in socio-economic fabric that includes loss in employment, school dropouts, nourishment, cultural diversity and overall loss to local economy the 2015 amendment, ought to allow Goan miners to mine till March 2020 even if the second renewals (given in 2015) are bad.

HIS is very crucial as Section 8A is a transitional provision operating till March 31, 2020. Under this, miners in the rest of the country get the benefit but not Goa. It is appalling to see this approach from the executive and legislature, which in turns makes the judiciary look very tough. But such is the democratic flow chart that legal jurisprudence needs to be funneled through the legislature and executive. And where the legislature and executive fail to be on their mark, the outcome becomes like the one that has come out in the Fraser Institute report. If the government along with the industry fails to convince the apex court through a review petition, fate of Goa is looking very grim. The rankings in reports like the Fraser Institute report and political leadership may change every year or every few years, but if the building blocks of Goa—standing on two pillars of mining and tourism—fall than only God’s jurisprudence may save a large population of Goa. g

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FIRST STIRRINGS narendra kumar

Perennial Reformist Coming from an extremely poor family, Narendra Kumar excelled in academics and worked with the State Bank of India before entering civil services and excelling himself

ARENDRA Kumar was born on July 10, 1957, in Delhi’s Karol Bagh, in a family deep into poverty. His father Late Lila Ram Molparia, who had five daughters and three sons, was trying to find his moorings after migrating from Sindh, now in Pakistan, by setting up a small household unit for manufacturing ladies footwear. Kumar’s initial schooling took place in a municipal school. He might not have studied further despite securing first position in Class V board examination, for his father had fallen sick with TB. The whole family was struggling for survival. It was his municipal school teacher who came to his help and got him admitted to government-aided Ramjas Higher Secondary School No. 5. He finished his higher secondary with first position in the commerce stream. His extraordinary interest in economics and finance took him to Sriram College of Commerce for B.Com (Hons). A few months after joining the college, he cleared a walk-ininterview for a part time passbook writer’s job in Chandni Chowk branch of Bank of India. A couple of years later, he earned a full time clerk’s job with State Bank of India’s Parliament Street Branch. Later, he joined evening classes at the Delhi School of Economics for Master of Commerce. His studies and jobs ran simultaneously. In 1980, he appeared for three examinations—Probationary Officer exam in the SBI, exam for Assistant Administrative Officer in General Insurance Company

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and Staff Selection Commission exam for Customs and Central Excise Inspector— and got selected in all three. He preferred SBI and joined at its Satara branch in Mumbai circle. In July 1983, he lost his father and was transferred to Delhi regional office on compassionate grounds. Around the same time, in November, he got married to Veena, a graduate of Delhi University whose father was a first generation entrepreneur having set up a paints manufacturing unit in Mayapuri Industrial area in Delhi. But after putting in seven years of service in the SBI, he realized that promotion avenues for the POs were very few. Moreover, Veena had been cajoling him to go for Civil Services Exams. Therefore, in 1987, he appeared again in three examinations—for combined Civil Services conducted by the UPSC, for

In 1980, he appeared for three examinations— Probationary Officer exam in the SBI, exam for Assistant Administrative Officer in General Insurance Company and Staff Selection Commission exam for Customs and Central Excise Inspector—and got selected in all three

Industrial Finance Officer, Grade B in IDBI, and for Deputy Manager (Merchant Banking) in IFCI—and cleared all of them. He was already 30 and age wise this was his last chance for the UPSC exam and in his first attempt he secured 4rth rank in all-India general merit with highest marks in Economics, which he had opted against strong and persistent advice of his friends since he had done his Masters in Commerce from Delhi School of Economics. This was incredible for another reason too as he had lost his first child just two months before the examination. He credits his wife Veena and his reading habit for this success. “It was difficult to cope with the loss but my wife convinced me that only way to forget this tragedy was to get absorbed in studies. I studied for over 16 hours a day for 56 days. (Besides) I would read all finance newspapers and magazines,” Kumar recalls. He joined as an IAS probationer on August 25, 1988, at Lal Bahadur Shastri National Academy of Administration (LBSNAA). He remembers it like it was yesterday. “I joined on a Monday. My last day in the Bank was 23rd August, a halfday being a Saturday,” he recalls. He did his nine-month training in Nagaon district in Assam. In 1990, before he passed out of the LBSNAA, he had already improved his all-India rank from fourth to second. He says, since he had secured 4rth rank in all-India general merit, he ought to have been considered a general

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candidate and allotted to a general vacancy in AGMUT Cadre. He recalls, he was allotted to Assam-Meghalaya joint cadre and the general vacancy in AGMUT cadre was denied to him to accommodate the daughter of the then Defence Secretary. He made a number of representations to the Department of Personnel and Training (DoPT) but to no avail. Ultimately, he met the then MOS (P), P. Chidambaram, who got annoyed and asked him to go to court. While undergoing his district training in Nagaon, Kumar prepared his case and filed it in the Guwahati bench of

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Central Administrative Tribunal (CAT). Against a battery of senior counsels of the Governmentt of India he argued his case personally and won the case.

IS cadre was changed to AGMUT, but he was sent to Anini, a remote place in Arunachal Pradesh, near Indo-China border. He recalls, Anini in those days was not connected by road and had no electricity, television and not a single shop. In those days, wheat flour, rice, oil and kerosene would be airdropped. All other essential commodities were to

be brought from Dibrugarh. Considering that no immunisation facilities were available in Anini, he sent his wife and two kids, Bhuvan and Bhanushri, back to Delhi. He reached the place in a helicopter from Dibrugarh and bought all essentials from Dibrugarh before flying. The weather was not good and he had to wait for more than a week before the helicopter sortie could take place. During his stint, a 40-km road from Etalin to Anini was being constructed. Border Road Organisation (BRO) had finished formation cutting. Local people,

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FIRST STIRRINGS narendra kumar

including co-brother of an MP (Member of Parliament) and an ex MLA (Member of Legislative Assembly), in anticipation of development, started encroaching on huge tracts of land in Anini. The MP’s brother alone encroached on 10,000 square metres of land. Kumar removed the encroachments and allotted plots to 55 local landless tribal people. Around the same time, he also liberated some bonded labourers from interior villages. This enraged the duo. The two, he claims, engineered a bomb attack at circuit house on July 10, 1991. Luckily for him, the bomb fell in wet soil and caused no bodily harm either to him or his family members whom he had brought back to Anini in 1991. Kumar spent one year in Anini and in October 1991 got promoted to ADM and given independent charge of Naharlagun sub division. In 1992, the state government upgraded the sub division into a district and renamed it Papun Pare and he was appointed the first District Magistrate. Thus within three years of passing out from the academy, he got promoted to the DM’s post.

UT there was no earmarked house available for the DM. He got a 4500 sq. ft. bungalow constructed out of local fund despite stiff resistance from the then PWD minister in Arunachal Pradesh and the state PWD chief. In view of resistance from PWD he had to design the house himself. He floated a tender and got construction done under his personal supervision through L-1 private contractor in 7 months at a total cost of about `14 lakh. The state PWD later valued the building (excluding electrical fittings) at `35 lakh when it took it into its fold, for maintenance, recalls Kumar. In March 1994, he joined Government of NCT of Delhi as Joint Secretary (Services). He drafted a detailed policy on transfers and postings of DASS and DANICS cadres and sent it to the office

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of the then Chief Minister Madan Lal Khurana. But the file never returned. Apparently, the politicians did not wish to let go of their discretionary powers. In October 1995, he was posted in MCD (Municipal Corporation of Delhi). Within six months, he had three transfers due to action against unauthorised constructions. He decided to go back to Delhi Government. In his next posting as JS (Finance) with additional charge of Controller of Accounts and Director (Prohibition), he started pension adalats to solve long pending issues of retired government employees. He also started a campaign against alcoholism. As JS (Finance) he prepared a comprehensive approach paper for power sector reforms in 1996-97. But the proposal remained confined in the file, gathering dust. Subsequently, when he

became OSD (Officer on Special Duty) to Delhi Chief Minister, Sheila Dikshit in 1999, he convinced her about usefulness of these reforms. The CM successfully pushed through these reforms, ending the era of long power cuts. In May 2001, he was posted as Labour Commissioner. He remembers vividly that more than 3,000 files relating to labour disputes were lying on the floor in Commissioner’s office waiting for disposal. In addition about 4,000 awards were lying pending to be implemented. He claims, in a short period of seven months, he not only cleared this backlog but also initiated action for drafting a bill for Delhi Escalators & Lift Act and for setting up of Delhi Building and other Construction Workers Welfare Board. He recalls that in October 2001 he was given additional charge of Director,

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prevention of Food Adulteration. He saw a file seeking his approval for releasing a convicted person by compounding the case by accepting a fee of `25,000, as per directions of Justice RS Sodhi of the Delhi High Court. On being asked, the government counsel informed there were more than 50 such cases where High Court had entertained convicted persons’ petitions under Section 433 of the CrPC, which shocked him. He decided to file a SLP, by-passing the Law Department which too had been managed by these convicts earlier. SLP was admitted by the Supreme Court and he bunched all other cases with it. Later, he recalls, his stand was vindicated when he read in newspaper that strictures were reportedly passed against Justice Sodhi by the Supreme Court in 2002-03. On January 9, 2002, he was posted as

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Excise Commissioner. Within a month, a hooch tragedy occurred in the Capital. When he studied two old Enquiry Commissions reports on hooch tragedies which had occurred in 1973 and 1991, he found that the then sitting High Court Judge’s recommendations on improvement of distribution network of country liquor was yet to be acted upon. He says there were only about a dozen country liquor shops in Delhi then. He was instrumental in devising a policy which aimed at breaking the nexus between bootleggers, local police, excise officials and local politicians. He claims the then Delhi ministers in the Cabinet meeting opposed the policy as they wanted status quo to continue. Chief Minister, Mrs Dikshit, however overruled them and approved most of the proposals. This not only eliminated the threat of hooch tragedies, but also more than doubled the government revenues in the next couple of years. He recalls that on the issue of giving new excise licenses, he was pursuing the course of transparent draw of lots for private liquor shops while Minister Mahendra Singh Sathi had other ideas. He had a major confrontation with him on extension of existing wholesale licenses. He says that in 1995 the

Kumar spent one year in Anini and in October 1991 got promoted to ADM and given independent charge of Naharlagun sub division. In 1992, the state government upgraded the sub division into a district and renamed it Papun Pare and he was appointed the first District Magistrate

cabinet had taken a decision which granted Minister the licensing powers though as per law this power vested with his deputy i.e. Collector Excise. Kumar then restored licensing powers of Collector Excise by setting aside the cabinet’s decision through a speaking order. But Sathi had the last laugh and got him relieved for Pondicherry. In August 2002, he was appointed Secretary (Industries and Commerce) with additional charge of Environment and Forest and Pondicherry Pollution Control Committee. Here he invited the wrath of powers-that-be on construction of a fishing harbor on beachside at Karaikal. As Chairperson of Pondicherry Pollution Control Committee he put the decision on hold due to objections from tourism department since the fishing harbour would have destroyed tourism potential where huge amount had already been spent on infrastructure. Kumar claims the then Pondicherry Chief Secretary, Late Padmanabham, blamed him for the decision in a meeting with the Chief Minister Rangaswamy.

