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Has PM Modi’s initiative to stall corruption made the grade in 365 days?

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By K.R. Sudhaman

The Narendra Modi Government has completed one year in office on May 26 this year and during this period, there have been enough moves by the NDA Government to remove corruption from the administration. One of the 2014 Lok Sabha election promises was to root out corruption and bring back black money stashed abroad. Modi Government, in one year, certainly has not ended these two major evils that have been afflicting Indian economy right from independence, but the measures taken so far, have given enough confidence to the people that the new Government is serious in rooting out corruption from the administration.

There are no short-cuts. But even skeptics cannot deny the fact that there are no 2G, Commonwealth games or coal scams during the last one year and it goes to Modi’s credit that his image is not tarnished unlike his predecessor Manmohan Singh, who despite being honest, seems to have done very little to stop mega scams running into lakhs of crores of rupees right under his nose.

No one can dispute the fact that Prime Minister Narendra Modi has begun in right earnest to make the system transparent as we have seen in recent coal auction or the 2G spectrum auction which together fetched a little over Rs 3 lakh crore to the exchequer, which would also be shared with states where the coal mines are located. Modi may not have fulfilled his promise to put Rs 15 lakh in every bank account holder by bringing back trillions of ill-gotten money stashed abroad, but he has certainly made some beginning to ensure Swiss authorities cooperation to get into the bottom of some of the black money stashed abroad.

Corruption is deep-rooted in the country and various studies show that at least $8 billion, inflation indexed, is siphoned off every year and one estimate suggests that over $620 billion has been siphoned off since independence due to ambiguity and loopholes in policies, which is a major breeding ground. Transparency International has estimated that the black money stashed abroad by Indians could be as high as $1.4 trillion including the ill gotten money secured in major scams, which surface periodically like Bofors, Jaguar and other defence deals besides mega scams like coal and 2G.

The money that is siphoned off in scams is no doubt large but the money made in petty corruption is not smaller though they are not stashed abroad. The money made through corruption starting from driving license, MNREGS, PDS system, subsidies, public procurement, bribing lower staff to push files, paying money to taxmen for getting their returns scrutinized and securing genuine refunds, real estate registration, bribing the cops for traffic and other violations and so on, hit hard the common man most and stunts economic development. The parallel economy, which could be as much as 50 per cent of GDP contributes greatly to inflation, delay in decision making and at times stalls development activities because some vested groups are not able to make money.

Business guru C.K. Prahalad had estimated that India lost at least $50 billion worth of investments annually because of corruption. This is because corruption made investors change their mind in investing in the country. It is well established that lower the corruption like in Singapore, higher and faster is the economic development.

India is not the only country which has high rate of corruption, the problem is there in other emerging economies as well, but the type of corruption that exists in India afflicts day to day activities more and perhaps drastically slows down bureaucratic decisions leading to huge time and cost overruns in projects.

Corruption might not be the only factor but certainly a contributory factor for the huge number of projects stalled in the country. At one point of time during UPA-ll, as much as Rs 18 lakh crore worth of projects were stalled. Lately, Modi government has ensured that these stalled projects start moving, as some of them were held up because of corruption.

According to Coal and Power Minister Piyush Goyal, the transparent coal e-auction, which has potential for Rs 3.35 lakh crore revenue going to coal bearing states, especially in eastern India, will help greatly in reducing corruption.

Modi has already decided to crackdown on corruption and his office has directed all central departments on time-bound action within 60 days to enforce rule of law. Ministers have been asked to sanction prosecution or order disciplinary action within 60 days against officials found to have indulged in corruption or misconduct respectively, after vigilance inquiry.

In sectors and services where public interface is high or which impact the daily affairs of the masses, the direction is that there should be zero-overhand of license or other application beyond a prescribed time period. These instructions are fine. But the question is how far these would be implemented by the concerned agencies in right earnest.

The new Government has to be really strict to enforce its instructions. One of the reasons for policy paralysis during the second half of UPA regime was because government officials did not want to take any decision for the fear of being accused or prosecuted at a later date. So they used to keep on pushing files after seeking some clarifications. This ensured that they are not accused of not working but at the same time ensured no decision was taken.

The PMO has also instructed officials to identify and crack down on areas where middlemen were suspected to be operating. In an open letter to the nation to mark the completion of one year in office on May 26, Modi said his government has acted to tackle “unabated corruption”. Uncompromising adherence to the principle of purity, in action as well as intent only ensures corruption-free society.

