Security upgrade? 90% of budget yet to be spent

The elite National Security Guards, for instance, has just spent over Rs 4 crore of about Rs 15 core that was set aside for capital expenditure in its budget. Last year, of about Rs 9 crore meant for machinery and equipment, the NSG returned over Rs 3 crore. This was the reason it gave: “non-finalisation” of procurement process for bullet-proof jackets, holographic reflex sights and some other hi-tech communication equipment.

Similarly, the Intelligence Bureau was allocated about Rs 50 crore for capital expenditure this year. Till November, it had spent only Rs 9.8 crore.

The worst, incidentally, is the National Technical Research Organisation, the apex technical intelligence body set up on the recommendation of the Kargil Review Committee. It has Rs 2,420 crore marked for capital expenditure this year, which includes massive technological upgrade and construction of a new building. Until November, it had spent just about Rs 195 crore. Last year too, NTRO got Rs 1,850 crore, of which it surrendered Rs 1,414 crore saying it could not finalise purchase of communication equipment.

In the context of coastal security that has come under focus after the Mumbai attacks, a little over Rs 130 crore was allocated in 2007-08 for capital expenditure under three specific schemes — Coastal Security Scheme (CSS), Joint Coastal Patrolling under Operation Swan in Maharashtra and Gujarat, and scheme for hi-tech surveillance on international borders. Of this, Rs 69.9 crore was surrendered or could not be spent.

Consider the reasons:

CSS: Scheme is under implementation since 2005-06 and it was planned that while a portion of the money would fund new coastal police stations, check posts and outposts, bulk of it was meant for procurement of vessels for coastal patrolling from Goa Shipyard Ltd and Garden Reach Workshop & Engineers Ltd, Kolkata. Despite technical specifications having been finalised well in advance, the MHA said price negotiations continued until March 2008 and hence, the money was returned.

Operation SWAN: Under this, money was to be further released to the Defence Ministry for buying 15 Interceptor Boats for Coast Guard and setting up three Coast Guard stations in Maharashtra and Gujarat. Now, the MHA blames the Defence Ministry for not finalising the deal for these boats with Goa Shipyards Ltd and for not forwarding the proposal to Coast Guard which had already identified locations. All this happened even after Gujarat and Maharashtra governments had provided requisite land. Result: amount remained unused.

• As for hi-tech surveillance, the MHA said the money was not spent because of delay in “tendering process”. In all, under capital expenditures last year, the Home Ministry surrendered about Rs 1,788 crore of some Rs 4,611 crore allocated for this purpose. The reasons for this largely relate to continuance of old procurement methods through the Ordnance Factory Board, other PSUs and using CPWD for all construction activity. Inadequate residential facilities has been identified as a major reason for loss of morale among the police. Sources said there has been general reluctance for making a case of open or global tenders or approaching private sector, resulting in delays and red tape. Some examples from last year that reflect the larger malaise:

• The BSF said it could not procure fast attack crafts because Goa Shipyard Ltd could not provide a proper “cost break-up” and other related documents.

• The CRPF said it could not finalise purchase of over 18,000 AK-47s and 10,000 assault rifles due to “non-materialisation of supplies” from the Ordnance Factory Board.

• Delhi Police had set aside Rs 20 crore for “induction of latest technology” into the force, but surrendered the entire amount citing “non-finalisation of proposals”.

• The CISF returned Rs 195 crore meant for X-Ray baggage inspection system because a certificate from the Atomic Energy Regulatory Board was not submitted. Top officials say the worry is that bulk of the unspent amount comes from funds meant for modernisation relating to arms, equipment and other technical upgrade. This does not show up in the overall figures because capital expenditure constitutes just over 25 per cent of the total budget (this year it is 28 per cent) while the remaining is largely spent on salaries and other remuneration.