MARG DARSHAN

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VIGILANCE MAGAZINE

Vol XI, Issue No. 1, April 2014

Promoting Good Governance in HAL

"I can do things you cannot,you can do things I cannot;

together we can do great things."

INDEX

Chairman's Message 01

CVO's Desk 02

Golden Jubilee Celebrations of CVC 05

Retention Sutra of India Inc. 07

Appointment of Advocates 12

Industrial Security 16

Integrity Circle for HAL Schools 18

Financial Concurrence 20

Best Practices in Payroll Section 23

Procurement of Medicines 27

Annual Vigilance Talk - 2013 30

Design & Development 31

Design & Development of Basic

Turboprop Trainer, HTT-40 37

Salvage Management 42

Observance of VAW - 2013 46

Fuel Management 48

Transport Management 51

Digitization of Land Records 55

Vigilance Awareness Sessions 60

Increasing operational efficiency

in Maintenance Department 61

Warranty Management 65

Releasing Booklet on RTI 69

Vigilance Star 70

An Introduction to Lokpal 71

Copyright Certificate©

For OLIV

HAL Vigilance Department has been

issued Copyright certificate for the in-©house endevour, OLIV (On Line

Vigilance Clearance System). The

Copyright has been issued by the

Registrar of Copyright, Govt. of India,

New Delhi on 6th February 2014.

Vigilance Excellence Award, 2014

Shri Anurag Sahay, IRS, CVO, receiving the award from

Shri B. Surender Mohan, CMD, Neyveli Lignite Corp. Ltd.

On the eve of Golden Jubilee celebrations of Institute of Public Enterprise

(IPE), Hyderabad, HAL Vigilance Department has been conferred with

Vigilance Excellence Award and Individual Excellence Award on

March 6, 2014 at Hyderabad.

Shri M.A. Anandan, DGM(Fin-Vig) receiving the award for Individual Excellence from

Shri B. Surender Mohan, CMD, Neyveli Lignite Corp. Ltd.

Dear Colleagues,

Ingenious ideas to promote good governance are extremely important. I am

happy to note that Vigilance Department under the leadership of Anurag Sahay,

CVO, continues its preventive vigilance initiatives by laying emphasis on CVC's

theme of the year “Promoting Good Governance in public institutions." This

edition of Marg Darshan contains articles from officers of diverse functional

background. The contributions focus on micro issues and suggest measures to

promote good governance in the critical functional areas. This is a worthwhile

initiative complimenting last edition of Marg Darshan, on same theme but

focusing on macro strategies in promoting good governance.

Good governance not only needs procedural reforms but also demands

commitment and ownership of all stake holders in understanding, implementing

of policy guidelines and promoting good practices. I am confident that this

edition will definitely enhance confidence among all stakeholders by

implementing good practices in various functional areas like HR, Outsourcing,

Procurement, Facility Management, Medical & Health unit etc, which have clear

vigilance sensitivity.

The article on "The Lokpal And Lokayuktas Act, 2013 ", is an important and timely

contribution for creating awareness of the Act amongst all of us.

HAL is facing new challenges in disinvestment, re-structuring and increased

competition in Defence Aerospace Sector. I have no doubt that this edition of

Marg Darshan enhances our confidence in facing such challenges through

promoting diligent and transparent decision making process.

Jai Hind.

Dr. R.K. Tyagi

Chairman's Message

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CVO's desk

Fellow Officers and Workmen,

It is my privilege once again to interact with you through this wonderful medium, Marg

Darshan. Indeed, this is the last time I would be writing to you from the editorial desk, as my

tenure as Chief Vigilance Officer of this great organisation would get over by the time of the

next issue. It really feels like yesterday, when I joined Hindustan Aeronautics Limited.

Trajectory of Vigilance Administration in HAL

So what has been the trajectory of the Vigilance Department in the last five years? I would like

to submit that the primary endeavour has been to integrate, educate and amend. First and

foremost, the a�empt has been to integrate the Vigilance into the mainstream and remove the

various misconceptions about the Department. We have tried, through our various

initiatives, to remove misplaced apprehensions about the functioning of vigilance, and the

feeling that all vigilance does is to fault-find and penalise. We have consistently tried to create

vigilance related awareness, inculcate an atmosphere of participative vigilance and convince

all of you that vigilance is not a stand-alone activity. We have a�empted to highlight the

creative, positive aspects of vigilance administration. Our enduring a�empt has been to make

our workforce aware of the rules, regulations, guidelines and policies of the Company, CVC,

MoD, & DoPT. Whenever we have found non-conformity, we have a�empted to find a

system driven solution. How can we plug the gap in the policy that resulted in an aberration?

The abiding question we have tried to answer is how can we simplify our policies and

guidelines, how can we suggest ways and means to reduce discretion and how can we enable

our officers to take decisions without fear or favour. The Management has been very receptive

to our suggestions and a number of changes in our guidelines have been made to bring in

transparency and ensure accountability. In compliance with the mandate given to us by the

CVC, our approach to vigilance administration has been predominantly preventive. I hope

this a�empt of Vigilance finds a resonance within you.

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When it comes to the punitive aspect of vigilance administration, we have impressed on the

Disciplinary Authorities the necessity to complete the proceedings within the stipulated time

under the CVC guidelines. I have been making quarterly presentations on the status of

pending cases to the Management Commi�ee, and also taking up the individual cases with

the respective Disciplinary Authority. In terms of the final punishment itself, we make our

recommendations with uniformity and consistency, and leave it to the good sense of the

Management to arrive at the appropriate decision. The a�empt of Vigilance in this regard has

been to arrive at a consensual decision. Generally we have agreed with the final decision of

the Management, even when it is at variance with our original recommendations. This is done

due to our firm belief that imposition of penalty is the prerogative of the Management and our

job is to make recommendations. When we have, for valid reasons disagreed, the

Management to its credit has responded positively. In that sense, I am glad to report to you

that we have been able to function in a professional manner with mutual appreciation of our

respective positions and succeeded in substantially bringing down the cycle time of

disciplinary proceedings.

Corruption Risk Management (CRM) in HAL

I would like to bring to your a�ention a key aspect of our functioning on which we are

presently engaged. Corruption Risk Management (CRM), we believe is an extremely

important tool for Integrity Management in the Company. As you may be aware, Company

has recently issued a Risk Management Policy. The Risk Management Policy issued by the

Company establishes a framework to identify risks, assess and rate risks and come up with

mitigation measures. The Management Commi�ee of the Board has mandated the Vigilance

Department to work on the modalities of implementation of CRM within the Company. In

identifying the corruption related risks and the possible mitigation measures we propose to

have broad ranging consultations with all the stakeholders within the Company. We strongly

believe that if we can identify the corruption risks and undertake the possible measures for

mitigation, it would be the single most significant preventive vigilance strategy. In coming

weeks and months we would be approaching various divisions to create awareness

regarding the CRM and for consultations with you for identification of risks and possible

mitigation strategies. CRM would definitely bring the awareness of corruption risks not only

within the thought processes of the executives but also in the decision making structures of

the Company.

Integrity Circle

Another significant initiative of team vigilance, is the launch of 'Integrity Circle' for HAL

School Students. The Vision of Integrity Circle is to develop children in HAL Schools as

responsible and integral citizens of India. The mission statement of the Integrity Circle strives

“to nurture core human values and strengthen the moral fabric of children through organized

activities, exposure to society and interactions with people of eminence”. Chairman HAL

inaugurated the Integrity Circle on 26th February 2014 for the five HAL schools based at

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Bangalore. Gradually, the Integrity Circle would be expanded to cover schools in all HAL

locations. A comprehensive year long program has been drawn for the Integrity Circle which

includes interaction of children with people of eminence, visit to public offices and

government establishments, installation of Integrity notice boards in all schools and

organisation of various events and competitions to promote core human values.

We will keep you updated with the activities of Integrity Circle in our forthcoming editions.

The Lokpal Act

As you may be aware, The Lokpal and the Lokayuktas Act, 2013 has been notified by the

Central Government with effect from 16th January, 2014. This edition carries an article on the

salient features of the new law. I have also been conducting interactive sessions with Officers

in various divisions to create awareness about the new law and the new reporting

requirements regarding the assets and liabilities of the public servant. It is important that as

public servants involved in public duty we are aware of the various nuances of the Act.

The Present Issue

Please recall that CVCs' Vigilance theme for the year is promoting good governance in public

institutions. In keeping with the theme the last issue of Marg Darshan was devoted to various

macro strategies to promote good governance in the Company. The contributors were all

vigilance functionaries. The topics were carefully chosen to identify systemic gaps, and

suggest possible policy modifications. In the present issue we continue with the theme of

good governance in HAL - but with a difference. In this issue the contributors are officers

from diverse backgrounds focussing on micro issues, and again suggesting measures to

promote good governance in these areas. I hope that these very pertinent solutions offered is

considered favourably by the Management for implementation. I am extremely thankful to

all the contributors who have responded to our request with enthusiasm. I am certain that the

diagnosis and the solutions offered for good governance will find your favour. As always, I

look forward to your honest feedback on our endeavor.It enables us to improve the quality of

the future editions.

I sign off looking forward for a bright and enterprising future for our Company. I thank you

for this wonderful experience and carry along pleasant memories of our association.

Anurag Sahay, IRS

4

GOLDEN JUBILEE CELEBRATIONS OF CVC (1964 - 2014)

Central Vigilance Commission, the apex anti-corruption institution of India, known popularly as

CVC has completed 50 years of its existence on 11th February, 2014. CVC was setup by the

Government of India through a resolution dated 11th February, 1964 in pursuance of the

recommendations of Santhanam Commi�ee, for exercising general superintendence over

vigilance administration in the Government. The Commission was given the same measure of

independence and autonomy as the Union Public Service Commission (UPSC). It was at the end

of 1997, Supreme Court of India, in criminal writ petition No.s 340-343/1993 (Vineet Narain and

others Vs. Union of India and others) popularly known as Jain Hawala case, had inter-alia given

directions on 18.12.1997 that statutory status should be conferred upon the Central Vigilance

Commission. Accordingly, the Central Vigilance Commission Act, 2003 was enacted.

The emphasis of the Commission has been to have in place effective preventive measures to fight

corruption and also to increase transparency and accountability in the functioning of the

Government. In tune with the emphasis on good governance, the Commission closely looks at

the prevailing systems and procedures of the Government departments and its organisations

and recommends system strengthening and improvements. The Commission has also been

continuously emphasizing on Leveraging technology by adopting e-procurement, e-payment,

reverse auction etc., for reducing scope for corruption and improving transparency, equity and

competitiveness in public procurements.

The Commission has been engaging with various international anti-corruption

agencies/organizations, as a measure of international co-operation. Creating a Knowledge

Management System for International Association of Anti-Corruption Authorities (IAACA) has

been one of the recent collaborative initiatives.

A national seminar was organized to mark its Golden Jubilee. The Golden Jubilee Celebrations

was inaugurated by Hon'ble President of India Pranab Mukherjee, on 11th February 2014 at

Vigyan Bhavan, New Delhi and presided over by Dr. Manmohan Singh, Prime Minister of India.

A commemorative stamp was being released on the occasion.

Eminent personalities and dignitaries from different walks of life, contributing directly or

indirectly to the good governance of the country, have taken part in the panel discussions which

are drawn as part of the national seminar on the topic “Combating corruption: Role of

Accountability Institutions, Investigating Agencies, Civil Society and Media”. There were three

plenary sessions and four breakout sessions spread out during the two days Seminar.

Hon'ble Justice P. Sathasivam, Chief Justice of Supreme Court of India presided over the

valedictory function on 12th February 2014 at Vigyan Bhavan, New Delhi.

5

Prof. (Dr.) R. Venkata Rao, Vice Chancellor (NLSU)

addressing during National Seminar on

Strengthening Frameworks for improving the

anti-corruption climate in India

The Prime Minister, Dr. Manmohan Singh

releasing the Coffee Table Book at the

Golden Jubilee Celebrations of CVC.

Shri Pradeep Kumar, Central Vigilance Commissioner

lighting the lamp during Valedictory Function of

Golden Jubilee Celebrations of CVC

Dignitaries on the Dias at Vigyan Bhavan, New Delhi CVOs a�ending the Golden Jubilee Celebrations

at Vigyan Bhavan, New Delhi

The President, Shri Pranab Mukherjee releasing commemorative

stamp on the occasion of Golden Jubilee Celebrations of CVC in

New Delhi on February 11, 2014.

GOLDEN JUBILEE CELEBRATIONS OF CVC (1964 - 2014)

6

Retention Sutra of India Inc. -

Cool trends in Best Practices to Next practices

S K Guha

“Our assets walk out of the door each evening. We have to make sure that they come back the next

morning” - N R Narayana Murthy, Founder Infosys Technologies Limited.

According to a study by the global Management consulting firm Hay Group, a�rition in India

to top world chart in 2013 and one in four employees could change jobs. This is the highest

a�rition rate globally, If this is not enough bad news for HR pundits of India Inc, here is more.

In India sectors like infrastructure & banking- where new players are entering the field- will

continue to suck in talent. Employees in emerging economy such as India, will continue to

enjoy upsurge in demand for mission-critical skills and be among the first to jump ship.

Loyalty to an organization has become a thing of past.

To summarise the mood in talent market- 'We are in the eye of an employee turnover storm.

Organizations in India must give serious thought to what drives employee commitment' says

Mohinish Sinha, leadership & talent practice leader, Hay Group India.

Retention Management, a traditional tradecraft of HR, is now invading the mindspace of all

functional leaders across the full spectrum of an organization. CEOs are taking the role of

Chief Talent Officer. As Management scientists argue that 'an employee's commitment to his

job derives from his experiences interacting with leaders through the filter of his own

motivation & needs'. Thus the bo�om line reads as 'the best insurance against a�rition is not

to hope for lack of opportunities outside but to build strong internal conditions across the

board in an organization which acts like glue to employees'- prescribed by Divakar Kaza,

President -HR, Lupin Pharma.

India Inc is reviving up retention-mania with 'out there' ideas to be at a competitive

advantage over others. Few of those are being put on shelf here.

Reverse Mentoring

A CXO (Chief Experience Officer) sharing bench space in a canteen with a young executive

many levels junior to him- is in an avid conversation, having an intense look on their faces in

front of a PC and every now & then sound of keyboard punching punctuating the discussion-

a common sight in Bharti Airtel. The first guess could be that they are in some kind of

mentoring relationship, with CXO passing on his gyan to the starry eyed junior. But why

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then is the younger person doing most of the talking & why on earth is the CXO nodding as if

he is the one doing the learning? You are entering into an era of Reverse mentoring. Top level

executives of companies are reaching out to younger people in order to learn how to use new

age technology, gadgets, apps. Inspired by Jack Welch of GE, reverse mentoring has since

then broadened its scope. Old timers are coached on surfing the web, accessing social

networking sites, ge�ing 'app'lifted to convert them to be technology-savvy. Global

corporate like P & G, Cisco, E & Y are using it to help top managers cope with diversity issues

and get a first hand feel of company culture down the line.

Being a mentor gives younger employee a special status in the organization, his voice gets

heard. At the same time, their new learnings from seniors pump in a lot of motivation into

them.

Bharti Airtel's reverse mentoring program covers top 20 executives, which includes 12

members of its Management board. As in its traditional mentoring program Bharti Airtel has

been careful to ensure that mentor & mentee in the reverse mentoring program have no direct

reporting relationship.

Stay-interview

Many of us know about exit interviews. That's now passé. Why? Because 'that's closing the

barn doors after your horse escapes'-as professed by Kevin Kruse, a business consultant.

Besides when people are on their way out, even if they hate their boss or think their company

is horrible, few are going to burn the bridge.

Now companies are asking its employees 'what is it about your job that makes you jump out

of bed every morning?' –the first poser of a 'stay interview'. Stay-interview is not a survey,

it's not an interview, its really an informal conversation that employer gets to have with

employees over time. For LUPIN, Marico, NIIT, HSBC, RPG group, Maruti Suzuki who

have used stay-interview to recalibrate policies, practices, performance matrices, rating scale,

to introduce employee-centric initiatives- the thinking is pre�y simple- 'it makes sense to

probe employee's mind while they are still working in company & take their feedback for

changes rather than asking for it after losing them to competition, then you have time to

implement'.

It's a great tool in hands of managers to prevent potential loss of talent. Organization can

target grey areas in their policies & practices, can counsel the 'red' & 'amber' blips before the

worst happens and thus converting a possible exit to 'stay'.

Dogfooding

There is no be�er sponsorer of thrill than ge�ing to know that how your work affects the end

users- which in tech parlance is known as 'dogfooding'. It is an act of ge�ing employees self-

use/ self-test the product the company builds. Its origin is from colloquial 'eating your own

dogfood'.

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Globally most technology companies 'dogfood' their own products- but some companies are

doing more than that. It is using 'dogfooding' as a tool to engage & retain its employees, most

of whom tend to be in their early twenties and impatient. Dogfooding uncorks instant fizz on

their creative juices, makes youngsters a part of decision making process- both factors crucial

to retaining the young and restless workforce.

'Dogfooding is one of the best outlets that companies can provide for young, enterprising

intelligent minds. It binds them to product and company very strongly' says James Mitchell of

Face book, Hyderabad office.

