The head of a critical Defence Ministry panel is said to have resigned following differences over basic concept of a new procurement body.
Retired bureaucrat Vivek Rae, who had served as the director general (acquisition) in the Defence Ministry, put in his papers early last month. He was appointed the head of the Defence Ministry panel to suggest ways to restructure the acquisition wing.
The panel 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.
Sources said the government representatives were favouring a centralised model of design, development, procurement and maintenance. They said that such a model exists only in France, which was implemented in the 1960s in that country.
However, Rae was in favour of an American-style model where the policy is created centrally but agencies procure equipment on their own. He felt this would work better for India.
Sources also expressed surprise over the resignation, saying that the committee was in the midst of finalising the report to be submitted to the Ministry.
It is not clear if the committee will continue to work or a new one would be constituted.