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Vivek Rae Resigns After Differences Over Basic Concept Of New Procurement Wing

Discussion in 'International Relations' started by seiko, Nov 4, 2016.

  1. seiko

    seiko VETERAN ELITE MEMBER

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    NEW DELHI: Citing differences over the basic concept of a new procurement body, the head of a high-powered defence expert panel has quit. The committee’s mandate was to suggest ways to cut down delays in modernisation of armed forces.

    Retired bureaucrat Vivek Rae, who has served as the director general (acquisition) in the defence ministry in the past, put in his papers a few weeks ago, leaving the expert committee for ‘Re-structuring of the Acquisition wing to make it more effective headless.


    While no officials spoke on record, sources said the exit took place over differences on the type of procurement model India should follow. While the government favoured a centralised procurement agency, Rae was of the opinion that policymaking should be centralised but procurement must be decentralised for an efficient system.



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    Sources said the government was inclined towards a centralised model of design, development, procurement and maintenance. Such a model exists only in France that was implemented in 1960s. Rae, on the other hand, was of the opinion that a USlike model, where policy is created centrally but agencies procure equipment on their own, would be more practical for India.

    The expert panel, which started work in May, consisted of former Financial Advisor Amit Cowshish, Air Marshal (retd) NV Tyagi, Lt Gen (retd) AV Subramanian, IIM professor Pritam Singh, defence ministry bureaucrats JRK Rao and Sanjay Garg and others.


    The future of the expert panel — one of the three set up by Defence Minister Manohar Parrikar to bring in reforms — is now unclear. As the head of the committee, Rae had already submitted a 55-page report. The report compares the military procurement models followed by military powers across the world. The committee was set up on the recommendations of the Dhirendra Singh Committee report, which delved deeply into the defence procurement policy.


    http://economictimes.indiatimes.com...new-procurement-wing/articleshow/55232964.cms
     
  2. GuardianRED

    GuardianRED Captain FULL MEMBER

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    Anyone can explain the the pros and cos of both the centralise and de-centralize model?
     

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