Volunteerism

On the third Saturday of every month, a bus leaves Mindtree's office in Bengaluru in the

morning, picking up volunteers from designated points in city. It makes 3 stops; one at a

children's home, another at a home for the destitute and finally, at a centre for patients

suffering from HIV/AIDS. These three homes are run by Missionaries of charity. The

objective of the occupants of the bus is to give the charity's sisters a few hours break from their

routine. They carry food and help clean up the place. Sometimes they give inmates a haircut,

or play music for them, and sometimes they take along small items like bangles trinkets &

new clothes. For these software engineers it is not about doing good, it is about being good.

Volunteering for a cause is a boundless source of gratification for employees. Organisations

with an ecosystem to kindle the passion in employees to offer social paybacks are reaping

huge employee-dividend in terms of loyalty to the organization as employees tend to identify

their persona with that of the organization.

Mobility-mapping

In a large organization managers might not always know the possibilities across all

businesses & functions. Mobility map helps them with this. Infosys introduced an onsite

rotation policy for employees to travel across sites to go for client specific work. While TCS

introduced a rotation policy in 2010, Wipro did it in late 2011. Companies believe it's

important for employees to be part of client's environment, because it helps them more

engaged and develop domain & client specific knowledge which will add to the ingredients

to format their personal development plan.

CARD- career discussions in NIIT developed a mobility map for cross pollination of talents.

Another intervention for LUPIN called 'expanding horizons'- 'top100' junior & middle level

executives have company president of HR functions holding discussion with them every

year to do perspective-building with the mobility-map in hand.

Informality in work-place environment

Think about this -

a) Our office is stuffy; everything is same day in & day out. Why don't you shake it up and

designate one day a week on which everyone can dress casually. It may even bring some

life into this place, not to mention a few smiles. Let's call it casual Friday.

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b) My commute to work is an hour each way. I could be much more productive at work

and my personal life if I weren't always in traffic or on a train. It would be great if I could

work at home a couple of days a week. I would rather put the extra two hours spent on

commuting into ge�ing more work done, let's call it telecommuting.

Come out of wonderland to real world of yesteryears- the pushbacks from Hierarchy on the

above fantasies would probably have sounded like this- 'it's a slippery slope. Once you let

someone wear jeans to work, the next thing you know they will be in bathing suit'; 'how will

we know if someone is working if they are not in the building'…but now, it is not the case any

longer. The above is no more a futuristic triviality.

Organizational leadership are woken up to the stark reality of rapidly dissolving boundaries

between work and play. Gen-Y does not want to be treated like 'widgets'. They want to play at

work and won't mind working while playing. Former HUL CEO , now President , Nitin

Paranjape recalls his once in a month lunch & freewheeling chat with group of 6-8 young

managers accompanied by HR Executive Director Leena Nair. Sometimes Paranjape simply

walks into the office cafeteria, pulls up a chair to a table to spend informal time with newbies.

Nitin Paranjape is not alone in this initiative. Likes of Anand Mahindra & host of CEOs are

stepping out of their corner office to mingle with people to charge the workspace with air of

informality. Work place informality is recognized as a must-have to a�ract Gen-Y and is also

reported to yield positives like lowering stress, boost optimism, increase motivation, improve

concentration, spark creativity and raise productivity.

Software as a Service (SaaS)

In an in-house website for health & wellness - a platform which provides personalized tips

for employees after feeding in data on parameters like age, weight; helps in stress calculator,

gives stress Management advice in addition to Innovative recipe for diet Management.

In-house public recognition forum- employee can log into intranet & can recognize a

colleague and his work. Payout for employees- camaraderie, motivation, team-building,

sense of pride to see achievements being recognized in public.

HP, Stanchart are pioneering use of SaaS as a retention sop by offering variety of software

enabled platforms in the hands of employees to fashion their daily life si�ing at work spot.

Incubating 'start-up' ideas and spirit

What does CEO look for in the leaders of tomorrow?- their hunger to do something, what

key shift would they make to their lives if they were to branch out into something on their

own, how would they add value to the product. Former CEO & now in the Board of HCL

Technologies Vineet Nayar sums it up thus- 'I look for intensity, depth & whether or not the

person can deliver beyond what is obvious & expected of him. I look for that spark in people.'

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Aditya Birla group has a recipe to spark and ignite 'start up' fire in their employees- 'Eureka' -

a competition among employees to give a business idea and the successful candidate will be

allowed to implement that with an identified budget- that's dishing out adrenalin pumping

thriller to talents to keep them plugged in the organization.

There are a plethora of other tricks coming out every now & then from the thinking man's

hat in every organization on how to keep its talent hooked as Paranjape observes 'Young

leaders, as a group, don't take kindly to talk-down or directive styles of leadership'. He will

find many a CEOs nodding their heads to his prophecy while handling Gen-Y or Digital

generation, largest demographic dividend payer, in relation to flight of 'Human capital'.

One explanation of the change in work a�itudes and values over time is what is known as

demographic metabolism. It happens when one generation exits and another enters, people

in successive generations grow up and grow old in different ways because surrounding social

structures are changing. That is, the process of aging from birth to death is not entirely fixed

by biology, but is influenced by changing social structures and roles in which people lead

their lives. Alterations in the ways people grow up and grow old, in turn, press on the

surrounding social structures to change them.

We are in middle of this metamorphosis. A 'grown-up' generation is to blend with a 'growing-

up' generation. It will no longer be a balancing work; it has to be a blending work. Only way to

blend or beat the change is to be ahead of the change- going from 'best' to 'next'. Let's change

our way to 'next' if we wish to stay as 'best'.

Conclusion

As the defence sector gets opened up for private sector participation, the talent exodus from

HAL is bound to happen as has happened in many other sectors like banking, petroleum

sector, etc., Since HAL is a uniquely mature and exclusive breeding-ground for experience

and expertise in the Aircraft/Helicopter arena and ready to be tapped, talent will be lapped

up with premium and in mega-scale from HAL, by aspiring Aerospace sector start-ups in the

country. Retention of talent is going to be a Key-challenge in the near future for HAL as the

home-grown talent-mass is required to be nurtured and engaged for meeting the order book

position of the Company. To take a bold stride into the future and beyond, it becomes

imperative for HAL to look for opportunities to harvest on modern and moderated

strategies to retain talent. HAL may find merit to adopt some of the ideas discussed above

with necessary customisation and localisation to suit the needs of the organisation and its

people.

(S K Guha, M Tech., has been functioning as Chief Manager, Corporate Planning since 2011. His earlier stint was in Barrackpore Division as Chief Manager, Accessories Shop. He has also served in Private Sector Industry space in the domain of Production Engineering, Capital Goods manufacturing and Operational leadership in a SBU set-up for Machine-led Engineering solutions. He was commended by CII, Eastern Region for undertaking various Productivity improvement initiatives in Shop-oor).

11

Appointment of Advocates

and Payment of Fees

M G Balasubrahmanya

In various Divisions, Advocates are engaged for different litigation works pertaining to

various Service / Civil ma�ers etc. The Advocates are engaged not only to give specialised

advice on various ma�ers / replying to Legal Notices etc, but also to represent the Company

in Courts / Tribunals. The following shortcomings are noticed in the process:

a) In many of the instances, the Advocates are engaged without any process of shortlisting

vis-a-vis predetermined criteria;

b) The Advocates are engaged without finalising specific terms and conditions;

c) The payments in such cases are released without properly checking / authenticating

about the appearance in the court, etc, indicating that due diligence is not carried out in

the process.

Relevant DoP (2012) provisions regarding Appointment of Advocates, etc:

The Sub Head Legal at Sl. No. J - 5 of Annexure-III deals with the provisions regarding

engagement of Advocates, along with other specialists. The provision, while empowering

ED/GM/COP and above level Officers to engage/appoint Advocates, etc, reads as follows:

Powers to engage/appoint a�orneys, solicitors, advocates, counsels, legal/tax/Company Secretarial

practitioners, and sign authority/ vakalatnamas in their favour for and on behalf of the company to

obtain legal opinion, preparation of documents, to appear, act, plead and conduct all cases or suits in

civil and criminal courts/tribunals/judicial and Quasi Judicial forums/labour courts/statutory

bodies/quasi judicial bodies and accord sanction and authorize payment of their fees, travel expenses,

conveyance, stay, misc expenses etc.

Power to engage/appoint industrial Law/Labour Law Advisors/ A�orneys/Solicitors for and on behalf

of Company in labour/industrial ma�ers and incases before Labour/industrial/other Courts and

authorize payment of fees.

The Personnel Circular No. 685 Dt. 4.2.2010, issued by Corporate HR on the Policy for

Engagement of Consultant / Experts, specify the following with regard to Engagement of

Retainers or Part Time engagement of Professionals/Advisors at para-8.1:

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The Divisions have been engaging Part Time Professional Advisors like Doctors, Advocates, Tax

Consultants, etc, on retainership basis with payment of monthly remuneration or on payment of

specific fee, in accordance with Item45(ii)of the DoP. Generally, services of such Consultants/

Advisors, which was started in the past are continued with extensions from time to time. Wherever

required, new Consultants/Advisors are also engaged, including Firms of Chartered

Accountants, Cost Accountants etc. Such engagements are generally done on nomination basis, as

they are professionally precluded from solicitation. This practice will be continued. The

engagement/extension would be approved by the CFA, on best judgment basis, based on the

recommendation of the Initiating Department. All such engagements will not be included within the

purview of engagement on nomination basis, for reporting to the Board as per the CVC Guidelines.

Another clause was added vide Corporate Office Circular dt. 17.9.2010 that - "For engagement

of Consultant / Experts as at para 8.1, tendering action, where ever feasible, will be resorted to."

The DoP Commi�ee at Corporate Office has examined the issue concerning some of the

Divisions that while processing engagement of Advocates, they are facing certain problems

and that a view was being taken that, for such engagement / extension, commercial procedure

needs to be followed. Further, it was also viewed that on circulation of DoP-2012, all previous

Circulars have been superseded.

The DoP Commi�ee, on deliberations, clarified the following:

Appointments of Advocates fall under J5 .. of Annexure-III of DoP 2012. The Board, at its 325th

meeting held on 8.1.2010 had approved Policy for engagement of Consultants / Experts which also

provides for engagement of Advocates, etc on retainership or part time basis. On circulation of DoP

2012, Schedule of DOP notified earlier and the amendment thereto notified from time to time have

been superseded. However, Policies, Procedures/Guidelines etc approved by the Board or its

Commi�ees from time to time and circulated, would not be treated as superseded on issuance of DoP

2012, provided it is not contrary to DoP 2012.

Government of India Rules / Procedure for Engagement of Counsels on behalf of Union of

India : The Department of Legal Affairs, Ministry of Law & Justice, vide OM dt. 5.12.2012 has

brought out the following:

a) There were deviations from the established procedure in the engagement of Counsels;

b) The Department of Legal Affairs, Ministry of law & Justice, has been assigned the task of

engagement of Counsels on behalf of the Union of India in various courts / Tribunals

including Supreme Court;

c) Except in extra ordinary cases, no proposal for engagement of special counsels with

special rates of fees and engagement of counsels who is not in the panel, etc shall be

entertained, etc.

13

The following information have been published by the Department of Legal Affairs, Ministry

of law & Justice, in the website, under Section 4(1)(b) of the RTI Act, 2005 with regard to

appointment of Government Counsels, etc:

a) Appointment of Government Counsels: Bio data of Advocates received for appointment as

Government Counsel, are processed and submi�ed through the JS and Law Secretary to the

Hon'ble Minister;

b) Engagement of Private Advocates / Special Counsel in specific cases - The proposals received from

different Departments are processed and submi�ed to the Hon'ble Minister of Law & Justice;

c) Counsel on High Fee: Proposals received from the concerned Ministry / Department approved at

the level of Minister of Law & Justice.

The Central Vigilance Commission, during 2011, for empanelment of Advocates for

conducting and handling cases on civil / criminal / service ma�ers in various courts in Delhi,

had sought application from interested Advocates, by specifying certain criteria separately

for the Hon'ble Supreme Court, High Court of Delhi, CAT and other Courts in Delhi. While

the number years of experience in the specified are has been categorically mentioned in the

notification, it has also been indicated that such Counsel should not take up any case against

the Commission during the period of empanelment. The scope of work has been notified and

it was mentioned that the remuneration would be in accordance with the fee payable to the

Standing Counsels prescribed by the Department of Legal Affairs, Ministry of Law & Justice

from time to time.

A brief note on the possible guidelines for empanelment of Advocates/Law Firms for

representing and assisting the Company before various Courts/Tribunals:

a) Empanelment can be resorted to by a Commi�ee visiting the possible Offices of

Advocates and by inviting expression of interest. Since the Advocates Act bars any kind

of soliciting or advertising, it would not be possible to gather information from the

public domain. Therefore, it is necessary to make enquiries about the claims and

conduct of the advocates and also to ensure to verify the credentials;

b) There should be a clear policy for empanelment which would include an application

along with supporting documents, consideration and scrutiny of the same and also

personal interviews if necessary;

c) Applications for empanelment should be scrutinized by a Commi�ee. If required,

enquiries should be made with the respective State Bar Council in order to gather

information about the said Advocate/Law Firm;

d) It is essential that high relevance for the qualification and experience of Advocates for

empanelment need to be given credence of. This apart, sincerity, integrity and standing

of the Advocate should also be taken note of;

14

e) A minimum experience in the relevant field in specified Court should be a criteria for all

prospective applicants. Since Law is a diverse field, the Panel of Advocates should also

have expertise and prior experience in dealing with cases in various subjects;

f) If the Advocate is empanelled by other companies/Banks, opinion of those companies/

Banks also could be obtained;

g) Criteria also to include - adequate infrastructure at the disposal of the Advocates such as

Office Premises, Library for reference, number of Junior Advocates, Fax, etc;

h) Any empanelled advocate would invariably have his own private practice. Therefore, it

would be necessary to ensure that there should be no conflict of interest. Further, in

cases of firms, it should be necessary that the said firm or any of the Advocates in the said

firm do not take up cases against the Company or any case that would be in conflict with

the interest of the Company;

i) There should be a clear policy for discontinuance / disqualification such as, giving false

information, handing over brief to other advocates without permission, failure to a�end

hearings, professional misconduct, etc;

j) Advocates once empanelled should not be allowed to use the company's name or logo in

their le�er heads or sign boards. NDA to be signed with them. Empanelled advocates

would also have to maintain absolute secrecy and confidentiality;

k) Timely review of advocate's performance should be done to ensure standards.

Advocates representing the Company need to forward advance intimation to HAL

regarding any case listed in the Court and also give day-to-day briefing of the

development in writing and also maintain proper record of the same;

l) A fixed schedule of fees should be made known. All terms and conditions of

empanelment should be complied with in le�er and spirit. Claim of Fees and payment

to be regulated and strict adherence to be ensured to the genuineness of the claim before

processing the payment.

Conclusion:

To conclude it must be said that absence of a clear cut policy does not mean that there can be

reckless decision making in the engagement and release of payment to Advocates. Excess

exercise of discretion points existence of Vigilance angle and therefore, to be avoided. Till a

detailed policy guidelines are issued, it is essential that 'Standards of Financial Propriety' are

adhered to and 'due diligence' is exercised in the engagement of Advocates and ensuring

reasonableness and cross checking the Bills/Claims before release of their fees.

(M G Balasubrahmanya, DGM (L-Vigilance), has joined HAL as Management Trainee (Personnel) on 11.12.1989. He worked in Avionics Division, Hyderabad from 1990 to 2000 and thereafter at Corporate Office in the HR Discipline covering various areas of HR including IR & Legal. He has been job rotated to Vigilance Department with effect from 1.1.2014 )

15

Industrial SecurityLt.Col (Retd.) D Banerjee

An industry in order to prosper will need to protect its assets. Physical protection of its land,

assets, buildings, machinery, intellectual property, information & data and its manpower

against subversive activities are the concerns of the Security Department of an organization.

The threats are from theft / pilferage, sabotage, espionage and subversion. Security concerns

are primarily meant to create barriers between a potential threat & the ma�er to be protected.

This article suggest incorporation of good governance in Industrial Security. Providing

Physical Security is labour intensive having its own limitations. In order to provide seamless

unobtrusive Security cover to all physical assets 24x7, technology has become an absolute

necessity. By itself, technology cannot replace other Physical Security measures such as

guards etc, but substantive part of Security tasks can be replaced by technology since its

efficiency remains unaffected during poor visibility and is not affected by climatic

conditions. HAL being a defence PSE is a vulnerable installation. Any disruption through

an act of sabotage, theft, inadvertent loss of key material will directly reflect upon the defence

preparedness of the country. It is therefore imperative that the company functions at its

optimal capacity without any disruption and physical protection are not compromised.

Measures for Good Governance

Sensors to detect movement : One of the foremost needs is the physical protection of its

boundary walls. By themselves walls are liable to be breached. In order to augment their

effectiveness, Sensors to detect movement in close vicinity of the walls help the Security

Guards to detect any intrusion. Where elevated guard posts are far apart and inter visibility is

hampered during bad weather, suitable lighting and sensors may be deployed which can

help Quick Response Teams to respond to any intrusion. The only disadvantage is that

animals in the vicinity can trigger an alarm. Electrified wire fences atop the walls further

hinders a possible intruder. A variety of Sensors exist in the market which can detect an

intrusion. A trade off is therefore necessary between the cost of the Sensor vis-à-vis the ma�er

to be protected.

