ESM Welfare Thiruvananthapuram

State would favourably consider issues concerning ex-servicemen and service personnel:CM
Thiruvananthapuram 05-10-2012: Inaugurating the Civil-Military Liaison Conference, CM said that the State would favourably consider issues concerning ex-servicemen and service personnel.
He added that exemption in age criterion, weightage mark, and reservation for ex-servicemen would be considered in select posts apart from strengthening the functioning of ex-servicemen’s grievance redressal cells.
The Sainik Welfare Board should take up recruitment of kin of war heroes and those incapacitated during action to civilian posts in Defence establishments including the Canteen Stores Department (CSD) said the CM.
The State would ensure land for expansion activities of Army units stationed here, including handing over of 10 acres at Muttathara or Vithura for rehabilitation of ex-servicemen.
There are no hassles in handing over 70.40 acres near the Cochin international airport at Nedumbassery for the Coast Guard Air Enclave. The Army could prepare a consolidated list of land issues it faces, to be discussed in a separate meeting led by the Chief Secretary and the Collectors concerned, the CM said.
Civil Military liaison Conference

Gross irregularities in CSD

04 sep 2012
A series of communications between Controller of Defence Accounts and the Defence Ministry reveals how gross irregularities occurred in the purchases in defence canteens across the country.
The exchange of letters between the auditors and Ministry exposes the tough resistance by forces to adhere to financial transparency in canteen purchases, involving thousands of crores per year.
“I am writing to highlight the malady that ails the Canteen Stores Department (CSD) and requires immediate attention. CSD has been held in such high esteem that it is almost sacrilegious to doubt their infallibility. Instead of groping in the dark about the functioning of CSD, which is considered to be a mascot of organised procurement system, an insight will reveal the labyrinthine corruption prevailing in the organisation.
“On the one hand the Government is endeavoring to climb the ladders of transparency, accountability, probity in public procurement process and to enhance public confidence in procurement by introducing the “The Public Procurement Bill, 2012” in Parliament, the system followed in CSD is highly opaque, discretionary, providing high degree of arbitrariness,” said Savitur Prasad, the Principal Controller of Defence Accounts in a communication to several officials of Defence Ministry including the Defence Secretary.
The series of letters between the Auditor and Ministry, obtained through RTI by activist Subhash Chandra Agrawal, says the procurements through nearly half of the vendors are by doubtful methods.
“There are about 600 firms supplying more than 4,000 items to CSD. Almost 200-300 firms provide product whose credentials in consumer market are hardly established. The details of factory inspection and hygiene report be made public by placing on the internet, which may unravel the truth of empanelling such firms.
“It is a travesty of faith that the age old loyalties of defence personnel being stoically dependent on CSD, have been breached by PSC (Preliminary Screening Committee), by introducing product from ineligible firm,” said the auditor of defence accounts.
The auditor has pointed out several malpractices in listing a product and absence of obtaining hygiene certificates for the items sold in canteens.
There are around 34 CSDs across the country and more than 4,500 Unit Run Canteens under it to cater the 17 lakh soldiers of Army, Navy and Air Force and their families.
Two years back, the CAG was allowed to audit CSD accounts after countering stiff opposition from forces. But till date, forces are adamant not to allow the audit by CAG in its 4,500 Unit Run Canteens.
Public Accounts Committee of Parliament headed by Murli Manohar Joshi had directed Defence Ministry to go for the CAG auditing in Unit Run Canteens in December 2011. But till date, forces as well as the Defence Ministry have not yet responded positively to the mandatory directions of the PAC. The Ministry is expected to revert back to PAC by September first week, after having sought postponement of implementation deadlines many a times.-via The Pioneer
Gross irregularities in CSD

Graft flourishing in defence CSD Stores

Graft flourishing in defence canteen stores: Official Himanshi Dhawan, TNN Aug 21, 2012, 03.15AM IST
NEW DELHI: The defense personnel standing guard at the country's border deserve the best. But not everyone appears to agree. The canteen stores department (CSD) run by the defence ministry could be embroiled in gross irregularities in procurement of material that could compromise the health of the armed forces.
Describing CSD as a "labyrinth of corruption" the controller of defense accounts and integrated financial advisor (principal controller) Savitur Prasad has called the procurement system in CSD as "highly opaque, discretionary and providing a high degree of arbitrariness". Through a series of communications the financial advisor has highlighted that procurement and financial norms are being flouted to provide poor quality products to the armed forces. The letters have been accessed through an RTI in response to an application filed by activist Subhash Agrawal.
CSD is the largest supplier of consumer goods and edible products, notably alcohol, for serving and retired defense personnel and their families across the country. The government purchases Rs 10,000 crore worth of material every year and runs about 3,500 units of canteen stores and shops with various military units attached to CSD.
The communication comes to light at a time when the defense establishment is reeling under the impact of last month's CBI raids at its stores in Himachal Pradesh, Haryana and Chandigarh following allegations of irregularities in purchases and distribution.
Prasad in a letter dated May 16 has brought to the attention of the defense ministry, including defense secretary, that of the 600 firms supplying more than 4,000 items to CSD almost 200-300 firms do not have established credentials in the market. The letter lists over 80 companies that are little known in the Indian market but supply their products to the armed forces.
He also points at a system of "introducing" items and then deleting them arbitrarily from the system. In the letter he says, "more number of items have been introduced and deleted than the total number of days available in the last three years." According to the data available, 1,844 items have been introduced in the last three years, while 1,288 have been deleted hinting at irregularities in including and excluding products eligible for procurement arbitrarily.
The letter also indicates that a rule that allows the procurement board to disqualify any firm if it makes sales lower than 2% of its value and volume makes it vulnerable for deletion from the eligible list has been misused.
The executive and financial powers exercised by the CSD unit's general manager in placing orders under the category of special and supplementary orders, "reflects mockery of transparency in procurement process" because the orders are made without approval from financial authorities. This, according to Prasad, is in violation of government orders and guidelines issued by CVC.
Graft flourishing in defence canteen stores: Official

