Lok Sabha Question No. 10 (STARRED), answered on 2018-07-18
Subject: Military Expenses
Ministry: DEFENCE
Asked by: SUSHIL KUMAR SINGH, SAUGATA ROY

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## STARRED QUESTION NO.10

TO BE ANSWERED ON THE 18 TH  JULY, 2018

## MILITARY  EXPENSES

## *10. SHRI SUSHIL KUMAR SINGH:

PROF. SAUGATA ROY:

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

- (a) whether the military expenses have gone up five times in the country in the last four  years  due  to  procurement of  arms and ammunition,  rifles,  tanks  etc.  from foreign countries and if so, the details thereof;
- (b) the total amount spent on purchase of arms / weapons / fighters / ammunition from foreign countries during the above period;
- (c) whether the details of purchase made for the Army in the last four years have been released in a recent report of the Ministry of defence and if so, the details thereof;
- (d) whether the Government maintains transparency in defence dealings and if so, the details thereof along with the most favoured country of India for purchase of arms; and
- (e) the effective steps taken by the Ministry of Defence and the Government for not purchasing defence equipment from foreign countries so far?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                    (SMT. NIRMALA SITHARAMAN)

j{kk ea=h

¼Jherh  fueZyk lhrkje.k )

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(a) to (e): A Statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK SABHA STARRED QUESTION NO. 10 FOR ANSWER ON 18.07.2018

(a) to (c): Procurement of defence equipment is undertaken from various domestic as well as foreign vendors, based on operational requirements of the Army, the availability or capacity to produce the equipment in India and abroad  and  to  keep  the  Army  in  a  state  of  readiness  to  meet  the  entire spectrum of security challenges.

The details of capital and revenue expenditure in respect of procurement from India and abroad for Army are given below:-

(Rs. in Crore)

| Year    |   Foreign procurement | Indigenous procurement   |
|---------|-----------------------|--------------------------|
| 1747.42 |              19984.4  | 2013-14                  |
| 2014-15 |               3804.49 | 16778.08                 |
| 2015-16 |               3150.41 | 19133.03                 |
| 2016-17 |               5508.35 | 24786.75                 |

The data on capital expenditure on procurement from abroad for the Army is given in the 42 nd Report of Standing Committee of Defence.

- (d) Capital procurement of defence equipment is undertaken in accordance with the extant Defence Procurement Procedure (DPP) which incorporates  provisions  to  ensure  the  highest  degree  of  probity,  public accountability,  impartiality and  transparency in  the  procurement  process. It envisages signing of an Integrity Pact between Government and bidders for all capital procurement / schemes of Rs.20 crore and above, as against earlier requirement for such a Pact for schemes of over Rs.100 crore.  No specific country is favoured in defence procurement.

:  2  :

(e) Government  is  pursuing  initiatives to achieve higher levels of indigenization  and  self-reliance  in  the  defence  sector  by  harnessing  the capabilities  of  the  public  and  private  sector  industries  in  the  countries. These measures include according priority and preference to procurement from  Indian  vendors  and  liberalization  of  the  licensing  regime.    DPP accords  the  highest  priority  to  Buy  Indian  (Designed,  Developed  and Manufactured)  (IDDM).    The  'Make'  procedure  has  been  simplified  with provisions  for  earmarking  projects  not  exceeding  development  cost  of Rs.10  crores  (government  funded)  and  Rs.3  crores  (Industry  funded)  for MSMEs; and  with  provisions  for involving  private industry  as  production agencies and technology transfer partners. The simplified Make-II procedure  has  been  notified  for  Industry  funded  development  projects. Government  has also  finalized  the  policy  on  Strategic  Partnership  in  the Defence Sector which is intended to institutionalise a transparent, objective and functional mechanism to encourage broader participation of the private sector in manufacture of major defence platforms and equipment.

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