Access Control: Gates for movement of men & material are vulnerable to forced entry by a

determined suicide bomber. The threat of a forced entry by a terrorist driving a vehicle laden

explosive into a hangar or a parked Aircraft or into the runway during a takeoff / landing is a

real possibility. Physical barriers at the Gates which seal the vehicle entry points upon

activation are necessary. Tyre Busters are useful devices to stop a vehicle. Other equipment

such as Non Linear Junction Detector, Explosive Vapor Detector etc, are helpful to detect any

surreptitious movement of explosive devices or explosive material in vehicles, packages or

containers. Screening of vehicles undercarriage using mirrors help to sanitize a vehicle.

16

Closed Circuit Television : For observation, detection and recording of any movement,

cameras are helpful to meet the objective. Strategically placed cameras can detect & observe

all movement. They can be mounted at wall corners or atop elevated towers for wider

coverage. High resolution cameras mounted atop elevated towers provide wider coverage

that can reduce the number of cameras deployed. Suitably positioned mirrors help view areas

beyond the corners. Cameras strategically placed at entry / exit gates, shops and vulnerable

points can monitor all movement. The presence of a camera itself acts as a deterrent, which is

one of the aims of deploying a Security gadget. During poor visibility and at night times

Infrared optical devices, Lowlight Vision night scopes and other Night Vision devices are

useful. Guards equipped with Night Vision Goggles & Infra-Red Telescopes mounted on

weapons improve their efficiency.

Online visitor Management System & Biometric A�endance System: Management of

visitors and movement control is one amongst the many Security tasks. Some of the emerging

trends which help control movement is Online Visitor Management System. It facilitates the

identification, verification & genuineness of a visitor. The purpose of the visit is ve�ed by the

Department concerned. Visitors are provided color coded Radio Frequency Identification

(RFID) enabled visitor passes which limits their movement within the area specified. Any

visitor straying out of the authorized area can be identified. Similarly, movement of

employees can be controlled through the use of Biometric a�endance system which should be

linked to the Pay Rolls/IFS System. This is a deterrent to discourage employees from

absenting themselves from their work spot. All movements can be regulated through the

Turnstiles which are made to operate only after an employee has been processed through the

Biometric reader.

e) Anti- sabotage Systems: Certain Vulnerable Points need to be provided stricter access

control enabling only authorized employees to gain access. HAL Vehicles fi�ed with GPS

system will prevent abuse of vehicles. X Ray Baggage scanners deployed at the Main Entrance

gates discourage theft and sabotage. The movement of cargo carrying vehicles through the

Material Gate can be sanitized by deploying Vehicle Scanners, Explosive Vapor Detectors,

Hydraulic systems to elevate a vehicle for physical inspection of its undercarriage or by

directing the vehicle through an elevated ramp.

Conclusion: With the advent of technology and smart features provided in the mobile

phones, Security of classified information has become a challenge to the Security

Department. An easier option to render the mobile phones ineffective inside the factory

premises is to deploy mobile phone Jammers. There are a variety of technical equipment in

the market dedicated to assist the making of a Comprehensive & Effective security

environment in an Organization. A trade off is required between the value of the asset to be

protected and the likely nature of threat. Aircraft & Helicopters, machinery in the shops &

hangars, R&D assets are of immense value. Any act of sabotage or disruption, loss, theft, etc

will cause a huge loss to the Organization. Security can therefore not be compromised. HAL

will need to deploy more technology based Security equipment to optimize the Security

environment.

(Lt.Col (Retd.) D Banerjee, joined HAL Nashik Division as Senior Manager (Vig) during Nov 2000. He has served Design Complex as HoD Vigilance and Corporate Office as DGM (Admin)-Vig . Prior to HAL he has served in the Indian Army for 25 years (Military Intelligence Corps & Instructor in the AIA, Pune). He was an alumni of Defence Service College, Wellington. He has also served in UN Mission, East Africa. His Academic qualifications are BSc & MSc. Presently he is working as AGM (Security & Intelligence) at Bangalore Complex.)

17

Integrity Circle For HAL Schools

Corruption is a social evil and a great menace in the modern world which affects the

moral fabric of the society as a whole particularly with regards to children. There are

various Anti-corruption agencies/ organizations/ NGOs in the country focusing on

prevention and control of corruption embedded in the system/ society. Formation of

Integrity Circle at HAL School is an a�empt by the Vigilance Department & HAL

Management to inculcate Ethics, Morality and Social belongingness among the

students and make them self sufficient and self reliant to become responsible citizens of

the country.

The Vision of the Integrity Circle is to develop children in HAL Schools as responsible

and integral citizens of India. With the advent of nuclear families, children are left to

learn themselves unlike in joint families where the nurturing was taken care by the

parents and elders. This circle is formed with an aim to cultivate human values among

the students by organizing activities involving sharing of information/knowledge,

workshops, games etc., so that the need of transforming the children with good values

to ensure orderly, healthy society.

Integrity Circle consists of 25 volunteer students and one student leader from each

school. A teacher from each school is nominated to coordinate the activities of the

Integrity Circle. The officials of HAL Vigilance Department will sensitize the students

of the Integrity Circle. In order to identify and bring in unity among the team members,

a distinct uniform has to be worn by the students of the Integrity Circle.

The Integrity Circle was inaugurated by Dr. R K Tyagi, Chairman-HAL on 26th Feb

2014 at HAL Ghatge Convention Centre, Bangalore. The function was a�ended by

Directors & Senior Executives of HAL. Chairman enlightened the students of HAL

schools on integrity & moral values. Directors & CVO-HAL also shared their rich

experiences about importance of ethics & moral values in the life of a youth. The

students of Integrity Circle participated in cultural programmes showcasing unity and

patriotism.

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Integrity Circle For HAL Schools

Dr. R K Tyagi, Chairman -HAL lighting the lamp during

the Inaugural Function of Integrity Circle.

Shri K Naresh Babu, MD (BC) addressing

the students of Integrity Circle of HAL Schools.

Cultural Programme by Students of Integrity Circle.

Chairman, Directors and CVO-HAL gracing

the dais during Inaugural Function.

Students' interaction with Chairman -HAL.

Students of Integrity Circle performing Cultural Programme

19

Financial ConcurrenceB. Bha�acharyya

As per the Accounting Manual, 1986, the main purpose of financial scrutiny of proposals received is to ensure that the expenditure is incurred with due regard to general principles of financial propriety. While according financial concurrence due care should be taken to ensure that:

The proposals are routed to the authority competent to sanction as per the Delegation of Powers;

The proposals are in accordance with the provisions of the Companies Act, other applicable statutes, the Memorandum and Articles of Association of the Company;

The proposals are in line with the relevant rules and regulations of the Company and guidelines issued by the Corporate Office;

The proposals confirm to the Canons / Standards of Financial Propriety; and funds are available in the approved Capital and /or Performance Budgets to cover the relevant proposals.

Objectives of Finance Concurrence

a) An important internal control mechanism to maintain checks and balances in an organization where financial powers have been delegated to various authorities and to facilitate exercise of delegated financial powers to expedite decision making.

b) Primary objective is to ensure observance of standards of financial propriety.

c) Undertakes financial scrutiny of the proposal to prevent illegal, irregular, wasteful and anonymous disbursements of funds / deployment of resources of the organization.

d) To ensure compliance with the organization's policies and procedures. In case of non-compliance or partial compliance, finance concurring authority needs to highlight the same to the approving authority together with additional financial implications, if any.

e) To ensure compliance with tax / commercial laws.

f) Ensure compliance of relevant laid down procedures relevant for procurement, works, outsourcing and recruitment etc.,

g) Provide independent financial inputs to the Competent Financial Authorities (CFAs). Render advice on all financial ma�ers within the competence of CFA.

Responsibility as a financial concurring authority

Finance Concurring Authority is responsible to the organisation for the trust imposed upon him, to bring out following aspects in the concurred proposals:

20

a) All relevant “material facts” concerning the proposal.

b) To assess and indicate “total financial implications” arising out of the proposal.

c) To highlight non-compliance / non-conformance, if any, in regard to appropriate laid down procedure, Delegation of Powers, Standards of Financial propriety, Corporate and Ministry guidelines, etc.

d) To indicate appropriate CFA who is authorised to approve the proposal, considering the provisions of DOP.

e) To confirm availability of budget out of sanctioned budget, for the subject proposal being concurred.

f) To provide appropriate financial advice to CFA concerning the Proposal.

g) To indicate whether finance concurrence is accorded or otherwise, with detailed justification in writing.

h) Any other relevant facts/circumstances having a direct or indirect bearing in the proposal.

Suggestion for Good Governance

a) Be positive in approach. Be friendly / cordial with your internal Customers. Be available to the executives for consultation / discussions / deliberations.

b) Be proficient in relevant rules and regulations concerning the proposals being ve�ed.

c) Prepare dos & don'ts / checklists for executives / user departments and sensitize them with relevant rules and regulations. Circulation of Important orders / policy / guidelines to all stakeholders. Holding of training sessions / Workshops / Seminars to improve awareness of all concerned.

d) Do not make piece-meal observations.

e) Do not concur open ended proposals with unlimited liability. If so, please record the fact that the proposal is open ended, hence, suggest submission of the proposal to an appropriate authority, who is authorized to take a decision on such unlimited liability proposals.

f) Seek presentation from the executives on complex & integrated projects on case to case basis.

g) Try to process the proposals within reasonable time. In this regard Finance may decide time-frame for clearance of proposal and intimate the same to internal Customers, which will go a long way in timely clearance of proposals.

h) Proposals need to be processed on "First in - First out" basis. However, accord priority to a proposal having least validity period for commitment. Reasons for out of turn consideration of proposals may be indicated on record.

i) Try to work out alternatives / optimal solution within rules.

j) Record the reasons for concurring or otherwise in writing on the proposal / note sheet.

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k) To remember that the administrative or functional heads have a definite and professional responsibility to perform, to “implement projects” and to show results. Project head or Divisional Head, therefore expects help, support and guidance in areas such as financial rules, regulations & procedures which are not in their domain.

l) C FA has authority to overrule Finance and take decision disregarding the recommendation made by Finance as per the provisions of DOP. Hence, the observations / recommendations of finance need to be candid, frank, and transparent considering all the relevant factors in the overall interest of the organisation.

m) Exercise caution in ve�ing proposals for "in-principal approval" and state that formal prior approval from CFA is mandatory before any financial commitment from the resources of the Company.

Some of the Purchase orders are placed wherein certain items / services are to be provided by HAL in kind which are not quantified in financial terms. Such proposals would understate the financial liability of the company while seeking decision of the CFA for approval. It is therefore essential that whenever a proposal recommended to CFA involves support and complementary efforts from HAL involving expenditure, the same needs to be estimated and the total expenditure involved needs to be brought out for the consideration of CFA.

Maintain data base and keep the same updated for reporting and sharing with CFA, in respect of following:

i. Head-wise Budget sanctioned, utilized as on date and balance budget available.

ii. Trend and flow of expenditure.

iii. List of proposals indicating value of proposal, date of receipt, disposal, concurred not concurred, etc.

iv. Savings accrued on account of your intervention / suggestion.

v. Prevailing procurement prices of items.

vi. List of Items being procured for the Project.

vii. Approved vendor list.

viii. Any other items of functional relevance.

While according financial concurrence to the proposals, it is always to be kept in mind by the concurring authority regarding enormous trust and responsibility imposed on them in protecting the overall interests of the Organisation.

(B. Bhattacharyya is a Chartered Accountant presently working as Deputy General Manager -Finance Helicopter Division HAL. He has more than 25 years work experience in various private sector & Public enterprises. He joined HAL as Senior Manager - Finance, Corporate Office in the year 2004. He has worked with ITI Limited, Kolkatta as Deputy Finance - Manager from 1992 to 2004. )

22

Best Practices In Payroll SectionS Mohapatra

Payrolls in any Company plays a very vital and vibrant role. It is responsible for payment of

salaries as per the rules of the company, other payment obligations w.r.t. employees,

maintenance of proper records, generation of tax obligations of the employees and payment

of the same to the tax authorities. Hence, it acts as a point of contact between the Company &

its employees on the one hand and Company & the outside world with the Tax authorities on

the other hand. As such one of the major roles played by the Payrolls is to maintain the

industrial relations internally in the company by supporting & aiding the Management in

smooth production by following the rules laid down in the company and stopping possible

industrial unrest. Another major role of Payrolls is to externally maintain cordial relations

with the Tax authorities and other statutory authorities while complying with the various

acts, rules and regulations of the country within the time frames mentioned in those acts and

rules. This role is played by the payroll with great success by following some of the best

practices which lead to the transparency, fair play and credibility using leveraging of

technology in the areas wherever possible.

World over some of the best practices adopted for the payroll Management are given below:

a) Electronic payments.

b) Standardisation of Payroll Cycles.

c) Adopting a single payment system .

d) Make the system transparent.

e) Avoiding Manual Processes.

f) Regularly auditing the processes involved.

g) Outsourcing of the payroll activities.

Keeping in mind the above best practices that are being practiced world over, Payroll

functioning at Aircraft Division is being modelled for improvements in the backdrop of the

public sector working.

Best Practices followed by Aircraft Division are given as under

Display of A�endance details

Division has implemented bio-metric a�endance system in August 2010. Each of the

23

employees working in the division can access their a�endance details on the website of the

Division on-line. The a�endance details are protected and can be accessed only with a

“Password” by the concerned employee. Facility is also provided to change the pass words

according to their requirements. The a�endance details are directly fetched from the bio-

metric a�endance recorders by the software developed by the IT department with necessary

inputs from the payroll.

This system has helped the employees to regularly view their a�endance and provide the

necessary documents to the payroll department to regularise their a�endance. Further, the

data of the movement of the employees is also updated while processing the a�endance for

the purpose of up-dating of the leave details and processing of the salaries.

This system has reduced considerably the movements of the employees from the work spot to

the payroll to check their a�endance details freeing up the time for the productive purposes.

The bio-metric a�endance system has also completely eliminated the proxy punching and

also acted as a technology enabler for viewing of the a�endance details, salary details and

income tax saving.

Display of the Salary Slip and Income Tax worksheets

The salaries are processed based on the a�endance details generated out of the bio-metric

a�endance system which is fully integrated with the IFS. After generation of the salaries, the

statement of earnings and deductions of each of the employees are posted in the website of the

division. Each of the employees can access their salary statement with the “Pass word”

provided to them. This facility has enabled the employees to confirm the accuracy of their

salary workings and is also used as counter check to confirm that salary processed is correct.

This system has aided the employees to cross check their earnings and deductions and

approach the payroll for changes, if any, required. Along with the salaries statement, the

income tax worksheet is also posted on the web which provides them the tax deducted till

date, projected future earnings for the rest of the financial year, savings till date and the likely

income tax deductions for the future period. This work sheet has also aided as a tax planner

to the employees. Additionally they can verify / match the TDS with the IT portal developed

by the GOI based on the quarterly returns submi�ed by the Division.

Leveraging of the technology for daily payments

Payroll makes various other payments in the nature of salary advance, contingency advance,

supplementary advances, VL encashment, medical reimbursements, etc.,

The various payment rules have been embedded into the ERP system which checks the

entitlements of the employees. This acts as an internal check and warning system for the

various kinds of employee payments processed and paid by the Payroll on a daily basis. The

consolidated report is generated linking with the master data of the employees such as name,

Saving Bank Account No, GL account heads and the payment is made through Core Banking

System of SBI and other banks. Two authorised signatories endorse their signature on the

24

Cheque after verifying the payment report generated through IFS with a covering le�er to

Bank for release of payment followed by forwarding a soft copy with e-mail conformation for

the payment.

A register is maintained in the Section for recording the details of such daily payments by

incorporating Cheque No, date and amount advised for payment. The amount debited by

Bank is also checked on daily basis through NET Banking and endorsed in the register

maintained to ensure that the Banker has made the payment correctly. The Payrolls regulates

all the employee payments through ECS/Core banking.

The above practice of System generated payment vouchers has avoided manual intervention

and possible frauds whatsoever. Employee movement to the payrolls is also avoided due to

reduction in the queries and increased efficiency of Payroll working. This system also

resulted in easy reconciliation of daily payroll payments.

Maintenance of Leave Records

Leave details are required for the purpose of regulating the VL encashment, payment of

a�endance bonus to the employees, regulating of the annual increments, promotions and

various other purposes. These are very crucial records and have been required in many court

cases. As such maintenance of the leave records has been both in the ERP System and

manual ledgers acting as an internal control measure to eliminate any kind of errors. The

leave details are compared regular at intervals between the two systems to avoid variances.

The employees are accessible to Payroll records for verification and confirmation of both

CL/VL balances from time to time. The manual ledgers are also preferred by the auditors for

the checking of the leave balances. Thus, this system has enhanced the quality of leave

records maintenance for error free depiction of the correct balances and generation of the

reports for various purposes.

Processing of OT Payment

Overtime rules have been embedded into the software exclusively developed for processing

of the OT. The Overtime bookings against each of the employees day wise as advised by

MSD is posted against the extra hours recorded against each of the employees in the

a�endance system downloaded from the biometric a�endance system. The system rules are

defined to reject extra hours vis-a-vis the a�endance recorded in the biometric a�endance

system thereby eliminating the extra payment on account of the overtime. This system has

eliminated the manual working of the payroll staff in processing of the OT and has ensured

error free processing of the OT as per the entitlement of employees as per the rules of the

company. This system has also aided the payroll staff to have a double check on single and

double OT payments and has avoided to a large extent the possible disputes with payroll

section.

