Defence Ministry Must Clear All Procurement by September 2007: Committee

Defence Ministry Must Clear All Procurement by September 2007: Committee


With delays in clearance of mega defence deals like purchase of 200 light helicopters and 400 giant 155 mm upgraded towed artillery guns for army, recommendations have been made that Defence Ministry should complete all procurement formalities before September each year."Failure to complete major armament deals is leading to cut in acquisition budget when the estimates are revised", observed the Parliamentary Standing Committee on Defence.Pulling up the three services as well as the Defence Ministry, the Committee in its latest report tabled in Parliament said it strongly recommended that all procurement formalities should be completed by September so that all deals are put on fast track."This will facilitate the Ministry of Defence to allocate more funds for new schemes instead of earmarking larger capital acquisition funds for committed liabilites", the report said.Army has completed induction formalities like undertaking live test evaluation and qualitative requirements for 197 helicopters for which the American Textron and Eurocopter are bidding. However, the deal estimated to run into 700 million dollars is still to be cleared by CCS.Similarly, the deal to procure 400 upgraded towed 155MM guns of .52 calibre at an estimated cost of almost 3 billion dollars is still gathering dust even after an unprecedented four evaluations trials.The committee has also recommended that the Ministry of Defence set up a special committee, including representatives from it's own Ministry, Ministery of Defence Production, the Ministry of Defence finance and Comptroller and Auditer General of all above Additional Secretary rank to clear acquisition proposals timely.In its new report placed in Lok Sabha, the Committee has also suggested that all weapons purchase deals should be concluded before the month of December of each financial year.Expressing concern that most of the capital aquisition funds were going towards imports, the Committee has said that Defence Ministry should also spend resources to build and encourage indegenious production specially in critical armaments, which it said could face arbitary cut offs at any time.It said in all purchases, specially of weapons of high- technology end, the Government should enforce the transfer of technology clause.It said that as part of fast track weapons acquisitions, the Government should enhance to financial delegation to the three services to Rs 50 crore and similar delegated authority also be given to Defence Secretary.The committee has also expressed concern over the declining trend in the share of Army in defence budget, saying that from share of 57 per cent in 2002-03, army allocation has plunged to an all time low of 47 per cent in the current year.