OROP- Pension improvement an ongoing process

PIB Releases Ministry of Defence 12-December, 2011 14:34 IST
One Rank-One Pension
The gap between past pensioners and their youger equivalents retiring from the armed forces does not necessarily keeps widening with every successive pay commission. Over the years several improvements have been made in pension of past pensioners. The pension of past pensioners have revised in accordance with recommendation of each successive Pay Commission, as accepted by the Government. The Sixth Pay Commission had recommended fitment formula and modified parity for past pensioners, in order to reduce the gaps, which were accepted by the Government.
Pension Improvement is an ongoing process and considerable improvements have been made in the pensions of armed forces personnel. The Group of Ministers (GoM) had in 2005 improved the pensionary benefits of PBORs. On the recommendations of PMO, a Committee was set up under the Chairmanship of Cabinet Secretary in June, 2009 to look into the issue of `One Rank One Pension and other related matters. After considering all aspects of the matter, the Committee keeping in mind the spirit of the demand, suggested several measures to substantially improve pensionary benefits of Personnel Below Officer Rank (PBOR) and Commissioned Officers, which have been accepted by the Government and orders for implementation of all the recommendations have been issued. These are available at www.pcdapension.nic.in.
This information was given by Minister of State for Defence Shri MM PallamRaju in a written reply to Dr.RajanSushantand others in LokSabha today. PK/NN (Release ID :78436)
One Rank One Pension

CSD Depots in Himachal Pradesh
Government of Himachal Pradesh has requested this Ministry for setting up of a CSD Depot in the State in view of the number of Servicemen, Ex-servicemen and their families residing there.
Land measuring approximately 188kanals had been offered by Himachal Pradesh Government in this regard. However, the same was not found to be suitable, since some of it Included khud/nallah which is prone to flooding during rainy season.
It is not possible at this stage to anticipate the time likely to be taken for setting up the Depot at Una in view of the fact that the Government of Himachal Pradesh is yet to identify another piece of suitable land. Once a suitable alternate land is offered by the State Government the proposal will be considered depending upon availability of budget and manpower.
This information was given by Defence Minister Shri AK Antony in a written reply to ShriVirenderKashyap in LokSabha today. PK/NN (Release ID :78428)

Sadbhavana Schemes of Army
Projects under Sadbhavana scheme executed by the Army in Ladakh relate to infrastructure, community development, Health care, Human Resources Development, Education, Information Technology and National Integration Tour etc. Since 2009-10, the expenditure incurred is as under:-
(Rupees In Crores)/ Year/ Amount Allotted/ Expenditure Incurred
2009-10/ 6.85/ 6.85
2010-11/ 7.00/ 7.00
2011-12/ 7.00/ 3.34 (till date)
These projects are undertaken in consultation / recommendations of village Sarpanches and district administration and are focused to supplement the requirements of the people in remote and inaccessible areas.
This information was given by Defence Minister Shri AK Antony in a written reply to ShriHassan Khan in LokSabha today. PK/NN (Release ID :78425)

Placement of IAF Personnel
A Placement Fair was conducted at Air Force Auditorium, Subroto Park, New Delhi on 15th & 16th October, 2011 by the Indian Air Force Placement Cell. A total of 2788 air warriors including 2671 airmen (2035 retired and 636 serving) and 117 officers (87 retired and 30 serving) participated in the event. A total of 38 companies participated in the fair.
666 air warriors were shortlisted for placement during the fair. So far 93 confirmed placements have been reported to Indian Air Force Placement Cell.
Such fairs are conducted as per the requirements of the Indian Air Force from time to time.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri A. Ganeshamurthi in LokSabha today. PK/NN (Release ID :78427)

Illegal Liquor Racket emanating from CSD Canteens

Armymen under suspicion in illegal liquor racket by Sandip Dighe.
A major racket involving the illegal sale of liquor meant for the defence services in the open market has been unearthed by the state excise department with the arrest of Ramsevak Ramchandra Sharan (48) from Ghorpadi, last week.
Sharan was selling the liquor from his grocery shop in Ghorpadi. Around 30 army personnel are under the police scanner for their suspected role in the racket.
According to the excise department, the liquor was purchased by the army personnel from the central stores department (CSD) canteen meant for defence personnel, then sold to Sharan, who used to give them Rs40 per bottle as commission. He later sold it at a higher price.
On October 8, on a tip-off, the police team lead by police inspector Shivshankar Patil caught Sharan red-handed selling liquor at his shop.
The excise police recovered 133 liquor bottles of McDowell, XXX Rum and other brands, together valued at Rs28,930.
Sub-inspector RB Birajdar of the state excise department told DNA, “We got to know that about 30 army personnel are involved in illegal activities for the last couple of years.”-via DNA
Armymen under suspicion in illegal liquor racket
Comment: There is rampant sales of liquor in all metro cities to unauthorised personnel. This malaise needs to be curbed in a concerted manner. There is need to get to the bottom of this organised crime.