N August 2003, he joined the Government of India as Private Secretary to the then MOS (Telecom), Ashok Pradhan. NDA lost in General elections in 2004 and Kumar was repatriated to Delhi Government. Though he had got super-time scale, yet he was again posted to the junior post of Commissioner Labour and Employment. To his dismay, he found that all the initiatives taken in his earlier stint had been buried. He restarted work on Building and Other Construction Workers Act and got the Welfare Board set up. He finalised the draft bill for Delhi Escalators and Lift Act, which he had initiated earlier in 2001 in the wake of an accident at Palam Airport. He also put in place a detailed protocol for carrying out inspections in cases of labour disputes to end the unholy nexus between Labour

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FIRST STIRRINGS narendra kumar

Inspectors and outsider unions. He recalls that in the annual Labour Conference of the Ministry of Labour with trade unions he had suggested amendment in Contract Workers Act and Payment of Wages Act so that payments of wages were made to workers by contractors through cheque. His suggestion was turned down but he had his way by putting in a condition at the time of issuance of license to contractors that they will make payment by way of cheque. In January 2006, Kumar was posted as the Divisional Commissioner with additional charge of Development Commissioner, Delhi. Here he faced the burning issue of handing over of land of Nangal Devat village to GMR Ltd. for the greenfield development of new airport. About 325 dalit families were kept out of relocation scheme though enough land at Rangapuri had been acquired. R Narainaswamy, the then Chief Secretary, convened a meeting to get the village vacated. While senior officers including Police Commissioner, Municipal Commissioner were being directed, Kumar asked the Chief Secretary how

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He was instrumental in devising a policy which aimed at breaking the nexus between bootleggers, local police, excise officials and local politicians. He claims the then Delhi ministers in the Cabinet meeting opposed the policy as they wanted status quo to continue. Chief Minister, Mrs Dikshit, however overruled them and approved most of the proposals these dalits could be deprived of their habitational rights when they were neither encroachers nor squatters but original habitants of the village? A few months later he was transferred! When he asked Chief Minister she said Chief Secretary was not satisfied with his performance.

Kumar showed the Chief Minister a paper on which Narainaswamy himself had written “I appreciate the efforts being made by Div. Comm. to tone up the functioning of Deputy Commissioner’s offices.” On October 9, 2006, he joined his new office of Commissioner-cum-Secretary, Industries, Government of Delhi. In March 2011, Kumar was appointed administrator of Daman and Diu and Dadra and Nagar Haveli. Under him, the UT administration launched three water plants, constructed flyovers, bridges, medical colleges, launched a clean Daman and Diu campaign and opened the first government college in Silvassa (Dadra and Nagar Haveli). The clean Diu campaign won the first prize from the Union Tourism Ministry, Government of India, after he left the place.

UMAR spent over a year in National Highways Authority of India (NHAI) as Member (Administration). During this stint, he had the opportunity to look after highway projects of NCT of Delhi and Gujarat. He claims he solved problems being faced in the project of a new four-lane bridge over Narmada within three months and the work on the project started. Under his stewardship, toll revenue of the government tolled projects jumped up by 42 per cent due to plugging of loopholes in the tendering system. Gurgaon toll plaza on National Highway 8 was the cause of perennial jams and was removed during his tenure. Kumar retired as Financial Commissioner, Delhi, on July 31, 2017. He currently holds the Constitutional post of Election Commissioner for Union Territories of Andaman and Nicobar Islands, Lakshadweep, Dadra & Nagar Haveli and Daman & Diu. His daughter, Bhanushri, and son, Bhuvan, are pursuing PhD in Economics and Biotechnology, respectively, in America. g As told to Narendra Kaushik

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BOOK EXTRACT 2g saga unfolds a raja

The Cat is Out of the Bag Andimuthu Raja’s book on 2G scam is indeed a revelation. However, it’s an exposure in the form of omissions. It has indeed opened a new Pandora’s Box on the `176,000-crore scandal. But it also hides more than it discloses. The book, for instance, delves into details of the pulls and pressures exerted by COAI (controlled by Sunil Mittal), the powerful lobbying arm of the private cellular operators, to influence, twist and manipulate the country’s telecom policy. But it doesn’t describe the overarching role played by a Mumbai-based business house, which has played several hands to deal the right cards to decide the winners in the games to appoint key civil servants and ministers in the telecom ministry. A reader gets no idea of the roles played by crucial civil servants such as Nripendra Misra, former Telecom Secretary, Pulok Chatterjee and TK Nair, ex-officials in the PMO, and Omita Paul, who was the right hand of the former President, Pranab Mukherjee. But the book makes it clear, and is categorical, that the loud, vociferous drumming by Vinod Rai, the former CAG, who opened up the first Pandora’s Box on the 2G scam, was orchestrated, directed and choreographed by the allpowerful Cabinet Ministers, P Chidambaram (Finance and Home) and Mukherjee (Finance). Excerpts from book, 2G Saga Unfolds:

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N May 2007, upon the resignation of Dayanidhi Maran, I was asked by my party leadership to take charge of the Ministry of Communications and Information Technology (MoCIT). MoCIT comprises three major departments viz. Telecom, Information Technology and Department of Posts. Let me first highlight some of my initiatives and achievements in the Departments of Posts and Information Technology. Roughly 12,000 post-offices around the country were fully computerized. When Jyotiraditya Scindia joined the Ministry as Minister of State, we took efforts to identify and modernize more than 500 Post-offices to wear a new look and offer better services through computerization under the scheme “Project Arrow”. I also take pride in the fact that we released commemorative stamps honouring eminent personalities from several fields including the release in Chennai, on 17 September 2007 of stamps honouring Dr. C. Natesan, Dr. T.M. Nair and Sir Pitty Thiyagarayar, great heroes of the Dravidian Movement. It was at the behest of Kalaignar Karunanidhi (the then CM of Tamil Nadu) that Tamil was finally officially declared as a classical language by the Central Government even though Tamil had already been hailed by linguistic scholars as one of the great classical languages of the world, alongside Latin, Greek, Hebrew, Chinese and Sanskrit. A moment of great privilege and honour for me was to release a special commemorative stamp into the hands of Kalaignar at the Classical Tamil Conference

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in Coimbatore. I also dutifully led the initiative to introduce the National e-Governance Programme under the aegis of the Department of Information and Technology which was also inaugurated by Kalaignar at a function in Chennai. The first and foremost duty of a Minister is to familiarise himself with the administrative structure, policies and goals of the Ministry. Accordingly starting from the day after taking charge, I had the Ministry officials brief me in detail. My background in Maths, the Sciences and Law as well as my prior experience in several ministries reduced my startup time to function effectively in the Telecom Ministry. Additionally, Sreedhara, the Additional Secretary who was also the Member (Technology) in the ministry helped me extensively in learning curve. I spent a lot of time carefully studying the National Telecom Policy 1994 and 1999 (NTP-94, NTP-99), Unified Access Service License (UASL) Guidelines 2005, Indian Telegraph Act, Indian Wireless Telegraph Act, recommendations from Telecom Regulatory Authority of India (TRAI) and related Cabinet decisions. Very soon, Sreedhara was impressed with my ability to respond during Question Hour and would ask how I was managing to convey more information than had been provided to me by my staff. I explained to him that a Minister needs to know the objectives behind the Ministry’s charter and policies; only then is it possible to extrapolate from provided information, take a holistic approach and make sensible decisions. I established strategic

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BOOK EXTRACT 2g saga unfolds a raja

goals for the ministry to empower people in the lowest rungs of to roads or railway lines that should be broadly available to the our socio-economic ladder with Telecom and IT facilities akin common man. The fundamental flaw in all evaluations of the 2G to what is available in developed countries. I announced this in saga is omission of this principle. The ability to interconnect our country’s vast population is essential for enriching the quality media interviews, which were widely published in newspapers. The Department of Telecommunications (DoT) under the of life and for enabling social inclusion of the poorer sections MoCIT, is the custodian of wireless spectrum. Spectrum is a of our society. If the government focused solely on profit in this Radio Frequency or Electronic Magnetic Wave band, used as context, then those purely financial gains would come at a heavy the medium for specifically manufactured electronic devices to societal cost. implement wireless communication. It is a finite natural resource that cannot be increased. However, its usage does not cause it to HE licensing framework has been an integral part of India’s be depleted or exhausted; hence there is no extinction factor as in telecommunication law. The Indian Telegraph Act of 1885 the case of other natural resources like Iron, Petroleum, Coal, etc. empowers the government to grant license to any person The International Telecom Union (ITU) has the responsibility to establish, maintain or use a telegraph. However, until the to classify the bands of wireless spectrum for various types of early 1990s the government maintained complete monopoly usage, by ascertaining the technology that would best suit the in the provision of telecom facilities. In 1991, the government band. For instance, the police department of every state is first allowed private telecom companies to manufacture telecom specifically assigned 700 MHz spectrum. switches for telephone exchanges and Accordingly, wireless equipment for then in 1992 DoT invited bids for licenses In 2001, licenses for basic for cellular service across the four metros Wireless Radio, Cell Phones, TV and Radar devices are also manufactured telephone services using — Bombay, Delhi, Calcutta and Madras. exclusively for relevant spectrum band In 1994, a broader perspective was Wireless in Local Loop specification. The Wireless Planning and adopted in order to increase teledensity (WLL) were issued — Coordination (WPC) Wing of the DoT by expanding private sector participation. notably, this was the first The National Telecom Policy (NTP 1994) was created in 1952 based on the Indian Wireless Telegraph Act 1933. WPC is time that first-come-first- was thus established detailing criteria for the national nodal radio regulatory private sector participation as well as a served (FCFS) process of agency of the government responsible roadmap for the future of Indian telecom issuing licenses was for planning, regulating and managing with key objectives like making telephone the limited sources of Radio Frequency adopted. Additionally, bids connections available on demand, the (RF) transmission and associated satellite for a fourth cellular operator provision of world-class services at resources. All information about the ...were invited in Jan 2001 reasonable prices, wider geographic spectrum classified in a particular band penetration and adoption of telecom and the extent of allocation to service facilities, etc. A very significant aspect providers or to the Defence department is governed by WPC. was the inclusion of foreign direct investments (FDI) — in fact 2G alludes to second-generation wireless telephone technology this was a mandatory condition for a corporation’s eligibility which came into commercial use from 1991. Radio signals on 2G — as it was obvious that the Indian telecom operators did not networks are digital compared to analogue in all prior networks. yet possess the requisite technical or financial wherewithal. 2G’s primary benefits are digital encryption of communication; This drove the need for a regulatory body and accordingly significantly higher efficiency of spectrum utilization enabling Telecom Regulatory Authority of India (TRAI) was established greater penetration; and provision for data services like SMS, on 20 February 1997 by an act of parliament. TRAI’s objective MMS and internet. Although 3G and 4G have also become is to implement a transparent policy environment that would available now, 2G networks — along with related advancements foster quick and sustainable growth of the telecom sector. TRAI 2.5G (GPRS) and 2.75G (EDGE) — are still in use in most parts regularly issues orders and recommendations on subjects like of the world even as some developed countries are in the process tariff, interconnections, “Direct to Home” (DTH) services of shutting down 2G and repurposing that spectrum. Clearly and mobile number portability. In 2000, the Telecom Disputes in our nation’s scenario where connectivity for the masses — Settlement Appellate Tribunal (TDSAT) was constituted through especially in the rural hinterland — has been so lagging, 2G an amendment of the 1997 TRAI Act. The primary objective of must be considered a basic infrastructural requirement akin TDSAT is to strengthen the regulatory framework by freeing

