Topic Of The Day:- “Auditor’s Account: On Rafale Deal”
The CAG Report Does Not Allay All Doubts About The Rafale Deal
The price-redacted audit report on the process to acquire 36 Rafale fighter jets is unlikely to bring closure to the controversy over the deal. The report of the Comptroller and Auditor-General of India tabled in Parliament comes in the midst of a vigorous campaign by the Opposition that is questioning the process, based on media revelations about possible lapses and deviations and significant points raised by dissenting members of the Indian Negotiating Team (INT). The Modi government can draw comfort from the fact that the CAG report concludes that the 2016 agreement is slightly better in terms of both pricing and delivery than what was undernegotiation in 2007 during the UPA regime. However, the report does not allay all doubts.Pegged at 2.86%, the price advantage in the contract over the 2007 offer is marginal. It is a far cry from the 9% saving claimed by the government. The delivery schedule is only one month sooner than the estimated outer limit in the earlier process. The CAG has found fault with DassaultAviation being allowed to retain the gains made by the absence of a bank guarantee, which, if executed, would have come with significant charges. Disappointingly, the CAG has not quantified this amount, though it declares that it should have been passed on to the Defence Ministry. The 2007 price offered by Dassault included bank charges, and its absence in the 2016 contract is a clear benefit to the company. In other words, the ‘advantage’ is lower than the 2.86%.
While the key question of pricing is sought to be resolved by the CAG by comparing the auditors’ aligned price with the INT’s computation, some issues remain unaddressed. The original issue of bringing down the total acquisition from 126 to 36 aircraft does not draw much comment. Also, the huge outgo on the India-Specific Enhancements (ISEs), despite the final figure being projected as a 17% saving on the aligned offer, is something that requires deeper examination. While auditing the earlier process, the CAG found that ISEs were upgrades allowed to be made so that Dassault’s bid would be compliant with qualitative requirements. Even a team of Ministry officials that examined in March 2015 the integrity of the earlier process concluded that “the acceptance of [Dassault’s] additional commercial proposal after bid submission date… was unprecedented and against the canons of financial propriety.” Dassault was not the lowest bidder in the earlier process, and its technical bid had been rejected. Perhaps, this presented an opportunity to the present regime to reopen the entire process to buy Medium Multi-Role Combat Aircraft (MMRCA) and invite fresh bids. However, it chose the IGA route with France, possibly for diplomaticreasons. The CAG identifies as a major problem the fact that the technical requirements are too narrowly defined for most vendors to comply with. The message from the report is that defenceacquisition processes require reforms and streamlining.
MEANINGS AND WORDS
1) redacted
Meaning: edit (text) for publication.
Synonyms : edit
Antonyms : baseless
Example : “a confidential memo which has been redacted from 25 pages to just one paragraph”(v)
2) controversy
Meaning: prolonged public disagreement or heated discussion.
Synonyms : argument
Antonyms : harmony
Example : “the design of the building has caused controversy”
3) vigorous
Meaning: strong, healthy, and full of energy.
Synonyms : strong
Antonyms : feeble
Example : “a tall, vigorous, and muscular man”
4) revelations
Meaning: a surprising and previously unknown fact that has been disclosed to others.
Synonyms : disclosures
Antonyms : disguises
Example : “revelations about his personal life”
5) dissenting
Meaning: holding or expressing opinions that are at variance with those commonly or officially held.
Synonyms : dissident
Antonyms : affirmative
Example : “there were a couple of dissenting voices”
6) negotiation
Meaning: discussion aimed at reaching an agreement.
Synonyms : bargain
Antonyms : altercation
Example : “a worldwide ban is currently under negotiation
7) regime
Meaning: a government, especially an authoritarian one.
Synonyms : government
Antonyms : disorder
Example : “ideological opponents of the regime”
8) claimed
Meaning: state or assert that something is the case, typically without providing evidence or proof.
Synonyms : purports
Antonyms : denied
Example : “the Prime Minister claimed that he was concerned about Third World debt”
9) Pegged
Meaning: a short pin or bolt, typically tapered at one end, that is used for securing something in place, hanging things on, or marking a position.
Synonyms : pinned
Example :”she put her mac on a peg in the hall”
10) Aviation
Meaning: the flying or operating of aircraft.
Synonyms : flying
Antonyms : windstorm
Example : “two events launched the history of modern aviation”
11) retain
Meaning: continue to have (something); keep possession of.
Synonyms : hold
Antonyms : abandon
Example : “Labour retained the seat”
12) sought
Meaning: attempt to find (something).
Synonyms : desired
Antonyms : unwanted
Example : “they came here to seek shelter from biting winter winds”
13) computation
Meaning: the action of mathematical calculation.
Synonyms : calculation
Antonyms : conjecture
Example : “methods of computation”
14) despite
Meaning: without being affected by; in spite of.
Synonyms : in spite of
Example :”he remains a great leader despite age and infirmity”
15) integrity
Meaning: the quality of being honest and having strong moral principles.
Synonyms : honesty
Antonyms : deception
Example : “a gentleman of complete integrity”
16) unprecedented
Meaning: never done or known before.
Synonyms : unparalleled
Antonyms : traditional
Example : “the government took the unprecedented step of releasing confidential correspondence”
17) bidder
Meaning: a person or organization making a formal offer for something, especially at an auction.
Synonyms : tenderer
Antonyms : supplier
Example : “she was the highest bidder for this rare portrait”
18) reforms
Meaning: make changes in (something, especially an institution or practice) in order to improve it.
Synonyms : improves
Antonyms : worsens
Example : “the Bill will reform the tax system”
19) acquisition
Meaning: an asset or object bought or obtained, typically by a library or museum.
Synonyms : attainment
Antonyms : loss
Example : “the legacy will be used for new acquisitions”
20) diplomatic
Meaning: of or concerning diplomacy.
Synonyms : considerate
Antonyms : impolite
Example : “diplomatic relations with Britain were broken”
21) bid
Meaning: offer (a certain price) for something, especially at an auction.
Synonyms : order
Antonyms : reject
Example : “a consortium of dealers bid a world record price for a snuff box”