Dehradun Ex Services League celebrates its 10th Annual Day.

Shyampur Shakha of Dehradun Ex-Services League, situated beyond Prem Nagar, celebrated its 10th Annual Day on 20th January 2011 with great pomp and show at the premises of Sangam Public School. Brig(Retd) K.G.BEHL, President DESLwas the chief guest on the occasion and Brig P.S.Gurung, vice President State Minority Commission was the Guest of Honour , Smt.Manju , Gram Pradhan Arcadia,was special guest besides Shri D.S.Batola, Principal Sangam School, Lt Cols B.S.Chettri, Lt Col R.K.Arya, and Lt Col B.M.Thapa, Secy. DESL, Lt Col R.P.Jairath, the Treasurer. Vir Naries of the area. were especially invited.
The programme started with the lighting of lamp by the chief guest and others followed by Saraswati Vandana and welcome song by students and ESM ,especially composed by CPO C. B.Gurung.
The President of Shakha H/Capt. B.S.Thapa, welcomed the guests and the audience and reported about all welfare activities carried out during the year. He expressed his gratitude to Brig K G Behl for attending the function as a Chief Guest in spite his ill health.
In his address Brig Behl, President DESL congratulated the members of the shakha on their raising Day and wished them a very happy and prosperous New Year 2011. He was glad that the day was a Sunny Day and a large number of ex-Servicemen have assembled in colourful dresses. He expressed satisfaction that the Shakha is carrying on various activities and taking up cases for the welfare of the Ex Servicemen residing in that area. He said that DESL keeps on publishing relevant orders in their Annual Pamphlet published at the time of AGM, copies of which are supplied to all those who attend besides some copies to Shakha HQ . He expressed his happiness on govt. agreeing to resolve some of the anomalies pointed out earlier but final orders are not yet out specially raising pension at the time of retirement from 50% to about 80%, which has to be maximum, to get One Rank One Pension. We have taken up the case with the PCDA and all others concerned for fixing pension on the basis of Pay as arrived by multiplying what one was drawing before 1.1.2006, as being done for fixing regular officers Pay and not the minimum of the scale as done now. It makes a big difference in pension.
Regarding ‘One Rank One Pension’ for which a large number of ESM have returned their medals and the agitation is going on at Delhi we have expressed our full support and a large number of ESM from Dehradun have become members there also. He pointed out that for OROP two factors are required viz. to retire at the highest of the scale and must have completed 33 years of service to earn full pension. In case of Jawans and Jcos the service has been brought to 30 years by giving different weightage and can be brought to 33 years by the method given by the 5TH CPC, due to raising age in civil to 58 years then which has later been raised to 60 years.

As you all know, during 3rd CPC, all ranks including officers were being retired at the maximum of the scale which can be revived. If the above two factors are fulfilled it automatically becomes OROP. This will be in consonance with the civil where most of the employees retire after completing maximum of the service required to earn full pension and automatically retire at the maximum of the scale they draw at that time due to length of service. Govt. should think on this line. Since in case of JCOs and Ors, they have already brought them nearer to the desired amounts it will not require much of funds to grant OROP to all and the problem can be solved once for all. Brig Behl also explained about the progress being made in the working of ECHS and efforts being made to start shortly two Dispensaries sanctioned at Vikasnagar and Haridwar Road. Keeping the strength of Ex Servicemen at Clement Town, a case for a full fledged dispensary is being mooted. It will lessen the load at ECHS Dehradun.

Regarding CSD he appreciated the efforts and improvements being done by the GOC, Uttarakhand Sub Area and how Vikasnagar problem has been saved. He hoped that soon the facilities will improve. He pointed out that though the state Govt. has issued orders regarding granting same concession on purchase of vehicles through CSD, as by adjoining states but they have put certain limits which are not in order and need to be removed. He had discussed the matter with the State Chief Secretary Shri Subash Kumar and also pointed out to the Hon’ble Chief Minister who agreed to get those right but the fresh orders are yet to come and the system needs to be streamlined . We hope it will be done soon. Regarding other points announced by the CM, for War Memorial and House Tax, the matter is being pursued and data being collected.

He later replied to the queries made by the members regarding various problems being faced and promised to take up the issues with the concerned authorities. He announced the sanction of Rs. 2000/- for the welfare activities. It was followed by a colourful cultural programme which included songs and dances by the youngsters, mostly students of the Sangam School, in Hindi, Gorkhali, Garhwali, Kumaoni and Punjabi which were very much appreciated by the large gathering there.

