MAJOR INITIATIVES TAKEN BY DAD IN THE YEAR (APRIL 2008 to JULY 2009)

DAD is an exclusive service-provider to three defence services and other agencies in defence system i.e. research and development; producer, inspection agencies like DRDO, OFB/Def PSUs & DGQA etc. Our role is to provide efficient and timely payment, accounting and audit services to all defence agencies. Application of business management practices to various defence organizations , introduction of automation at various levels and changes in scope and charter of activities of various organizations, leading to changes in systems and procedures in our client organisations, poses a big challenge to our organisations and we are required to evolve new systems of payment accounting and audit in line with changed organizational realities of our clients. In 2008 –09, progress achieved in various areas is discussed below.

E-Payments

Old systems of cheque payments and postal transmission of cheque and its communication (through cheque slip) is required to be replaced with systems of electronic payments and electronic communications. Banking technology is being modernized on constant basis to provide for chequeless, anytime/anywhere banking, instant transmission of value irrespective of distance . Taking advantage of latest developments in IT & Banking technologies some offices of DAD like CDA (F) and CDA (Army), Meerut have evolved arrangements with SBI for setting up of an exclusive branch within the premises of DAD offices to provide full range of banking services from our outfits to all our clients. DAD has already issued comprehensive guidelines to all controllers’ to switch over to e-payments and concomitant e-accounting of payments made by us out of GOI Accounts with RBI. Having regard to tremendous potential for improvement in our payment and accounting services, the CGDA Mrs. Bulbul Ghosh immediately after taking over had advised all Controllers’ to go in for full scale e-payment. Many controllers have switched over to e-payments and percentage of e-payments has gone to 52% in March 2009. DAD hopes to achieve full scale e-payment systems in all offices in next financial year very shortly.

Provision of latest banking infrastructure and systems in Controllers’ offices to provide for instant and chequeless payment accurately into beneficiaries accounts has made past arrangements relating to personnel payments and third party payments through S & S imprests ( supply depots of ASC) relatively obsolete. Time –lag between payment and accounting in all such systems where payments are made by Army Units and its subsequent post-audit and accounting is done by DAD, is inevitable. In the context of availability of e-payment platforms in all Controllers’ offices, it would gradually become possible to introduce monthly salary payments to Army JCOs/OR’s from CDA/PAO directly and electronically into their bank accounts. Having regard to this possibility, the CGDA has constituted a team headed by Shri Avinash Dikshit, Jt. CGDA (IT –II) and Shri Hari Har Mishra, JCDA to evolve and implement a system for monthly salary payment systems with electronic value transfer into beneficiaries accounts. Introduction of these systems would eliminate /minimize cash handling by military personnel, and enable them to focus exclusively on their core areas i.e. fighting/ defending fitness and capabilities. It would also minimize accounting and audit problems caused by unit level payment / accounting and existence of suspenses due to inevitable time-lag between payment and its post-audit and accounting would become history.

Substitution of Railway Warrants by E-Tickets

For introduction of E-tickets, in substitution of existing system of Rail Warrants for undertaking official and concessional private rail journeys by defence service personnel, the CGDA Mrs. Bulbul Ghosh had constituted a committee headed by PCDA (HRD) Dr. S K Sharma and comprising of Mr A K Saxena, CDA (IA) and Mr Anand Agarwal, JCDA as members. This committee in consultation with all stakeholders like defence services & IRCTC etc has evolved a new system for issue of e-tickets in substitution of rail warrants gradually through out the country. Army. Navy and Air Force have agreed for implementation of a pilot project through DAD as implementing agency at 20 stations before its extension to entire country. Our proposal for implementing a project for implementation of e-tickeing system through IRCTC- PCDA (Travel) portal on pilot basis at 19 stations covering Army, Navy, Air Force on experimental basis has been sanctioned by MoD with approval of Hon’ble RM. A project team has started working on this project and the pilot project is expected to become operational in Oct/Nov. 2009. After this the e-ticketing for all rail travel will be extended to entire country in another 6 months or so. This is a major initiative of the department to provide maximum possible convenience to defence service personnel, coupled with tremendous cost – cutting in the matter of operation of rail travel system for defence services. Later on the PCDA (travel) portal of the department will be extended to cover Air Travel of defence services personnel, as approved by MoD. With the introduction of e-ticketing systems both for rail and Air, concept of TA claims/ advances and all irritants associated with it would become irrelevant and it would be a perhaps first of its kind arrangement in government systems (both central and state government) of the country. Apart from providing great administrative and operational convenience to defence service personnel, it would result in direct and indirect economy of more than Rs 50 crores apart from substantive improvement in accounting and audit services provided by us.

