Modernization of the Armed Forces including the Coast Guard 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 equipment and weapon systems is carried out as per the AAP in accordance with the Defence Procurement Procedure.
The budgetary allocations on capital acquisition for modernization of Armed Forces including Army, Navy, Air Force, Joint Staff and Coast Guard during the years 2008-09 to 2011-12 are as under:
| Year | Budget Allocations |
| | (Rs. in Crore) |
| 2008-09 | 38,515.24 |
| 2009-10 | 41,671.59 |
| 2010-11 | 44,899.25 |
| 2011-12 | 54,598.02 |
The budget estimates and revised estimates for modernization of Armed Forces during the year 2011-12 under various heads are as under:
| Service/Head of | Budget Estimates | Revised Estimates | Difference |
| budget | (BE) | (RE) | (BE-RE) |
| 2011-12 | 2011-12 | Increase (+) | |
| (Rs. in Crore) | (Rs. in Crore) | Decrease (-) | |
| (Rs.inCrore) | |||
| Army | 10,740.02 | 4,950.02 | 5,790.00(-) |
| Navy | 13,149.02 | 16,040.27 | 2,891.25(+) |
| Air Force | 28,412.74 | 26,033.92 | 2,378.82(-) |
| Joint Staff | 696.24 | 385.24 | 311.00(-) |
| Coast Guard | 1,600.00 | 1,600.00 | 0.00 |
| Total | 54,598.02 | 49,009.45 | 5,588.57(-) |
The allocation of funds for modernization has been revised based on funds provided by Ministry of Finance in RE in 2011-12 in the Capital segment of Defence Services estimates. However, additional allocation of Rs.2585 crore has been made for other capital requirements of Army including supply of capital equipment from ordnance factories.
This information was given by Minister of Defence Shri AK Antony in a written reply to DR. Ratna De (Nag) and Shri Kirti Azadin Lok Sabha today.