Brig PS Gurung was honored and so also 95 years old Major Narian Singh Thapa with Shawl and Wall clock. These were compered by Hon Lt Hari Singh Gurung, which was highly appreciated by all. It was organized very well by Capt B.S.Thapa and his team. Lt GB Gurung proposed the vote of thanks. It was followed by delicious lunch.
Lt Col B M Thapa, Veteran
General Secretary
Dehradun Ex-Services League
IESM Member

Time proven methods to combat corruption in the Armed Forces

Extracts from Brig Grant Memorial Lecture by Lt Gen Ashok Joshi(Retd) PVSM, AVSM
Aberrations and Correctives

Many of us have listened to the Army Chief on the TV and seen his very visible concern and anguish. Yes, something has gone wrong and the system cries out for correction. We know that he must be very busy thinking of remedies to put things right. Such things are not amenable to brain waves. We are sure that a great soul searching in on. Even so, here are some ideas about what could be done.

I remember one of the former Army Chiefs thinking aloud in exasperation thus: “Is there a chain command downwards, and a chain of contempt upwards?” Contempt and command do not coexist. A commander who is visibly guilty of wrongdoing axes his own moral authority; thereafter he is a commander only notionally. His leadership has evaporated. He merely occupies the appointment and puts on the rank. His subordinates obey him when they want to or when they cannot get away. A commander who cannot enforce his will by inspiring his subordinates is dead wood. This is the worst adverse impact of corruption. Such a person has to go and this has to be achieved without causing even greater collateral damage. Court martial of a senior commander brings in its wake the very philosophy of military command. Military ethics do not allow a subordinate to sit in judgment over orders that he has got. He is not expected to examine its legality, or to hesitate. An inquiry and court martial calls into question the entire spectrum of orders that he might have given—including many legal and appropriate ones—but now the subordinates who give evidence are likely to suspect everything. This needs to be avoided. The man must be persuaded to go. Such things have been done in the past and it works provided the senior commanders bring to bear their moral authority and they are supported by the powers that be. Legally valid provisions exist.

It is only right that the Armed Forces should take the latest aberrations very seriously, appoint study groups, and chart out a course of action. It is better to look at the larger picture than waste energy and time on proven bad hats. The rot has taken a generation to spread; it may take that long to be eliminated.

A Russian proverb says that the fish will rot from the head. It is very meaningful as far as the Armed Forces are concerned. If the rot is to be stopped the beginning is to be made at the top. In a strictly hierarchical organization in which example is nine points of teaching, correction at the top will yield results in a comparatively short time, and some changes need to be brought about in short order so that the impulse travels down swiftly.

With a single fiat, the senior officers could refuse to dine in places where cooking is not done in messes. “Five stars are out, officers’ messes are in” should be the simple message. The Armed Forces have prided themselves over the years in not making an invidious distinction between the junior most officers and the senior most. There must be no fundamental difference in life style. Shared life styles in messes creates cohesiveness; a la carte culture of exotic foods and wines for seniors destroys it. It is nothing short of shocking that some of the units and institutions have gotten in the habit of employing event managers. One day, some one may want to employ an event manager to stage an opposed river crossing. Have become so very redolent and laid back in the wise of nawabs of days gone by? You will soon be looking subsidiary armies. Some Arthur Wellesley may be waiting in the wings.

Hardihood is a professional requirement of the Armed Services: “luxury must be out and hardihood must be in”. Mere athletic prowess is not enough. Sports, in particular, team games must be ruled in; and the fancy gym-culture can be kept at an arms length.

The Corporate culture is the very antithesis of the subculture in the Armed Forces. Their differing value systems are derived from different attitudes to life. Profit making by the corporate sector involves earning the best price that the buyer is willing to concede based on the principle ‘caveat emptor’, even if some of the profit is later ploughed back into the Society in charity to good causes. The Armed Forces teach an individual that he must yield a little more to the common good than what he gets in return. Leadership in the Armed Forces is about winning battles at all costs, not about claiming bonus on profit. Interestingly, it is amusing to note that the prefix Honourable appeared in the name of the East India Company.

Some of the algorithms, devices, and techniques learnt and taught in management institutions certainly improve efficiency and productivity. They must be learnt from the industry and the corporate and business houses, but the Armed Forces must shun the corporate culture that puts price on everything. What price do you place on life and limb of a man, or on his long separation from his family, or on defeat or victory for that matter? Corporate houses can live for years on low or no profits, or they may acquired by some other, but there is no prize for runners-up in our profession as Field Marshal Maneckshaw was fond of reminding us. Corporate houses serve the country well. But for their entrepreneurial drive and skills of the corporate sector national wealth would not increase. We need them but our values are different. The Armed Forces ought to respect them but keep the difference. The Armed Force certainly need to incorporate respect in the value scale but for which they cannot become an organic part of the nation.

Problems that arise from avarice and greed are far more difficult to get rid off. However, conspicuous display of wealth could be discouraged. Our contemporaries did see the prince of Baroda, Kapurthala, Jaipur ride bicycles to work and the mess. There was a well thought out purpose behind this.

Close contact with civil administration cannot be avoided during long drawn out counter-insurgency operation or during aid to civil authority. Officers and men both learn bad habits. Such units may actually have to be quarantined for a while.

Local purchases and procurement can and do contaminate the Armed Forces. Central procurement agencies must be told in categorical terms that they had better earn there keep; a failure in central procurement would not be tolerated. At least the units would be protected from the virus resident in local purchases.