Pilot Projects being implemented by DAD to operationalize concepts of E-Rail Ticket & monthly payment system for PBORs.

A presentation was made by HQrs’ officers to a delegation of senior Army officers headed by Vice-Chief of Army Staff and including Adjutant General and DGOL, among others on two major initiatives taken by us i.e. substitution of railway warrants by e-tickets and introduction of monthly salary payment system directly into the savings bank accounts of JCO/OR’s falling under one PAO i.e. 11 GRRC, Lucknow. These pilot projects shall be implemented within 3 months and thereafter gradually extended to defence services in entire country. AHQ agreed to extend fullest help and co-operation to these projects which will revolutionise the functioning of AHQ and DAD in these areas and enable DAD to render highest possible quality of service to defence services with state of art technology.

Performance Audit/VFM studies on AOC, EME & ASC

We have been talking about re-orientation of internal audit systems for quiet some time and some work has been done in this regard. CGDA Mrs. Bulbul Ghosh, having practical vision for modernizing our audit systems to enable us to act more as management consultants rather than as traditional fault finders ordered a major performance audit and VFM (Value For Money) audit studies on EME, AOC and fuel management systems of ASC. Two studies on EME & AOC were carried out by Shri A K Saxena, CDA (IA), New Delhi under over all guidance of the CGDA and the same were referred to VCOAS, AHQ for consideration and implementation after approval of CGDA. These study reports have also been referred to all Controllers’ for their perusal and comments. Major recommendations made in AOC study are about cutting down length of supply chain followed by AOC by eliminating 2 to 3 echelons; reducing MSP (maximum stock potential) of COD’s and increasing MSP’s of user units, DOU’s; decreasing frequency of indenting from user units/ DOU’s; increasing size of transportation consignment; optimal use of transport means with greater reliance on rail as compared to CHT; automation preceded by business process re-engineering etc. On implementation of these measures, time for supply of stores from producers/suppliers to final users through AOC would come down from 1 year to few weeks only and thereby increasing availability of stores to users, leading to full value for money spent. Apart from increasing operational preparedness of Army, economy worth thousands of crores can be achieved with cutting down of multiple stocking and transportation of stores. With this, evolution of simplified and yet effective audit systems, would enable DAD to provide highest level of assurance to defence system about proper and effective use of funds, & stores acquired. Study on efficacy and economy in functioning of EME has brought out that despite overstaffing and idling of manpower in base workshops, huge arrears in overhaul of major weapon systems are in existence. Internal benchmarks used by EME for man and material consumption for overhaul assignments were found to be higher than competitive benchmarks prevailing in local and other markets. EME’s dependence on AOC for spares and repairables is identified as the biggest constraint and recommendations made for de-linking of AOC with EME at supply/stocking stage to increase spares availability. Study has recommended consultation with uses in target fixation, constitution of integrated project teams for guidance of EME in techno-commercial matters relating to acquisition, maintenance and operations of all major weapon systems, re-assessment of production capacity of ABW’s with reference to composite criteria, review of repair and overhead norms in light of similar norms prevailing in local and international markets, offloading of repair/ overhaul of B- vehicles to OEM vendors. Recommendations relating to downward revision in manpower norms for repair and overheads, civilianisation of combat component in ABW’s and offloading of low-tech repair assignments to OEM vendors would result in generation of huge fixed (land, buildings, and equipments) and human capital worth thousand of crores of rupees, for alternative utilization elsewhere for enhancing operational preparedness of services.