Lok Sabha Question No. 2273 (UNSTARRED), answered on 2015-12-11
Subject: Modernization of Defence Forces
Ministry: DEFENCE
Asked by: P. KUMAR, DINESH TRIVEDI, RAHUL RAMESH SHEWALE, SHRIKANT EKNATH SHINDE, HARISH CHANDRA MEENA, KAMLA DEVI PATLE, DUSHYANT CHAUTALA, VINAYAK BHAURAO RAUT, RAYAPATI SAMBASIVA RAO, MD. BADARIDDOZA KHAN, PR. SENTHILNATHAN

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE LOK  SABHA

## UNSTARRED QUESTION NO.2273 TO BE ANSWERED ON THE 11 TH  DECEMBER, 2015 MODERNIZATION OF DEFENCE FORCES

## 2273.

SHRI  P. KUMAR:

SHRI DINESH TRIVEDI:

SHRI RAHUL SHEWALE:

DR. SHRIKANT EKNATH SHINDE:

SHRI HARISH MEENA:

SHRIMATI KAMLA DEVI PAATLE:

SHRI DUSHYANT CHAUTALA:

SHRI VINAYAK BHAURAO RAUT:

SHRI RAYAPATI SAMBASIVA RAO:

SHRI MD. BADARUDDOZA KHAN:

SHRI PR. SENTHIL NATHAN:

Will the Minister of DEFENCE

be pleased to state:

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- (a) whether  the Government has fully utilized the budget allocated for modernization of the defence forces during the year 2014-15;
- (b) if so, the details of the budget allocated for the said year and if not, the reasons therefor, force-wise;
- (c) the details of  revenue expenditure of the defence forces during the last three years and the  current  year  along  with  the  average  lifetime  cost  to  the  Government  for  maintaining manpower in the Army;
- (d) whether non-clearance of acquisition proposals of the defence forces has led to inordinate delay in modernization of defence forces, if so, the details thereof and if not, the other reasons therefor; and
- (e) the  steps  taken  for  encouraging  indigenous  research  and  development  and  speedy clearance of acquisition proposals and modernization of the defence forces of the country?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(RAO INDERJIT SINGH)

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(

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. 2273 FOR ANSWER ON 11.12.2015

(a)  &  (b) :        Details  of  the  amount  allocated  for  modernization  of  the  defence forces during the year 2014-15 is as follows:-

( ` in crores)

| Year    | Budget Estimates   | Revised Estimates   | Actual Expenditure   |   Savings |   Savings as %of Revised Estimates |
|---------|--------------------|---------------------|----------------------|-----------|------------------------------------|
| 2014-15 | 75,148.03          | 66,151.73           | 65,862.38            |    289.35 |                               0.44 |

Only a minor sum of ` 289.35 crore (0.44% of allocation) remained unspent during  2014-15  as  a  cumulative  effect  of  small  savings  under  various  heads  of account. However, Service -wise details of the expenditure during the year 201415 are as follows:-

(

` in crores)

| Service   | Revised Estimates for the year 2014-15   | Actual Expenditure   |
|-----------|------------------------------------------|----------------------|
| Army      | 16,927.35                                | 13,867.40            |
| Navy      | 17,075.24                                | 20,905.54            |
| Jt. Staff | 330.75                                   | 280.05               |
| Air Force | 31,818.39                                | 30,809.39            |
| Total     | 66,151.73                                | 65,862.38            |

## (c)  (i) :   Details of revenue expenditure of the defence forces during the last three years and the current year are as follows:-

(

` in crores)

| Year    | Budget Estimates   | Revised Estimates   | Actual Expenditure                          |
|---------|--------------------|---------------------|---------------------------------------------|
| 2012-13 | 1,13,828.66        | 1,08,924.89         | 1,11,276.66                                 |
| 2013-14 | 1,16,931.41        | 1,24,799.89         | 1,24,374.30                                 |
| 2014-15 | 1,34,412.05        | 1,40,404.76         | 1,36,807.20                                 |
| 2015-16 | 1,52,139.00        | Under process       | 95,940.67 (Expenditure upto November, 2015) |

(ii) The  Annual  Per  Capita  recurring  cost  (  to  include  Pay  and  Allowances, Conservancy & Hot Weather, Rations & Fuel Oil and Lubricants, Accommodation, Transportation, Medicare, Clothing & Equipment, Training Cost and Miscellaneous Cost) in respect of Army personnel is as follows:-

- (a) Officers : -` 11,96,999.00-` 20,83,117.00 ( as per rank profile)
- (b) Junior Commissioned Officers (JCOs) :-` 7,88,687.00
- (c) Other Ranks (ORs) :-` 5,26,064.00

(d) & (e): Modernization of the Defence Forces is a continuous process based on threat perception, operational challenges, technological changes and available  resources.  The  process  is  based  on  a  15  year  Long  Term  Integrated Perspective Plan (LTIPP), Five Year Service Capital Acquisition Plan (SCAP) and an Annual Acquisition Plan (AAP).

Government  constantly  reviews  the  security  scenario  and  accordingly decides  to  induct  appropriate  defence  equipment  to  keep  the  armed  forces  in a state of readiness and remaining equipped with modern weapon systems which is  undertaken  through  procurement from  various indigenous as well as foreign vendors.

Capital Procurement of Defence Equipment is guided by Defence Procurement  Procedure  (DPP).  DPP-  2013  contains  timelines  for  procurement process. It mandates higher preference to the 'Buy (Indian)' Buy & make (Indian)' and  Make  'categorization  in  Capital  Procurement.'  The  steps  taken  for  speedy clearance  of  Acquisition  proposals  include  finalization  of  Service  Qualitative Requirements before seeking the Acceptance of Necessity, reduction of validity of Acceptance of Necessity to one year, delegation of Financial Powers, decisions in a collegiate manner and imposition of liquidated damages on vendor for delay in execution of contracts.

Indigenization of platforms, weapon systems, sensors and equipments used by Defence Services is undertaken by DRDO under its Mission Mode (MM) category of project.    As  on  date,  DRDO  has  ongoing  MM  projects  worth ` 36220  Crore.    To support sub-systems of these projects and to undertake futuristic technology development, DRDO has ongoing projects worth ` 7243 Crore and these are known as technology development projects.

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