It must be made difficult to hide ill-gotten gains or their display by claiming that they are inherited. Suitable declarations can be designed so that a senior officer knows that he cannot account for his ill-gotten wealth by making false claims of inheritance.

An institution of advisory council could be created, e.g. the Army Advisory Council, comprising six elected three star Generals, the serving Chief, and presided over by an elected former Chief. All matters concerning the effectiveness, efficiency, and reputation of the Army could be discussed.
Conclusion

At times like these, one recalls the poetic lines. “It was the best of times, it was the worst of times…it was the season of Light, it was the season of Darkness.” We still have fresh memories of Siachen and Kargil; of our ships dealing very decisively with pirates; of our Air Force performing exceedingly well in joint exercises with the Sukhois in the showcase. The pay commission has generally yielded a reasonable deal for those serving at present in Armed Forces. You have Honda Cities in the parking lots of officers’ messes. But, then there is news about land scams in the Army, cases of molestation and misappropriations in the news—everything that brings uneasiness.

Hardihood is a prime professional requirement, most definitely for the Army. Soft life and luxury have to be abjured in professional interest even when you can afford. We must not emulate the US forces by opting for ways of living which do not suit us.

Eventually, these aberrations would go, one hopes. But some deconstruction would have to be undertaken before the mansion is restored to its former glory.

Canteen Stores Department (India) Demystified

There are over 3600 CSD unit run canteens with almost 6300 crores of turnover per annum, thereby, generating over 300 (assumed profits at 5%) crores profit. However, this is not revealed to Govt of India. These canteens are run as Private Venture of Army as of date. When a query through RTI was asked, it was clearly stated that these 3600 CSD canteens are 'Private Ventures of Army' and it has nothing to do with Govt at all. This declaration is very alarming. Had this CSD canteen (Retail) operations been controlled by the Govt and Audited by the CAG, the profit amounting to Rs 300 Cr would have been made accountable to Jawans and Veterans of the Indian Armed Forces. Presently, this profit of 300 Cr is being used as per the discretion of Local Commanders. This system needs to be cleaned up at the earliest lest leading to more scams. The CAG, CVC, MOD and Government of India should take notice to ensure profits are utilised for the welfare of serving soldiers, defence employees and the Ex servicemen and their families.

Canteen Facilities to Defence Personnel
Introduction: Providing canteen facilities to the Defence Personnel and their families is obligatory on the part of Govt of India. This facility is created as a welfare measure. The entitlement for canteen facility is included in the pay & perks offered to the defence personnel. This could be verified from the career sites of Army, Navy & Air Force.

Canteen Stores Department (Wholesale Outlet)
There are two types of Canteen Services. One is wholesale and the other one is Retail. The wholesale is called 'Canteen Stores Department'. Its headquarters is based at Adelphi, Mumbai. There are total 34 CSD Wholesale Depots in India. CSD procure the items directly from the manufacturers and stock it in these Depots. The CSD by itself does not come in direct or daily contact with its end customers. CSD deals only with the Retail Outlets (i.e Unit Run Canteens, in short - URCs).

Profits
The turnover of CSD is based on the purchases made by the Retail Outlets. As on 31 Mar 2008, the turnover of CSD was Rs. 5600 Crores as per the official records. Therefore, the net profit of CSD was almost 300 crores during the Financial Year 2007-2008. The sales/turnover, profitability, its distribution etc of CSD are revealed to the Govt of India. Besides, CSD contributes to the Consolidated Fund of India as well ( 50% of the net profit). CSD is a Public Fund and therefore, the books of accounts are maintained as per the guidelines of Govt of India. CSD account falls within the purview of The Comptroller and Auditor General of India. CSD functions under the Ministry of Defence. It employs a few serving officers on deputation from the Armed Forces. Though the Department functions on commercial lines, it is also governed and bound by Government rules and financial regulations. There are nearly 3000 items in the CSD inventory.

Organisation
If we see the organizational structure of CSD, it is revealed that a Serving Defence Officer of the rank of Major General is the Chairman, Board of Administration CSD. Similarly, under Ministry of Defence a Board of Control, Canteen Services (BOCCS) is functioning. The Chairman of BOCCS is Raksha Mantri (RM). Vice Chairman is Rajya Raksha Mantri (RRM). The members are: Defence Secretary, Financial Advisor Ministry of Defence, Quartermaster General (QMG) Army Headquarters etc. Also, a Deputy Directorate General Canteen Services (DDGCS), QMG's Branch is functioning as the Secretariat of the Board of Control.
From the above, it is very evident that the wholesale outlet i.e. CSD is controlled by the Govt of India through various agencies and the earnings out of CSD are fully revealed to the Govt of India. Also CSD claims that “From a humble beginning of Rs. 47 lakhs sales turnover in the year 1948, Canteen Stores Department has grown to be the largest retail network in India with a record sales of more than Rs. 5600 Cr as on 31 Mar 2008".

