$3 billion (around Rs 20,169.75 crore) lying in unused defence funds in ‘forgotten’ account! No Interest earned!!!
It is been revealed by Defence Minister Manohar Parrikar on Friday that $3 billion (around Rs 20,169.75 crore) was lying unnoticed and forgotten in a US account and still India was paying the US Department of Defence (Pentagon) for new weapons (despite $3 billion was available).
Can you believe it, an exorbitant sum of Amount, Rs 20,169.75 crore lying unused and unnoticed by Previous UPA government, is a untold story enough to expose mismanagement and complete failure of System. Added to this, this huge amount didn’t earn any interest. It happens only under corrupt and scamster Congress rule. I am unable to find an answer myself why this money was transferred for no procurement? Was it done for the commission/bribe for possible procurement? This shows the apathy Congress has for the country. Congress has only one motto- Family first, Party next and Country Last!
जितना घाव नही दे पाया
तुगलक काले धंधो से..
उस से ज्यादा भारत रोया
सत्ता के लोभी अंधो से..!!
Indian government had placed the money in the US Defence department (Pentagon)-managed account for purchase of weaponry under the Foreign Military Sales (FMS) program from US vendors like Boeing and Lockheed Martin.
Defence Minister Manohar Parrikar said at a press conference – “Because of ill-management, or lack of attention to this account, we had slightly less than $3 billion which is piled up in this account, which was not earning any interest. It was just lying there in the account.” Parrikar said that he had discovered India was paying the US Department of Defence (Pentagon) for new weapons despite $3 billion which had been paid earlier was lying in an account in Washington.
Commendable thing is that this fund was discovered last year and Parrikar has started using it however he or Modi Government did not use this as political tool against UPA. Nation First! Politics Second!!
What did Parrikar do when he found this huge unused sum found?
- During 2015, Indian Government have paid nearly Rs 6,000 crore from this fund for the committed liabilities
- Indian Government saved almost $700-800 million (Rs 4,706.3 crore – Rs 5,378.6 crore) in foreign exchange by using this fund in US bank account.
- Thus the corpus of nearly $3 billion (around Rs 20,169.75 crore) come down to $1.7-1.8 billion (Rs 11,429.5 crore – Rs 12,101.9 crore).
New initiatives for better Defence procurement and payment:
- Indian Government initiated fine-tuning in payments against Defence procurement and as a result of this, “rather than raising bills case-wise every quarter, all funds have been pooled together in a corpus. As and when funds are required to be paid for contractual liabilities, it will be withdrawn from this corpus,” the ministry of defence said in a statement.
- The Indian government was paying money for each defence contract separately even when $3 billion was lying unpsent, until this money was discovered. As this huge sum was disovered, a corpus was created after counseling the US government and after that no payments have been made in the last two quarters of financial year 2015-16, MoD said. Stage-wise payments for defence deals under the FMS route are sent to a Pentagon account, from where it gets disbursed to the respective vendors. Instead of the Indian government procuring directly from vendors, it is done by Pentagon under this new process. It not only enables utilization of scarce funds on other projects but also hedges the country against adverse exchange rates.
- Indian Government has saved now up to Rs 3,000 crore by tightening up payment norms to Indian vendors, which include defence public sector undertakings (DPSUs), he said in the report. It was found that during previous UPA regime payments were made even to companies that had failed to deliver the contracted equipment, Defence Minister Manohar Parrikar said.
- Government has instituted a new way of tabulating the defence budget, which would reflect several expenditures that have so far been kept invisible. This new methodology includes for the first time defence pensions and allocations to the Ministry of Defence and this amounts to 17.23% of the overall government expenditure.
About Manohar Parrikar:
Manohar Gopalkrishna Prabhu Parrikar (born 13 December 1955) is the current Defence Minister of India. Before being inducted into the Council of Ministers of the Union Government on 9 November 2014, he served as the Chief Minister of Goa, first from 2000 to 2005 and later from March 2012 to November 2014. He did his graduation in metallurgical engineering from the Indian Institute of Technology, Bombay (IIT Bombay). He is the first IIT graduate to serve as Chief Minister of an Indian state.
Parrikar has often expressed considerable pride of his RSS background, saying that he learnt “discipline, progressiveness, gender equality, equality of all before the law, nationalism and social responsibility from the RSS”.
Though I started the blog stating it happens only in India, now I am glad to say that it will never happen again in India until People like Narendra Modi and Manohar Parrikar will be leading the country.