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TRAI of adjudicatory and dispute settlement functions. Any dispute involving parties like licensor, licensee, service provider and consumers are arbitrated and resolved by TDSAT. In 1992, two operators were licensed for each of the four metros. In 1995, 21 regions divided into 3 circles (A, B, C) on the basis of revenue generation potential were defined for licensing outside of the 4 metros: Metros: Delhi, Mumbai, Kolkata, Chennai Circle A: Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra Circle B: Haryana, Punjab, Kerala, Rajasthan, West Bengal, Uttar Pradesh (West), Madhya Pradesh, Uttar Pradesh (East) Circle C: Bihar, Northeast, Assam, Orissa, Himachal Pradesh, Jammu and Kashmir Based on an auction, two licenses were awarded in each circle in order to avoid monopoly of any single service provider in a circle. Fostering healthy competition in order to deliver better value to the public has always remained a guiding principle in India’s Telecom policy framework. A total of 34 licenses were issued for a ten-year term. The licensees had to pay an annual license fee which was agreed during the auction. There was no spectrum allocation built-in, hence the government levied additional charges for spectrum usage. The tariffs fixed by DoT were the same as for the metro licenses which at that time of low teledensity especially in the non-metro circles were bound to be untenable. Consequently, by 1998, six of the service providers defaulted on their service fee obligations. TRAI studied this in 1999 and reported the following reasons for the financial failure of the telecom operators: t )FBWZ DBQJUBM JOWFTUNFOU GPS TFUUJOH VQ JOGSBTUSVDUVSF XIJDI remained underutilized t "DUVBM OVNCFS PG TVCTDSJCFST XBT NVDI MPXFS UIBO QSPKFDUFE t 5IF BWFSBHF SFWFOVF QFS VTFS "316 XBT MPXFS UIBO UIF operator’s costs t 4JHOJGJDBOU GJOBODFT PG UIF PQFSBUPST XFSF OFFEFE UP QBZ UIF license fees and operational charges

HIS financial failure and TRAI’s findings directly led to the formulation of NTP-99 which allowed migration of the licensees from a Fixed License Fee Regime to a Revenue Arrangement Scheme (with effect from 1 August 1999). Under the new scheme the license fee was a proportional tax (set at 15%) on the service provider’s revenue. The operators also had to pay a spectrum usage charge. Alongside this, the government introduced itself as a third operator in each circle. In 2001, licenses for basic telephone services using Wireless in Local Loop (WLL) were issued — notably, this was the first time that first-come-first-served (FCFS) process of issuing licenses

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BOOK REVIEW

2G SAGA UNFOLDS By A RAJA Institutional governance is the bedrock of Indian policy making and enforcement under our fundamental constitutional tenet of ‘we the people’. Such governance relies on harmonious administrative protocols with amicable adherence amongst all the stake-holders. The 2G issue, as it was investigated, audited, charged and adjudicated by the various statutory and constitutional bodies (CVC, CAG, CBI and the Supreme Court) flouted these precepts of harmony and amicableness. The aberrant process resulted in the violation not only of democratic values but also the rights and reputations of various individuals thus tarnishing our country’s image on the international stage. It was an attempt to allege guilt of ‘corruption’ as defined by Transparency International (TI) i.e. “Manipulation of policies in the allocation of resources.” Yet, A Raja had established that their findings and observations were diametrically opposite to the decisions of the Cabinet, Parliament, Planning Commission and Telecom Regulator (TRAI). The purpose of this book is to caution the masses that personal motivations, institutional incompetency, misunderstanding or misguidance should not hurriedly endorsed without diligent inspection. Government bodies are accountable to—and empowered by the people—and in the end “all power is trust.” The author demonstrates here that the ‘2G scam’ is a shameful blemish on the sanctity of the administrative system of our country. NARENDRA KUMAR

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BOOK EXTRACT 2g saga unfolds a raja

was adopted. Additionally, bids for a fourth cellular operator— beyond the three already in play—were invited in Jan 2001. The auction carried out in 3 stages issued licenses at 17% fee on revenue in addition to an entry fee. In September 2003, PM Atal Bihari Vajpayee constituted an empowered group of ministers (GoM) on telecom issues. Their recommendations were approved by the union cabinet in October 2003 and became an addendum to NTP-99. This led to the introduction of the Unified Access Service Licensing (UASL) regime. UASL “permitted an access service provider to offer both fixed and/or mobile services under the same license, using any technology.” A GoM was also constituted to recommend an efficient pricing formula for spectrum and for the freeing up of spectrum by the ministry of defence. The country was divided into 23 service areas, 19 telecom circles and 4 metro circles under UASL. The license fees were two-fold: migration fee, equal to the amount paid by the fourth licensee in 2001, for conversion from the legacy Cellular Mobile Telephone Service (CMTS) license to UASL; annual usage fee, 10%, 8% and 6% of adjusted gross revenue for circles A, B and C, respectively. A telecom licensee is eligible for 4.4 MHz of spectrum. When Pramod Mahajan was Telecom Minister, this allocation was raised to 6.2 MHz in 2001, the base allocation till the end of my tenure. In spite of all these attempts to fillip the Telecom Sector, at

that time in 2007 when I stepped in, the overall mobile phone consumer base was just 23.4 crores; the call rate was almost Z1 per minute; and there were a mere 7 telecom providers in the country. I recalled the abysmal state of telecommunication in and around my native place and was convinced that although progress had been made and market-friendly policy changes had been rolled-out there was a long way to go before the common man in India had viable and reliable means of being connected. I decided to grab the bull by the horns and promptly convened a review meeting of the Telecom Department with the aim of getting to know the number of service providers/operators using 2G Technology and the quantum of spectrum allotted to them in proportion to the total spectrum available. The ministry officials probably did not expect this level of investigation from me so quickly and I could sense their hesitation and perplexity in responding to my queries. I was very disappointed with their replies. In all my prior roles, I had no need to compete with anyone personally in order to deliver on my duties and initiatives. However, in the DoT my efforts were met with resistance and animosity from some sections. It was becoming clear to me, while the general public, government institutions and the Judiciary remained oblivious, that resources under the purview of the Telecom Ministry were being selectively almost gifted away and that there appeared to be a nexus involving 4 or 5 Telecom companies. These Telco’s lobbied and influenced ministry officials to render policy decisions in their favour, get requisite government approvals and consequently reap huge profits. Even though there was no clause in the existing license agreements mandating increase of spectrum allocation from the base 4.4 MHz, the allotment was raised by 1.8 MHz in the first stage (in 2001) and then gradually again by 2 MHz - that too without any upfront fees — on the basis of subscriber volume (subscriber base) until it reached 10-12 MHz in most cases.

HE exact quantum of 2G spectrum remaining unallocated was never disclosed in the past by the DoT officials. The reason cited for this was that the availability of spectrum can be identified periodically only through extensive coordination — between various wings of the DoT including the Telecom Engineering Centre (TEC) —and collating the fragmented information. Instead of taking up this activity at one go, the officers learnt the trick of ‘discovering’ unallocated spectrum through ‘coordination’ only at times when some existing provider expressed the need for additional spectrum. I was amazed that my predecessors in the ministry permitted this. This tracking and documentation of available spectrum is not a big technical or logistical challenge that would take years to complete. Once I issued stern instructions to the staff,

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information of the availability of around All those financial wizards whereas TATA and Reliance were with CDMA (Code Division 35-40 MHz of unallocated spectrum who made so much noise of operating Multiple Access) technology. Globally, came to the open in Nov 2007. All those financial wizards who made so much the (apparently) big loss to GSM is more prevalent than CDMA. GSM originated from an industry noise of the (apparently) big loss to the the government in the government in the spectrum allocation, spectrum allocation, never consortium whereas CDMA technology is owned by chipmaker Qualcomm. never bothered to take account of the bothered to take account of largely This made it less expensive for third real loss — not only financial but also in the real loss — not only parties to build GSM equipment. GSM terms of service penetration (teledensity) — when so much available spectrum was financial but also in terms of adoption spread rapidly also because in 1987, Europe mandated the technology being kept hidden. In fact, on 11 January service penetration by law. Since 2006 itself, Reliance’s Anil 2006, then Telecom Minister Dayanidhi (teledensity) — when so Ambani was seeking permission for GSM Maran had observed in a letter to the much available spectrum in addition to CDMA. The existing GSM PM: “The one major bottleneck is the providers including Airtel’s Sunil Mittal availability, not allocation of spectrum was being kept hidden. were indirectly but belligerently intent on for Telecommunication services and disallowing this demand from the CDMA particularly thereafter vacation of Spectrum occupied by the Defence Services. It is therefore operators. The GSM operators ganged up to form COAI (Cellular necessary that the proposed GoM should focus its attention Operators Association of India) while the CDMA operators formed on this aspect of vacation of spectrum by the Defence.” This AUSPI (Association of Unified Telecom Service Providers of shows that information about the availability of spectrum might India) in order to lobby their respective causes. The members of have been hidden even from the Telecom Minister at that time COAI had the upper hand and the commercial grip because of forcing him to seek this intervention for repurposing spectrum their existing shared infrastructure. The business-war between these two groups had been a chronic administrative headache from the defence department. Telecom companies like Airtel, Aircel, Vodafone, Idea were for the Telecom Ministry. On 26 April 2007 (prior to my taking charge as Telecom operating with GSM (Global System for Mobiles) technology

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BOOK EXTRACT 2g saga unfolds a raja

Minister on 16 May) a letter with a reference note was sent to TRAI requesting an updated set of holistic recommendations for wireless services. All the relevant ministry officials had approved this note of the SO (AS-II) which clearly stated, “Further processing and examination of the existing UASL applications/ new UASL applications received in future will be carried out after receipt of the recommendation of TRAI.” I signed in that file eventually but had not been involved in its initiation. Consequently, in August 2007 TRAI released its 200-page report of recommendations which was published on the Telecom Ministry’s website on the 29th of that month. In his preface to this report Nripendra Mishra Chairman of TRAI quoted, “It had become essential to seriously consider the issues like ‘who should be the best judge to determine the spectrum price?’ and `what is the most transparent mode of spectrum allocation?’ The Authority while making recommendations has made attempts to introduce market forces to maximum in the decision making. As a Regulator, we are concerned with maximising the welfare of the consumers, healthy growth of Telecom and financial viability of Telecom companies.” The other core facet of TRAI’s recommendation related to the need for a `level playing field’ as highlighted in the preface, “It is obvious that a lot of developments have already taken place in the sector and the Authority while accepting the legacy and level playing field has to fall back on modular building approach.” The report further stated, “In a

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developing economy, the regulator has not only to address the social good or consumer interests but also has to play a catalytic role in development.” The key recommendations made were: t 5IFSF TIPVME CF OP DBQ PO UIF OVNCFS PG BDDFTT QSPWJEFST JO any service area t &YJTUJOH 6"4 MJDFOTFFT NBZ CF QFSNJUUFE UP FYQBOE UIFJS existing networks by using alternate wireless technology i.e. a UAS licensee who is presently using GSM for wireless access may be permitted to use CDMA and vice-versa t 4QFDUSVN GPS UIF BMUFSOBUF UFDIOPMPHZ $%." PS (4. BT the case may be) shall be allocated subject to availability after payment of prescribed fee t #4/- BOE .5/- CFJOH JODVNCFOU PQFSBUPST TIBMM CF permitted usage of alternative technology and allocated the requisite spectrum without paying the prescribed fee t 'PS UIF QVSQPTF PG QBZNFOU PG MJDFOTF GFF BOE TQFDUSVN charges, the stream wise revenue of different technologies shall be considered t &OIBODFE 4VCTDSJCFS MJOLFE DSJUFSJB GPS TQFDUSVN BMMPDBUJPO

HESE recommendations were discussed and unanimously accepted by the Telecom Commission headed by the Telecom Secretary. Nripendra Mishra had also his considerable experience as Telecom Secretary in DoT during the period of 2004-2006. The consultation paper floated by him

