Lok Sabha Question No. 2175 (UNSTARRED), answered on 2017-07-28
Subject: Funds for Defence Sector
Ministry: DEFENCE
Asked by: K. GOPAL

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## UNSTARRED QUESTION NO.2175

TO BE ANSWERED ON THE 28 TH  JULY, 2017

## FUNDS FOR DEFENCE SECTOR

2175.  DR. K. GOPAL:

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

- (a) whether the budgetary provision for 2017-18 as well as the dismal status of capital procurements do not reciprocate the seriousness required towards meeting defence needs and if so, the details thereof; (b) whether  the  allocation  is  Rs.18000  crore  in  the  capital  budget,  whereas  the committed  liabilities  itself  are  to  the  extent  of  Rs.22000  crore  as  far  as  the  Navy  is concerned and if so, the details thereof; (c) whether against the committed capital liability being carried forward from 201617 to 2017-18 amounts to Rs.23000 crore and the capital allocation made in the budget 2017-18 is Rs.25254 crore; (d) if  so,  whether  Rs.4000 crore  allocated  in  the budget  for 2017-18  exclusively  for new schemes would hamper the modernisation drive of the Indian Air Force; and if so, the details thereof and the corrective measures taken by the Government in

## 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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- (e) this regard?

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK SABHA UNSTARRED QUESTION NO. 2175 FOR ANSWER ON 28.7.2017

- (a) to (e): (i) Under  the  Capital  Budget,  BE  2016-17  was  Rs.86340.00 crore whereas BE 2017-18 is Rs.86488.01 crore.
- (ii) For  Navy,  the  allocation  in  BE  2017-18  under  Capital Budget  is  Rs.18603.71  crore  which  includes  Committed Liabilities for Capital Acquisition amounting to Rs.14004.76 crore.

to

- (iii) For Air Force, the allocation in BE 2017-18 under Capital Budget  is  Rs.33570.17  crore  which  includes  Committed Liabilities for Capital Acquisition amounting Rs.  26899.90  crore  and  an  amount  of  Rs.4000.00  crore has been kept for New Schemes.
- (iv) The progress of capital acquisition expenditure is monitored  regularly  by  the  Acquisition  Wing  which  is tasked with the responsibility of defence capital procurement. Acquisition Wing, being a specialist organization created on the basis of the Kargil Committee Report and recommendations of the Group of Ministers, not  only  monitors  capital  expenditure,  but  also  looks after  all  capital  acquisition  projects  from  inception  to finality.    In  addition,  the  Defence  Procurement  Board, which  is  chaired  by  defence  Secretary  and  the  Defence Acquisition Council headed by Raksha Mantri comprising of all stakeholders, monitors adherence to broad timelines  in  Defence  Procurement.    Under  the    Capital Acquisition, available funds are first set aside for Committed Liabilities (CL) as these payments are mandatory  and  hence  cannot  be  avoided.    After  setting aside  funds  for  CL,  allocations  are  made  under  New Schemes (NS) depending upon available funds.  It may be added  that  projection  of  requirement  for  NS  includes several cases at varying stages of approval which may or may not reach finality.  Nevertheless, all efforts are made to ensure that no 'New Scheme' approved is delayed for want of funds.  Additional funds are sought, if required, at appropriate stages during the course of financial year.
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