Unit Run Canteens
Whereas, in the case of Retail Outlets (i.e Unit Run Canteens (URCs)) the functioning is entirely different. It is revealed that total 3600 URCs are functioning in India. Total turnover of these URCs as on 31 Mar 2008 was almost 5300 crores. Therefore, the net profit emerged was appx Rs. 270 crores. These URCs are permitted to sell only those items which are procured from the CSD Depots (wholesale outlets). These URCs form an important part of CSD supply Chain Management system of indenting, procuring, placing and providing various items in the inventory to the customers. This very fact has been accepted by the CSD and records to that effect are available for reference. A departmental canteen which is run by the Units of Army/Air Force/Navy for the welfare of Service Personnel, their families, dependents, civilians paid out of Defence Budget etc is called as Unit Run Canteens (URCs). These canteens sell provisions and liquor items on discounted rates. These canteens can procure only those items which are supplied by its wholesale outlet, i.e CSD. Tax exemptions are applicable to this facility. As on date, these URCs cater to the requirements of 1.60 crore bona-fide customers in India. This facility is undoubtedly specified as an entitlement in the Pay and Perks of Service personnel.

Stats: Year/ Turnover/ Profits
2000-2001/ 3115.04/ 155.75
2001-2002/ 3452.47/ 172.62
2002-2003/ 3913.91/ 195.70
2003-2004/ 4167.32/ 208.37
2004-2005/ 4416.96/ 220.85
2005-2006/ 3872.27/ 193.61
2006-2007/ 4456.31/ 222.82
2007-2008/ 5221.66/ 261.08
2008-2009/ unknown
Presently these profits are being utilized by the Defence Officers and Local Commanders as per their discretion in the name of 'Welfare' activities. Literally, till date, the Govt of India could not get the correct picture of the functioning and output of these canteens.

Extract of Commission Report
The excerpts from the 87th Report of Committee on Subordinate Legislation, Parliament of India (Rajya Sabha), presented on 13th September 1991, regarding utilization of canteen profits as per the discretion of local commanders are reproduced herewith for perusal. “Para No. 2.28 : The Committee is of the view that the present arrangement has been worked out only to SIPHON OFF the major chunk of the profits of the Canteens to be placed at the discretion of local commanders. Obviously, such arrangement can hardly be described as satisfactory. It will not be out of place to mention that during the Committee’s visit to Calcutta, the Air Officer Commanding, Eastern Air Command, Calcutta curtly declined to reply the query of the Committee as to for what specific purposes the profits of the Canteen placed at his discretion were being utilized”.

Welfare of Troops
The net profits must be utilised for genuine welfare of Troops, Serving Soldiers and Veterans. This National resource and asset must not be wasted away on frivolous expenses which only breeds sycophancy and doctoring of accounts to please senior officers in the chain of command. These profits must be utilised for creating National Assets which will really address welfare and benefit our deserving troops, defence civilians and veterans including their dependants.
Inputs extracted from Guardian foundation (NGO)
Military Canteen Operations
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Corruption in Armed Forces can be reduced by outsourcing its Welfare activities to the ESM Organisations
CSD restricts mobility of Officers and PBORs- More bureaucratic controls more corruption

ECHS Secunderabad Gearing up for Veteran Care

Dental Wing
Cafeteria and CSD Canteen
Ambulance donated
Dear Veterans
I am sending pictures of recent events at ECHS Secunderabad to update you all. As has been in the recent past the Army Commander, Sub Area Commander Maj Gen KD Singh has made it possible for the veterans to have these improvements and additions at the ECHS. I am honoured to be a volunteer in this enabling environment. The Sub Area Commander has taken initiative and his drive and enthusiasm is very encouraging (and infectious) to all of us. His staff and those at the ECHS are also very helpful. The Sub Area Commander is always willing to examine suggestions for improvement of ECHS.

1. The dental wing building in the ECHS compound has been completed and now in addition to the Dentist at ECHS, 3 more dental chairs from the Army Dental College centre (Extn) which was functioning from the Bison Canteen Compound have been shifted into this building. We now have four dental chairs, a qualified dentist (ECHS), 3 dental interns from the Army Dental College, hygienist and other staff. A specialist from the Army Dental College will make a visit once a week.

2. The building that is going to house the Cafeteria and CSD outlet. This was an existing building and lot of renovation and repair has been done and a building with an area of appx 2500 plus sq ft is now getting ready. The false roofing is nearing completion and the flooring, painting and other refinements/ additions will take another fortnight or so for completion. The roofing for this building costing about Rs 1.8 Lakhs has been donated by a private listed company, MS Pennar Industries subsidiary Pre Engineered Building Systems (Pebs Pennar). I have been associated with Pennar Group in various capacities for the past 20 years.

3. Donation of Ambulance by family of late Lt Col Gev Eduljee
The most notable and very noble and heart moving gesture was made by the family of Late Lt Col Gev Edulji (his son Viraf is a serving Capt in the Indian Navy). The ambulance was donated yesterday 2 Jul 10 at a simple function. The Sub Area Commander Maj Gen KD Singh and other retired senior officers -Air Marshal Nair, AVM PK Mani, Admiral Pestonji and others were present. Capt Viraf and Mrs Edulji handed over the keys of the ambulance to Maj Gen KD Singh who handed it over to Col Basha the OIC ECHS Secunderabad.