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earlier as Chairman, TRAI to finalise the recommendations and subsequent vast deliberations thereon with various stakeholders were commendable both technically and scientifically. Inspite of the political change in the entity of Central Government, he has been accommodated as the Principal Secretary to the PM Narendra Modi. However, TRAI’s recommended figures were not agreeable to COAL. They argued that the technical factors and data that TRAI had relied on were faulty and partisan in nature, resulting in very high subscriber base criteria which would lead to losses for them. COAI’s other major bugbear was dual technology licensing which the government had enabled through UASL. In 2006, when Dayanidhi Maran was the Telecom Minister, the Reliance Group, which already had CDMA, applied for permission to operate GSM, and their application was considered for the grant of consent and allotment of GSM spectrum. Legally, once UASL had been implemented, there should have been no impediment to a licensee for operating these two technologies simultaneously. However, possibly in order to have a statutory safeguard, Dayanidhi Maran referred this to TRAI for their recommendation. TRAI in their latest recommendation had re-affirmed that technological neutrality is inherent in UASL and accepted granting the permission to CDMA operators for GSM also, upon collection of an additional entry fee of Z1650 crore (the prevailing fee for a new licensee). However, COAL remained firm that dual technology should not be permitted. They had apprehensions about the competition and threat to their business as existing CDMA operators (like Reliance or TATA) could start their (GSM) operation immediately upon being allotted the spectrum since they had adequate infrastructure and technical facilities all across the country. So, they tried by all means to keep the government policy favourable to them and avoid the threat of competition even though it would quite naturally have benefited the public. After posting of the TRAI report on the government websites, officials of different wings of the Telecom Ministry separately started their proceedings for submission to the Telecom Commission. Alongside this process, debates were raging in the media and a number of letters were being received in this context, addressed to me or to the PM. Some letters were from COAL and AUSPI but additionally others were from MPs and leaders like Chandrababu Naidu and Amar Singh. Their views either supported or opposed one or the other between the COAL and the AUSPI. Without malice towards the MPs/leaders, I must opine that the content and motivation for these letters was provided to them by representative of one or more of the constituent telecom companies. The heads of these companies also started calling on me which started getting prominent mention in the news. Anil Ambani and Ratan Tata of AUSPI as

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well as T.V. Ramachandran and Sunil Mittal the key executives at COAL came to meet me to discuss plans for the future of Wireless Telecom in India.

Karthi Chidambaram who is an acquaintance called me up one day during the middle of September 2007 and told me that his friend Sunil Mittal (of Airtel) urgently wanted to speak with me that very day, since he was going abroad later in the night. I was having dinner at ‘Tamil Nadu House’ in Delhi, with a senior Minister of the DMK who was on an official visit when the call came. The social and industry standing of Mittal, the substantial share of COAI in the Telecom sector and Karthi Chidambaram’s recommendation made me agree to meet him at 10:30 pm in my camp office. At this meeting, Mittal said that the TRAI recommendations did not give adequate protection to foreign investors who had invested in their Indian partner companies using GSM and also did not ensure provision of additional spectrum for their future expansion. He argued that foreign companies had invested several thousand crores in their Indian telecom partners with an eye on future returns and that allowing new players to enter the scene would be detrimental to them and the overall health of the telecom sector in India. He complained that TRAI’s recommendations were against the growth of the GSM providers but were in favour of the CDMA providers. He stated that TRAI had not weighed appropriate scientific and technological considerations while recommending the ‘subscriber linked criteria’ for additional spectrum allocation. He boasted of his position of influence in the telecom sector as also his personal political clout. He claimed that COAI was used for very cordial relations with all my predecessors in the ministry and he expected “similar cooperation” from me as well which seemed to me extreme my contemptuous and cynical. I urged him to take a broader perspective saying, “At the same time when considering your contribution, investment, and the future interest of the Indian telecom sector, the Government cannot ignore the recommendations of TRAI. So, please extend your cooperation to the Government to resolve the situation amicably and ensure a level playing field.” Refferring repeatedly to his business acumen, considerable resources and political influence, Mittal kept trying to emphasise his apprehension that the ministry may yield to his competitors and wrongly dilute his position even if the move had the premise of being legally and procedurally valid. He was perhaps attempting to alert me from being misled and convinced by others, or perhaps he was attempting to coax me before someone else could. I was keen on ensuring an environment conducive to the amicable enforcement of TRAI’s recommendations, so I continued the dialogue. “Do you fear that somebody will buy

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BOOK EXTRACT 2g saga unfolds a raja

At this point, Farid whom I had met a couple of times along me? Let me assure you that there might be a price for me but I don’t think there is anybody in this world rich enough to pay with Sam Pitroda regarding some new technology, requested me it.” This got Mittal on the defensive and he denied any intention to grant yet another appointment to Sunil Mittal and his brother of implying that. He reiterated his comment about cordial Rajan Mittal as they wanted to meet me to find some amicable relationship with the ministry and concluded that, “they were solution. I was puzzled by what their reason for meeting me prepared for any kind of cordial relationship.” The underlying now might be after having already filed a case with TDSAT. allusion seemed easy to comprehend and I made it clear to Mittal However, in order to try and make some progress, I agreed to that I was not for such one-sided cordiality when what was meet with them. Even during that meeting which took place in needed was an objective and neutral atmosphere for the good the end of October 2007, Sunil Mittal was insistent that TRAI’s of the nation. He took leave saying, “Let me come back to you recommendations must be scaled back — in fact he demanded after discussing with the other companies. Please do not take any the subscriber base criteria should be halved — and that dual decision until then. Let me meet you after my return from my (GSM and CDMA) technology should not be permitted. I: “How can I as a Minister reject a report of TRAI based on foreign tour.” I agreed to this. Contrary to my expectation and his earlier assurance Mittal did not follow-through on his promise scientific facts without any basis? Either the recommendations of a subsequent meeting. I briefed the PM about this meeting must be sent back to the Authority or must be reviewed through with Mittal as well as Karthi Chidambaram’s role in arranging due process. Then the base criteria could be reduced if it is deemed viable. Since the recommendations have it and ensured that he understood the already been accepted by the Department tenor of this key stake holder and industry leader. In the same month, Anil Ambani I admired the confidence — of Telecom, there is nothing I can do now.” Mittal: “In that case, do not allot any of Reliance also met with me to speak on even though it had shades spectrum or issue new license till the case behalf of AUSPI. He sought permission of smug conceit — of Sunil is resolved.” for GSM in addition to CDMA and Mittal who probably I: “When there is no stay order in the placed AUSPI’s point of view that the believed that the Telecom case how can I stop allocation?” members of COAI should not continue to Mittal: “Is it not reason enough that the be granted additional spectrum beyond Sector’s governing bodies case is pending?” 4.4 MHz at no cost. This irreconcilable were obliged to pander to I emphasised: “Even after giving difference between the two groups of an industry player of his additional spectrum to all your Telecom providers was well known to the PM and also to senior ministers like stature. I was also thinking companies (COAT), considerable amount Pranab Mukherjee, H.R. Bhardwaj and of his breach of trust given of Spectrum has been identified for new P. Chidambaram. I mention these names his earlier assurance to me providers at this point. So, it is just not possible to suspend all this at this stage.” specifically because they had a role to play of a follow-up meeting. I admired the confidence — even in the 2G saga. Anil Ambani and Ratan though it had shades of smug conceit — Tata had further meetings with me along with executives of their companies to discuss the way forward. of Sunil Mittal who probably believed that the Telecom Sector’s They did not oppose the TRAI report or push any alternative governing bodies were obliged to pander to an industry player suggestions but only stressed that the recommendations should of his stature. I was also thinking of his breach of trust given his not be diluted. Since the Telecom Ministry had already accepted earlier assurance to me of a follow-up meeting. TRAI’s recommendations on subscriber base criteria, I went ahead and gave my approval to it on 18 October 2007 — which was HE conversation was not heading in the direction of also reported in the media. To my disappointment, COAT, which compromise or agreement. T.V. Ramachandran, one of was determined to stall the course of these recommendations, the Executive Officers of COAL had met with me and our wrote more than 10 letters of grievance to the Telecom Ministry. department officials on several occasions before and also after Then on 23 October 2007 they filed a case with TDSAT without my meeting with the Mittal’s. In all these meetings held either any advance notice or specific discussion with my office in spite with COAL or with Sunil Mittal — who in anyway controlled of all the earlier assurances of attempting to work collaboratively. COAL — their stance was either to force a change in the policy The media got more fodder for sensationalism in the pre-existing decisions of the government or to put them on hold. At no context of the animosity between COAT and AUSPI. point, were they willing to concede anything or scale back their

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demands. This sort of bullying to try to control the workings of the government was not acceptable to me. I murmered a couplete in Thirukural “Azhukkaaru, avaa, veguli, innachchol - naankum Izhukkaa iyandrathu aram” “Envy, greed, wrath and uncouth words These four avoided is virtue” Since the Ministry had approved the TRAI recommendations, the pending application received from Reliance seeking additional Spectrum in GSM was accepted. When Reliance immediately paid the 1650 crore fee, they earned the right to get an allotment of additional 4.4 MHz spectrum. On 19 October 2007, a Press release was issued explaining in detail the Government’s decision to grant permission for dual technology. COAL put forth its arguments to TDSAT challenging this decision and claiming that the approval for dual technology was legally flawed, “In order to benefit the said one set of operators TRAI admittedly went beyond its terms and references and suo motu and without consultations made some very arbitrary and ad hoc recommendations ... DoT thus has acted with undue and seemly haste in a bid to advantaging one set of operators over the others, thus denying equal opportunity and level playing field to GSM operators.” Clearly the corporate war that I alluded to earlier is not my exaggeration but is something that COAI referenced openly. As I have already explained, the Telecom landscape in India has attempted to take major strides since the early 1990s in order to bridge the gap with the developed world. Needless to say, every stakeholder in the ecosystem has had to learn and adjust according to circumstances. Differences of opinion and legal disputes have plagued the course even as the technologies, business/operating models, government policies, regulatory framework and official procedures have matured. For example, even at the time of the first telecom bids in 1992 the rejected bidders had appealed to the Courts for what they claimed was an unclear and arbitrary selection process. This litigation (although rejected by the Supreme Court) delayed the rollout by 3 years. In the following auction, a single provider had the highest bid in 9 circles and the government was forced to intervene by making the provider choose 3 circles as it was certain that the company would be hard pressed to shore up the finances to pay license fees for 9 circles. Similarly, there have been instances when the government has taken steps to either reach an amicable settlement with petitioners or convinced them to withdraw their cases. In the current instance of COAI’s TDSAT appeal, there was so much obstinacy and hype that a compromise solution became infeasible. When COAI’s case before TDSAT came up for hearing on 12 November 2007, Vahanvati the Solicitor

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General appearing on behalf of the government raised objection to the granting of a stay order and then the court adjourned the case until 12 December 2007. When a case is filed, normal procedures could be stalled while the matter is `pending before the court’; and the situation could get much worse and take years to be resolved if the petitioner obtains a stayorder from the court. Hence following my direction, the Telecom Ministry’s steps were carefully orchestrated to ensure that COAL would not obtain such a stay-order. It is not unusual or unthinkable for individuals or companies to go to Court either to challenge the decision of the Government or to appeal against it. However, there must be sufficient grounds for such a challenge. The Tribunal (TDSAT) and the Delhi High Court not only upheld the actions of the Telecom Ministry but also levied a fine on COAI for filing a case without sufficient grounds.

