Virtue Of Being An Insider

IF you thought Humphrey Appleby of Yes Minister fame was a purely fictional character, think again. He was a typical Indian bureaucrat, at least he behaved like one, with a finger in every pie. And what might he have done after the show was over? Joined the lucrative private sector, of course. That's what over 150 former civil servants—a virtual who's who of India's once-upon-a-time 'steel frame'—have done.

From the slave wages of babudom, they have fanned out into the big bucks private sector, grabbed sought-after sinecures in powerful multinationals, banks and conglomerates. As a serving bureaucrat rather euphemistically puts it: "They have found their niche in post-liberalisation India."

 "Gone are the times when a bureaucrat would pen his memoirs or settle down to a quiet retired life in his home town after putting in at least 30 years of service," says Vijay Karan, ex-CBI director. The high-pro-file sleuth, who handled the SIT probe on the Rajiv Gandhi assassination, joined SAIL as security advisor after he retired. Now, he has launched his own security agency.

Ex-bureaucrats are now playing a key role for new bosses in crucial infrastructure sectors—such as telecom, power, roads, ports and now insurance—where large-scale deregulation has taken place.

For instance, in this investment-friendly climate, several former IAS officers have opened up 'polyclinics' to sell their services. One such association is the Management & Economic Advisers in Delhi, comprising Suresh Mathur, former industry secretary, R. Vasudevan, former power secretary, and Sanjeev Sundar, former surface transport secretary. Mathur's portfolio includes telecom giant AT&T, and General Electric, while Sundar is a consultant for Bharat Forge, which is developing the Bangalore-Mysore expressway. "The work we do is new and, more importantly, it is within the ambit of the law," explains Sundar.

 "We are not used as liaison persons or lobbyists. Having worked in the government, we have learnt a lot and know how to respond to situations," says Vasudevan. In fact, this 'in-house' knowledge is a key factor that helps former bureaucrats land plum jobs. As one additional secretary explains: "In his long years in government, the bureaucrat knows the system and is aware of all procedures. More importantly, he knows how to cut through the red tape. He plays the role of a facilitator, then, to the hilt."

Agrees P. Murari, ex-secretary to the president and now an advisor to FICCI: "Look at the telecom sector where the dice is heavily loaded in favour of MTNL and the Department of Telecommunication (DOT). Having a person who knows the system can be helpful for private players." Mostly due to the fact that DOT's mammoth bureaucracy has been blocking reforms for more than two years, with even the PMO and finance ministry trying to battle vested interests.

Now that the BJP government is putting its much-touted information technology policy in place in its bid to make the country "an IT powerhouse", it would have to start with a change in telecom policy. Which is why many bureaucrats have jumped onto the telecom bandwagon—they can at least lobby in the right places. "It does not surprise me then when Ajay Chaudhary, former MTNL chairman, joins Koshika, or when B.K. Synghal heads Reliance Telecom," says a Planning Commission official. "Sure, influence-peddling cannot be ruled out," admits P. N. Abrol, advisor to Bharti Tele-com. Says one exasperated home ministry official: "The corporatisation of the bureaucracy is complete. The role of the bureaucrat now is to win friends and influence people."

 In an environment dominated by a maze of rules, and further punctuated by clauses and sub-clauses, corporate houses and MNC executives are loath to operate without the assistance of experts in the field. Naturally, they are on the lookout for experienced and seasoned hands. "Our technocrats are second to none in the world and their talents are rechannellised," adds Murari. One international power and engineering giant has in fact hired middle-level bureaucrats in each state to make its operations easier.

So what are the reasons which motivate the former babu to service corporate top-guns or captains of industry? Money, say most. Putting their skills to further use and staying occupied, say others. But cracking the neta-babu-lala network and cutting through the glut of rules and regulations—that's surely a job no one can do better than a former insider.

FORMER foreign secretary A.P. Venkateshwaran has a different spin to the growing influx of bureaucrats into the corporate world. "After 30 years in the bureaucracy, they must have gained adequate fulfilment in service. So I do not buy the theory that they want to do more." With former bureaucrats joining powerful corporate giants such as Reliance, Venkateshwaran feels that they would also act as a useful interface with the government. V. Krishnamurthy, former CMD Maruti and SAIL, echoes these sentiments. "Knowing the bureaucracy, they provide easy access and continue to nurture their wide circle of friends in government," he says.

With areas such as banking, insurance and coal mining opening up, the flow of former bureaucrats is only likely to increase. Naren Joshi, managing director of GIC, has already left to join multinational ING Insurance. Steel baron Lakshmi Mittal, the richest NRI, has, for instance, managed to woo and hire a host of people from SAIL for ISPAT's commercial marketing operations. Among them are M.R.R. Nair, former SAIL chairman, and its executive director, Malai Mukherjee.

Earlier, at the end of a long association with the government, and after totalling his pension, gratuity and leave travel (pre-fifth Pay Commission bonanza), an 'honest' bureaucrat would have earned a modest sum to buy a flat. But that is a thing of the past. The fifth pay commission hiked salaries, but there is more to look forward to.

In the '90s aspiration overdrive, the retired bureaucrat may even ignore some service rules, such as the one which decrees that he has to wait two years before embarking on any other business or work. Remember the Rathikanta Basu controversy—the former I&B secretary joined media tycoon Rupert Murdoch's Star TV as CEO even before his two years were over.

With the Rakesh Mohan Committee report on infrastructure projecting that $120 billion would be pumped into core sectors such as telecom, power, roads, mines and ports in the next five years, it's boomtime for ex-bureaucrats. They will not only be gainfully re-employed. They will hit pay dirt.