The current parking area is not sufficient and hence a new parking area just outside the compound is being got ready. The ECHS at Secunderabad currently attends to about 500 patients daily. Plans are afoot to make further improvements/ additions.
With best wishes,
Wg Cdr (Retd) A B Bhushan

Unit run CSD Canteen Trichy: Smart Cards out Smarted!

Unit run Canteen OFT, Trichy
Posted: 2010-02-01 by Gopinathan Vijaya Kumar
smuggling out of canteen items to outside petty traders
It is shocking to say that, one of the general trader in and around in the vicinity of CSD canteen run by Ordnance Factory Trichy found selling the CSD items in the MRP. Further on the reliable information, it is ascertained that, the firm is getting all the CSD general items from the above said canteen with the connivance of some staff of the OFT for years past and till continuing.
unit run canteen OFT, Trichy

Unit run CSK Canteen, Trichy
Respected Sir,
Kindly read this mail with patience and caution. Now I am going to reveal some secret problems to be dealt with. The problems are related to corruptions done in CSK Canteen, Trichy division.
From our canteen many liqour bottles have been corrupted with the influence of the manager. A dealer buys 10 bottles for 400 Rs. Even inside the canteen kitchen they are selling in pegs. They are minting money through this illegal business. All the bottles are going out with the knowledge and prior permission of the manager. The main culprit is A.JOHN LOUIS. He is the security in Tanjore canteen. Now at present he is in Trichy canteen. He is the right and left hand of the manager. The customers who apply for smart card will use paper cards until the smart card is given to them. With help of those numbers from the paper card the customers buy goods.After the purchase is over the paper card will be locked.Per day not even 10 paper cards will be circulated but they prepare 20 to 30 paper cards and buy lots of liquors and sell it outside illegaly. This is done with the help of the manager. The person who possess a little computer knowledge can find all these corruptions easily.
For Eg.On 11/03/2010 only three paper cards have been entered.
PAPER CARD NO. ARMY NO. NAME
GRO2426 10163329 Late.Mariyappan (P.C no.02426)
GRO1658 60838 Late.Jaganathan 7142 148258862 Chauhan Ajmal
But there are more number of cards been entered, they are
PAPER CARD NO. ARMY NO. NAME
14264168 6875 Sivakumar
14264168A 06875 Sivakumar
1706141 2285 Shanmuga vadivu
0007 JC196014 A.Sundaram
2187 13937312 A.Louis
21940 7031774A Nithyanandham
219400 219400 Nithyanandham
4774 2199651 R.Krishnasamy
4774A 219965A R.K.Samy

This smart card maintanence is done by Mr.Kaalamegam. A 67 age old man who is working since 2003 but the shocking news is that he is not a canteen staff. He is the binami of manager Mr.Balraj.
Manager G.Balraj and Kaalamegam will not give smart card to the customers at once. They will use the customer's smart card for 2 to 3 months and buy the goods and sell them outside. There are some brokers who get commission of about Rs.100 per Rs.1000. Per day they sell goods worth Rs.50,000 and gain a commission of Rs.5,000. Their average commission per month will exceed more than Rs.1,00,000. They have 2 to 3 contractors for moving the goods. Everything is done with the knowledge of watchman LOUIS. He collects Rs.500 per negotiation. From the year 2004-2005 each customer was given separate card for liquor and goods.But the watchman will only give goods card and keep the liquor card with himself.When the customer claims for the liquor card they give a new one. If you raid the manager's house you can get 100's of liquor cards. They have minted more amount of money with the help of these liqour cards.The culprits are Radhakrishnan Asst Salesmen in Tanjore, Rajendran from Vasantha Bhavan Hotel and Kamal. They are all the Binami's of the manager Balraj.
At the same time the smart cards of the expired persons is used by them for 2 to 3 months and then only they hole the cards. Through a single dealer the manager gets more than Rs.1,00,000 money. Under his undertaking there are 5 canteens. So he gains more money which he buries in the underground of his house.He has spies in every departments.Nobody can complaint against him. If done he will easily find it out.For each postman he would give 2 liquor bottles per week. This is because nobody should write to the higher authorities against him and if it is done they will give all the letters to the manager Balraj himself. He will give 4 bottles for the dispatch clerks in the station headquarters and ask them to neglect all the complaints before rooted to higher officials. He is acting like a good person after committing so many crimes.
Click here to read the full scam: Published by 8AK India Defence News

Army CSD Canteen Mathura
Posted: 2009-12-09 by CAPT BRIJ LAL (Retd)
I had purchased 15 liter Saffola Gold from Mathura Cantt Army Canteen @ Rs 1766/- whereas same item is available in open market for Rs 1710/-. It is shocking that "How can a item could be more cheaper in market than CSD Canteen?"
MRP difference: Item cheaper in open market

Army deserts Army Wives' Welfare Association

CHANDIGARH: Caught in an RTI poser that sought information on the funding of Army Wives' Welfare Association (AWWA), the Army in a shocking reply to the Central Information Commission (CIC) has instead disowned it.

Offices of AWWA are scattered across Army cantonments in India and its headquarters is in South Block, Delhi like the Army headquarters. It is, on the face of it, a registered society under the Societies Registration Act, 1860.

Giving a new twist to the ongoing debate over functioning and funding of AWWA, the Army has in a five- page reply, filed on behalf of the chief of staff, Western Command, said it has nothing to do with funds for the association either.

