Lok Sabha Question No. 203 (STARRED), answered on 2016-03-11
Subject: Long Term Integrated Perspective Plan
Ministry: DEFENCE
Asked by: HARI MANJHI, FEROZE VARUN GANDHI

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA STARRED QUESTION NO.203

TO BE ANSWERED ON THE 11 TH  MARCH, 2016

## LONG TERM INTEGRATED PERSPECTIVE PLAN

*203.  SHRI  HARI  MANJHI: SHRI  FEROZE VARUN GANDHI:

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

- (a) the total budgetary allocation for defence sector and utilization thereof during each of the last three years and the current year;
- (b) the  total  amount  spent  in  procuring  defence  equipments  from  indigenous  and foreign sources during the said period;
- (c) whether  in  the  light  of  indigenous  defence  production  and  procurement,  any timeline  drawn  for  the  Long  Term  Integrated  Perspective  Plan  (LTIPP)  and  if  so,  the details thereof; and
- (d) whether the Government is planning to increase budgetary allocation under capital and revenue heads with respect to Research and Development in defence sector including DRDO under LTIPP and if so, the details thereof?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                            (SHRI MANOHAR PARRIKAR)

j{kk ea=h

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

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 203 FOR ANSWER ON 11.3.2016

- (a) The total budgetary allocation for defence sector excluding defence pension and Ministry of Defence (Civil) utilization thereof during each of the last three years and the current year is as follows:-

(

` in crores)

| Year    | Total budgetary allocation           | Total budgetary allocation             | Utilisation (Actuals Revenue+ Capital)   |
|---------|--------------------------------------|----------------------------------------|------------------------------------------|
| Year    | Budget Estimates (Revenue + Capital) | Revised Estimates ( Revenue + Capital) | Utilisation (Actuals Revenue+ Capital)   |
| 2012-13 | 1,93,407.29                          | 1,78,503.52                            | 1,81,775.78                              |
| 2013-14 | 2,03,672.12                          | 2,03,672.12                            | 2,03,499.35                              |
| 2014-15 | 2,29,000.00                          | 2,22,370.00                            | 2,18,684.18                              |
| 2015-16 | 2,46,727.00                          | 2,24,636.00                            | 2,02,181.08 (upto February, 2016)        |

- (b) The expenditure on Defence Capital acquisition in respect of orders placed on Indian Vendors and Foreign Vendors during the last three financial years is as under:

(

` in crores)

| Year    |   Actuals | Indian Vendors    | Foreign Vendors   |
|---------|-----------|-------------------|-------------------|
| 2012-13 |   58768.9 | 32455.86 (55.23%) | 26313.00 (44.77%) |
| 2013-14 |   66850.3 | 31768.19 (47.53%) | 35082.10 (52.47%) |
| 2014-15 |   65582.3 | 40589.98 (61.89%) | 24992.36 (38.11%) |

The expenditure on Defence Capital acquisition in respect of orders placed  on  Foreign  Vendors  and  Indian  Vendors  during  2015-16  is  not  yet compiled.  Such compilation is done after conclusion of the financial year.

- (c) Capital  procurements  for  the  defence  forces  flow  from  the  defence procurement  planning  process  comprising  15  year  Long  Term  Integrated Perspective  Plan (LTIPP), five  year  Service  Capital Acquisition Plan (SCAP) ……2/-

and Annual Acquisition Plan (AAP).  The LTIPP 2012 to 2027 is currently in vogue.    The  schemes  included  in  the  AAP  are  progressed  as  per  Defence Procurement Procedure (DPP).  The DPP contains timelines for completion of various stages of capital procurement process.

(d) LTIPP covers the technology domains of aeronautics, missiles, armaments,  combat  vehicles  and  engineering  etc.  and  priority  is  given  to support ongoing commitments in projects.  However, details of allocation to DRDO under revenue and capital heads are as follows:-

( ` in crores)

| Year    | Allocation under   | Allocation under   |
|---------|--------------------|--------------------|
|         | Revenue            | Capital            |
| 2015-16 | 6,011.06           | 6,480.15           |
| 2016-17 | 6,728.05           | 6,865.73           |

Allocation  of  funds  in  the  future  would  depend  on  various  factors including the overall state of the economy, requirement of other Services and agencies and availability of resources.

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