NEW DELHI: In a surprise move, chief of a defence ministry-appointed committee to recommend on restructuring acquisition process, has resigned from his position. Though ministry officials are not commenting on reason for his resignation, but sources indicate that he had differences over basic concept of concept of a new procurement body. The Panel was almost finalizing the report to be submitted to the ministry.
Vivek Rai, who was in the ministry of defence as Director General (acquisitions) decided to leave the panel , which was set up in May this year by Defence Minister Manohar Parrikar following recommendations of the Dhirendra Singh Committee, which had given inputs for the new Defence Procurement Policy.
The panel, headed by Rae, included former Financial Advisor to the Defence Ministry Amit Cowshish, Air Marshal (retd) N V Tyagi, Lt Gen (retd) A V Subramanian, IIM professor Pritam Singh and Defence Ministry officials J R K Rao and Sanjay Garg.
Defence ministry sources said the government representatives were favouring a centralised model of design, development, procurement and maintenance on the lines of model exists only in France, which was implemented in 1960s.
However, Rae was in favour of an American-style model where policy is created centrally but agencies procure equipment on their own. He felt this wold work the best for India.