Lok Sabha Question No. 3371 (UNSTARRED), answered on 2015-12-18
Subject: Modernization Projects
Ministry: DEFENCE
Asked by: SANJAY HARIBHAU JADHAV, RANGASWAMY DHRUVANARAYANA, RODMAL NAGAR, RAHUL KASWAN, DALPAT SINGH PARASTE

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## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## UNSTARRED QUESTION NO.3371

TO BE ANSWERED ON THE 18 TH  DECEMBER, 2015

## MODERNIZATION PROJECTS

3371.  SHRI  SANJAY HARIBHAU JADHAV:

SHRI  R. DHRUVA NARAYANA:

SHRI NAGAR RODMAL:

SHRI RAHUL KASWAN:

SHRI DALPAT SINGH PARASTE:

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

- (a) the reasons behind under-utilisation of the capital funds budgeted for modernisation projects to the army, navy and the Defence Research and Development Organisation;
- (b) the reasons behind non-utilisation of funds allocated for prototype development and assistance to small and Medium Enterprises for Technology Development in Defence Sector during the year 2014-15; and
- (c) the steps being taken by the Government to ensure adequate utilisation of such funds in modernisation projects within this financial year?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                   (SHRI MANOHAR PARRIKAR)

j{kk ea=h

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- (a) 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   |
|----------------------|----------------------|----------------------|----------------------|----------------------|------------------------------------|
| Capital Acquisition: | Capital Acquisition: | Capital Acquisition: | Capital Acquisition: | Capital Acquisition: | Capital Acquisition:               |
| 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, force-wise details of the expenditure are as follows:-( ` in crores)

| Service                     | Revised Estimates(RE) For the year 2014-15   | Actual Expenditure          |
|-----------------------------|----------------------------------------------|-----------------------------|
| Capital Acquisition Budget: | Capital Acquisition Budget:                  | Capital Acquisition Budget: |
| 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                   |

Budget allocation of Defence Research and Development Organisation (DRDO)  falls  under  the  category  of  other  than  Capital  Acquisition  Budget. There was no under-utilisation of the funds in respect of Defence Research and  Development  Organisation  (DRDO).    Details  of  the  expenditure  is  as follows:-

(

## ` in crores)

| Service                                | Revised Estimates(RE) for the year 2014-15   | Actual Expenditure                     |
|----------------------------------------|----------------------------------------------|----------------------------------------|
| Other than Capital Acquisition Budget: | Other than Capital Acquisition Budget:       | Other than Capital Acquisition Budget: |
| DRDO                                   | 7147.52                                      | 7482.52                                |

- (b) In the Union Budget of 2014-15, it was announced to set aside an initial sum of ` 100 crore towards setting up Technology Development Fund (TDF). The  Cabinet  Note  along  with  the  Draft  TDF  Scheme  was  prepared  by Department of Defence Production after carrying out inter-ministerial consultations.

Draft  Cabinet  Note  was  discussed  in  the  meeting  of  Committee  of Secretaries (CoS)  held  under  the  Chairmanship  of  Cabinet  Secretary  on

......3/-

30 th September, 2015.  During the meeting, it was decided that Department of Defence Production and Defence Research Development Organization (DRDO)  will  consider  empowering  DRDO  to  sanction  research  projects  to private sector entities, particularly Small and Medium Enterprises (SMEs), on the same lines as is being done by DRDO in respect of Government agencies. The draft TDF scheme at present, is under examination at DRDO in view of the decision of Committee of Secretaries. (c) Utilization  of  Defence  budget  is  monitored  by  means  of  the  financial compilation  prepared  by  Controller  General  of  Defence  Accounts  (CGDA) which  captures  the  details  of  defence  expenditure  incurred  all  over  the country.    The  progress  of  expenditure  is  reviewed  periodically  at  various levels in the Ministry and Service Headquarters to identify any areas where expenditure may be lagging.  This helps to identify and resolve any problems in implementation of planned activities.

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