Lok Sabha Question No. 2665 (UNSTARRED), answered on 2017-03-17
Subject: Modernization of Armed Forces
Ministry: DEFENCE
Asked by: SRINIVAS KESINENI

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## UNSTARRED QUESTION NO.2665

TO BE ANSWERED ON THE 17 TH  MARCH, 2017

## MODERNIZATION OF ARMED FORCES

2665.  SHRI  KESINENI NANI:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a) the  details  of  budget  estimates,  revised  estimates,  and  actual  expenditure  on modernization of armed forces during the last three years;
- (b) whether there has been an underutilization of the allocated funds for modernization of armed forces during  the said year;
- (c) if so, the details thereof and the reasons behind the under utilization of funds;
- (d) the  percentage  of  funds  allocated  for  modernization  of  armed  forces  spent  on buying indigenous equipment; and
- (e) the  steps  taken  by  the  Government  to  reduce  the  dependence  on  imported equipment for modernization of armed forces?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(DR. SUBHASH BHAMRE)

र  ा रा य मं ी

(डा. सुभाष भामरे)

(a) to (e): A statement is attached.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF  LOK  SABHA UNSTARRED QUESTION NO. 2665   FOR ANSWER ON 17.03.2017

(a) to (c):  the details of budget estimates, revised estimates, actual expenditure and underutilization of funds on modernization of armed forces during the last three years are as follows:-

( ` in crore )

| Year    | Budget Estimates   | Revised Estimates   | Actual Expenditure   | Savings   |
|---------|--------------------|---------------------|----------------------|-----------|
| 2013-14 | 73,444.59          | 66,406.41           | 66,850.30            | --        |
| 2014-15 | 75,148.03          | 66,151.73           | 65,862.38            | 289.35    |
| 2015-16 | 77,406.69          | 65,400.00           | 62,235.54            | 3,164.46  |

No  amount  remained  unspent  during  year  2013-14,  while  only  a  minor sum of ` 289.35 crore remained unspent during 2014-15 as a cumulative effect of small savings under various heads of account. During 2015-16 savings have occurred  due  to  various  reasons  including  slow  progress  in  UAV  Heron contracts/  major  shipbuilding  contracts,  slow  progress  of  strategic  forces command  and  signal  intelligence  projects,  non  conclusion  of  submarine projects etc.

## (d) The details related to the percentage of funds allocated for modernization of armed forces spent on buying indigenous equipment are as follows:

( ` in crore )

| Year    | Actual    | Amount spent on buying of indigenous equipment   | Percentage   |
|---------|-----------|--------------------------------------------------|--------------|
| 2013-14 | 66,850.30 | 31,768.19                                        | 47.53%       |
| 2014-15 | 65,582.34 | 40,589.98                                        | 61.89%       |
| 2015-16 | 61,761.80 | 39,339.68                                        | 63.70%       |

(e) Modernization of Armed Forces is a continuous process based on threat perceptions,  operational  challenges  and  technological  changes  to  keep  the Armed Forces in a state of readiness to meet various security challenges. This is achieved through induction of new equipment and technological upgradation of  capabilities.  The  equipment  and  capabilities  to  be  acquired  for  the  Armed Forces  are  identified  through  a  comprehensive  planning  process  and  after deliberations at various levels. Government is pursuing several measures to realize progressively higher levels  of  indigenization  and  self-  reliance  in  defence  sector.  To  this  end,  the Defence Procurement Procedure 2016 (DPP 2016) has provisions which accord higher priority to procurement from Indian vendors. Notwithstanding this, import of  defence  equipment  may  be  necessitated  to  meet  operational  requirements and when indigenous equipment is not available.

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