The all-pervasive and superseding role of the PMO is the new normal under the Modi-led NDA government where accountability of decisions made by PMO reposes to none. Becoming an obnoxious power centre with a few handful of people, the Prime Minister’s office assumes the role of sole arbitrator to decide the fate of the country and it is no surprise that nepotism and favoritism spread its tentacles within the setup The information about highly sensitive defence deal also found its way to a private party, which in turn acted in jiffy to form a new company before the deal got formally announced. How this company subsequently secured the offset contract is another matter of curiosity.

Looking carefully at the events unfolded during India’s changed preference to awarding offset contract to Reliance Defence Limited, an ADAG company, in the Rafale aircraft deal, it appears that the PMO went overboard to set aside HAL and replaced it with Reliance Defence. On 10th March, 2015 Dassault Aviation Limited declared in its annual report of 2014 that it was in negotiation with Indian authorities for 126 Rafale aircrafts. The next day Dassault CEO declared that an agreement had been reached with HAL to manufacture 108 aircrafts in India and 18 of them would be manufactured in France. On 28th March 2015, ADAG formed a new company named Reliance Defence Limited. On 10th April, 2015 Prime Minister announced “I have asked President (French) to supply 36 ready-to-fly jets to India”.

Only two things changed in this course of time: the number of jets got reduced and the product became off-the-shelf. It is said that the then Defence Minister Manohar Parrikkar was clueless about the development and, in fact, has gone on record that the decision was taken by the Prime Minister and he seconded that. Evidently there was no consultative process carried out with Ministry of Defence for this course correction. On 30th April, 2015, Dassault Aviation Limited formed a JV with Reliance Defence Limited and thus came into being a new entity named Dassault Reliance Aerospace Limited.

One may presume that the PMO must have many valid reasons to redesign the deal with 36 off-the-shelf jets. One may even overlook the mandatory consultative procedures and approvals from IAF and DAC that were needed to be followed. But the question remains as to how a private business group became privy to the information that some major changes were going to happen in the Rafale deal where HAL would no longer be a co-manufacturer and, therefore, an offset contract with Dassault was up for grabs. Though the allegation of quid-pro-quo by the opposition parties is yet to be substantiated, it is a matter of grave concern that sensitive information got leaked from PMO before the government announced its changed plan for the defence procurement. The problem of highly centralised model of governance is looming large, curtsey Rafale.

As soon as NDA came to power in 2014, it was clear that all powers will be concentrated in PMO, with only a handful of people in the know of things, while the others, including a some political heavy weights, were religiously kept out. But in a way, people were excited to see a new way of governance where the boss was taking all the shots himself in policy matters and governance. This was in contrast to the UPA regime where the public perception was that the power to make crucial decisions vested outside the prime minister’s office.

Stories soon began floating around about the tight grip of PM on governance, with ministers being made accountable to the PMO, weekly review meetings, stern warnings to ministers and their secretariats. Things reached such a point that the babus working in PMO or in its periphery became avatars of rare talent. Modi’s overzealous team reached every nook and corner of other ministries, with the result that the PMO’s bureaucratic control over the entire government machinery became a stranglehold.

A new dawn had arrived where the corridors of North and South Block became deserted as businessmen and deal brokers stopped frequenting them. Ministers were asked to do their core job of running the day to day affairs while the PMO took care of all proposals or initiatives. Those who deserted North and South Block corridors started gathering outside the PMO, but access was limited to only the high and mighty, who knew the PM directly or through his coterie. Soon it became an exclusive party of closely knit people in their special comfort zone. They were everywhere, from Investor Summits to foreign trips. Obviously, when the difference is blurred between insiders and outsiders in the government machinery, rules get rigged for the benefit of the chosen few. And this explains how deals like Rafale and the offset contract became possible.

It was visibly a dream run. Amit Shah concentrated on the party affairs and kept winning state after state with his well crafted political strategies. Modi, with his new governance flavour, appeared to be on course to create a page for himself in history as the man who changed everything for the better. But as time passed, things took a different turn. Amit Shah has himself changed his narrative for the 2019 elections as there is new realisation that the promised delivery from the Modi government is far from expectation and there is visible disillusionment among people about the government’s achievements. All of Modi’s plans, strategies and potentially high voltage public welfare schemes have failed to create tangible results due to inept execution by his handpicked team. (IPA Service)