25

Job Profile / Allocation in Payroll

The job allocated in payroll section is well defined and communicated to both Officers and

staff. The Officers and employees are aware of their duties and responsibilities and also the

rules and regulations of the Company and execute the job meticulously and are up to date

with respect to Circulars, Bulletins and Taxation etc., The employees are rotated from payrolls

to other sections of Finance every three years as per the guidelines.

Some Suggestions

HR to maintain service/leave records in line with the procedures followed in other PSUs

as recommended by Internal Audit.

Centralised payroll functioning to drive the implementation of good governance practices to

ensure that procedures are implemented uniformly across all the Divisions simultaneously

by creating a transparent and reliable payroll practices.

Develop standardised e-forms / e-documents across the company with the facility to provide

approvals on-line and integrate them with the ERP. This helps in reduction of the movement

of the employees for obtaining approvals and submission of the approvals to the payrolls.

Further, these e-forms / e-documents can be saved for eternity with less time and expenditure

for retrieval and usage in future.

(S Mohapatra, is Masters in Commerce from Utkal University and passed ICWAI during 2002. He joined HAL RWRDC as Finance stOfficer during Dec 2007 and transferred to Aircraft Division on 1 Aug 2008. Presently he is working as Deputy Manager

Finance- Payroll in Aircraft Division HAL, Bangalore Complex).

26

Newely recruited eleven Vigilance Trainees posing along with their faculties.

These trainees have undergone Orientation Training Programme

at HAL, Corporate Office from 15-11-2013 to 22-11-13

Procurement of MedicinesDr C.S. Ranga Rao

The HAL Hospitals have been set up at various locations of HAL with an aim to provide

medical aid to the employees and their family members in a cost effective, efficient and timely

manner. This has been achieved by way of good OPD facilities, Inpatient treatment facilities

which are substantiated with required quality medicines.

HAL has a purchase manual which provides guidelines in performing the procurement

activities for all materials which may be of commercial nature, production requirements,

consumables etc., including requirements of hospital i.e., Medicines. Over a period of time

medicine procurement is being made based on a particular brand name or a company name.

This has led to procurement of medicines on proprietary bases. This practice does not

undertake price discovery through competitive bidding. The expenditure on procurement

of medicines has been increasing every year. Further, the non availability of medicines; force

the employees to undertake direct procurement at a higher rate from the market, which is

eventually reimbursed by the organisation.

Prevailing Practices: An Over View

The medicines are procured based on the existing Stock, dues in and Re Order Level (ROL).

For every medicine the ROL and the Minimum Stock Level(MSL) is defined. (50% of the

total quantity is ROL and 25% is MSL). When any medicine reaches the ROL, the Material

Purchase Request is initiated by Hospital stores department in co-ordination with different

Departments such as respective doctors from Surgical, Medical, ENT, and Orthopaedics etc.

Based on the previous consumption the quantity to be procured and Delivery Schedule is

decided. Normally one year's requirement is projected. The price estimation is done based on

the previous procurement and any escalation as per rules. The MPR's are approved and the

procurement action is initiated by the respective purchase department of the Division. Most

of the medicines are either proprietary or a new brand is introduced in every fresh

procurement.

Many a times, delays in procurements lead to avoidable cash purchases of costly drugs or

providing “not in Stores” (NIS) certificates & requesting patients to procure from outside.

Even regularly required medicines for common diseases such as diabetes, hypertension,

heart ailments etc., sometimes may not be available in stock. In both these situations the

27

procurements are made at differential prices and at higher rates. It is also

inconveniencing the employees to undertake direct procurement from the market and

claiming reimbursements. Hence, the basic purpose of providing efficient and timely medical

assistance to patients is defeated. An analysis of these issues clearly establish the need to

review the exiting practices and to put in place an efficient & transparent procurement

systems. The need of the hour is to introduce measures of good governance in our

procurement systems.

Proposed Measures For Good Governance

The MPRs are raised covering most of the regularly used medicines. The generic

specification requires to be given in the MPRs. Procurement of medicines needs to be in their

generic names. In generic purchases, brand name suppliers may also compete, but their bids

must be in generic names. Sometimes the brand manufacturers may offer lower prices for

certain medicines than generic competitors to keep their public sector or institutional market

share intact.

Long Term Agreements

The quantities are projected for a minimum period of three years with a staggered delivery

schedule. As we go for such long term procurement through purchase orders or Long Term

Business Agreement (LTBA) the suppliers are also interested since volume of business is

high. There should be a clause to take care of medicines with shelf life expired, i.e.; take back

by the supplier and supply fresh medicines in its place at free of cost. By this an assured

constant stock of regularly required medicines would be available in the hospital and same

brand of medicine could be used by patients instead of constant change in brand.

Apart from having LTBA for regularly required medicine, we need to identify and evolve a

system for procurement of emergent medicines not regularly needed or not in stock, small

quantity medicines which are not regularly required. For such cases Rate Contract may be

entered into with the locally available supplier. The payment for such cases would be based

on a discount on the printed rate/ estimated cost.

Inventory Management & Monitoring: use of IFS

The procurement of medicines should be made in an integrated manner through IFS.

A system of tracking the stock levels, raising MPRs' through IFS should be implemented.

There should be a comprehensive inventory management starting from Indent to receipt of

medicines and issues from stores.

Inventory Management through IFS must have a tracking system of shelf life of medicines so

that the medicines are put to use before life expiry or we can have agreements with suppliers

for take back and replenishment etc.,

28

Advantages

There would be continuous uninterrupted supply of required medicines of good quality and

at a competitive price. Also a specific brand of medicines would be available to the patients for

a longer duration without having constant change of medicines. The “NIS” and re-

imbursements could be reduced substantially. All this would also plug the chances of any

corruption and wrong practices. The procurement system would be more transparent and

efficient.

Best practices adopted at Nasik Division

Such procurements through long term planning and Rate Contracts have been implemented

at HAL hospital of Nasik Division. Previously the expenditure incurred in re-imbursements

and non availability of crucial medicines was hampering the efficient treatment of patients.

Presently the NIS has been reduced as the procurement system has been streamlined. The

procurement of emergent medicines through Imprest cash is also streamlined. There are rate

contracts with local suppliers who are readily supplying medicines at a discounted rate. Thus

procurement of same medicines at different rates is also avoided. The Division could

achieve an overall savings of Rs. 31,73,510/- over a period of 2 years in the procurement of

47 medicines with an estimated value of Rs. 84,73,510/-. There are also intangible benefits by

way of goodwill and satisfaction of employees since they do not have to spend money in

procuring medicines from market.

Conclusion

It could be said that the medicine & services procurement practice is slightly different from

the regular procurement of goods. There needs to be a dedicated team of qualified persons at

each hospital to implement and monitor the medicine procurement in a more scientific and

systematic way. The prime responsibility of Hospital authorities is to provide efficient

medicines to our employees with compassion and ensure that they are not inconvenienced in

any way.

(Dr C.S. Ranga Rao has done M.B.B.S from Sri Venkateswara University and DIH from All India Institute of Hygiene & Public Health, Calcutta. Joined HAL, Nasik Division in 1984 and has worked in various Departments of Medicine at different levels. Has been COMS, Nasik Division from Sept-2010 to May-2013. During the tenure as COMS Nasik, implemented best practices of procurement and upgraded the hospital infrastructure facilities in line with one of the best Public Sector Hospitals. Currently working in the capacity of COMS, Medical & Health Unit, Bangalore.)

Be faithful in small things

because it is in them

that your strength lies.

- Mother Teresa

29

Annual Vigilance Talk – 2013

thAnnual Vigilance Talk-2013 was organised by HAL Vigilance Department on 28 Oct 2013,

during Vigilance Awareness Week-2013. Hon'ble Justice N Santosh Hegde, Former Supreme

Court Judge & Former Karnataka Lokayukta, delivered a talk on “Integrity and Good

Governance in Public Institutions”. The program was held at Ghatge Convention Center,

HAL Airport Road, Bangalore, which was a�ended by senior officers of HAL. The program was

also webcasted live to all outside Divisions of HAL.

Hon'ble Justice N Santosh Hegde, Former Supreme Court Judge

& Former Karnataka Lokayukta being received by CVO &

senior officers of HAL.

Justice N Santosh Hegde & Shri Anurag Sahay, IRS,

CVO-HAL gracing the dias.

Justice N Santosh Hegde delivering a talk on Integrity HAL Officers listening to the thoughts of Chief Guest

on Good Governance in Public Institutions

30

Design & DevelopmentZ A Asif

The best designed product in any of the technology driven area is an outcome of seamless

integration of three foremost crucial elements such as Strategy, Competence and Value. A

company needs the best people, advanced technology, the physical plant, the right

operations; the funds, the right leadership, experienced investigators and a vision of the

future to develop new products with cu�ing edge technology. Many companies may possess

these a�ributes, but the success depends on how the companies integrate these manifolds.

A metaphor for this situation is the pack elephant (“the product”) and the five different blind

passengers (“the departments”) needing to reach a common destination (Goal). Each may

touch the elephant at different areas, large flappy ears, stumpy legs, long flexible trunk, hard

pointed tusks, the tail, or the broad back. Besides their different personal experiences and

expectations, they each believe to be holding a different object with different possible benefits

and risks in reaching their destination. Someone or some group must be able to step back and

see the whole animal, as well as its parts, to coordinate the individual players, help make the

best judgments, and set the best direction. Good governance can be the best practice in

pulling it all together in product development and in differentiating the top companies from

the pack.

Since 1940, HAL has played a vital role in supporting and meeting the requirements of

Indian Armed Forces either by indigenous products or by building aircraft/components

under Transfer of Technology (ToT). In last 7 decades, HAL has earned a valued legacy of

talent pool, diversified knowledge and expertise in this domain. With this knowledge base

and expertise, we aspire to become a single window solution provider and a global player in

the fiercely competitive aerospace industry. The echo of this statement will make sense only

when we have a good strategy to drive the vision, competence and technology to support and

values to garnish the same.

Understanding Design and Development Cycle and Good Governance Measures

R&D is more or less viewed as probabilistic in nature and many times we have reason to

justify delays. The delays have cascading effect of cost and time overrun and most important

being loss of opportunity of business. In order to identify Good Governance measures in

31

Design and Development activities, we need to first

review the existing system and ascertain critical areas. In

any development cycle, following steps are generally

involved as shown in the diagram.

Customer Requirement

The development project starts with the requirement from

Customer /user in the form of called up features, purpose

and with broadly defined technical and operational

requirements like ceiling, endurance and range etc. with

indicated timelines.

Finalization of Specifications

On the basis of broadly defined parameters, the technical specifications are prepared by the

platform developing agencies like ARDC, RWRDC etc., A prolonged process of discussion

starts with users to refine it and at the end broad specifications for structures, airframe,

aerodynamics, engine and system/LRUs requirements are worked out and go-ahead on the

same obtained for the launch of aircraft development program from the sanctioning agency.

Generally, Platform designers who get involved in the finalization of broad level

specifications with customer may not have specific domain knowledge related to System and

accessories and thus many a time undue requirements often get specified.

Recommendation for Good Governance

Respective stakeholders must get involved along with platform designers from very initial

stage of specification preparation, which shall reduce the number of iteration associated

during specification finalization. The specification thus prepared will be realistic and

complete and will lead to ensure early start of development activities.

Proposal Stage

Once the specifications gets finalized, the techno-commercial proposals are put up for

approval by competent authority. Sometimes, in view of ambiguity in financial estimations,

the proposals get revised number of times on the basis of individualistic defined terms.

Recommendation for Good Governance in Proposal

A standard format for development proposals with defined set of guidelines is required for

all R&D centers. In addition to this a timeframe for approval need to be defined at every

approval stage. This recommendation is already under consideration in proposed R&D

manual of HAL.

Planning

In execution of the program, planning is the foremost tool for managing the funds and time

allocated to projects. In some of our development programs, it has been observed that our

32

project planning was based on optimistic time frames. In addition to this, impact of

dependencies, associated risk and its mitigation plan was also not pragmatically accounted in

the development cycle, and we act in crisis Management situation i.e., like Student Syndrome.

Recommendation for Good Governance in Planning

In R&D projects, time estimation should be based either on previous available database or

Program Evaluation & Review Techniques estimates. Utilization of tools likes Project Life

cycle Management, MS- Project need to be enhanced and implemented in all R&D Centres for

effecting planning, tracking and managing the resources/milestones. Risk Assessment and

mitigation plan should be included in the development proposal for be�er visualization of the

project by all stakeholders.

Design Phase

It is generally observed that when the proposed development is in

line of existing technology/product, success rate of development

is 100% and in cases, the technology associated in the requested

development is newer for us, it is observed that considerable time

is consumed in realization of the final product. This scenario may

affect the program schedule.

Recommendation for Good Governance in Design Phase

In order to get prepared, we have to sense the need of future technological requirements in

advance and more technology oriented projects need to be taken up at all R&D centre to

support next generation of products and processes.

In this regard, a commi�ee (Technology Development Sub-Commi�ee) at corporate level and

Technology scanning group at divisional level has been formed to review the technological

gaps and future requirements of R&D Centres. The commi�ee has recommended and

provides go–ahead for realization of many critical technologies. In order to facilitate the

design and development activities, HAL has also established chairs at IITs for collaborative

technology development work and research based interactions.

Procurement

i) Dependency on Foreign Suppliers

Design of a robust product is one aspect and realization of that product is other. Sometime the

project is meeting or ahead of timelines up to design stage thereafter issues related to delay in

delivery of raw material, start encroaching in many of our R&D projects. At this BOFs

juncture it appears that our program is basically controlled by the suppliers and their non-

performance lead to review and re-schedule of the program. Generally for aircraft/helicopter

development program critical system like Engine, Avionics, Flight control Actuators etc, our

100% dependencies falls on foreign suppliers and project schedule may get revised number of

times as per their supply schedule.

33

ii) Strategic Alliance

Even in war like situation and strategic counter measures like Pokharan incident as per their

government policies affect our supplies. This generally happens due to lack of strategic

alliance with foreign suppliers.

iii) Enterprise Resource Planning (ERP)

Information regarding available stock at other division or vice versa is not available or

partially available due to isolated ERP System. This leads to aid in inventory.

Recommendation for Good Governance in Procurement

i) Thrust on Indigenization and Strategic Alliance

In every new development program, we must identify the critical systems where dependency

on suppliers may lead us to uncomfortable situation in case of delays or refusal. To avoid such

situations either we need to start parallel indigenization activities (Self/Joint Venture) on

strategic ground or establish strategic alliance with foreign suppliers by establishing long

term business agreement.

ii) Centralized ERP

The ERP servers of all divisions need to be centrally connected to one server for be�er

managing the procurement activities which help in reduction in inventory, procurement

expenses and associated delays. The common requirements of all divisions can also be

clubbed via centralized IFS system for the release of single order to get cost benefits

associated with bulk order. For example raw material, fasteners, seals, electronic components,

consumables, software packages, journals, books and miscellaneous items. The process has

already been considered for implementation in HAL.

iii) E Procurement

This need to be promoted to facilitate transparency and efficiency in the procurement process,

from buyer to Supplier and back.

Manufacturing

The two routes being followed for manufacturing of machined

parts i.e either in-house or outsourcing to sub-contractor depends

upon the facility / competence constraint. For A class critical

components generally in-house manufacturing is preferred and

sometimes due to capacity constraint some B or C class items are

outsourced to sub-contractor through tendering process.

Due to high initial investment and low business volume in this

domain, limited sub-contractors are available across the country for airworthy standard

manufacturing. Sometimes situation also arises when many of our divisions without taking

34

care of current load / capacity ratio of sub-contractor place orders on them. In such situations,

the vendor generally concentrates on bulk order quantities and side line the design and

development requirement of low volume.

Recommendation for Good Governance in Manufacturing

In-house established manufacturing facilities and resources need to be 100% utilized and only

in case of capacity/facility constraint, order on sub-contractor can be made. Concurrent

Manufacturing practices need to be adopted to reduce manufacturing cycle time thus overall

project time.

Assessment of Current work load on sub-contractor

need to be assessed prior to considering for

outsourcing. In addition to this, we need to develop

more and more vendors by creating favorable

business environment for them to avoid capacity

congestion at any single sub contractor. In this way

leveling of outsourced job will be possible at sub-

contractors end for timely and effective outcome.

Assembly and Qualification Testing

This is one of the most challenging milestones in the development of any newer

technology/product. During qualification phase sometimes performance related issues, such

as failure during endurance may be encountered leading to afresh review of design. This

aspect is basically depending upon the technical Know-how, expertise and capability of R&D

personals, tools & available infrastructure. In addition to this availability of proper assembly

tools, readiness of ground test facilities, coordination issues with airworthiness agencies have

emerged as major reason for delays.

Recommendation for Good Governance in Assembly and Qualification Testing

Accordingly, we need to take following actions in advance to plug avoidable delays and

improve performance.

a. Timely finalization of Test Schedule.

b. Readiness of Test facility.

c. To work out in advance the likely issues expected during testing and their remedial

measures.

d. Certification agencies need to be informed well in advance with our plan of testing.

e. Testing at external agencies need to be planned in advance for obtaining desire slot.