More time is needed to judge whether these have helped in reducing corruption. One area where government should concentrate is bringing about systemic changes and automation, which would help in minimizing corruption if not eliminate it. For example computerization and automation of railway ticketing has virtually eliminated touts and reduced corruption to a large extent. But there are several other areas in railways where corruption is rampant like contracts, catering, procurement, scrap disposal and so on, which are not yet fully transparent.

Smart cards in metros have virtually eliminated ticket-less travel. Likewise digitalization, a pet subject of Modi, will minimize corruption in movement of files, tenders and so on as it would introduce transparency.

The root cause of corruption in this country is that too many people are chasing too few things, so without progress and honesty among politicians and business cutting across all parties, corruption will remain. Complicated laws too, add to the problem as they lead to discretionary powers with politicians and bureaucracy, a breeding ground for corruption.

Government should also attempt cleaning up of laws including that of taxes, make government procurement transparent and impart moral education to all so that in the long term, India becomes somewhat like Singapore as far as corruption is concerned and day to day life becomes easier. Modi Government has started the process with a great zeal, but it has to be sustained for getting long term benefits.

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All You Need To Know About The Rafale Deal Controversy

The fiasco that Congress is creating on the Rafale Deal is certainly not fair

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Rafale Deal is very important for both the countries involved i.e. India and France.
Rafale Deal is very important for both the countries involved i.e. India and France.

By Ruchika Verma 

  • Rafale Deal happened between India and France
  • The Rafale Deal is about the Rafale fighter jets
  • The deal is getting into controversies because of the allegations de by the opposition, especially Congress

Prime Minister Narendra Modi in April 2015 made the announcement that India will buy 36 French-manufactured Rafale fighter jets from Dassault, a French aircraft builder and integrator. This came to be known as Rafale Deal.

The Rafale deal of 36 Rafale aircrafts between India and France was called a “win-win partnership” for both the countries.

Prime Minister Narendra Modi finalised the Rafale Deal during his visit to France in 2015. (FILE PHOTO)
Prime Minister Narendra Modi finalised the Rafale Deal during his visit to France in 2015. (FILE PHOTO)

But recently it has come under attack of the Opposition, mainly the Indian National Congress, which has alleged that there have been irregularities in this deal and its proceedings. However, the government has denied and rejected all the charges.

The Rafale Deal is nothing new and was also signed during the time of UPA government. The first time it came to light was during the government of Atal Bihari Vajpayee where the original proposal was to buy 126 fighter jets.

After tests and negotiations in 2012, Rafale was considered L-1 bidder and negotiations started which only came to a conclusion as the Rafale Deal in 2015 under Prime Minister Modi’s government.

NDA government has got a better price on the Rafale Deal than the UPA governement.
NDA government has got a better price on the Rafale Deal than the UPA government.

Now the UPA alleging irregularities on NDA government doesn’t seem fair to many because no deal took place under their government. The transfer of technology was a primary issue of concern between the two sides. Dassault Aviation also tried to deny to take the responsibility of quality control of the production of 108 aircraft in India. The Dassault provided for 3 crore man-hours for production of the Rafale jets in India, HAL’s estimate was approximately 3 times higher which resulted in an escalation of costs in the manifold.

Also Read: Make in India: France to set up production centers for Rafale fighters

Prime Minister Modi’s visit to France in 2015 helped bring this deal to a final conclusion. The government-to-government deal of 36 jets was to completed as soon as possible.

On costs of the Rafale Deal, NDA government has said that it got better terms than those quoted in the original bid under the UPA government. The total savings are reported to be of more than 1600 million Euros. However, the cost breakdown of Rafale Deal in the original bid under UPA government and in the 36 aircraft in the NDA’s government-to-government deal is not available for the public domain.

The Rafale Deal involves no private party from the side of India. www.worldwide-military.com
The Rafale Deal involves no private party from the side of India. www.worldwide-military.com

Under the current agreement, the  Rafale Deals support the ‘Make In India’ initiative of the Indian Government through the IGA’s Article 12. It states that France will facilitate the implementation of ‘Make In India’. These critical design technologies were already discussed between the two governments in previous meetings. The present Rafale Deal is signed between two sovereign governments and there is no private individual, firm or entity involved in the process from the side of India. The procurement process also does not include any private company or firm from India.

Also Read: IAF’s Rafale Deal with France: India confirms order

The fiasco that Congress is creating on the Rafale Deal is certainly not fair as the NDA government has proved that their deal is better than the one which was undertaken during the UPA government.