Lok Sabha Question No. 2270 (UNSTARRED), answered on 2015-12-11
Subject: Defence Procurement
Ministry: DEFENCE
Asked by: BIDYUT BARAN MAHATO, GAJANAN CHANDRAKANT KIRTIKAR, NARANBHAI KACHHADIA, SATISH CHANDRA DUBEY, G. HARI, KIRTI VARDHAN SINGH, ASHOK SHANKARRAO CHAVAN, KUNWAR HARIBANSH SINGH, SUDHEER GUPTA, SUNIL BALIRAM GAIKWAD

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

## UNSTARRED QUESTION NO.2270

## TO BE ANSWERED ON THE 11 TH  DECEMBER, 2015

## DEFENCE PROCUREMENT

2270. SHRI  BIDYUT BARAN MAHATO:

SHRI GAJANAN KIRTIKAR:

SHRI NARANBHAI KACHHADIYA:

SHRI SATISH CHANDRA DUBEY:

SHRI G. HARI:

SHRI KIRTI VARDHAN SINGH:

SHRI ASHOK SHANKARRAO CHAVAN:

KUNWAR HARIBANSH SINGH:

SHRI SUDHEER GUPTA:

DR. SUNIL BALIRAM GAIKWAD:

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

- (a)  whether    the  Defence  Acquisition  Council  had  approved  procurement  of  bullet proof jackets for defence personnel in 2009 to meet the shortage;
- (b)  if so, the number of jackets ordered and procured so far along with the reasons for the delay in procurement, if any;
- (c)  whether  the  Government  has  stalled  some  of  its  defence  procurement  proposals ranging from weapons to bullet proof jackets;
- (d)  if  so,  the  details  thereof  and  the  reasons  therefor  along  with  the  details  of  the budget allocated for defence projects under capital acquisitions during each of the last three years and the current year; and
- (e)  whether  the  Government  proposes  to  bring  changes  in  the  present  policy  for defence acquisition and if so, the details thereof along with the steps taken to fast track procurement  and  provide  bullet  proof  jackets  of  international  standard  to  defence personnel?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(RAO INDERJIT SINGH)

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(a) to (e):   The Defence Acquisition Council (DAC) had accorded Acceptance of Necessity (AoN) in October, 2009 for Capital procurement

:  2  :

of Bullet Proof Jackets (BPJs).  The Request for Proposal (RFP) for the Capital procurement of BPJs was retracted in October, 2015 as the BPJs fielded by vendors failed in the trials.  Government has taken action to procure 50,000 bullet proof jackets through revenue route.  Approval has also been given to procure bullet proof jackets to meet urgent operational requirements through  Army Commanders Special Financial Powers  (ACSFP).    The  Government  constantly  reviews  the  security scenario and accordingly, decides to induct appropriate defence equipment to keep the armed forces in           a state of readiness.  The details  of  Capital  Acquisition  Budget  of  the  Ministry  of  Defence  and Actuals during the last 3 years and current year is as follows:-

| Year    |      BE | RE       |
|---------|---------|----------|
| 2012-13 | 66032.2 | 57395.46 |
| 2013-14 | 73444.6 | 66406.41 |
| 2014-15 | 75148   | 66151.73 |
| 2015-16 | 22054.5 | --       |

The  Capital  procurement  of  Defence  equipment  is  done  as  per  the provisions  of  Defence  Procurement  Procedure  (DPP)  which  contains timelines for various stages of procurement. Some of the steps taken by the Government to fast-track the process of defence procurement, inter alia,  include  finalization  of  Service  Qualitative  Requirements  (SQRs) before  seeking  the  AoN;  reduction  of  validity  of  AoN  to  one  year; delegation  of  Financial  Powers;  decision  in  a  collegiate  manner  and imposition of Liquidated Damages  (LDs)  on  vendors  for  delay  in execution of contracts.

The  DPP  provides  for  review  of  the  procurement  procedure  after every two years.  Amendments are also made in DPP from time to time as required.  The Government appointed a Committee of Experts in May, 2015  for  amendments  to  DPP,  2013  including  Formulation  of  Policy Framework to facilitate  'Make  in  India'  in  Defence  Manufacturing.    The Committee has already submitted its report to the Government.

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