Lok Sabha Question No. 1335 (UNSTARRED), answered on 2018-07-25
Subject: Allocation of Budget
Ministry: DEFENCE
Asked by: RAMESWAR TELI

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## UNSTARRED QUESTION NO.1335

TO BE ANSWERED ON THE 25 TH  JULY, 2018

## ALLOCATION OF BUDGET

## 1335.  SHRI  RAMESWAR TELI:

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

- (a) the details of allocation of budget and actual expenditure incurred on modernisation of armed forces during the last three years and the current year;
- (b) whether  the  Government  has  any  proposal  to  allow  the  private  sector  to  play a major role in the production of weapons for the armed forces;
- (c) if so, the details thereof; and
- (d) the steps taken by the Government for the modernisation of armed forces in view of constant military threats by our neighbours?

## 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 (d): Statement is attached.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK SABHA UNSTARRED QUESTION NO. 1335 FOR ANSWER ON 25.7.2018

(a) Budget  Allocation  and  Expenditure  incurred  under  modernization (Capital Acquisition) Head under Defence Services Estimates (DSE) for the last three years and the current year is tabulated below:-

(Rs. in crore)

| Year     | Budget Estimate   | Revised Estimate   | Modified Appropriation   | Expenditure   |
|----------|-------------------|--------------------|--------------------------|---------------|
| 2015-16  | 77,406.69         | 65400.00           | 61,699.39                | 62,635.54     |
| 2016-17# | 69,898.51         | 62,619.36          | 64,853.86                | 69,280.16     |
| 2017-18* | 69,473.41         | 68,965.24          | 68,980.89                | 72,732.28$    |
| 2018-19  | 74,115.99         | --                 | --                       | --            |

(# figure excludes MF, ECHS, DGQA, NCC, RR, DGOF and R&D) (* figure excludes MF and ECHS) ($ provisional figures)

(b) & (c): Since the opening  up of Defence industry sector in May 2001 for  100%  manufacturing by Indian private sector including Foreign Direct Investment (FDI) up to admissible cap both subject to licensing, Department of Industrial Policy & Promotion (DIPP) has issued 379 licenses to  230  Indian  Companies  till  June,  2018.  Further,  70  license  companies covering 114 licenses have reported commencement of production in the same period. During  the  last  three  financial  years  and  current  year  (upto  June, 2018), 168 contracts have been signed (106 with Indian vendors and 62 with Foreign vendors) for capital procurement of Defence equipment  for Armed Forces  such  as  Tanks,  Rifles,  Rockets,  Ships,  Frigates,  Aircraft,  Radars, Missiles, Artillery Guns,  Ballistic Helmets, Helicopters,  Electronic Fuzes, Simulators, Bullet Proof Jackets and Ammunition. (d)    Government  is  taking  measures  for  modernization  of  the  Armed

Forces, through procurement of new equipment and upgrading of existing equipment and systems. The modernization projects are being progressed as per the approved Capital Acquisition Plans and in terms of the extant Defence Procurement Procedure.

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