Certification

Factual outcome of any development is sensed when it get productionised. Successful

certification of any sub-system, system is all important for productionisation of our system.

35

All the above mentioned factors in development cycle at last accumulate and affect the

certification process. Issues related to non conformance of some parameters and coordination

issues related with airworthy agencies leads to further delay in the program.

Recommendation for Good Governance in Certification

Ownership of stakeholders including certifying agencies in the development program need

to be established as they are associated in the program right from the beginning. Indigenous

systems should be evaluated on priority to maximize its-timely spin-off via

productionisation. This shall be helpful in establishing self reliance and to plug the outflow of

foreign exchange.

Assessment of Design and development scenario at HAL reveal that implementation of good

governance practices will be helpful in delivering intended outcomes. Some recent initiatives

under taken by HAL towards good governance in Design and Development are indicated

below and many more are under consideration for implementation.

a) Establishment of Commi�ee at Corporate level to review on measures required for

strengthening Design and development activities in HAL. i.e Commi�ee of Institutions

Network (COIN) headed by Director (D&D) and heads of all R&D centres as member.

b) For promoting collaborative technology work in research areas, HAL has established

HAL chairs at IIT Kanpur and IIT Roorkee. Other premier institutes are also under

consideration.

c) Protection of knowledge/Technology acquired over a period of time through significant

investment via Patenting (IPR) process. HAL has filed over 250 patents so far.

d) Knowledge Management activities initiated to capture Tacit and Explicit knowledge

base.

e) Continuous Knowledge sharing among designers of different R&D centers by arranging

Seminars, Group Classes and Conferences.

(Z A Asif is presently working as General Manager-ASERDC, Lucknow. After completing Electrical Engineering Degree, he joined HAL in 1977. He served the company in various domains of R&D in his 36 years of journey. Under his direction, ASERDC has developed Electrical/Electronic accessories for all major aircraft programs of HAL and armed forces like Cheetah/Chetak, Saras , ALH , IJT, LCA. Currently he is handling specialized project teams working on the development of mechanical systems, electrical, electronic & avionics system for aircraft (PMF, MTA, HTT-40, LCA MK-II, Do-228, MiG-29K) and helicopter (LCH and LUH) and export programs. In year 2013, he has been nominated as Chief IPR officer of the company. Due to his dedicated efforts in

stsynchronizing and spreading awareness on IPR among other R&D centre, HAL has filed 254 patents as on 31 Jan'2014.)

36

In aerospace design, any development program presents a multitude of challenges from

prototype to production stages. Over and above the engineering challenges, there are many

non-technical issues that may come up in the development program. Aircraft R&D Centre of

Hindustan Aeronautics Ltd has a legacy of design and development of trainer aircraft.

Trainers like the HPT32, HTT34, HTT38, and Kiran (HJT16) MkI & MkII are platforms that

were developed for the use of the Indian air force. The Kiran MkI and MkII have been work

horses of the Indian air force and are still serving the force in its training needs. The HJT36,

Sitara, which is nearing its Initial Operational Clearance, is the most recent of the trainers that

have come out of the stables of HAL. Currently, HAL has taken up the design and

development of the replacement for HPT32. The replacement, HTT40, will be a modern

basic turboprop aircraft with a powerful engine with an envelope close to that of jet aircraft as

well as the scope for expansion into the role of a close air support aircraft. The development

program for this trainer is governed by strict timelines which necessitated the use of best

practices used in the aviation industry. In order to complete the design and the concurrent

fabrication of the first prototype, the project Management team has adopted an array of

Unique/Best practices which are discussed in this paper.

The steps taken include,

1. Inclusion of Design for manufacturability (DFM).

2. Build up of Digital Mockup Unit (DMU) & digital roll out.

3. Development of 6 DOF (Degrees Of Freedom) model .

4. Forming of project Management sub-teams to perform risk assessment and

mitigation interference resolution mass and Centre of Gravity (C.G) control.

5. Airworthiness & certification.

6. Drawing release & tracking.

7. Modular design of jigs.

8. Expanded scope for niche markets.

Design And Development of Basic Turboprop Trainer, HTT-40

Prashant Singh. BRahul Roy

37

These steps have been taken with the objective of completion of all activities till the roll out of

the first prototype keeping the weight of the aircraft well under the maximum limit and

within the stringent timelines without cost overruns.

Design for manufacturability (DFM)

DFM is a general engineering concept in which products are designed in such a way that they

are easy and economical to manufacture. The basic idea exists in almost all engineering

disciplines and for almost all manufacturing technologies. DFM allows potential problems

in manufacturing to be resolved in the design stage itself where it is least expensive to do so.

The manufacturability of every part that is designed for HTT40 is a consideration in the

design itself. Experts from the manufacturing stream have been made part of the release work

flow for every drawing. The feedback from the point of view of manufacturing is provided to

the design group so that suitable modifications can be made to ensure that the part can be

easily manufactured economically with the least lead time. At the same time the parts are

categorized into manufacturing priority groups by the manufacturing team depending on

the lead time for manufacturing of the parts. The design teams work on the drawings for the

parts based on this priority group order so that the drawings for the high lead time parts are

completed first. Implementation of this scheme in the design stage itself will save a lot of

material and effort in the initial stages of manufacturing of the prototype.

Build up of DMU & digital roll out

The DMU (Digital Mockup Unit) allows

the engineers to create a virtual assembly

of aircraft components. This eliminates the

need to test assembly using physical

mockups. The DMU constitutes the only

point of reference for the product under

development for all the designers. A

dedicated group of engineers work with

the various structural and system design

groups to control the weight and location

of the C.G of the aircraft as the design evolves. The digital mockup of the aircraft is also

maintained by the same group. The use of a highly detailed single mock-up that is shared by

all design groups helps to speed up development since everyone who is working on the

design has access to the latest configuration of the aircraft during each phase of development

and manufacturing. The DMU or the digital mockup representation of the aircraft is an

intuitive method of following the progress of design, modeling and drawing release for the

various components that go into it. At later stages the same method can be used to track the

progress of component fabrication. For the purpose of weight Management, each design

group was given a weight budget which needs to be adhered to by all means. Through several

38

iterations between the design groups and the structural analysis groups, the design of each

part is optimized. The DMU will also enable design teams to prepare material for training

maintenance teams with ease. The DMU that is generated and maintained for this program is

highly detailed. This makes it easy for demonstrations using animations and photorealistic

renderings. The product can undergo a digital roll out of its different variants using DMU

software before the actual prototype roll out is achieved.

6 DOF model for aircraft performance simulation

A flight dynamics model of HTT-40 has

been generated using simulation tools like

Matlab and Simulink. Aerodynamic

coefficients obtained from wind tunnel

d a t a w e r e u s e d t o g e n e r a t e t h e

aerodynamic model. Engine performance

data was also incorporated in the model.

The aerodynamic model is augmented

with the equations of motion. The model

can obtain the desired state of the aircraft

(pitch rate, roll rate, yaw rate, etc.) using

test input cases. The model can simulate

the basic dynamic modes of the aircraft.

This model will further get validated for errors in assumptions using the data obtained from

the flight testing. Prior to the start of flight testing the 6 DOF (Degrees of Freedom) model can

be used to have a good idea of the aerodynamic performance and handling qualities expected

from the aircraft.

Project Management sub-teams

The project Management group formed various sub-teams consisting of designers from

different streams. These members contributed over and above their existing roles as

designers. The sub-teams were formed for:

a) Management of System interface issues: Members of this team had to interact with

various design groups and understand any potential cross system interference issues. The

problem/issues were presented during reviews and it was ensured that the concerned groups

worked towards resolution of the issues. The team maintained a log of the reported problems

and also the status of the same till it is was resolved.

b) Risk Assessment: This team performed the task of identifying all potential risks which

could lead to delays in the project. The risks were categorized based on criticality and tagged

accordingly. A risk register of all issues identified was maintained. Suggestions for steps to be

taken to mitigate the risks were presented to higher Management and project Management

Mass, inertia/centre of gravity

Flight controlsystem input

Airc

raft

Res

pons

e

Enginedynamics - model

Environmentmodel

Aero data base (W/T, analytical)

FLIGHT DYNAMIC MODEL

Figure 2: 6 DOF Model

39

during review meetings. A major risk identified for the program in the initial days of design

was that of the selection of the engine off-the-shelf. There were only two likely choices for the

engine for this class of aircraft and they were equally likely to be selected via the procurement

process. Hence the design of the platform was taken up concurrently for two configurations,

for each of the likely engines. The aircraft numerical master geometry was generated for both

configurations and maintained in parallel till the final selection of the engine. Each system

group maintained two configurations of their system design to suit each of the engines.

c) Mass & C.G. control: This team monitors the overall aircraft weight at the design stage

itself. The team issued advisory for design optimization to various system groups in order to

reduce the aircraft weight and ensure that the never exceed weight is never compromised.

This will eventually ensure that the aircraft weight is well under control and there is no need

for a costly weight reduction program at later stages.

The team also makes monthly presentation on the weight status for HTT40 aircraft.

d) Airworthiness and certification: This team takes up the task of updating various groups

with respect to airworthiness/certification issues. They studied various Federal Aviation

Authorities (U.S.A) and other advisory guidelines issued for existing aircraft of similar type in

the basic trainer category and forwarded the same to various applicable design groups. This

ensured that we benefit from the experience of previous projects and avoid potential

repetition of mistakes/design flaws.

e) Tracking of the release of Drawings: A team was formed to track the status of various

drawings being released by different groups. This team would ensure the optimum operation

of the workflow to ensure that there are no bo�le necks. Few design groups where the activity

needs special focus were identified in order to avoid delay in release of drawings. This gave

the Management a clear idea of where the man power needed to be enhanced to speed up the

overall work flow. Tracking of drawing was done by this team on a day to day basis and

statistics regarding the accumulation of drawings in different groups was also collected and

studied. The drawings that are expected to be released were categorized into different

priority levels from the point of view of criticality in manufacturing. Drawings of parts that

were in P1 category were given maximum priority for release.

Modular design of jigs

The design of the tools and j igs for

manufacturing was done concurrently with

the detailed aircraft design. In some cases the

design of tools was outsourced to outside

agencies. The design is kept modular for ease

of integration and manufacturing.

40

Expanded scope (above PSQR) for niche markets

World over air forces have taken to using powerful basic turboprops for the purpose of close

air support. This requires the integration of bombs, rockets and guns and an engine of

relatively higher power. A basic turboprop with a powerful engine can perform in an

envelope that creeps into the envelope of that of a medium powered jet but the turboprop is

significantly cheaper to operate owing to the economic fuel consumption. Cadets who have

undergone their training hours on basic flying and handling qualities in a turboprop can go

ahead with higher levels of training on jet aircraft and return to the basic trainer for

weapons/systems training. This would need the basic trainer to have an advanced glass

cockpit that runs software which can emulate the cockpit of frontline fighter aircraft in use

with the force. HTT40 design is being done keeping in view the scope of this extended

capability and platform sharing between the basic trainer and its variant with advanced

capabilities.

Conclusion

From the decades of experience in design and development of trainer aircraft, Aircraft R&D

Centre (ARDC) of HAL has acquired the expertise and the know how to bring an aircraft

project from drawing board to prototype and beyond within a short development time span.

The use of these best practices discussed above is instrumental in this transformation. These

practices can be used, for accelerated development, in many other design and development

projects in the years to come.

(Prashant Singh Bhadoria is a B. E. (Electronics & Telecommunication) and MS (Aerospace Vehicle Design) from Cranfield University, UK. He Joined ARDC, HAL in 2000 and has worked on projects like HPT32, HJT36& Deputy Project Manager (HTT40). He was awarded the Course Directors award for his contribution to the group design project at cranfield and his project on IVHM system was awarded the European Fan Makers Avionics award for 2011. Presently he is serving as Senior Manager (Design), Electrical & Avionics, ARDC)

(Rahul Roy is a B.E. (Hons) Electronics & Instrumentation and M. Sc. (Hons) Physics from Birla Institute of Technology & Science, Pilani. He Joined HAL as Design Trainee at ARDC Division in the year 2010 and presently he is working as Deputy Manager (Design), Electrical & Avionics, ARDC)

The Logo

"I" stands for integrity.

Main shape denotes a Child as

Integrity club involves Children.

Open Hands denotes Openness/Freedom.

41

Salvage Management Through E-auctionD K Venkatesh

Scrap- The byproduct of the manufacturing process

The basic raw materials are converted into Aircraft parts through variety of manufacturing

process like Castings, Forgings, Machining etc., and during these processes substantial

percentage of these materials gets converted into scrap due to stringent process requirement.

The typical yields from the various processes employed are detailed in the table shown

below.

On an average, about 20% of the raw material gets scrapped in the manufacturing process.

Apart from this, the division ends up ge�ing metallic and non metallic scrap like MS drums,

plastic cans, etc through the discarded packaging of incoming process chemicals. In

addition substantial amount of scrap is generated over the time due to disposal of old

equipment and other items like e-waste etc.

Table 1. Typical percentage of scrap that is generated in various manufacturing processes

Mfg Process Approximate percentage of scrap generated

Scrap details

Process consumables like

Copper wires in Plating shops,

Consumed Nickel anodes

Castings

Forgings

Machining

30

15

20

20

Gating and risering, scum, rejects, test

pieces etc. About 15 % of this gets recycled

Flash, slug, cut pieces, ejects, test pieces etc

Shavings, borings, chips etc

Process returns like used Copper wires,

Short Nickel Anodes from plating shops

etc.

Scrap Management and its disposal

Section 14 of HAL's Stores Manual elaborates on Salvage of scrap. The procedure for

periodic disposal of materials (scrap) through public auction or tender as the case may be, is

detailed. However, the scrap salvaging is quite a complex process. Often scrap is seen as an

unwanted by-product and many a times the disposal of high volume, high value scrap is left

to the lower rungs of the Management. It is quite common to see that scrap is somehow

disposed at whatever cost. Typically salvaging task is seen as Sisyphean task.

42

Salvaging of Scrap

Scrap, by definition, is the material that has no value except for its basic material content.

Salvage is a property that has some value in addition to its basic value as scrap. Thus we can

convert the scrap into a salvage by suitably grading, sorting, storing and proper disposal

and in the process be�er returns are obtained.

Evolution of salvage Management process at the Division

Until 2007, the entire scrap handling and disposal of the Bangalore based units used to

happen through Services Division. All the divisions used to send the scrap to the Central

Salvage Yard. The Services division used to dispose scrap directly through an auction

process. The scrap disposal used to happen through tendering process against reserve prices

arrived by Services Division. The proceeds of the sold salvaged items, were distributed

among the divisions on pro-rata basis.

The scrap salvaging through the Services Division, however, had issues namely, repeated

handling of the scrap at division and at central salvage yard, improper grading and sorting,

selection of the reserved pricing methodology by the local commi�ees, inaccurate estimation

of the scrap quantity, oxidation, rusting and loss of the scrap over storage period in the

open yard, mud mix-up, long lead time taken for the disposal. Lack of active participation

by large number of scrap dealers, and recovery of the cost and disposal methods amicable to

all stake holders etc., These issues needed solution for recovery of optimum salvage value.

Emergence of Best Practices in Salvage disposal

In the year 2007 the concept of the “Central Salvage Disposal System” was disbanded by

HAL Corporate Office and divisions were asked to manage the scrap disposal at the local

level.

F&F Division developed a few best practices in the salvage process through e-auctioning

route through M/s MSTC, a Govt. of India Enterprise. This route addressed many issues

raised above with respect to the disposal mechanism and made the salvaging process very

transparent and amicable to all stake holders.

The process of e-auction procedure was adopted by F&F division in the year 2007. It is now

grown into a mature scrap disposal model. The same is elaborated below. The e-auction route

for the scrap disposal is similar to e-procurement defined in the Purchase manual for the

procurement of the raw material however through an external service provider.

e-Auction Process of scrap disposal

The chart given below highlights the various activities involved in a typical e-auction process

by MSTC. The various activities are detailed below for clarity.

In the E-auction process three participants are involved. First, the scrap seller i.e. F&F

Division, second, the Prospective registered scrap buyer with M/s. MSTC and thirdly, the

agency for facilitation of the e-auction process/ Service provider i.e. M/s MSTC, ( The Metal

Scrap Trading Corporation, a Govt. of India organization).

43

The scrap is generated at various locations of the divisions in various forms and these are

regularly sorted and collected in the designated bunkers in the salvage yard. The photo

graphs below shows the various lots prepared for the E-auction.

44

Good Governance measures in Scrap Management

Today the scrap component is one of the important elements in the cost of a product. Hence

there is a constant look out for the process that demand lesser input material.

Proper segregation & grading at the point of generation is easy and it fetches be�er return.

With the concept of graded scrap, e-auction etc, virtually almost all the factory returns, be it

metallic scrap, containers, steel plastic, wood etc. can be salvaged.

The process of local collection gave an insight and perspective to divisions on the amount of

waste that is generated in the process.

The e-auction Management by a third party like MSTC gives transparency to the process and

optimal price was obtained

The whole process consumes lesser Management a�ention.

The use of scrap rate index published by agencies like MSTC/MMR gives rationality to the

process of estimation of reserve price.

The cost collection is easy as the scrap collector has to pay in advance.

The divisions gets considerable additional income in the process.

The cumbersome process of double handling of the scrap is eliminated.