UNIL Mittal wrote a letter to the government dated 1 November 2007 stating, “I have been running what has been universally acknowledged as a highly efficient mobile operation under the Brand Airtel’ for the past 13 years. Despite having one of the lowest allocated spectrums amongst its worldwide peers, Airtel is not only the largest mobile operation in the country but the 10th largest operator in the world. Sir, we would not claim to be experts in our sector, but can certainly claim some degree of knowledge to challenge the absurd proposed spectrum allocation which has been put forth by TEC.... In the meanwhile, please ensure that no spectrum is allocated which may compromise the legitimate right of the existing operators.” The wording of that letter reaffirms Mittal’s sense of entitlement and his belligerent posture. He audaciously expected the government to believe that his knowledge was so superior to that of TRAI and TEC as to dub their recommendations as absurd. I also balk at what he refers to as “legitimate right”. As an erstwhile lawyer, I can only assess ‘right’ as something that has been granted by Law. The right Mittal refers to is not based on any Law; it was not granted by any policy document of the government or in any clause of the license or in the written agreement issued to his corporation. But the members of COAI had a ‘big brother’ attitude and felt they deserved special privileges. The letter made flippant remarks about policies in other countries ignoring the fact that TRAI had reviewed and discussed the methods followed by various foreign countries in its recommendation. Since COAI was not in agreement with the TRAI report on spectrum allocation, TEC made another recommendation in October 2007. I am not exaggerating when I say that this report from TEC which recommended an even greater increase in the subscriber base criteria made the COAI tremble. TEC officials explained

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BOOK EXTRACT 2g saga unfolds a raja

I am not so naive as to assume that industrialists and wealthy that their report had been prepared scientifically with appropriate technical inputs. Inspite of all the due diligence and care taken Individuals cannot influence the administration of the country by TRAI and TEC in formulating their recommendations, and the actions of political parties. As long as they do some due to the importance of the issue and these rumblings from good to the nation this is perhaps acceptable. The situation key stake holders I ordered the constitution of another special becomes unacceptable when self-interest outweighs publiccommittee – headed by Bandyopadhyay, Additional Secretary interest. This has I always been my pragmatic approach to my of Telecom Department along with Dr Baskar Ramamoorthy of responsibilities as a public servant and elected representative of IIT Chennai and Dr Ajit Kumar Chaturvedi of IIT Kanpur – the common man. on 6 November 2007 to review the situation. In addition to the expert members one representative each from COAL and HE cartel mentality and the battle lines between COAI AUSPI were also included in the committee. As the committee and AUSPI had become very apparent to me now. ‘Only proceeded with its work, COAL probably realized that when there is Competition, the tariff would come down; their arguments would not stand the test of a methodical and the subscriber base would increase’ is the National Telecom scientific review. Policy (NTP-99). ‘If there is competition our investments Hence, 2 weeks prior to the release of their report, COAL may have no protection; our business margin would reduce; withdrew from the committee. Thus, COAL continued so, there should not be competition’ is the stand of COAI. with their stand of ‘only what we say Adherence to the National Telecom is correct and the government must Policy was not only my duty but the I am not so naive as to accept it,’ having first alleged that TRAI’s underlying principle of public good was recommendations ratified by the Telecom assume that industrialists also my moral imperative. As I pondered Commission were flawed, then calling over this and reviewed COAI’s petition and wealthy the report of the specialized technical to TDSAT, I couldn’t help mumbling to body (TEC) of the Telecom Department Individuals cannot influence myself, “the cat is out of the bag.” But the administration of absurd, and not cooperating even with still I remained faithful to the lines Tamil the special committee of experts, setup Sangam literature, the country and the to redress their complaints. I could “Muraiyenappaduvathu Kannodaathu actions of political have accepted and implemented the Uyir vawwal” parties. As long as they do Bandyopadhyay Committee’s report (Rendering impartial justice lies in some good to the nation received on 18 December 2007 which protection of lives) made recommendations that were even “Setramum uvagaiyum seyyathu this is perhaps less favourable (much higher counts in the kaakkum yemankol” acceptable. subscriber base criteria) to COAL than the (Righteousness lies in keeping balance prior recommendations of TRAI and TEC. against hatred and desire) However, I remained objective and did not display annoyance In the midst of all this political drama, a much more dramatic or spite for Mittal’s behaviour towards me, for the complaint event of a very personal nature took place. On 15 September to TDSAT, or for their inflexibility even in the face of multiple 2007, my mother passed away. Although I do not believe in cycles of methodically conducted reviews. religious rituals, I stayed back in our native village for a few days After deliberation with the Telecom Department officials, with for the sake of my siblings. Even at the time of my father’s death this sense of balance in mind, it was decided to find an interim when I was expected to shave my head clean as per the Hindu arrangement for implementing the Bandyopadhyay Committee tradition, I was not ready for it. Similarly, after my mother died, Report, while continuing to engage with stakeholders to arrive I did not agree to perform any rituals. My rationalism asserts that at a more amicable solution. I passed an order with the following there is no life after death, whereas the rest of my family believes interim measures: in the afterlife. When Lord Buddha preached, “There is no soul”, t 4QFDUSVN XPVME CF BMMPDBUFE CBTFE PO UIF 53"* He was asked, “Where does life go after death then?” His reply recommendations dated 28 August 2007. was in the form of a question, “Where the light goes does after a t "EEJUJPOBM 4QFDUSVN CFZPOE UIF DPOUSBDUVBM PCMJHBUJPO PG lamp is put off?” I firmly believe that ‘action’ is life and 6,2MHZ) would be allocated in multiples of 1 MHz as per the ‘inaction’ is death. I returned to my work in Delhi by the end of provider’s eligibility. that month. g

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birthdays IAS officers’ birthdays Mar 16, 2018 — Apr 15, 2018

IAS officers’ birthdays Mar 16, 2018 — Apr 15, 2018

Sunil Kumar Chaudhary

Bishnupada Sethi

KS Manjunath

Wilfred Khyllep

CADRE: ASSAM-MEGHALAYA

CADRE: ODISHA

CADRE: KARNATAKA

CADRE: ASSAM-MEGHALAYA

Sunilkchaudhary.ias2002@ias.nic.in

sethib@ias.nic.in

ks.manjunath@ias.nic.in

wilfred.khyllep@ias.nic.in

Vijayendra

Sridhar Chiruvolu

Devendra Kumar Tiwari

Debeswar Malakar

CADRE: ASSAM-MEGHALAYA

CADRE: BIHAR

CADRE: JHARKHAND

CADRE: ASSAM-MEGHALAYA

vijayend@ias.nic.in

sridharc@ias.nic.in

tiwarid@ias.nic.in

debesh.malakar@ias.nic.in

B Udayalakshmi

Shailesh Kumar Chourasia

Sunil Kumar Bhargava

KS Sreenivasa Raju

CADRE: ANDHRA PRADESH

CADRE: MANIPUR

CADRE: ODISHA

CADRE: ANDHRA PRADESH

ulaxmi@ias.nic.in

shailesh@ias.nic.in

bhargav2@ias.nic.in

kss.raju@ias.nic.in

Vikas Shankar Kharage

Rajesh Kankipati

Richa Sharma

Roshni Aparanji Korati

CADRE: MAHARASHTRA

CADRE: GUJARAT

CADRE: CHHATTISGARH

CADRE: ASSAM-MEGHALAYA

kharagev@ias.nic.in

rajesh.kankipati@ias.nic.in

sricha@ias.nic.in

roshni.ias11@ias.nic.in

Saidingpuii Chhakchhuak

Rajeev Arun ekka

Him Shikhar Gupta

DG Patel

CADRE: GUJARAT

CADRE: JHARKHAND

CADRE: CHHATTISGARH

CADRE: GUJARAT

saidingpuii@ias.nic.in

ekkara@ias.nic.in

hs.gupta@ias.nic.in

dg.patel62@ias.nic.in

Rippudaman Singh Dhillon

Fating Rahul Haridas

Rajesh Kumar Sinha

Atanu Chakraborty

CADRE: HARYANA

CADRE: MADHYA PRADESH

CADRE: KERALA

CADRE: GUJARAT

rippudaman.dhillon@ias.nic.in

fatingr.haridas@ias.nic.in

sinhark1@ias.nic.in

catanu@ias.nic.in

Gobinda Ch. Sethy

Bimbadhar Pradhan

B Srinivasan

Anbalagan P

CADRE: ODISHA

CADRE: BIHAR

CADRE: PUNJAB

CADRE: CHHATTISGARH

gobindchandra.sethi@ias.nic.in

pradhan1@ias.nic.in

nsrinivasm.ias11@ias.nic.in

anbalaganp@ias.nic.in

Lalit Jain

Vivek Kumar Dhand

Prabhat Malik

Om Prakash

CADRE: HIMACHAL PRADESH

CADRE: CHHATTISGARH

CADRE: ASSAM-MEGHALAYA

lalitjain.ias11@ias.nic.in

vivekdhand@ias.nic.in

16-03-1959

21-03-1967

17-03-1963

21-03-1972

17-03-1961

22-03-1974

17-03-1968

23-03-1986

18-03-1981

18-03-1971

18-03-1958

19-03-1983

Krittika Jyotsna 20-03-1986

24-03-1964

24-03-1985

25-03-1962

25-03-1958

Kamal Kishore Soan 25-03-1969

CADRE: ANDHRA PRADESH

CADRE: JHARKHAND

krittika.jyotsna@ias.nic.in

soankk@ias.nic.in

Apoorv Devgan 20-03-1988

CADRE: ANDHRA PRADESH

Bhushan Ashok Gagarani 25-03-1966

CADRE: MAHARASHTRA

gagarani@ias.nic.in

Vijay B Waghmare 20-03-1972

CADRE: MAHARASHTRA

R Ronita

25-03-1989 CADRE: JHARKHAND

vijay.waghmare@ias.nic.in

JM Balamurugan 21-03-1966

CADRE: PUNJAB

bmurugan@ias.nic.in

Sudhi Ranjan Mohanty 21-03-1960

CADRE: MADHYA PRADESH

msudhi@ias.nic.in

25-03-1959

26-03-1960

26-03-1959

26-03-1969

27-03-1982

27-03-1966

27-03-1989

28-03-1990

28-03-1958

CADRE: JHARKHAND

csmita@ias.nic.in

Ashok Shekhar 28-03-1958

CADRE: RAJASTHAN

shekhara@ias.nic.in

Alarmelmangai D 29-03-1980

CADRE: CHHATTISGARH

alarmelmangai@ias.nic.in

Sudershan Pal Thakur

CADRE: MANIPUR

CADRE: ODISHA

hungyoworshang.ias11@ias.nic.in

thakursp@ias.nic.in

Puneet Kumar

Sudesh Kumar Mokhta

CADRE: KERALA

CADRE: HIMACHAL PRADESH

kumarp10@ias.nic.in

skmokhta.ias2010@ias.nic.in

25-03-1967

01-04-1960

02-04-1965

03-04-1984

04-04-1962

05-04-1960

07-04-1979

08-04-1974

omprakash.ias@ias.nic.in

Smita Chugh

Hungyo Worshang 25-03-1983

31-03-1959

29-03-1963

30-03-1983

Vijaya K

09-04-1980 CADRE: ANDHRA PRADESH

k.vijaya@ias.nic.in

Yogendra Singh 10-04-1987 CADRE: BIHAR

singh.yogendra@ias.nic.in

Manisha Chandra 12-04-1978

CADRE: GUJARAT

manishachandra@ias.nic.in

Laya Madduri 14-04-1985

CADRE: ASSAM-MEGHALAYA

layamadduri.ias2010@ias.nic.in

Kuldeep Sharma 15-04-1988

CADRE: CHHATTISGARH

sharma.kuldeep14@ias.nic.in

For the complete list, see www.gfilesindia.com

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gfiles inside the government vol. 11, issue 11-12 | Feb-Mar 2018 KWWSV WZLWWHU FRP J¿OHVPDJD]LQH KWWSV ZZZ IDFHERRN FRP J¿OHVPDJD]LQH

