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Defence Budget 2017-18

Discussion in 'Indian Defence Industry' started by Agent_47, Feb 1, 2017.

  1. Abingdonboy

    Abingdonboy Major Technical Analyst

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    Didn't know where to post this:

    http://www.dailymail.co.uk/indiahome/in ... ister.html

    In a major step towards speeding up defence deals and urgently meeting critical requirements of the armed forces, PM Narendra Modi has enhanced defence minister Manohar Parrikar's financial muscle by four times, allowing him to buy weapon systems and platforms worth Rs 2,000 crore at his own discretion.

    This is a huge jump from the existing fund of Rs 500 crore that was given to the defence minister under the UPA government.

    'At a recent meeting of the Cabinet Committee on Security, the Prime Minister cleared the proposal to increase the financial power of the defence minister from the existing Rs 500 crore to Rs 2,000 crore,' senior government sources told Mail Today here.

    The decision is made to fast-track the speed of weapon acquisition

    The decision by the Prime Minister is going to significantly fast-track the speed of weapon acquisition as many defence deals can be completed at the level of the defence ministry and there would no need to take them to the Cabinet Committee on Security, the sources said.

    Till now, all the defence deals worth over Rs 1,000 crore had to be cleared at the level of the CCS which is headed by the Prime Minister and includes the unions ministers for defence, home, finance and external affairs.

    The Prime minister also cleared many other proposals related to the financial decision made by his ministers as he has given the defence minister and the finance minister the power to jointly clear defence acquisitions worth up to Rs 3,000 crores.

    This would mean that at least 60-70 per cent of the deals related to the defence sector would be cleared at the ministerial level, the sources said.

    PM Modi has given Manohar Parrikar more discretion over defence acquisitions

    So far, the two ministers could jointly clear deals worth Rs 1,000 crore but this has now been enhanced by three times, they said.

    With the new arrangements in place, the Cabinet Committee on Security will only take up acquisition cases which are worth over Rs 3,000 crore, the sources said.

    The new financial rules will help the defence ministry give contracts for several weapon systems, especially for tank ammunition and small arms requirements, such as rifles and small range missiles, and also help cut down the time taken for getting clearance from the Cabinet Committee on Security.

    'This is going to save at least a few months in the long-lasting defence acquisition process,' the sources said.


    Could speed up procurements by quite a bit


    @Agent_47 @Grevion @GuardianRED @PARIKRAMA @Gessler @Ankit Kumar 001 @Levina @nair @Darth Marr @MilSpec @Robinhood Pandey @AbRaj
     
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  2. GuardianRED

    GuardianRED Lieutenant FULL MEMBER

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    Excellent Move - SAD that they thought of it NOW.... Also its seems like something BIG is about to happened !

    (Also Hope the opposition doesn't make this a case for SCAM)
     
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  3. Abingdonboy

    Abingdonboy Major Technical Analyst

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    Nothing BIG is going to happen, all these steps are India playing catch up for the lost decade(s) under CONgress.
     
  4. GuardianRED

    GuardianRED Lieutenant FULL MEMBER

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    BIG as in due to the sudden orders for Ammunition etc ... ie a low intensity Conflict
     
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  5. Abingdonboy

    Abingdonboy Major Technical Analyst

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    I knew what you were saying bro but I don't think that is on the cards, under the NDA defence spending has actually reduced as a proportion of GDP. The GoI is ,rightly, investing in the economy- that will secure India's interests far more than a similar investment into the military..

    India cannot afford any kind of conflict before 2030 IMHO.
     
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  6. bharathp

    bharathp Developers Guild Developers -IT and R&D

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    I hope they have put some checks and balances in place so that later defense ministers from the congress or coalition govts will not have a free hand to buy a 1$ item at 1000$.
    Also, the decisions need to be decentralized to certain extent in terms of ammunition and spares. Meaning:
    there should be a mandate to have 30% of spares or X months of ammunition at any time - and if that level falls, there should be an automated process to order and replenish the stock without having to go through lengthy processed.
     
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  7. Grevion

    Grevion Think Tank TROLL ELITE MEMBER

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    So the DM and the FM are free from any accountability for upto the spendings of Rs. 3000 crores. Modi really trusts his ministers.

    Now the MOD will be able to fill up the war chest easily. Also the purchase of bullet proof vests and ballistic helmets should speed up.:D
     
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  8. Abingdonboy

    Abingdonboy Major Technical Analyst

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    There will be accountability obviously through auditing, the CAG will still scruntinise every ruppee spent.
     
  9. Abingdonboy

    Abingdonboy Major Technical Analyst

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    The issue will still remain that the IA is unable to come up with realistic and pragmatic staff requirements, they keep moving the goal posts, asking for next generation equipment and then scrapping open tenders out of the blue whilst the majority of their force runs around in circa 1914 ear gear.

    The IA already had discretionary powers that could have cleared the helmet/plate carriers years back but it was their inability to select a product they found suitable that lead to this delay.

    Unless the IA's procurement system is massively overhauled there will remain a serious issue in the personal equipment issued to soldiers, the new powers given to the DM and DM/FM will only be helpful for the big ticket capital procurements.
     
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  10. Grevion

    Grevion Think Tank TROLL ELITE MEMBER

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    CAG only audits the expenditure and revenues of the govt. There is no system in place to check the ongoing transactions by the govt. Now it should be ok if the power is with MP or AJ but supposedly if the next DM is someone from the collation then we can only imagine what will happen next.
     
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  11. Sancho

    Sancho Lt. Colonel Technical Analyst

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  12. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

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  13. Sancho

    Sancho Lt. Colonel Technical Analyst

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    Which one GDP? Can you add numbers for comparison? Would be nice to have a thread to keep comparing defence budgets.
     
  14. Anish

    Anish Lt. Colonel ELITE MEMBER

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    I think all 5 years are wrong

    @Sancho GDP figure is wrong
     
  15. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

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    GDP numbers jumped from $1.7 tr to $2.5 tr in a year.
     
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