Mega defence deals to swell poll war chests?

By M H Ahssan

There is something about mega defence deals and the general elections. If the previous NDA regime inked a flurry of arms deals in the run-up to the 2004 general elections, the UPA government is doing pretty much the same this time.

First, in January, the UPA government covertly signed the biggestever defence deal with US in the shape of the around $2.1 billion contract for eight Boeing P-8I long-range maritime reconnaissance (LRMR) aircraft for the Navy.

Despite having A K Antony as defence minister, who promises “transparency’’ at the drop of a hat, the government kept this deal under wraps till it was first reported by HNN a few days later.

Then, towards end-February, the defence ministry secretly inked the largest-ever deal with Israel in the form of the huge Rs 10,000-crore joint project to develop MR-SAM (medium-range surface-to-air missile) systems for IAF.

A month later, the defence ministry is still tight-lipped about the exact contours of the project, which include a staggering Rs 600 crore as “business charges’’. “We have nothing to say,’’ said a defence ministry (MoD) spokesperson, questioned about the project on Friday.

That the armed forces desperately need reconnaissance aircraft for maritime snooping as well as MR-SAM systems to bolster the country’s air defence cover is not disputed. Neither is the fact that both the projects were in the pipeline for a couple of years.

But eyebrows are being raised about the “propriety’’ of such deals being signed — and that too in a thoroughly opaque manner, as if the MoD had something to hide — in the run-up to the April 16-May 13 general elections.

“Technically, both the deals were signed before the model code of conduct came into force on March 2. But yes, the government should have been more open about them,’’ admitted a senior official.

Murky wheeling and dealing, commissions and kickbacks, of course, have always been an integral part of the armament procurement process, with political parties often being accused of using defence deals to swell their election war chests.
The NDA regime, too, had sealed a spate of defence deals just before the 2004 elections. They included the $1.5 billion package deal for Russian aircraft carrier Admiral Gorshkov, the $1.1 billion one for three Israeli ‘Phalcon’ AWACS (airborne warning and control systems), and the Rs 8,000 crore project for 66 British Hawk AJTs (advanced jet trainers).

All these three deals, incidentally, have been facing some problems. While the Gorshkov contract is now being renegotiated, with Russia demanding an additional $2 billion, the delivery of the first Phalcon has been delayed by well over a year to May now.

MoD also recently floated a global tender for acquiring additional AJTs, virtually cancelling plans for a follow-on order for 40 more Hawks for IAF and 17 for Navy at a cost of around Rs 2,210 crore.