Defence deals worth Rs 3.1 lakh crore cleared, but zero movement on ground

[anup]

NEW DELHI: In the 17 months that the NDA government has been in power, the Defence Acquisition Committee (DAC) that vets all big-ticket deals has cleared projects worth a whopping Rs. 3.1 lakh crore ($47 billion), but none of these are anywhere near closure.

Against this, just Rs.1.8 lakh crore has been allocated in the budgets for 2014-15 and 2015-16 under the capital expenditure head for purchase of hardware.

Thus, it would seem that despite defence ministry's grandiose plans, money is yet to be allocated for a substantial portion of the acquisitons. But as is the case in most defence acquisitions, allocation is not enough.

Ironically, the only big ticket acquisition by the present government has been that of 22 Apache and 15 Chinook helicopters for Rs. 20,000 crore ($3.1 billion). The deal was signed during Prime Minister Narendra Modi's visit to the United States last month although the ne ..

This state of affairs doesn't surprise noted security expert C. Uday Bhaskar.

"Approval by the DAC is procedurally important but not very substantive. DAC is a case of approval in principle and the proposal is then taken to the CCS. Subject to availability of funds in the given fiscal, CCS approval is accorded. The track-record here is patchy and there have been many instances where the defence ministry has returned large sums of money from the capital head year after year despite a gla ..

*Replacing L70 and Zu 23mm guns of army's air defence under Buy-and-Make category. Army will get 428 guns for Rs. 16,900 crore.

*An upgrade of weapons and sensor suite of the Delhi and Talwar class ships during their mid-life refit for Rs. 2,900 crore. Six ships will see new surface-to-air missile system that would be bought from Russia, besides new radars.

Thus, while some private shipyards and private companies have been shortlisted for manufacturing warships, submarines and ..

Source:- Defence deals worth Rs 3.1 lakh crore cleared, but zero movement on ground - The Economic Times

 

[Niyogi]

Hmm...... Modi govt., especially Parrikar needs to put out an explanation.

 

[Indian Patriot]

Nothing new in Indian bureaucratic scenario. The PSUs must be licking their lips with glee.

At least defence and national security should be kept out of petty politics.

 

[Donald Trump]

Here's the procedure. From the time the DAC gives in principle approval, it takes approx 20 months for the contract to be signed.

 

[Niyogi]

Still the Modi govt. need to come out with a yearly report card or something.

Let them declare by when all the report card will be published. To get such a report after 5 years is too long. It does not leave any scope for corrective action if any.

 

[sathya]

Hmm...... Modi govt., especially Parrikar needs to put out an explanation.

Parrikar did his job of clearing, I think

It's with finance ministry now.

 

[Niyogi]

Parrikar did his job of clearing, I think

It's with finance ministry now.

Its not about "doing his job. Its about taking responsibility and providing transparency.

Parrikar is not a govt. babu pencil pusher to "do his job". The buck stops with him for Defence matters.

 

[migflug]

To many deals cleared . But only a handful signed. Parrikar need to close contract as fast as possible.

 

[Abingdonboy]

NEW DELHI: In the 17 months that the NDA government has been in power, the Defence Acquisition Committee (DAC) that vets all big-ticket deals has cleared projects worth a whopping Rs. 3.1 lakh crore ($47 billion), but none of these are anywhere near closure.

Against this, just Rs.1.8 lakh crore has been allocated in the budgets for 2014-15 and 2015-16 under the capital expenditure head for purchase of hardware.

Thus, it would seem that despite defence ministry's grandiose plans, money is yet to be allocated for a substantial portion of the acquisitons. But as is the case in most defence acquisitions, allocation is not enough.

Ironically, the only big ticket acquisition by the present government has been that of 22 Apache and 15 Chinook helicopters for Rs. 20,000 crore ($3.1 billion). The deal was signed during Prime Minister Narendra Modi's visit to the United States last month although the ne ..

This state of affairs doesn't surprise noted security expert C. Uday Bhaskar.

"Approval by the DAC is procedurally important but not very substantive. DAC is a case of approval in principle and the proposal is then taken to the CCS. Subject to availability of funds in the given fiscal, CCS approval is accorded. The track-record here is patchy and there have been many instances where the defence ministry has returned large sums of money from the capital head year after year despite a gla ..

*Replacing L70 and Zu 23mm guns of army's air defence under Buy-and-Make category. Army will get 428 guns for Rs. 16,900 crore.

*An upgrade of weapons and sensor suite of the Delhi and Talwar class ships during their mid-life refit for Rs. 2,900 crore. Six ships will see new surface-to-air missile system that would be bought from Russia, besides new radars.

Thus, while some private shipyards and private companies have been shortlisted for manufacturing warships, submarines and ..

Source:- Defence deals worth Rs 3.1 lakh crore cleared, but zero movement on ground - The Economic Times

I've said this a few times now- the new GoI/DM has simply moved the moved the bottleneck to another stage in procurements (it looks like it is now either the Fin Min or CCS that holds up these deals-perhaps both). So whilst the GoI/DM makes a BIG deal about DAC clearances (and the media is all to quick to drink it up) very little has tangibly changed.


Yes, there are more DAC clearances for critical deals now but so what? Has this translated into more defence deals? Not even close.

 

[topgun047]

Usually the contracts are paid in tranches as the items are delivered

 

[dadeechi]

NEW DELHI: In the 17 months that the NDA government has been in power, the Defence Acquisition Committee (DAC) that vets all big-ticket deals has cleared projects worth a whopping Rs. 3.1 lakh crore ($47 billion), but none of these are anywhere near closure.

Against this, just Rs.1.8 lakh crore has been allocated in the budgets for 2014-15 and 2015-16 under the capital expenditure head for purchase of hardware.

Thus, it would seem that despite defence ministry's grandiose plans, money is yet to be allocated for a substantial portion of the acquisitons. But as is the case in most defence acquisitions, allocation is not enough.

Ironically, the only big ticket acquisition by the present government has been that of 22 Apache and 15 Chinook helicopters for Rs. 20,000 crore ($3.1 billion). The deal was signed during Prime Minister Narendra Modi's visit to the United States last month although the ne ..

This state of affairs doesn't surprise noted security expert C. Uday Bhaskar.

"Approval by the DAC is procedurally important but not very substantive. DAC is a case of approval in principle and the proposal is then taken to the CCS. Subject to availability of funds in the given fiscal, CCS approval is accorded. The track-record here is patchy and there have been many instances where the defence ministry has returned large sums of money from the capital head year after year despite a gla ..

*Replacing L70 and Zu 23mm guns of army's air defence under Buy-and-Make category. Army will get 428 guns for Rs. 16,900 crore.

*An upgrade of weapons and sensor suite of the Delhi and Talwar class ships during their mid-life refit for Rs. 2,900 crore. Six ships will see new surface-to-air missile system that would be bought from Russia, besides new radars.

Thus, while some private shipyards and private companies have been shortlisted for manufacturing warships, submarines and ..

Source:- Defence deals worth Rs 3.1 lakh crore cleared, but zero movement on ground - The Economic Times

Simple there is not enough money. Parrikar is passing the buck to Modi.