IPS officers’ birthdays Mar 16, 2018 — Apr 15, 2018

Vineet Khanna

Karuna Sagar

Jitendra Kumar

Tarun Nayak

CADRE: MADHYA PRADESH

CADRE: TAMIL NADU

CADRE: BIHAR

CADRE: MADHYA PRADESH

vkhanna@mail.svpnpa.gov.in

karunasagar@mail.svpnpa.gov.in

jitendra_kumar@mail.svpnpa.gov.in

tarunnayak@mail.svpnpa.gov.in

Anupam Agrawal

Kaustubh Sharma

M Sulaiman Salaria

Savita Sohaney

CADRE: KARNATAKA

CADRE: PUNJAB

CADRE: JAMMU & KASHMIR

CADRE: MADHYA PRADESH

aaggarawal@mail.svpnpa.gov.in

kaustubh@mail.svpnpa.gov.in

sulaiman@mail.svpnpa.gov.in

savitas@mail.svpnpa.gov.in

Putta Vimaladitya

AV George

Deshmukh Abhinav Diliprao

Achin Haokip

CADRE: KERALA

CADRE: MAHARASHTRA

CADRE: MANIPUR

putinv@mail.svpnpa.gov.in

avgeorge@mail.svpnpa.gov.in

dadiliprao@mail.svpnpa.gov.in

achinh@mail.svpnpa.gov.in

Atul Singh

VS Yadav

Ajay Chaudhry

Amitabh Yash

CADRE: MADHYA PRADESH

CADRE: MANIPUR-TRIPURA

CADRE: AGMUT

CADRE: UTTAR PRADESH

as@mail.svpnpa.gov.in

vsyadav@mail.svpnpa.gov.in

ajaychaudhry@mail.svpnpa.gov.in

amitabhyash@mail.svpnpa.gov.in

Narasingha Bhol

Vijay Kumar Singh

Shivanand Jha

A Shankar Rao

CADRE: ODISHA

CADRE: MADHYA PRADESH

CADRE: GUJARAT

CADRE: SIKKIM

narasingha@mail.svpnpa.gov.in

vijaykumarsingh@mail.svpnpa.gov.in

shivanandjha@mail.svpnpa.gov.in

ashankarr@mail.svpnpa.gov.in

B Dayananda

Satya Brata Bhoi

Anand Kumar

Awakash Kumar

CADRE: KARNATAKA

CADRE: ODISHA

CADRE: UTTAR PRADESH

CADRE: BIHAR

bdayananda@mail.svpnpa.gov.in

spjsp.orpol@nic.in

a_kumar@mail.svpnpa.gov.in

akumar@mail.svpnpa.gov.in

N Sanjay

Anuj Sharma

Sandeep Bishnoi

Ajay Anand

CADRE: ANDHRA PRADESH

CADRE: WEST BENGAL

CADRE: MAHARASHTRA

CADRE: UTTAR PRADESH

nsanjay@mail.svpnpa.gov.in

asharma@mail.svpnpa.gov.in

sandeepbishnoi@mail.svpnpa.gov.in

ajaya@mail.svpnpa.gov.in

Devendra Singh Chauhan

Christopher Doungel

BK Dak

Anshu Singla

CADRE: UTTAR PRADESH

CADRE: MANIPUR-TRIPURA

CADRE: RAJASTHAN

CADRE: HARYANA

drdschauhan@mail.svpnpa.gov.in

cdoungel@mail.svpnpa.gov.in

dak@mail.svpnpa.gov.in

anshus@mail.svpnpa.gov.in

Balaji Srivastav

M Nanjundaswami

K Vanniaperumal

Kewal Khurana

CADRE: AGMUT

CADRE: KARNATAKA

CADRE: TAMIL NADU

CADRE: UTTARAKHAND

balajisrivastav@mail.svpnpa.gov.in

mnanjundaswami@mail.svpnpa.gov.in

vanniaperumal@mail.svpnpa.gov.in

ssp-usn-ua@nic.in

Karnik Sandeep Prakash

Anil Singh K Jadeja

Ashok Kumar Rathore

Gyanwant Singh

CADRE: MAHARASHTRA

CADRE: GUJARAT

CADRE: RAJASTHAN

CADRE: WEST BENGAL

ksprakash@mail.svpnpa.gov.in

asjadeja@mail.svpnpa.gov.in

akrathore@mail.svpnpa.gov.in

gsingh@mail.svpnpa.gov.in

Kapil Sharma

Shaikh Arif Husen

Vivek V Phansalkar

CADRE: HIMACHAL PRADESH

CADRE: CHHATTISGARH

CADRE: MAHARASHTRA

kapilsharma@mail.svpnpa.gov.in

sahusen@mail.svpnpa.gov.in

vvphansalkar@mail.svpnpa.gov.in

Dinkar Gupta

K Thiyagarajan

Vinay M Kargaonkar

CADRE: PUNJAB

CADRE: KARNATAKA

CADRE: MAHARASHTRA

dinkargupta@mail.svpnpa.gov.in

kt@mail.svpnpa.gov.in

vmkargaonkar@mail.svpnpa.gov.in

Sanjoy Mukherjee

DM Awashthi

Bharati Ghosh

CADRE: WEST BENGAL

CADRE: CHHATTISGARH

CADRE: WEST BENGAL

sanjoym@mail.svpnpa.gov.in

dmawashthi@mail.svpnpa.gov.in

bharatig@mail.svpnpa.gov.in

17-03-1965

17-03-1982

17-03-1981

18-03-1968

18-03-1971

19-03-1967

20-03-1963

20-03-1964

21-03-1975

21-03-1961

22-03-1964

22-03-1965

23-03-1963

23-03-1972

24-03-1962

25-03-1961

26-03-1961

26-03-1975

27-03-1968

28-03-1965

28-03-1970

29-03-1960

30-03-1980

31-03-1976

01-04-1963

01-04-1970

01-04-1960

02-04-1982

03-04-1967

04-04-1960

04-04-1964

05-04-1964

05-04-1967

05-04-1968

10-04-1984

10-04-1966

11-04-1964

11-04-1971

12-04-1961

12-04-1982

13-04-1965

13-04-1989

14-04-1978

15-04-1966

07-04-1965

08-04-1963

09-04-1962

For the complete list, see www.gfilesindia.com

gfiles inside the government vol. 11, issue 11-12 | Feb-Mar 2018

www.gfilesindia.com KWWSV WZLWWHU FRP J¿OHVPDJD]LQH KWWSV ZZZ IDFHERRN FRP J¿OHVPDJD]LQH

birthdays Lok Sabha Members Mar 16, 2018 — Apr 15, 2018

Lok Sabha Members Mar 16, 2018 — Apr 15, 2018

Radheshyam Biswas

Sona Ram Choudhary

Rajeshbhai N Chudasama

Sharadkumar Maruti Bansode

AIUDF (ASSAM)

BJP (RAJASTHAN)

BJP (GUJARAT)

BJP (MAHARASHTRA)

radheshyam.biswas@sansad.nic.in

col.sonaram@sansad.nic.in

mp13junagadh@gmail.com

sbansodeg@yahoo.co.in

CR Patil

Ramdas Chandrabhanji Tadas

Sandhya Roy

Rahul Ramesh Shewale

BJP (GUJARAT)

BJP (MAHARASHTRA)

AITC (WEST BENGAL)

SS (MAHARASHTRA)

c_r_patil@yahoo.com

rctadas@gmail.com

roysandhya@yahoo.com

rahul.shewale2014@gmail.com

DV Sadananda Gowda

Tathagata Satpathy

Sumitra Mahajan

Jayasingh Thiyagaraj Natterjee

BJP (KARNATAKA)

BJD (ODISHA)

BJP (MADHYA PRADESH)

AIADMK (TAMIL NADU)

s_mahajan@nic.in

jjtnatterjee@gmail.com

16-03-1954

31-03-1945

16-03-1955

01-04-1953

18-03-1953

01-04-1956

sadanandagowda@yahoo.com

02-04-1951

18-03-1955

AIADMK (TAMIL NADU)

BJP (MAHARASHTRA)

raosaheb.danve@sansad.nic.in

19-03-1959

BJP (UTTAR PRADESH)

prajeshmangal@gmail.com

Jual Oram

22-03-1961 BJP (ODISHA)

jualoram@sansad.nic.in

V Sathyabama 22-03-1972

IADMK (TAMIL NADU)

sathyabama.vasu@gmail.com

Om Prakash Yadav 23-03-1962 BJP (BIHAR)

opyadavmp@gmail.com

Bharati Dhirubhai Shyal 23-03-1964 BJP (GUJARAT)

mpbhartishyal@yahoo.com

Jayadev Galla 24-03-1966

TDP (ANDHRA PRADESH)

jg@jayadevgalla.in

aiadmkprs@gmail.com

Devendra (Alias) Bhole Singh 02-04-1954

BJP (UTTAR PRADESH)

devendra.singh19@sansad.nic.in

Dilip M Patel 02-04-1955

dilip2455@gmail.com

Adhir Ranjan Chowdhury 02-04-1956

INC (WEST BENGAL)

adhir@sansad.nic.in

Parayamparambil K Biju 03-04-1974 CPIM (KERALA)

pkbijump@gmail.com

Dushyant Chautala 03-04-1988

INLD (HARYANA)

dchautala@gmail.com

Alok Sanjar 04-04-1963

BJP (MADHYA PRADESH)

aloksanjar.mp@gmail.com

Dev Varma (Moon Moon Sen) 06-04-1955 AITC (WEST BENGAL)

raimadevsen@gmail.com

SR Vijayakumar 29-03-1974

AIADMK (TAMIL NADU)

sr.vijayakumar@sansad.nic.in

Rajiv Pratap Rudy 30-03-1962 BJP (BIHAR)

rprudy.office@gmail.com

12-04-1943

14-04-1973

15-04-1953

Rajya Sabha Members Mar 16, 2018 — Apr 15, 2018 Rangasayee Ramakrishna

Bhubaneswar Kalita

BJP (KARNATAKA)

INC (ASSAM)

ramakrish.r@sansad.nic.in

b.kalita@sansad.nic.in

Devender Goud T

Shiv Pratap Shukla

TDP (ANDHRA PRADESH)

BJP (UTTAR PRADESH)

15-03-1934

18-03-1953

Chandrapal Singh Yadav 19-03-1959

SP (UTTAR PRADESH)

chandrapal.yadav@sansad.nic.in

Smriti Zubin Irani 23-03-1976 BJP (GUJARAT)

smritizirani@sansad.nic.in

Chaudhary Birender Singh 25-03-1946

AIADMK (TAMIL NADU)

krkhan@sansad.nic.in

Sukhendu Sekhar Roy 05-04-1949

AITC (WEST BENGAL)

sukhendu.sekhar@sansad.nic.in

AK Selvaraj AIADMK (TAMIL NADU)

Sardar Sukhdev Singh Dhindsa 09-04-1936

Dola Sen

SAD (PUNJAB)

AITC (WEST BENGAL)

Jaya Bachchan

26-03-1967

Oscar Fernandes oscar@sansad.nic.in

Kiranmay Nanda

CPIM (WEST BENGAL)

29-03-1944

b.khan@sansad.nic.in

SP (UTTAR PRADESH)

Doddaalahalli Kempegowda Suresh

PJ Kurien

dksuresh18@gmail.com

INC (KARNATAKA)

selaraj@sansad.nic.in

25-03-1958

INC (KARNATAKA)

05-04-1939

S Muthukaruppan

prasuntmcsc@gmail.com

08-04-1966

K Rahman Khan

07-04-1958

27-03-1941

08-04-1954

01-04-1952

BJP (HARYANA)

AITC (WEST BENGAL)

Md. Badaruddoza Khan

01-04-1951

spshukla.mp@sansad.nic.in

BJP (GUJARAT)

Prasun Banerjee

28-03-1954

11-04-1941

14-04-1967

PR Sundaram

Raosaheb Patil Danve

Rajesh Pandey

10-04-1982

sukhdevd@sansad.nic.in

09-04-1948

SP (UTTAR PRADESH)

jbachchan@sansad.nic.in

Jairam Ramesh 09-04-54

INC (KARNATAKA)

jairam@sansad.nic.in

k.nanda@sansad.nic.in

31-03-1941 INC (KERALA)

prof_pjkurien@yahoo.com

For the complete list, see www.gfilesindia.com

www.indianbuzz.com

gfiles inside the government vol. 11, issue 11-12 | Feb-Mar 2018 KWWSV WZLWWHU FRP J¿OHVPDJD]LQH KWWSV ZZZ IDFHERRN FRP J¿OHVPDJD]LQH

Tracking OP RAWAT

RAM PRAKASH SISODIA

The former 1977-batch IAS officer of the Madhya Pradesh cadre has been appointed Chief Election Commissioner of India.

