06 September 2011

India: Ageing Equipment of Forces

Replacement of ageing and obsolete arms and equipment is part of modernization of the Armed Forces which is a continuous process based on threat perception, operational challenges, technological changes and available resources. The process is based on a 15 year Long Term Integrated Perspective Plan (LTIPP), five year Services Capital Acquisition Plan (SCAP) and Annual Acquisition Plan (AAP). Procurement of required equipment and weapon systems is carried out as per the AAP in accordance with the Defence Procurement Procedure. This is a continuous process undertaken for the modernization of the / Armed Forces to keep them in a state of readiness to meet any eventuality.

Delays occur sometimes due to unavoidable circumstances. There are contractual provisions for penalties including imposition of liquidated damages for delay in execution of contracts. To counter systemic and institutional delays, procedures are continuously refined on the basis of experience gained during the procurement process.

The Defence Procurement Procedure contains stringent provisions aimed at ensuring the highest degree of probity, public accountability and transparency. The Procedure includes provision for signing Pre-Contract Integrity Pact in procurement cases of the estimated value exceeding Rs.100 crore as well as provisions prohibiting engagement of agents or use of undue influence. In order to promote transparency, the issue of Request for Information (RFI) has been made mandatory to provide advance information and encourage a wider vendor base. As and when any irregularity comes to notice, appropriate action is taken as per rules.

With a view to achieve greater self-reliance in Defence production, Government has announced a Defence Production Policy in January, 2011. Besides, the Government has included a new categorization 'Buy & Make (Indian)' in the Defence Procurement Procedure in November, 2009 to encourage indigenous production in the country. In foreign procurement cases, Transfer of Technology is sought, wherever required.

This information was given by Defence Minister Shri AK Antony in separate written replies to Shri Dhananjay Singh, DR. Ratna De (Nag) and others in Lok Sabha today.