Recommendations

Amendments to the Stores Manual of HAL to incorporate e-auction procedure based on the

above best practices could be adopted.

Storage of scrap in covered area and on a good concrete flooring to avoid oxidation losses,

rusting and mud mix-up issues, would yield higher returns.

It is recommended to store the scrap in closed area with proper flooring to avoid the

oxidation, rusting losses and mix-up of mud and other issues related to the quantity

estimation.

(D K Venkatesh is B.Tech in Mechanical Engineering. He joined HAL as a Management Trainee in the year 1980 at Overhaul Division. He worked in various capacities in Engine Division (BC), LCA/LSP, RWRDC and Helicopter Division till June 2012. He was transferred to F&F as Chief of Projects in 2012. Presently he heading the Foundry & Forge Division as General Manager)

45

Observance Of Vigilance Awareness Week 2013

Dr. R K Tyagi, Chairman, HAL lighting the lamp

during Inaugural Function at Corporate Office

Shri S Subrahmanyan, MD(M) lighting the lamp

during Inaugural Function at Nashik

Chairman, HAL releasing Marg Darshan, Oct 2013

during the Inauguration Function.

Shri N C Vyas, ED (D) and Shri P S Roy, Offg. ED (ARDC)

presiding over Inaugural Function of Design Complex.

Major (Retd.) T Srihari, CM (V) welcoming the Guests

during Inaugural Function of Helicopter Complex.

Shri P N Jha, Vigilance Officer reading the message from CVC

during Inaugural Function at Korwa Division.

46

Observance Of Vigilance Awareness Week 2013

Shri Aniruddh Kumar, ED & Shri Maloy De, GM (SED)

releasing Compendium of V2 during Inaugural Function

at Koraput.

Shri V K Joshi, GM (TAD Kanpur) and other dignitaries

releasing Marg Darshan and Booklet on HAL CDA Rules

during Valedictory function.

Shri Sunil Kumar, GM-Avionics Division and

Smt. Thenmozhi, Offg.GM-SLRDC

presiding over the Valedictory Function at Hyderabad.

Shri Showkath Ali Baig M, AGM (GTC) addressing the

gathering during Valedictory Function at RWRDC Division.

Children from Vathsalya School, Bangalore

(a Special School for differently abled) participating in

Drwaing Competition during VAW.

HAL School Children at Hyderabad performing a

Skit during Vigilance Awareness Week.

47

Fuel Management For Aero-enginesNandish S

Aviation Turbine Fuel (ATF) or jet fuel is a specialized type of petroleum-based fuel used to

power aircrafts. It is generally of a higher quality than fuels used in less critical applications

such as heating or road transport.

As the primary function of aviation turbine fuel is to power the aircraft, energy content and

combustion quality are key fuel performance properties. Other significant performance

properties are stability, lubricity, fluidity, volatility, non-corrosivity and cleanliness. Besides

providing a source of energy to power the aircraft, fuel is also used as a hydraulic fluid in

engine control systems and a coolant for certain fuel system components.

Fuel And Oil Theft

As the Indian market and businesses feel the brunt of surging fuel prices, the theft of fuel

from trucks also known as Oil Skimming is expected to see a significant increase in both

frequency and quantities. With larger trucks, skimming anything from 200 litres of oil at an

average cost of Rs. 10,000 per tank, criminals will stop at nothing to get their hands on it.

Almost all major routes are being targeted for this illegal diesel skimming operation.

Given that oil costs account for considerable operating cost of the Company, combating fuel

theft and uncovering driver collusion is crucial for sustainability. If the Division loses 200 ltr

of oil per truck to skimming, that's 90000ltr for 450 trucks in a year. At an average rate of

Rs. 60 / ltr the total loss works out to Rs.54,00,000.00 per year, and these estimates are

conservative. With rising operating costs and dealing with public money, no company big or

small can afford to lose oil through theft.

Good Governance Measures In Combating Fuel Theft Telematics

Telematics as part of a comprehensive fleet Management system is proving to be an essential

weapon in the fight against fuel theft with its ability to monitor and alert fleet owners to non-

approved driver behaviour in real time, from digressions off approved routes, speeding,

harsh braking and accelerating, unauthorized stops and extended periods of standing still

when not scheduled. It makes a world of difference if a driver knows that they are monitored

24X7, and that secondly transgressions can be picked up and acted on with tangible, physical

proof of any errant behaviour.

Today's modern web-based fleet Management systems provide for efficient and accurate

reporting and control of costs, allowing fleet owners to manage driver behaviour as well as

48

draw accurate, real time data for analysis and improvement planning. In combating fuel

theft, fleet managers need the ability to answer the “how and why” questions that allow for

proactive planning and intervention, rather than simply monitoring distances travelled.

When it comes to combating fuel theft this is essential, as you need to be able to back suspicion

with tangible proof.

Telematics can provide the users with virtually any configuration to address their specific

and unique fleet Management challenges. Vehicle telematics (tracking and diagnostics),

driver Management, speed Management, fleet tracking, fuel Management, driver profiling,

route planning and geofencing are all readily available. With modern web-based fleet

Management systems, there's no limit to the cost saving and productivity benefits that fleet

managers can derive from be�er fleet Management and monitoring of driver behaviour.

As fuel costs continue to rise, illegal oil skimming is going to take on new proportions. The

reality is that rising transport and fuel costs, toll fees, vehicle maintenance costs, hijackings,

fuel theft and the challenges around managing driver behaviour and collusion are all placing

enormous pressure on fleet owners and companies to find effective and sustainable ways of

managing fleets and drivers. Vehicle tracking with full telematics features is an essential

requirement to achieve optimum fleet performance and drive down operational costs.

Fuel Anti Theft System

The unique system, help to solve the oil skimming problems. The sensors protect the entire

fuel system, from the fuel cap all the way to the fuel filter & more. Every time an entry point is

accessed, the system sends an alert to the manager's email and the exact location and time is

displayed in service provider place. The user receives the alert in 8-12 seconds. Should

someone tamper with any part of the system by trying to disengage a sensor or cut a wire, a

priority alert will be sent over a period of 30 minutes to the manager's email and/or smart

phone. In addition, the web-based platform will show the sensor open and the manager will

know the driver has intentionally damaged a cable.

Handling

All fuels to be used in aircraft require very special handling. Negligence in the receipt, storage

and handling of fuel or an error in fuelling can endanger an aircraft and the lives of all on

board. Therefore it is essential that the correct grade and quantity of fuel is supplied and that

it is in a condition fit for use in aircraft.

It is the responsibility of the fuel supplier to ensure that on delivery, fuel is fit for aviation

purposes. The fuel installation manager should therefore, on acceptance of bulk deliveries of

fuel, insist that the supplier provides satisfactory evidence with supporting documentation

to this effect. Such documentation may be in the form of a Certificate of Conformity and can

be expected to give details of fuel quantity, fuel type with required specification, fuel origin

and batch references. Persons having the responsibility for the Management of aviation fuel

installation must ensure that when fuel is delivered into the installation it is the grade

appropriate to the tank designated for that product, and that it has been sampled and found

fit for use in aircraft. After fuel has been delivered, the responsibility for its safekeeping,

quality control, and proper delivery to aircraft similarly lies with this person.

49

Documentation

i) Aviation Fuel need to be delivered by a dedicated system. If this is not the case then

special precautions are necessary and advice should be sought from the Authority

before accepting deliveries of fuel.

ii) Documentation should clearly state the type of fuel being supplied, and that it complies

with the relevant specifications.

iii) On delivery of fuel, the person in charge of the installation will normally be required by

the supplier to endorse the Certificate of Conformity/Release Note to confirm that the

grade of fuel is as ordered.

Pre-delivery Checks

Before the release documentation is accepted and delivery permi�ed, the person responsible

for receiving the fuel should:

i) Check that the grade and quantity as shown on the certificate are as ordered, and

corresponds with the grade of fuel in the receiving tank.

ii) Examine the seals on the delivery vehicle and ensure they are intact. Also check the

vehicle grade plate indicator.

iii) Check there is sufficient available capacity in the receiving tank(s) for the quantity of

fuel to be received.

iv) Take a water check on the fuel in the receiving tank(s) in accordance with the

procedures. If necessary, flush the water drains until a clear and water-free sample is

obtained.

v) Allow the delivery vehicle to stand on level ground for ten minutes, then draw a

sample from the outlet tap of each vehicle compartment from which fuel is to be

delivered and check in accordance with the procedures.

vi) Repeat the procedure if the sample is unsatisfactory. If a third sample is necessary and

this also proves to be unsatisfactory, delivery of the fuel should be refused and the fuel

supplier informed.

vii) Once a satisfactory visual sample and density result (see para below) have been

obtained, the vehicle should be bonded to an approved earthing point and discharge

of fuel commenced into the selected and correctly grade-plated receiving point.

If on delivery it is considered necessary to determine the density of the fuel then the density

should not vary by more than 0.003 kg/litre from the value quoted on the delivery note. On

completion of the fuel delivery, record the results of the pre-delivery inspection and sample

tests. Also record the quantity and grade of fuel delivered. All samples of fuel taken should be

retained for a minimum of seven days.

(Nandish S joined HAL Koraput Division on 30.06.2004 as Senior Engineer. He has done his B.E. in Mechanical Engineering from Bangalore University. During his posting in Koraput, the officer has contributed immensely as a lead team member in establishing and maintaining infrastructure works for the past ten years. The executive was actively involved in setting up of Test House in Sukhoi Engine Division at Koraput (BO & M). Since his posting in Koraput, the executive has worked in various capacities. Presently involved with plant Engineering, Augmentation &in house project viz., additional quarters, water treatment plant& sewage treatment plant which are under progress).

50

Transport Management M R Udaya Kumar

Facility Management is a discipline which comprises of a wide range of services that are

common to all organizations. These included both 'Hard services' concerned with the

physical fabric of a building, and people-centric 'Soft services' such as catering,

housekeeping, gardening & landscaping, security, mailroom Management and health and

safety. Over the time, managers began to integrate the planning and Management of these

services in order to achieve be�er quality and economies of scale.

Recognizing the importance of facility Management and an a�empt towards bringing all the

related activities under one umbrella, during October 2009 HAL has undertaken innovative

step of forming Facilities Management Division (FMD), carved out of erstwhile Common

Engineering Services, which was operating under the Management of Aerospace Division. A

broad outline of activities being carried out by FMD is given below,

Project ManagementFacility Management

Townships Estate

Planning and Design Power and Water - Supply and distribution Quarters allotment

Engineering and Estimation

Contract Management

Quarters & Estate maintenance Lease and rent Management

Housekeeping / Landscape Management Land and land records Management

Project Execution Transport Management Liaison with Local Govt. Statutory

organization / bodies

Telephone Services Co-ordination of Legal issues &

Arbitration with legal Advisors

Public Infra. & Amenities Management

Environment & Energy Management

Event Management

As deliberated above, the role of FMD spans across several functions. However, in this

article, it is intended to mainly discuss on good practices, which can be implemented for

be�er Transport Management at HAL Bangalore. Facilities Management Division has a

dedicated transportation department to cater to Bangalore Divisions of HAL and various

activities carried out are as follows:

51

i) Monitoring the charted service of BMTC for HAL employees.

ii) Insurance cover and Tax payments.

iii) Fuel Management.

iv) Day-to-day services and minor repairs of vehicles

v) Allocation of in-house vehicles for the needs of Divisions, HAEA, HAOG etc.,

vi) Hiring of taxis for day-to-day requirements by the Divisions.

1. BMTC services

A contract has been entered with Bangalore Metropolitan Transport Corporation

(BMTC), operated by Government of Karnataka, as a means of mass transport for

bringing HAL employees from different locations across Bangalore to the factory

premises of HAL situated on Old airport road and taking them back to, where they

have boarded. At present there are about 61 routes that are being operated across

Bangalore with help of BMTC buses.

2. Insurance and RTO

There are around 350 four wheelers and 500 two wheelers of various categories that are

being operated in all the three complexes (BC, DC & HC) of HAL located at Bangalore.

The various tasks carried out are (i) Establishing Insurance coverage for all vehicles held

by various divisions, (ii) Renewal of Fitness certification of vehicles as per schedule

obtained from RTO authorities, (iii) Payments of MV tax, etc.,

3. Hiring Taxis

Presently the taxis are hired on need basis for the requirements of official, welfare and

bipartite organizations requirements. Tenders are called and order is placed on a party

for the supply of taxis.

4. Allocation of in-house vehicles

Each Division has its own fleet of vehicles managed by Plant Maintenance Department

of respective Divisions, which include Forklifts, Cranes also. However heavy vehicles

like Lorries, Vans and Hearse Van are allocated to the needs of the divisions and welfare

organization of HAL like, DSC, FWA, DRF etc. based on the request.

5. Maintenance and repair of vehicles

Minor repairs, preparation of vehicles for fitness certification is done at Transport

Maintenance Department. However for repair and maintenance in the case of cars is

done through Authorized Service Centers. Lorries and other HTV's, which are old, are

repaired through external workshop with spares being supplied by HAL.

52

6. Fuel Management

The fuel required for the day to day operations is being purchased through IMM

department from public sector oil companies and being dispensed through an in-house

Fuel Dispensing unit situated in the transport department. The quota for supply of fuel

is fixed for various vehicles and monitored through log books.

Measures for Good Governance

BMTC Operations

HAL has out sourced its fleet Management to BMTC for transporting its employees to and fro

from work spot. The effectiveness of operations mainly lies with two major aspects such as (i)

reduced cost of operations and (ii) increased punctuality. This can be achieved by introducing

application software which can finalize route plan, number of pickup points and location of

pickup points towards optimization. Several software like Logix PC Suite are available in the

market which can be used to manage fleet, drivers and routes.

Insurance cover and Tax payments

Establishing an automatic alert system through SMS / mails for reminding the expiry of

vehicle insurances and road taxes well in advance for timely renewal / payment. A system can

also be put in place to avoid payment of road tax/insurance on unfit / condemned vehicles.

Fuel Management

Smart cards to be issued for refueling the vehicles at HAL fuel pump station to improve the

accounting and economizing supply of fuel, which also ensure automatic update of fuel

availability and in turn will help in projecting the future requirement for procurement.

Repair and Maintenance

In general, the vehicles are expected to be fuel efficient in the initial period of five years, beyond

which the cars are found to be polluting and resulting in the environment degradation. With

the present concept of going green and with improved environment regulations (BS-IV), the

vehicles are to be phased out in a periodical manner. Further, there will be substantial cost

increase in both preventive & breakdown maintenance of these vehicles.

a) In order to improve repair and maintenance, it is recommended to enter into an

agreement with certain vendors, who can make use of HAL facility and carry out day to

day servicing, minor repairs in-house under mutually agreeable terms. This will

facilitate the usage of already existing infrastructure effectively towards cost reduction

and improved delivery. Major repairs could be done through authorized dealers and

for certain vehicles where authorized dealers are not available, the dealers are to be

identified through tender process.

b) Spares and consumables required are available in the market, based on model, for

above purpose can be sourced through rate contracts based on day to day requirements.

53

E-request for allocation of vehicles

Each division has its own fleet of vehicles managed by its Plant Maintenance Department. This

includes forklifts, cranes etc., However, heavy vehicles like Lorries and vans are allocated to

the needs of divisions, DRF, DSC, FWA etc. by FMD. Developing a web based portal for

raising requests for vehicles used for internal operational purposes as well as for welfare

activities that includes providing hearse vans for employees.

Rental Management of vehicles

The hiring of vehicles required at regular interval can be done through agencies which provide

vehicles with well trained driver, having GPS device fi�ed to it, for be�er Management and

control of usage.

Recommendations

To conclude, for any system improvements exercise, role and intervention of some of the

associated functions like Human Resource Development, Material Management, and

Information Technology etc,. are essential for streamlining the operations and Management.

In this direction certain recommendations are elicited below:

Selection and Training

Presently, the Transport Dept has depleted manpower due to retirement and at this stage, to

enhance the performance level, fresh manpower with skills sets matching to the requirement

of managing new type of vehicles could be inducted. The existing work force can further be

trained to match the present day requirements. Especially, the drivers are to be trained

properly on safe and economical driving skills, along with day-to-day maintenance aspects.

Moreover, the required manpower have to be imparted with certain soft skills like be�er

communication, etique�e, personal hygiene & grooming and safety aspects for improved

service delivery.

Material Management

Efficacy of any transport operation and maintenance duly depends on adoption of Good

material Management Practices (GMMP) since the transport activity involves procurement

and stocking of required quantity of spares, fuel and other consumables. Implementation of

GMMP will surely result in cost saving in all areas of transport operations and R&M.

Information Technology

As everybody is aware, present day implantation of systems with help of Information

Technology is a common practice adopted in all areas of functions. There are several

application software packages that are readily available in the market and pu�ing them into

use will greatly improve the efficiency of operation and will result in cost saving.

(M.R. Udayakumar has joined HAL as Additional General Manager (Facilities Management) in April 2009. He is Postgraduate engineer from IIT with 30+ years of experience spanning Projects & Facilities management and Environment conservation. During his career, he has worked in various capacities with Corporate majors & MNC's like, Southern Petrochemicals Industries Corporation Limited, Cushman & Wakefield PMS (I) Ltd., etc., He has also worked in the area of Energy & Environment conservation and management during his tenure with TERI (formerly Tata Energy Research Institute) headed by Noble Laureate.)