The 1991-batch IAS officer of the Andhra Pradesh cadre has been appointed Chief Electoral Officer (CEO) for the State of Andhra Pradesh.

OP SINGH

ASHOK LAVASA

ARVIND KUMAR

The 1983-batch IPS officer of the UP cadre has been appointed DGP of Uttar Pradesh.

The former 1980-batch IAS officer of the Haryana cadre has been appointed Election Commissioner in Election Commission of India.

The 1991-batch IAS officer of the Telangana cadre has been appointed Principal Secretary (MA & UD) and Commissioner (IPR), Govt. of Telangana.

DEVENDRA CHAUDHARY

DILIP KUMAR

The 1981-batch IAS officer of the Uttar Pradesh cadre has been appointed Chairman, Uttar Pradesh State Road Transport Corporation Limited, Lucknow.

The 1995-batch IAS officer of the Punjab cadre has been appointed Joint Secretary, National Human Rights Commission (NHRC), New Delhi.

M MALAKONDAIAH

VINEET CHAWDHARY

MANDEEP KUMAR BHANDARI

SR MARDI

The 1982-batch IAS officer has been appointed chief secretary of Himachal Pradesh.

The 2001-batch IAS officer of the J&K cadre has been appointed Private Secretary to Prakash Javadekar, Minister for HRD.

The 1986-batch IPS officer has been appointed DGP of Himachal Pradesh.

NC GOEL

SAMEER SHUKLA

The 1982-batch IAS officer has been appointed Chief Secretary of Rajasthan.

The 2005-batch IAS officer of the Karnataka cadre has been appointed PS to Union Steel Minister Chaudhary Birender Singh.

The 1986-batch IPS officer of the Andhra Pradesh cadre has been appointed ADG, CRPF.

AJAY SINGH The 1983-batch IAS officer has been appointed Chief Secretary of Chhattisgarh.

ANIL KHACHI The 1986-batch IAS officer has been appointed Principal Resident Commissioner, Himachal Pradesh Bhawan in Delhi.

ANOOP KHINCHI The 2008-batch IAS officer of the Nagaland cadre has been appointed Private Secretary to Arjun Ram Meghwal, Minister of State for Water Resources.

NARAYANA BHARAT GUPTA The 2010-batch IAS officer of the Andhra

Pradesh cadre has been appointed Managing Director, Andhra Pradesh Drinking Water Supply Corporation.

SUDEEP LAKHTAKIA The 1984-batch IPS officer of the Telangana cadre has been appointed Director General of National Security Guard.

The 1985-batch IPS officer of the AP cadre has been appointed DGP of Andhra Pradesh.

VS KAUMUDI

PRAVEEN SINHA The 1988-batch IPS officer of the Gujarat cadre has been appointed Joint Director, Central Bureau of Investigation.

AJAY BHATNAGAR The 1989-batch IPS officer of the Jharkhand cadre has been appointed Joint Director, Central Bureau of Investigation.

Moving On: IAS officers retiring in March 2018 ASSAM - MEGHALAYA Arun Kumar (1983) Anjan Chakraborty (2004)

BIHAR

Shashi Kant Tiwari (2006)

CHHATTISGARH

KARNATAKA

K Ratnaprabha (1981)

MAHARASHTRA CN Dalvi (1995)

MADHYA PRADESH

Vivek Kumar Dhand (1981)

Arun Kochar (1994) Panna Lal Solanki (2003)

JHARKHAND

NAGALAND

JAMMU & KASHMIR

ODISHA

Smita Chugh (1980)

Sajad Ahmed Khan (2002)

gfiles inside the government vol. 11, issue 11-12 | Feb-March 2018

Neihu C Thur (1996)

RAJASTHAN

Ashok Shekhar (1980) Vipin Chandra Sharma (1982) Manjit Singh (1988)

SIKKIM

Tsegyal Tashi (2003)

UTTAR PRADESH

Hriday Shankar Tiwari (2002) Suresh Kumar Singh (2005)

WEST BENGAL

Saurabh Kumar Das (1986)

Gobinda Ch. Sethi (2001) William Bilung (2002) Soumya N Panigrahi (2003)

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RESHUFFLE OF IAS OFFICERS IN ODISHA PRAVAT KUMAR LENKA has been appointed as Additional Secretary, Public Enterprises Department; BHUPENDRA S POONIA has been appointed as State Project Director, OPEPA Bhubaneswar with additional charge of STATE Project Director, RMSA; N THIRUMALA NAIK as Collector, Bolangir; RASHMITA PANDA as CEO, Rourkela Smart City Ltd with additional charge of Commissioner, Rourkela Municipal Corporation; SUDHANSHU MOHAN SAMAL as Director, Horticulture; ASHISH THAKRE as Collector, Keonjhar; K SUDARSHAN CHAKRAVARTHY as Collector, Koraput; ANUPAM SAHA as Collector, Gajapati; NIKHIL PAVAN KALYAN as Collector, Dhenkanal; MANISH AGRAWAL as Collector, Malkangiri; PRAMOD KUMAR DAS as Special Secretary, Planning & Convergence; AKSHAYA KUMAR PARIDA as Special Secretary, Forest & Environment; RAMESH CHANDRA ROUT as Collector, Balasore; AJIT KUMAR MISHRA was posted as Collector, Nawarangpur.

PANKAJ KUMAR SRIVASTAVA The 1992-batch IPS officer of the Madhya Pradesh cadre has been appointed Joint Director, Central Bureau of Investigation.

SUNIL KUMAR JHA The 1993-batch IPS officer of the Bihar cadre has been appointed ADGP, Vigilance Investigation Bureau in Bihar.

ANURAG KUMAR The 1994-batch IPS officer of the AGMUT cadre has been appointed Minister (Personnel & Community Affairs), Embassy of India, Washington DC under MEA.

CHANCHAL SHEKHAR The 1995-batch IPS officer of the Madhya Pradesh cadre has been appointed IG (Operations) in SSB Headquarters.

SHARAD AGGARWAL The 1997-batch IPS officer of the AGMUT cadre has been appointed Joint Director, Central Bureau of Investigation.

www.indianbuzz.com

RESHUFFLE OF IAS OFFICERS IN HIMACHAL PRADESH AMIT KASHYAP has been appointed as Deputy Commissioner, Shimla; ROHAN CHAND THAKUR has been appointed as Director, Urban Development and Town and Country Planning; SANDEEP KUMAR as DC, Kangra; CHANDER PRAKASH VERMA has been appointed as Special Secretary, Forest and Industry; RAKESH KANWAR as Director, Rural Development and Panchayati Raj; LALIT JAIN as DC, Sirumaur; BC BADALIA as Director, Transport; MADAN CHAUHAN as Director, Food and Civil Development; NARESH KUMAR LATH as Director, Empowerment of SCs, OBC, Minority Affairs and Specially Abled department; SUDESH KUMAR MOKTA as Director, Tourism and Civil Aviation and MD, HP Tourism Development Corporation HPTDC; RUGVED MILIND THAKUR as DC, Mandi; DEVA SINGH NEGI as Settlement Officer, Shimla; HANS RAJ SHARMA as DC, Solan; VIVEK BHATIA as DC, Bilaspur; GOPAL CHAND as DC, Kinnaur; ASHWANI KUMAR CHAUDHARY as DC, Lahaul Spiti; RAJ KRISHAN PRUTHI as Secretary, HP State Pollution Control Board; SANDEEP BHATNAGAR as MD, HRTC; ASHOK TIWARI as MD, HPMC; RAJIV KUMAR SHANKAR as Divisional Commissioner; AKSHAY SOOD as Divisional Commissioner, Shimla; DEVENDER KUMAR GUPTA was posted as Director, Ayurveda; KADAM SANDEEP VASANT has been appointed as MD-cum-CEO, Dharmashala Smart City Limited and Commissioner, Dharamshala Municipal Corporation; RAGHAV SHARMA has been appointed as Additional Deputy Commissioner-cum-Project Director, DRDA, Mandi; KRITIKA KULHARI as Additional Deputy Commissioner-cum-Project Director, Chamba; HEMRAJ BAIRWA as Additional Deputy Commissioner-cum-Project Director, Una; ADITYA NEGI as Additional Deputy Commissioner-cum-Project Director, Sirmaur, at Nahan; ASHUTOSH GARG as Sub Divisional Officer (Civil), Solan; APOORV DEVGAN as Sub Divisional Officer Civil Amb Districut Una; MUKESH REPASWAL as SDO, Civil Theog District; PRIYANKA VERMA was SDO, Civil, Bilaspur. RESHUFFLE OF IAS OFFICERS IN UTTAR PRADESH SANJAY KUMAR has been appointed as Secretary, Revenue & Relief Commissioner; MANISH TRIGHATIA has been appointed as Secretary, Elementary Education; NARENDRA KUMAR SINGH as Manager, Cooperative Societies; CHANDRA PAL SINGH has been appointed as Secretary, Social Welfare; ALKA TANDON as Director, Women Welfare; SURESH KUMAR OJHA as Secretary, Rural Development; CHANDRA PRAKASH TRIPATHI as Secretary, Water Resources; RAMESH MISHRA as Secretary, Higher Education; SHARDHA SINGH as Secretary, Panchayati Raj; JAI PRAKASH SAGAR as Secretary, Women Welfare; KUMUDALATA SHRIVASTAVA as Commissioner, Jhansi Division; SANDHYA TIWARI as Secretary, Middle Education; OM PRAKASH VERMA as Secretary, Home; HRIDAY SHANKAR TIWARI as Secretary Sports and Youth Welfare; SITA RAM YADAV as IG, Stamp and Registration; ANAND KUMAR SINGH-I as Member (Judicial), Revenue Board; SATYENDRA SINGH as Secretary, National Integration; MUKESH KUMAR MESHRAM as Secretary, Ayush; MRS KAMINI CHAUHAN RATAN as Commissioner, Commercial Taxes; AJAY KUMAR SHUKLA as Secretary, Finance; AMIT GUPTA as CMD, UP State Electricity Generation Corporation; RAVINDRA MADHUKAR GODBOLE as Addl CEO, UPIDA; PRANJAL YADAV as Mission Director, Skill Development Mission; KRISHNA KUMAR GUPTA as Addl CEO, Greater NOIDA; MS BHAVAN SHRIVASTAVA as Vice Chairman, Aligarh Development Authority; DEEP CHAND as Additional IG, Stamp; RAM YAG MISHRA as Additional Food Commissioner; SHRISH CHANDRA VERMA has been appointed as Additional Labour Commissioner, Kanpur.

GAJENDRA KUMAR GOSWAMI

V MURUGESAN

The 1997-batch IPS officer of the Uttar Pradesh cadre has been appointed Joint Director, Central Bureau of Investigation.