The reply, a copy of which is with TOI, is to be submitted before the CIC next Monday (November 24). It comes over a year after the Army declined to provide information on where money for AWWA came from, taking recourse in the plea that as the body was not funded by the government it did not fall under the RTI purview.

In fact, the Army has gone on to plead with Major (Retd) Guneet Chaudhary to withdraw the petition since "he too has donned the Olive Green and he is well aware of the yeoman's service done by AWWA for jawans. We leave it to his wisdom and discretion whether he should continue to insist on or persist with the issue which was closer to his heart at one point of time and in any case is a non-issue when it comes to questioning it. He may seek to withdraw his appeal and put a full stop on the issue".

In the RTI application, Chaudhary had sought information from Western Command about the legal status of AWWA, source of funding, organizational structure, number of officers and other ranks attached with it, reason for giving office space in the high security zones of western command headquarters, grants given to widows and orphaned children of Army in the last five years and the AWWA president using Army aircraft and Army vehicles.

"As regards funding, we reiterate with all emphasis that Western Command (or Army) does not fund AWWA in any manner," states the reply even as documents procured by TOI on Wednesday revealed that AWWA was funded by a total of 18 HQ brigades in 2004 and by 16 HQ brigades and divisions in 2007.

Record reveals that all AWWA offices are run with the financial assistance from various units. Even the officer-in-charge of the schools run by AWWA are serving Army officers of the rank of Lt Col. An interestingly point: If the Army doesn't pump in money for AWWA, it's a miracle who runs the sprawling network as there is no subscription fee for membership.

Moreover, all vehicles used by AWWA in their day-to-day functioning belong to the Army and the wives' association even finds a mention in the Army's official website. The matter will be finally heard by the commission on November 24.
Army deserts its wives' welfare club
Official AWWA website
AWWA Awards Presented
Welfare in AWWA & AWHO

Comment: The Army should come clean and if AWWA is an illegal association then it should be prudently closed down. Similarly all illegal welfare organisations need to be vetted and made legal as per society act of 1860. One cannot steal and use resources for a noble welfare cause. All welfare association's accounts must be able to stand public scrutiny in the public domain. Armed Forces need to be scrupulously honest befitting of a soldier. Prudent action alone can regain our lost honour and dignity.

Honourable Farewell to ESM

Jammu, February 6: To ensure that the last rites of ex-servicemen are performed with honour and dignity, the Indian Army is roping in the services of CSD canteens across the country.

Once the news of the demise of the ex-serviceman reaches the nearest CSD canteen, officials will make all arrangements for the last rites. A wreath will also be laid on the body on behalf of the Chief of Army Staff. All that the ex-servicemen have to do is register their wish for availing of the scheme with the local CSD canteen.

This scheme will benefit especially those who are abandoned by their near and dear ones. It will also be of use to ex-servicemen facing financial problems.

‘‘There is a provision for a fund in the proposal to perform the last rites. Usually, the expenditure for the last rites comes to Rs 2,500 to Rs 3,000,’’ Adjutant General of the Indian Army Lt Gen Anup Singh Jamwal told The Indian Express.

‘‘Army canteens which earn lakhs of rupees as profit every year, can easily arrange for the last rites of ex-servicemen and their widows,’’ he added. Lt Gen Jamwal was in Jammu to attend the ex-servicemen’s rally held at Sunjawan Cantt.

Lt Gen Jamwal said those who want to avail of this scheme, will have to register themselves with their nearest CSD canteen. The scheme will be extended to widows of ex-servicemen as well, he added.

‘‘With children no longer preferring to stay with their parents, and relatives also deserting them, this scheme will ensure that the last rites of veteran soldiers are performed with full honour, which they deserve,’’ he said adding that the last rites will be performed according to the status of the ex-serviceman.

The Adjutant General said that CSD canteens have been selected to provide the service of ‘‘assured decent last rites’’ as they have a ready data base of ex-servicemen, their addresses and phone numbers.

Director, Sainik Welfare Department, Brig Karan Singh Kotwal (retd) said that there is another existing scheme under which the next of kin of ex-servicemen are provided a sum of Rs 3,000 for last rites through the nearest station headquarter.

‘‘This new scheme is good for the ex-servicemen living alone or facing financial problems,’’ Brig Kotwal said. ‘‘Now, they will have the assurance that after their demise, the Indian Army is there to arrange for their last rites with honour and dignity. The Army has already issued instructions to all the formations about the scheme,’’ he added.
Webpage Army plans honourable farewell for its ESM

Comment
Amazing that CSD India canteens have a ready data base of ESM with address and phone numbers. I wonder if thay have the complete data base of about 20 lakh ESM all over India. If they have the list it is truly a gold mine of information for the DGR Dte.
See post titled "All India ESM population" which gives a broad distribution pattern.

Nano Car for Ex Servicemen

I observed families riding on two-wheelers—the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family. Tata Motors’ engineers and designers gave their all for about four years to realize this goal. Today, we indeed have a People’s Car, which is affordable and yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions. We are happy to present the People’s Car to India and we hope it brings the joy, pride and utility of owning a car to many families who need personal mobility.

Ratan Tata, Chairman Tata Motors