54

Easy access & preservation are the two driving forces behind the Digitization of Land

records The major components of the project are computerization of all land records .

including mutations, digitization of maps and integration of textual and spatial data,

survey/re-survey and updation of all survey and se�lement records wherever necessary,

integration of the land records with maintenance and legal system, documenting and

indexing of the land records with search option , having a back up of Geospatial Information

System and capacity building.

The main objective of the above programme is to develop a modern, comprehensive and

transparent land records Management system in HAL based on three basic principles, i.e.,

(i) a single window to handle land records (including the maintenance and updating of

textual records, maps, survey and se�lement operations and registration of immovable

property), (ii) the ―mirror principle, which refers to the fact that land records mirror the

ground reality, and (iii) title insurance, which guarantees the title for its correctness and

indemnifies the title holder against loss arising on account of any defect or natural calamity

therein.

Overview of the HAL land all over India

Companywide, HAL is in possession of 11393.93 acres (approximate) of land bank situated

at different locations across India and the breakup of the land bank is as follows:

Digitization Of Land Records

& Estate ManagementRenjith R

Symbol Division Area in acres as on

31/12/2014

Remark

Nasik

4620.70

Koraput

3121.15

TAD Kanpur

431.06

Korwa

282.40

Lucknow

293.00

Hyderabad

314.37

Kasaragod

200.00

Taken on lease

from Kerala

Govt

Barrackpore

29.62

Bangalore

Complex

Corporate Office

2099.83

1.08

Total land in acres

11393.93

(

Approximate)

55

Features of the HAL Estate

The present system

The HAL estate land at Bangalore is spread across the 15 villages viz.,

K.G.Byrasandra, Konenagrahara, Vibhuthipura, Belur, Yemalur,

Chel laga�a, B .M.Kaval , Benniganahal l i , Marathahal l i ,

Doddanekundi, and K.G. Srinivasapura village etc. The lands were

acquired from private parties and State Govt for the construction of

runway, factory, roads, township and railway lines. The total extent

of land so far acquired as on 2009 is about 2450 acres.

There are 1300 survey numbers and approximately 3000 pages of

Award Copies for the above mentioned land bank of HAL Bangalore.

Further to the award copies there are other land documents like RTC

( , land lease Records of Rights of Tenancy and Crops Certificate)

document, notifications etc.

Currently the estate office of Bangalore is represented by 2 officers.

The documents are manually stacked away in the customary method inside a fire proof cabin.

However the current method of the storage of documents lacks safety and easy accessibility

for the HAL land records.

Drawbacks of Existing System

1. Maintenance of paper files is a big challenge under the inclement weather conditions

because of moisture, rain, leakage of water etc.

2. It is not easy to guard these maps and registers since they are always under a�ack from

rain water, mice and termites.

3. Some lands are locked in litigation, and the opaque manual system of record-keeping is

subject to potential threat of manipulation.

4. Forged ownership records are the chief cause of land disputes accounting for around

80% of the country's land dispute cases.

5. Lack of safety and archival mechanism.

Suggestions for Digitization of Land Records

Accessing and preserving our assets for the future depends on the decisions taken today. The

following views are suggested keeping in view of the sensitiveness of the documents. The

land is a great resource and the primary source of economic activity, hence we need to

manage it well. And to manage something, we need to build a good inventory first.

Digitization of Land records

a) Ensuring accuracy of Indexes for quick retrieval in future

Digitized documents should be stored in the archive along with proper search

56

indexes(For example court case files should be stored and indexed with parameters like

case type, title, petitioner etc.). This is to facilitate quick retrieval of required documents

in future. Quality control should also focus on accuracy of these indexes. This can be

done though combination of control measures such as format validations, checking

accuracy against master database and audit processes.

b) Ensuring Quality of Digitization output

There are various possible errors that can occur in digitization such as, Folded

Corner/Edges, Skew, Readability, Too dark or too light, Photo on Black & White image,

Improper Margin, Punch mark, Black edge, Orientation, Size of File, Compression,

Format, Resolution etc.

With advancements in technology, automatic quality checks are possible for such

errors. Many of such issues can even be corrected automatically. Software based

Document Quality Analysis can play a vital role in the digitization process to certify the

output. In cases where automatic corrections are not possible (such as folded corner) it

can detect error and raise exception.

c) Ensuring accuracy of Indexes for quick retrieval in future

Digitized documents should be stored in the archive along with proper search indexes

(For example court case files should be stored and indexed with parameters like case

type, title, petitioner etc.). This is to facilitate quick retrieval of required documents in

future. Quality control should also focus on accuracy of these indexes.

d) Adherence & Compliance with open standards for long term archival

Documents in the archive may be needed by other applications and media even after 30

years. Long term archival of documents should ensure that these documents can be

retrieved and rendered with a consistent and predictable result in the future. Open

standards such as PDF, which is an archiving and preserving standard, should be used

to ensure standardization and consistency.

e) Digitization project is incomplete without document management system (DMS) -

the enabler for long term archival.

These are critical Land records and, from a long- term perspective, it should be centrally

archived in a secure and well-defined manner for subsequent reference. DMS is a must

for long term archival, without which several important benefits of Digitization will

remain unachievable.

Benefits of Digitization

1. Digitization of hardcopy of titling records helps to preserve and make them easily

accessible.

2. Long-term preservation of these important records

3. Inclusion of most properties in the computerized system enables easier planning for

major developments.

57

4. Leading to more accurate valuation of lands. It also assists company to identify and

manage their assets.

5. Modernization of land records will also reduce litigation and encourage investment.

6. Digitization of files makes it easier to find them. Documents once digitized and stored

in central archive, can be made available anytime, anywhere to all key stake

holders. This gives impetus to the whole decision making process and results in

faster delivery of services to citizens

LAND MANAGEMENT

Following are the common major threats faced by the

HAL estate land:

1. Encroachment of HAL Lands.

2. Unauthorized Cultivation of HAL Land.

3. Land litigations.

4. Incomplete Boundary alignment.

5. Borderless vacant land, etc.

6. Title deeds: We have to obtain titles for about 300 acres for which the ma�er is under

progress as stated above. The total number of award copies yet to be obtained from the

Government is 160.

Suggestions for Good Governance in Land Management

Land Audit

An audit of the HAL land is inevitable in the present scenario. A Land audit commi�ee

should be constituted to evaluate the current status of HAL Land bank and to come up with a

proper control and monitoring mechanism to strengthen the land Management.

In order to strengthen the Estate /Land Management and to overcome the perennial

problems, the following measures are to be considered necessary:-

To prevent encroachment, we have to put up barbed wire fencing wherever compound walls

are not feasible.

Construction of compound wall throughout the estate land is an immediate necessity.

Notwithstanding the raising of the compound wall or pu�ing up any hedges as stated above,

it is of utmost necessity that there should be daily inspection of the estate as it is spread over a

vast area. It is therefore suggested that a minimum of 4 security persons be positioned in the

estate department. These persons could be designated as 'Estate Checking Inspectors' and

provided with motor cycles. These 4 Inspectors should be assigned to various places for

patrolling the area from morning till night. This will totally prevent any further

encroachment and thus preserve and protect our valuable estate.

58

The last survey – topographic survey was conducted in

2008. Since 5 years has elapsed and considering the

sensitivity of the ma�er a resurvey should be conducted.

Cement Boards with survey numbers and warning for

trespassers should be installed.

Periodic (yearly) survey of the vacant land should be

done religiously. There was an extent of about 620 acres

of vacant land in 2009. However the current status of

vacant land has to be assessed and the same has to be

protected.

Preventive measures have to be taken for completely

stopping the unauthorized cultivation, if any.

At present there are 10 court cases pending related with the estate land. The same has to be

expedited, for its closure.

Conclusion

These preventive measure suggestions are for immediate implementation and we must find a

permanent solution to strengthen the Estate Department so that it functions effectively and

efficiently.

There are records and files which are as old as 40 years in the Estate Department. These are

very important ones. Especially the land registers are to be re-wri�en neatly and kept along

with the original registers. Further quite a number of documents are to be updated. As

pointed out above we have to obtain quite a number of award copies pertaining to the years

1943-46. These records may or may not be available with the Government. However, efforts

must be made to trace the records with the co-ordination of the Revenue Department. Once

these records are located, efforts are to be made to get it typed and a�ested by the concerned

Revenue officers. Nevertheless Paper files can be scientifically treated and their longevity can

be increased. In spite of digitization, paper files will have to be maintained as the courts and

Government departments might insist on seeing original records.

In order to fulfill the tasks and to run the Estate Department in an efficient and effective

manner it is essential that augmentation of staff for the Estate Department should be

considered on priority.

(Renjith R is Masters in Business Administration. He started his career as a Sub-Inspector in CISF. He joined HAL Security Department in 2006. In 2010 he was selected in Vigilance Department. Presently he is working as Deputy Manager (Vig) at Facility Management Division, Bangalore Complex)

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Vigilance Awareness Sessions

Shri Anurag Sahay, IRS, CVO sensitizing executives on

"The Lokpal and Lokayuktas Bill" at HAL Hyderabad

A session on Ethical Management was taken by

Shri Jayanta Ghoshal, SM (Finance) at Barrackpore Division.

Lt. Col(Retd.) Pradeep Khare, DGM(V)Tech

taking a session at Hyderabad Division.

Shri Mahesh Kulkarni, CM (V) CO taking a session on

Revised Purchase Manual at Bangalore Complex.

Shri Amal Kumar, Vigilance Officer, AOD Nashik

conducting awareness session on the Shop floor.

Shri Baliar Singh, Manager-Vig taking a session on

Vigilance in Hindi at Aircraft Division.

60

Increasing operational efficiency

in Maintenance Department

Saket Chaturvedi

The maintenance department is mainly responsible for following functions:

Maintenance and proper upkeep of plant and machinery. Ensuring uninterrupted power

supply, telephone service in factory and township. Maintenance of common facilities, i.e.

streetlights, compressed air lines, steam lines, air-conditioning plants, cranes, lifts etc.

Periodic calibration of all machines, test equipments, weighing balances, etc.,

Planning for procurement of assurance spares, machine up gradation / modification, annual

maintenance contracts, procurement of capital equipments pertaining to maintenance dept.

Forecast and projection of budget needed for maintenance activities. Also controlling the

allo�ed budget for its optimum use.

Plant safety and ISO 14001:EMS are also under control of maintenance department.

Ensure compliance of statutory requirements concerning to maintenance dept. {Like periodic

inspection by Central electricity authority, Boiler inspection, pressure testing of pressure

vessels, Cranes load test, Pollution control board coordination etc.}

Breakdown maintenance

This type of maintenance (breakdown maintenance) is highly undesirable event and should

be avoided as it results in unplanned production hold ups, need for unplanned procurement

of material or services, results in poor quality of maintenance work, extra working stress,

need for overtime, may cause injury and compromise on machine performance due to

urgency for handing over of the machine.

Preventive Maintenance

“If anything can go wrong it will” (The Murphy's Law). In the present context of maintenance

it means, that if equipment is running trouble free for a long time, then too the maintenance

engineer cannot be complacent or carefree for reliability of this equipment. The equipment

will fail some day and more likely on the day, when it is most needed.

For a successful operation of any facility what is most necessary is that all machines should

continue to operate at optimum level of performance with high level of reliability, high

uptime and prolong meantime between failures (MTBF). To achieve this regular planned

maintenance is essential. Hence, preventive maintenance is one of the primary functions of

maintenance department.

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The preventive maintenance (PM) schedules of all equipments of the division needs to be

planned well in advance for the entire one year (which should include even simple machines

like power saw, exhaust systems, pedestal grinders etc.).

The maintenance department, hence should update the list of machines and equipment in the

division and plan PM schedules in such a way that all these equipment are covered for PM.

The preventive maintenance schedule is updated after completion of PM activity or in case it

is rescheduled, the plans are displayed at prominent places on the shop floors.

PM Check list

The preventive maintenance, must have a check list which needs to be checked and certified

both by shop in- charge and the maintenance engineer. It is preferable that check list is made

for each equipment separately based on manufacturer's recommendation. However in case,

it is not possible to prepare individual check list for each machine (due to reasons like many

machines of similar type or due to resources constraint) some check lists may be common for

similar machines. However, it is still recommended that for critical and complex machines

separate checklist strictly as per the OEM's recommendation should be made. The checklist

must include the list of parts, which have limited life and need replacement during PM.

Lubrication cards

Lubrication system plays a very vital role in mechanical systems and is found to be major

cause of mechanical system breakdowns. Also over lubrications or too frequent oil

replacement is not a good maintenance practice, as it results in wastage of resources and

increased downtime.

In Nasik division, lubrication card is maintained on each of the conventional machine.

On these lubrication cards, the lubrication records (like dates for oil top up, date of replaced,

quantity oil consumed) are entered. This practice also provides information regarding

abnormal consumption of oil.

In Nasik division 6 numbers of ventilation fans have been installed with auto grease units

which do greasing automatically for 6 months and does not need frequent checking .

Frequency of Preventive maintenance

The interval for preventive maintenance should be carefully selected as over maintenance or

under maintenance are both undesirable. The frequency of PM may vary from one

equipment to the other based on their complexity.

The IFS system has the provision for PM planning and same should be used or else the

sample check list and schedule format can be used.

Total productive maintenance (TPM)

TPM is a more structured way of preventive maintenance, wherein operator is also involved

in PM. This is more effective and exhaustive as compared to regular PM discussed above.

The TPM is a mother child concept, which means that machine operator is like mother of

machine, who knows the needs of the machines, be�er than a maintenance person. He is the

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person, who works on the machine, hence will see that all required periodic maintenance

checks and requirements are met for his machine.

The TPM is a proven tool and provides excellent results, if concept is adopted and followed

meticulously by the operator and maintenance engineer. The MTBF of machines where

TPM was sustained in our division had been more than one year. Even some of those

machines have never failed for last two years.

CLIT (Clean, lubricate. inspect and tighten) is the barest minimum requirement and avoids

many disastrous failures, hence must always be kept in mind during PM activity.

Predictive maintenance

In a preventive maintenance system, the maintenance is on a pre-determined cycle whereas

in a predictive maintenance system, maintenance is done only when status or condition so

demand.

A given machine can continue to be kept in operation as long as the monitored parameters

continue to remain within the laid down limit. Between the action limit and maximum

permissible limit there is enough time available for the maintenance personnel to make

adequate preparations. Thus total downtime can be cut down.

Other maintenance practices adopted

a) Breakdown Data Management and Analysis

It is essential to capture every maintenance activity with all possible details. It is also essential

to analyze this maintenance data periodically for taking major decisions. These records can

be maintained on IFS or in physical forms i.e. in Maintenance Log book and machine history

card.

Every maintenance call is recorded along with the details like diagnosis of problem, details of

rectification carried out , spares replaced , time taken to repair and breakdown time etc. for

analysis.

Every breakdown is classified under two categories i.e. major breakdowns (Taking more than

one day to repair or needing external help to repair) and minor breakdowns (Which are

minor in nature and are corrected within one day).

For the purpose of root cause analysis, the reasons of breakdowns are further classified in

following categories :

The data thus obtained is analyzed for following information:

Operators Fault Lack of maintenance Electronic failure

Software or data Normal wear. Failures due to

corruption/Crash. virus in the system.

Moisture in Faulty cable drag chain/ Failure due to AC failure

compressed air. telescopic covers/bellow or power covers, fluctuations, etc.

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1. Percentage breakdown w.r.t. machine availability.

Percentage breakdown = Machine breakdown in Hrs / machine running hours X No. of

working in month X100

2. Percentage No. of minor breakdowns (breakdown cleared within one day) vs.

Percentage No. of major breakdowns.

3. Number of breakdowns classified under above main root causes.

b) Spare Parts Management

Spare parts Management is one of the very important functions of maintenance department.

The spare parts are planned meticulously particularly for CNC and other high value

machines imported from other countries. Most of the long breakdowns happen due to non

availability of spares and high lead time in their procurement.

Efforts should be made to cover all high value and critical machines with comprehensive

AMC wherein the responsibility of maintaining stock of expensive spares is transferred to

the OEM or OEM's authorized service representative. Few OEMs' offer very reasonable

cost for comprehensive AMCs / follow on contracts. Also price of AMC (preferably

comprehensive) from OEM may be asked and frozen at the time of procurement of machine.

c) Bar coding for spares

The maintenance department is planning to bar code each and every spare {new or old, (

Healthy or unhealthy) } so that once bar code sticker is read on the spares it shall give

complete details about the spare ( like new or old, if old whether the same is serviceable or

what area of the parts is faulty, PO date , machine for which procured, cost and PO no. etc.)

d) Training and sharing of lessons learnt

Maintenance function requires high technical acumen and knowledge, without which

maintenance department shall be dependant to outsiders / OEM's for even minor

maintenance problem. Such dependency results in high breakdown time and also in higher

cost. Even if machine is planned to be covered under AMC it is always beneficial to develop

in-house capabilities by way of specific functional training. This shall reduce breakdown time

of calling service engineer from OEM/or OEM authorised service agent. Such dependency

should come, only if, our own maintenance team fail to diagnose the machine fault.

In case of CNC / PLC machines by passing of any safety interlock is prohibited and must be

guiding principal for entire maintenance team.

e) Documentation

Proper method for storage of machine documents/drawings /manuals / software's/machine

programs etc. is very important. Each maintenance section should have well laid system to

preserve these documents and machine software till life span of the machine.