The 1997 batch IPS officer of the Uttarakhand cadre has been appointed Joint Director, Central Bureau of Investigation.

gfiles inside the government vol. 11, issue 11-12 | Feb-March 2018 KWWSV WZLWWHU FRP J¿OHVPDJD]LQH KWWSV ZZZ IDFHERRN FRP J¿OHVPDJD]LQH

Tracking

For a complete list of appointments & retirements, see www.gfilesindia.com

DHARMENDRA CHOUDHARY The 2003-batch IPS officer has been appointed DIG in Bhopal.

VIJAY KESHAV GOKHLE The 1981-batch IFS officer has been appointed Foreign Secretary in MEA.

TS TIRUMURTI The 1985-batch IFS officer has been appointed Secretary, Economic Relations in the Ministry of External Affairs.

TSEWANG NAMGYAL The 1992-batch IFS officer has been appointed Ambassador of India to the Republic of Poland.

YADAV MANHARSINH LAXMANBHAI The 2007-IFS officer has been appointed Deputy Secretary in the PMO.

TARUN JOHRI The 2001-batch IFS officer of the AGMUT cadre has been appointed Additional Commissioner (Forestry), Ministry of Agriculture & Farmers Welfare.

RAJNISH DEV BURMAN The 1999-batch IRS-IT officer has been appointed Private Secretary to Gajendra Singh Shekhawat, Minister of State for Agriculture.

NIKHIL VERMA The 2005-batch IRS-IT officer has been appointed Officer on Special Duty to Shiv Pratap Shukla, Minister of State for Finance.

RESHUFFLE OF IAS OFFICERS IN MADHYA PRADESH VC SEMWAL has been appointed as ACS, Jail Fishermen's Welfare and Fisheries Development; VINOD KUMAR has been appointed as MD, SC Finance and Development Corporation; MALAYA SHRIVASTAVA as PS, Transport; VIVEK AGRAWAL has been appointed as PS, Urban Development and Capital Project Commissioner, Metro Rail Company Limited Bhopal as well as PS to Chief Minister; MANISH RASTOGI as Principal Revenue Commissioner and Director, RCVP, Naronha Administration and Management Academy; DP AHUJA as MD, MP Road Development Corporation and TRIFAC; B CHANDRASHEKHAR as Secretary to CM, MD, MP State Electronics Development and Mission Director Integrated Social Security Mission; ASHOK KUMAR BHARGAVA as Secretary, School Education; ANAND KUMAR SHARMA as Commissioner, SC Welfare; DAYAL DAS AGRAWAL as Secretary, Medical Education; RAJNISH KUMAR SHRIVASTAVA as Commissioner, Shahdol Division; RAJIV CHANDRA DUBEY as MD, MP State Warehousing Corporation; PATIRAM KATRAULIA has been appointed as Additional Commissioner, Revenue Ujjain Division. RESHUFFLE OF IPS OFFICERS IN MADHYA PRADESH RAJENDRA KUMAR MISHRA has been appointed as ADG, Selection; KT VAIPHEI has been appointed as State Planning Commission; G AKHETO SEMA as IG, MP Power Generating Co Ltd.; ANIL KUMAR has been appointed as ADG, Grievances; RAJABABU SINGH as IG Security, Coordination, MP Bhawan; ANSHUMAN YADAV as IG, Gwalior zone; SANTOSH KUMAR SINGH as IG, Chambal zone, Morena; KC JAIN as IG, CID, PHQ; DHARMENDRA CHAUDHARY as DIG, Bhopal; JS KUSHWAHA as DIG, Ratlam; ANIL KUMAR SHARMA as DIG, Rural Indore; ANIL MAHESHWARI as DIG, Chhattarpur; SUDHIR LAAD as DIG, Chambal zone Morena; RA CHOUBEY has been appointed DIG, Hoshangabad range. RESHUFFLE OF IAS OFFICERS IN KARNATAKA MV JAYANTHI has been appointed as Chairman, Karnataka Appellate Tribunal; V CHAITRA has been appointed as Commissioner, Labour; SB SHEETANNAVAR as Deputy Commissioner, Haver District; MV VENKATESH has been appointed as Deputy Commissioner, Hassan district; ROHINI SINDHUR DASARI as MD, KSIIDC; K RAJENDRA as Deputy Commissioner, Ramanagara District; BR MAMATHA has been appointed as Commissioner, Food, Civil Supplies & Consumer Affairs.

SAKESH PRASAD SINGH

has been appointed IG, SSB.

The 1995-batch ICAS officer has been appointed ADG (Budget & Accounts) in Prasar Bharti.

RAJAT KUMAR

PRAMOD KUMAR SAHOO

The 1991-batch IAS has been appointed Chief Electoral Officer in Telangana.

cadre has been appointed Director, Vigilance & Anti-Corruption Bureau.

DILBAG SINGH The 1987-batch IPS has been appointed Inspector General of Prisons, J&K.

The 1997-batch IOFS officer has been appointed Financial Adviser & Chief Accounts Officer in the Department of Commerce.

YAMINI SARANGI The 2008-batch IAS officer of the Odisha cadre has been appointed Collector, Bargarh in Odisha.

BALAJI SRIVASTAVA

NR GADRE

ASHIMA JAIN

SBK SINGH

The 1989-batch IAS officer of the Maharashtra cadre has been appointed Principal Secretary (A&T), Finance Department, Mantralaya, Mumbai.

The 2008-batch IAS officer of the Bihar cadre has been appointed Private Secretary to Sadhvi Niranjan Jyoti, Minister of Food Processing Industries.

The 1988-batch IPS officer of the AGMUT cadre has been appointed DGP, Arunachal Pradesh.

B SRINIVAS

NIRMAL CHANDRA ASTHANA

The 1990-batch IAS officer of the J&K cadre

The 1986-batch IPS officer of the Kerala

The 1988-batch IPS officer of the AGMUT cadre has been appointed DGP, Goa.

gfiles inside the government vol. 11, issue 11-12 | Feb-March 2018

The 1988-batch IPS officer of the AGMUT cadre has been appointed DGP of Mizoram.

MUKTESH CHANDER

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...by the way Food Mafia in UP

Kissa kursi ka...

rganising the Republic Day Parade at India Gate is an enormous task but the Defence Ministry manages to make it memorable and exclusive year after year. The Ministry is ably aided by the CPWD which takes care of logistics like chairs, barricading, decoration, ‘Salaami Manch’ etc., and other infrastructure modalities. The job begins in October each year when the CPWD issues tenders for logistics support; it spends around `1.25 crore on logistics. The most reputed tentwallah is engaged for the job. Approximately 90,000 chairs of all quality are arranged for visiting dignitaries. The CPWD and contractors have to hand over the complete India Gate site after making all stipulated arrangements to Army personnel by January 15 each year. It’s a drill. But there is another drill that is carried out without raising an eyelid. The moment the Beating Retreat is over on January 29, the contractors have to pack up and vacate India Gate by February 10 each year. This is the time when some CPWD mandarins become active. One will be surprised to know every year out of 90,000 chairs approximately 4,000 chairs and other logistic support goes missing. When gfiles enquired about this annual theft, it was disclosed that some of the lower CPWD staff run tent houses in their spare time and they shamelessly take away the chairs every year after the Republic Day parade. There is no theft report filed by contractors! g

www.indianbuzz.com

ho is the most powerful functionary in the Uttar Pradesh bureaucracy? Obvious answer should be the Chief Secretary of the state. No. The most influential civil servant in Uttar Pradesh is the Panchayat Secretary of a District. He is the nerve centre of the villages in his/her district. The State has about one lakh villages. As per the Government scheme to feed the poorest, nearly 500 below poverty line (BPL) villagers in each village are being provided daily rations like rice, wheat, kerosene, sugar and salt. Sources disclosed that State politicians and civil servants are running the biggest mafia in the Public Distribution System. The modus operandi is simple: the wholesale distributor just allocates half the ration to the village supplier and the latter distributes half the sanctioned limit. The rest is sold in the open market at little lower than market prices. The village Pradhan has nothing to do with the distribution of the ration as the State Government has appointed private agencies in the villages. At a conservative calculation of one lakh villages and 500 people in each, every day 5 crore people are fed by the State and even if one rupee is siphoned each day per person, it comes to `18,000 crore each year. The villagers are still starving. Will anybody wake up in Uttar Pradesh! g

gfiles inside the government vol. 11, issue 11-12 | Feb-Mar 2018 KWWSV WZLWWHU FRP J¿OHVPDJD]LQH KWWSV ZZZ IDFHERRN FRP J¿OHVPDJD]LQH

...by the way Eccentric Barugaru

Lobbyist Bibek Debroy

regime change normally brings new faces. But, some academicians, economists and theory pro-pounders have survived the UPA1, 2 and NDA regimes. One such economist is NITI Aayog member Bibek Debroy. An analysis of his advocacy reveals the forces operating the system, which makes such people indispensible. Rethink rail electrification: Bibek Debroy redflags the railways diesel phase-out plan, writing “Several experts have questioned the logic of 100 per cent electrification and have argued that if few countries have done this, there is a good reason for it. And that includes the need to have a back-up plan in case of a grid failure—due to sabotage or natural reasons—as well as the fact that certain routes simply do not have the requisite transport volumes to justify electrification.” He has been advocating for diesel locomotives for the last four years since Alstom started its `40,000 crore manufacturing project of electric engines in Bihar. If the Railways opt out from 100 per cent electrification and cancels the order of Alstom and GE, who is benefitted? Back in 2015, Manoj Sinha, the then Minister of State for Railways, informed the Lok Sabha that the single largest bulk consumer of diesel in the country, (Railways) requires about 2.5 billion litres of diesel a year and has to foot a bill of about `17,000 crore. “Sinha did not tell the house that Essar Oil and Reliance had won the rate contract to supply diesel to the Railways, edging out Indianoil, Bharat Petroleum and Hindustan Petroleum. We leave you draw your own conclusions. g

gfiles inside the government vol. 11, issue 11-12 | Feb-Mar 2018

anjay Baru alias Barugaru is a seasoned professional (he was a journalist once upon a time). Many say that professionals generally don’t have a loyalty factor in their genes; they move wherever their bread and butter are earned. Sanjay Baru is not an exception to this. He was the Press Advisor to former Prime Minister Manmohan Singh but moved out and wrote a book, The Accidental Prime Minister: The Making and Unmaking of Manmohan Singh. Nobody in the Congress leadership understood till now how Sanjay Baru got the d job in the PMO and who forwarded hiss name. Last year, Barugaru joined FICCI, which claims to be the ‘voice of industry’, reportedly with thee blessings of Finance ce Minister Arun Jaitely. tely. Barugaru is acting g like his masters’ voice since he has joined FICCI. CI. This year’s budget briefing at FICCI headquarters was fabulously arranged by Baru but the result left everybody puzzled. For the first time, FICCI bought telecast rights of the Finance Minister’s speech to ETNow TV. Not only this, FICCI restricted the entry of all other journalists from different newspapers and TV networks. The impact was instant; except for Economic Times, very few newspapers carried the advocacy of budget by Arun Jaitely the next day. FICCI President Rashesh Shah, Chairman and CEO of the Edelweiss Group, does not know what to do with Barugaru’s eccentric behaviour. g

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Regn.No.DL(C)-14/1161/2016-2018 Licence No. U(C)-03/2016-17, Licence to post without prepayment Posted on 7th & 8th of every month at SPM SRT Nagar, Post Office, New Delhi 110055 R.N.I. No: DELENG/2007/19719. `200, vol. 11, issue 11-12 | Date of Publication: 05/3/2018 | Pages 64

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