Lok Sabha Question No. 3398 (UNSTARRED), answered on 2022-08-05
Subject: Performance and Efficiency Audit of Armed Forces
Ministry: DEFENCE
Asked by: Sudheer Gupta, Ravi Kishan Shukla, Ravindra Kushawaha, Prataprao  Jadhav, Sambhajirao Mane Dhairyasheel, Bidyut Baran Mahato, Shrirang Appa Barne, Subrata Pathak, Sanjay Sadashivrao Mandlik

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK SABHA UNSTARRED QUESTION NO. 3398

TO BE ANSWERED ON 05 th  August, 2022

## PERFORMANCE AND EFFICIENCY AUDIT OF ARMED FORCES

3398. SHRI SUDHEER GUPTA:

SHRI RAVI KISHAN:

SHRI RAVINDRA KUSHWAHA:

SHRI PRATAPRAO JADHAV:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI BIDYUT BARAN MAHATO:

SHRI SHRIRANG APPA BARNE:

SHRI SUBRAT PATHAK:

SHRI SANJAY SADASHIVRAO MANDLIK:

Will the Minister of DEFENCE be pleased to state:

- (a)  whether  the  Government  has  set  up  an  apex  committee  to  conduct  'performance  and efficiency' audit of the armed forces;
- (b) if so, the details and the aims and objectives thereof;
- (c) the details of areas included under the said audit and the manner in which it is going to be beneficial in the near future;
- (d) the measures advised/suggested by the Committee for overall improvement in strengthening  of  internal  oversight  and  management  framework  in  the  functioning  of  his Ministry;
- (e)  whether  the  country  faces  the  challenges  of  modernisation  and  indigenisation  of  its military hardware to ensure self-sufficiency and harmonising its combat power; and
- (f) if so, the details thereof and the measures being taken by the Government to meet these challenges?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

- (a):  Yes, Sir.

(b):  The members of the committee include the Defence Secretary as Chairman, Vice Chiefs of  the  three  Services,  Secretary  Defence  (Finance)/FA(DS),  Chief  of  Integrated  Staff Committee  (CISC),  Controller  General  of  Defence  Accounts  (CGDA),  Director  General (Acquisition) and other senior officials of Ministry of Defence and Defence Research and

Development  Organisation  (DRDO).  Performance  /Efficiency  Audit  will  be  aimed  at providing  valuable  inputs  to  the  Top  Level  Management  by  way  of  providing  reliable, objective and independent information, highlighting shortcomings in planning, implementation, systems affecting outputs/outcomes in specific and quality of expenditure/management in general.

(c) & (d):  The mandate to carry out Performance and Efficiency Audit was given to CGDA on 14 th July,  2022. The broad areas that have been identified for the conduct of this Audit include Defence Capital Procurements, provisioning, logistics, inventory levels, maintenance of  platforms/assets,  role  and  performance  of  Authority  Holding  Sealed  Particulars  (AHSP) etc. The Apex committee can also recommend any other specific area for Performance and Efficiency Audit. This will constructively promote economy, effectiveness and efficiency in governance by creating the necessary environment of accountability and transparency in the organization  and  ensure  that  the  operation  are  effectively  carried  out  through  continuous improvement.

(e) & (f):  Modernization of Defence Armed Forces involves the acquisition of new state-ofthe-art  platforms,  technologies  and  weapon  systems  to  upgrade  and  augment  Defence capabilities  and  is  a  continuous  process  based  on  threat  perception,  operational  necessities and technological changes to keep the Armed Forces in a state of readiness to meet the entire spectrum  of  security  challenges.  Government  attaches  highest  priority  to  ensure  that  the Armed  Forces  are  sufficiently  equipped  to  meet  any  operational  requirement  which  is achieved through induction of new equipment and technological upgradation of capabilities.

The equipment requirements of the Armed Forces are planned and progressed through a detailed process which includes Ten Years Integrated Capability Development Plan (ICDP), Five  Years  Defence  Capability  Acquisition  Plan  (DCAP)  and  Annual  Acquisition  Plan (AAP) and deliberations by the Defence Acquisition Council chaired by the RakshaMantri.

Government  is  pursuing  a  large  number  of  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 country. These measures include according priority and preference to procurement from Indian vendors and liberalization of the licensing regime.

The  Defence  Acquisition  Procedure  (DAP)-  2020  has  been  driven  by  the  tenets  of Defence Reforms announced as part of the Atmanirbhar Bharat Abhiyan of the Government of  India  by  promoting  indigenous  design,  development  and  manufacturing  of  defence equipment,  platforms,  systems  and sub-systems.  DAP  2020  accords  the  highest  priority  to Buy Indian (Designed, Developed and Manufactured) (IDDM). To encourage production of these  weapons/platforms  in  India,  lists  of  weapons/platforms  for  ban  on  import  have  been notified. A new category of Buy (Global-Manufacture in India) has been introduced to enable ab-initio  indigenization  of  spares.  This  category  encourages  Foreign  Original  Equipment Manufacturers (OEMs) to set up 'Manufacturing/ maintenance entities' through its subsidiary in India. The definition of Indian Vendor has also been aligned to the new FDI policy. The Government has introduced Make II & Make III categories with the objective of self-reliance by  involving  greater  participation  of  Indian  industrial  eco-system  including  private  sector. The  simplified  Make-II  procedure  has  been  notified  for  Industry  funded  development projects. Reservation on Orders up to Rs. 100 Crores/ year for MSMEs and Small Shipyards has been provided. Government has also promulgated the policy on Strategic Partnership in the Defence Sector to encourage broader participation of the private sector in manufacture of major defence platforms and equipment.

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