(Saket Chaturvedi is a Post graduate in Engineering (Digital Communication) and Marketing Management. He is BEE (Bureau of Energy efficiency) certified Energy Auditor / Manager and also PMP (Project Management professional by PMI, USA). He has more than 20 years of experience in maintenance of high technology machines and equipments. Presently he is working as DGM (OS) Aircraft Overhaul Division, Nasik.)

64

Warranty Management

K. Guna ShekaranMurali. S

Warranty for the products of HAL came into force with effect from the year 2006-07.

Additional warranty cost was based on mutually agreed estimates with the provision to

revise after 3 years based on actual expenditure incurred by HAL. Our initial warranty

provisions for Aero-engines was 7.5% and that of Accessories was 5.0% and Airframe was

2.5%. Revised percentages of warranty for Aero-engines is 5%, Accessories is 4.0% and

Airframe is 2% based on the experience of the data for warranty cost during the first 3 years of

warranty management.

This article appreciates the need of hour of HAL for positioning a strong warranty

Management for all our products with a clear cut policy considering all facts and hard

experiences of the past covering several major programs. Effective warranty Management

not only speaks on cost control and it reflects on our product quality and reliability.

Present Practice

a. Warranty teams are deployed at Customer bases.

b. Customer reports the warranty claim to HAL representative at bases in prescribed format

1022 and subsequently it gets transcribed to HAL Divisions.

c. Defect Investigation Commi�ee decides the a�ributability of the defect.

d. If it is a�ributable to HAL as per warranty clause 2.4 (Ref: 2006 guidelines) free

replacement is given within 30 days.

e. If item is not available the original item is repaired and returned back within 30 days.

f. In case of free replacement given, the original defective item becomes HAL asset.

g. The warranty is monitored through IFS by creating separate warranty customer order.

The Key performance indicators of strong Warranty Management are

a) Quality & Reliability, b) Accountability, c) Continual Improvement, d) Improved Fleet

Serviceability, e) Stronger Belief in QMS, f) Procurement of Warranty stocks, g) Quick

response & Positioning of Warranty team and h) System for Accounting & verification of

Warranty Expenditure.

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Monitoring warranty cost

Understanding the Primary Drivers of Warranty

Costs through,

1. Warranty terms and conditions.

2. Product reliability and maintainability.

3. Service delivery.

Best practices in Warranty Management

Aligning Decision Making across Functions

Align warranty strategy with business and operational strategies

Good Governance strategies for effective warranty management in HAL

To establish robust warranty Management, a special online tool which has intelligent outlets

for capturing performance of our products across customers at a time needs to be evolved and

put in place.

Expenditure on warranty claims by customers indicates performance of our products and

actions to be initiated to improve product quality and reliability based on the feedback. A

structured review mechanism on the feedback could be institutionalized.

Re-design, re-engineering, modifications are the options for improvement of our product's

performance. A special monitoring team on warranty Management for the whole products at

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corporate level to be placed to liaise with each divisions and customers on routine basis and to

appraise/ suggests / directs the divisions or Corporate Management on regular intervals for

timely corrections.

The warranty terms with our suppliers shall be in line with our warranty policy with

customers. Often it has been experienced that warranty claim with vendor expired when

warranty claim is received and acted by HAL. This is due to poor a�ention on warranty

claims by customers and our terms with suppliers.

Regular audit on warranty claims and expenditures will throw actual status and provoke

necessary steps towards improvement. The primary purpose for collecting and tracking

warranty-related data is to monitor and improve performance. The top three key

performance indicators used by best-in-class companies to monitor warranty chain

performance are warranty incidents per product, total warranty expenditures, and in-

warranty product returns.

Data capturing through our ERP shall be seamless from inception of material to delivery and

it's utilization period.

The benefit of effective Warranty Management

Extended warranty / Performance based logistics can be used by reliable product

manufacturers to enhance market share.

Uncovered warranty period i.e., Period for which Aircraft is under warranty. however

warranty periods provided by LRU OEM's have expired is a major area of concern plaguing

most of the Aviation Enterprises.

Major issues for be�er Warranty Management in the current scenario at HAL

a. Maximising utilisation of warranties extended by LRU OEM's.

b. All purchase orders for LRU's should have warranty information in a fixed column in

ERP.

c. For all LRU's received at incoming stores, warranty up to date information should be

entered in ERP.

d. Warranty upto information should be entered in log cards of LRU's.

e. ERP should not allow to generate purchase orders for repairs of LRU's which are under

warranty.

f. LRU's should be utilised on first in first out basis.

g. LRU's delivery should be taken on staggered basis, as per Aircraft manufactring

schedule.

Reliability Improvements

All cases of unscheduled repairs should be analysed.

Defect codes should be made compulsory for generation of PDO's

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For each defect code, rectification code should be entered in ERP.

Defects a�ributed to LRU reliability should be taken up with LRU OEM's.

Alternate OEM's should be developed for unreliable LRU's.

Conclusion

a. Establish and enforce through ERP (Online Portal), revise warranty policies.

b. Align governance, roles, responsibilities and metrics for effective warranty

Management.

c. Develop effective service supply chain practices. Also warranty Management team to be

in place both at Divisions / CO for effective control and implementation.

d. A robust realistic warranty Management will not only keep our bo�om lines intact but it

throws the confident to our esteemed customers on our products which ultimately

expands our business prospects.

(Murali. S is a Mechanical Engineer heading MRO Division as General Manager. He joined HAL as Management Trainee in the year 1981. He has worked in all the areas like facility planning, projects planning, manufacturing assembly, production engineering, supply-chain management, integrated material management, maintenance/repair and overhaul of advanced helicopters etc.)

(K. Guna Shekaran is B.E. (Mech) & M.Tech (Propulsion). He has worked in multinational & private industries at various capacities like Design, Production, Logistics, Quality and Sales. He has also worked in ISRO as scientist involved in launch of GSLV & PSLV. He joined HAL as Manager - IMM at Helicopter Division in the year 2006. Presently he is working as Senior Manager - IMM in MRO Division of Helicopter Complex.)

Team Vigilance Welcomes the New Officers in its Ranks

Shri M G Balasubrahmanya,

DGM(Legal-Vigilance)

Corporate Office

Shri Mahesh Kulkarni,

Chief Manager (Vigilance)

Corporate Office

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Releasing Booklet - A Guide on Right to Information

A Booklet on " A Guide on Right to Information" compiled by Vigilance Department as a part of

preventive initiative, was released by Directors, EDs & CVO at Key Executive Meet held at Bangalore on 22.12.2013

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Vigilance Star

thShri Amal Kumar joined HAL on 8 December 2011 as Vigilance Officer at Helicopter Complex, Bangalore and

after successful completion of pre-induction training at HMA, Bangalore took over the responsibility of HoD

(Vigilance), Aircraft Overhaul Division, Nasik in the month of April 2012. He graduated in Economics Honours

from Ranchi University and Computer Science from IGNOU.

He has carried out investigations, resulted in the recovery of more than Rs. 1.10 Crores to the HAL. He has been

rewarded with Appreciation Le�ers for his commendable investigation and quality of preventive vigilance.

Before joining HAL, he started his career with Central Reserve Police Force in the year 2004.

Dr. R K Tyagi, Chairman-HAL handing over the Vigilance Star Award to Shri Amal Kumar, Vigilance Officer, AOD-Nashik.

Dr. R K Tyagi, Chairman-HAL handing over the Vigilance Star Award to Shri A Navaneeth , Vigilance Officer, AMD-Nashik.

Shri A Navaneeth joined HAL as Vigilance Officer at MCSRDC, Design Complex Bangalore in December

2011. He did Masters in Commerce from University of Calicut in 2001.

He has carried out investigation, resulted in the recovery of more than Rs. 1.35 Crores to the HAL. He has been

rewarded with Appreciation Le�ers for his commendable investigation and quality of preventive vigilance.

Prior to joining HAL, he was with Central Industrial Security Force (Govt. of India, Ministry of Home Affairs)

from Nov 2003 to Dec 2011 and worked as Sub-Inspector (Exe.). On completion of two months induction training

for vigilance officers, he was inducted as Head of Vigilance Dep�, Aircraft Manufacturing Division, Nasik.

70

An Introduction to Lokpal

Lokpal means 'protector of the people' or caretaker and it refers to an anti-corruption Watchdog

or Ombudsman. Lokpal or The Act aims to curb corruption by punishing corrupt public officials.

Central Government notified that the provisions of the said Act shall come into force with effect th

from 16 January, 2014. It seeks to establish a Lokpal at the central level & Lokayuktas at the state

level as per the defined time limit.

The new law will set out how the Lokpal shall be constituted and shall empower this body to

investigate and prosecute cases of misconduct by politicians, government officials and Societies

& Trusts. Even the prime minister's office will come under the scrutiny of the Lokpal. It will also

form the model law for all Indian states who will have to establish Lokayuktas (state

ombudsmen) within a year.

India has ratified the United Nations Convention Against Corruption (UNCAC). The

obligations of the UNCAC, with reference to India, have come into force with effect from 8th

June 2011. Thus, this Act also seeks to fulfill India's international obligations under the UNCAC

toward more effective implementation of the said Convention and to provide for prompt and fair

investigation and prosecution in cases of corruption.

Salient Provisions of LOKPAL and LOKAYUKTAS Act 2013

Composition

The Lokpal would consist of a chairperson and a maximum of eight members, of which 50

percent would be judicial members & 50 per cent members would be from scheduled castes,

scheduled tribes, other backward classes, minorities and women.

Selection Procedure

The selection of chairperson and members of Lokpal shall be through a selection commi�ee

consisting of Prime Minister, Speaker of Lok Sabha, Leader of Opposition in the Lok Sabha, Chief

Justice of India or a si�ing Supreme Court judge nominated by CJI (Chief Justice of India),

eminent jurist to be nominated by the President of India on the basis of recommendations of the

first four members of the selection commi�ee.

Jurisdiction

The Lokpal can inquire into offences under the Prevention of Corruption Act, 1988 commi�ed by

members of Parliament, group A and B government officials, employees of a company, society or

a trust set up by an Act of Parliament, or financed or controlled by the central government.

Lokpal's jurisdiction will cover all categories of public servants (i.e. people from group A, B, C &

D) and also covers,

All entities receiving donations from foreign source in the context of the Foreign Contribution

Regulation Act (FCRA) in excess of Rs. 10 lakh per year have been brought under the jurisdiction

of Lokpal.

The Lokpal will apply also to corruption commi�ed before Act come into force. Section 15 of the

Act provides that in case any ma�er or proceeding related to allegation of corruption under the

71

Prevention of Corruption Act, 1988 has been pending before any court or commi�ee of either

House of Parliament or before any other authority prior to commencement of this Act or prior to

commencement of any inquiry after the commencement of this Act, such ma�er or proceeding

shall be continued before such court, commi�ee or authority.

a) Wri�en complaint in prescribed form: Complaints against public servants alleging

corruption have to be in prescribed form and should allege that a public servant has

commi�ed an offence punishable under the Prevention of Corruption Act, 1988. In view of

section 46, as explained above, it appears that anonymous complaints against public

servants are implicitly barred by the Act.

b) Limitation period of 7 years to file complaints: Section 53 provides that the Lokpal shall

not inquire or investigate into any complaint, if the complaint is made after the expiry of a

period of seven years from the date on which the offence mentioned in such complaint is

alleged to have been commi�ed.

c) Investigation: The Lokpal can investigate corruption charges against public functionaries

including Prime Minister, Ministers and Members of Parliament, Religious bodies and

trusts. The Act includes investigation & prosecution of societies and trusts, that collect

public money, receive funding from foreign sources and have an income level above a

certain threshold. It excludes bodies creating endowments for or performing religious or

charitable functions.

Preliminary Inquiry – Ordinarily 90 days are provided for PI and for reasons recorded in

writing further 90 days from date of receipt of complaint, shall be provided.

Investigation - To be carried out ordinarily within 6 months from date of Lokpal's order and

extendable by Lokpal for further periods not exceeding 6 months at a time for reasons

recorded in writing. Lokpal shall order an investigation only after hearing the public

servant. Inquiry against the prime minister has to be held in-camera and should be

approved by two-thirds of the full bench of the Lokpal.

d) Prosecution: The Lokpal may authorize its own prosecution wing or the investigating

agency concerned to initiate prosecution in special courts. The Act lays down clear time

lines for preliminary enquiry and investigation and trial and towards this end, the bill

provides for se�ing up of special courts. Trial by Special Court is to be completed within 1

year from date of filing of case in Court. In special cases, Special Courts may extend time by

not more than 3 months at a time. In any case, trial is to be concluded within 2 years.

e) Recovery of loss caused to exchequer from convicted public servant: If any public servant

is convicted of an offence under the Prevention of Corruption Act, 1998 by the Special Court,

it may:

Make an assessment of loss, if any, caused to the public exchequer on account of the actions

or decisions of such public servant not taken in good faith and for which he stands

convicted, and may order recovery of such loss, if possible or quantifiable, from such public

servant so convicted.

If the Special Court, for reasons to be recorded in writing, comes to the conclusion that the

72

loss caused was pursuant to a conspiracy with the beneficiary or beneficiaries of actions or

decisions of the public servant so convicted, then such loss may, if assessed and

quantifiable, also be recovered from such beneficiary or beneficiaries proportionately

(Section 39).

f) Confiscation of Assets: Confiscation of assets, proceeds, receipts and benefits procured by

corruption can be ordered by Special Court (not by Lokpal). Lokpal can only provisionally

a�ach assets of public servant.

Where the Special Court, on the basis of prima facie evidence, has reason to believe or is

satisfied that the assets, proceeds, receipts and benefits, by whatever name called, have

arisen or procured by means of corruption by the public servant, it may authorize the

confiscation of such assets, proceeds, receipts and benefits till his acqui�al. Where an order

of confiscation made as above is modified or annulled by the High Court or where the

public servant is acqui�ed by the Special Court, the assets, proceeds, receipts and benefits,

confiscated as above shall be returned to such public servant. In case it is not possible for

any reason to return the assets, proceeds, receipts and benefits, such public servant shall be

paid the price thereof including the money so confiscated with interest at the rate of 5% per

annum thereon calculated from the date of confiscation.

g) Penalty: False and frivolous complaints - Imprisonment up to one year and a fine of up to

Rs.1 lakh. Public servants - Imprisonment up to seven years. Criminal misconduct and

habitually abe�ing corruption - Jail term up to 10 years.

h) Lokayukta: Act provides for a time limit of one year for the states to make their own law for

se�ing up Lokayuktas on the lines of LokPal Bill. The format of the Lokayukta will be left to

the state assemblies to decide.

i) A�achment and confiscation of property: The Act also incorporates provisions for

a�achment and confiscation of property acquired by corrupt means, even while

prosecution is pending.

j) Disclosure of Assets by Public Servant: Disclosure is required to be made to Competent

Authority and not to Lokpal. A public servant shall, within a period of 30 days from the date

on which he makes and subscribes an oath or affirmation to enter upon his office, furnish to

the Competent Authority the information relating to-

The assets of which he, his spouse and his dependent children are, jointly or severally, owners or

beneficiaries;

His liabilities and that of his spouse and his dependent children.

“Dependent children” means sons and daughters who have no separate means of earning and

are wholly dependent on the public servant for their livelihood.

A public servant holding his office as such, at the time of the commencement of this Act, shall

furnish information relating to such assets and liabilities, as above to the Competent Authority

within 30 days of the coming into force of this Act.

Every public servant shall file with the Competent Authority, on or before the 31st July of every

year, an annual return of such assets and liabilities, as above, as on the 31st March of that year.

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Web-hosting: The information and annual return as above shall be furnished to the Competent

Authority in such form and in such manner as may be prescribed.

The Competent Authority in respect of each office or Department shall ensure that all declarations

of assets and annual return submi�ed by public servant are published on the website of such

officer or Department by 31st August of each year.

Consequences of non-declaration / mis-declaration of assets by public servants: If any public

servant wilfully or for reasons which are not justifiable, fails to:

To declare his assets; or gives misleading information in respect of such assets and is found to be

in possession of assets not disclosed or in respect of which misleading information was furnished,

then, such assets shall, unless otherwise proved, be presumed to belong to the public servant and

shall be presumed to be assets acquired by corrupt means – Section 45 of the Act.

However, the Competent Authority may condone or exempt the public servant from furnishing

information in respect of assets not exceeding such minimum value as may be prescribed.

Conclusion:

The long awaited Lokpal Act is a qualitative step in the fight against corruption in India. Lokpal

and other legislations enacted to combat corruption like Indian Penal Code, 1860, The Prevention

of Corruption Act, 1988, Benami Transactions (Prohibition) Act, 1988, Prevention of Money

Laundering Act, 2002 etc, will provide a strong anti-corruption framework to contain corruption

in our country.

Editorial Team

Marg Darshan

Editorial Board

(From Left to Right) Shri K T Venkatesh CM(V) ARDC, Shri R Renjith DM (V) FMD,

Shri M A Anandan DGM (V) Fin, Shri Devendar Singh VO - AERDC & MCSRDC and Shri H K Kamath DM (V) CO.

Patron-in-Chief

Dr. R K Tyagi, Chairman

Editor-in-Chief

Shri Anurag Sahay, IRS, Chief Vigilance Officer

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