Defence projects worth Rs. 21,000 crore cleared

Discussion in 'Defence & Strategic Issues' started by ladder, Jul 19, 2014.

  1. ladder

    ladder Senior Member Senior Member

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    defence-projects-worth-rs-21000-crore-cleared/article6229070.ece

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    Salient points

    1. Clearance for Avro replacement project, only for private sector. ( Buy and male category) (56 aircrafts)

    2. Clearance for Rs. 9000 crore for 5 fleet support ship for Navy.

    3. Procurement of 32 Dhruv ALH. 16 each for Navy and Coast Guard.

    4. Five FPV from GRSE for Coast Guard.

    5. 5 OPV from Goa Shipyard for Coast Guard.

    6 Procurement of SAR system/equipment worth 900 crore ( all 3 services)
     
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  3. Pulkit

    Pulkit Satyameva Jayate "Truth Alone Triumphs" Senior Member

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    Jaitley Clears Rs 34,260 Crore Military Deals at One Stroke | idrw.org



    Two months after Narendra Modi took charge as Prime Minister, his pre-poll promise of quicker decisions on arms purchases was put into action, with Finance-cum-Defence Minister Arun Jaitley on Saturday chairing his first military acquisition meeting that cleared procurement, cumulatively worth `34,260 crore, at one go.And the Defence Acquisition Council (DAC) gave the go-ahead for purchase and tendering of military ware for all the three services, of which a majority were warships meant for the Navy and the Coast Guard, according to Ministry of Defence (MoD) sources.
    The meeting, held in the middle of the Budget session, was attended by Minister of State for Defence Rao Inderjit Singh, Army Chief Bikram Singh, IAF Chief Arup Raha, Navy Chief Robin Dhowan, Defence Secretary R K Mathur and other Department Secretaries of the MoD. According to sources, the DAC cleared a `15,000-crore tender for the purchase of 56 transport aircraft, to replace the obsolete Avro planes of the Air Force to be a ‘private sector only’ venture.
    The Avro replacement tender was issued in May 2013, but was put on hold by the then Defence Minister A K Antony-led DAC in December, following protests from his ministerial colleagues for keeping the public sector Hindustan Aeronautics Limited (HAL) out of the bidding process. The argument against the ‘private sector only’ clause was that none of the Indian private sector firms involved in aerospace had adequate manufacturing facilities for an Avro-sized plane. The small requirement for such planes made the huge investments on building a production unit unviable, in terms of profitability.
    Under the tender clause, an original equipment manufacturer of foreign origin should bid for the contract after tying up with an Indian Production Agency, which should be an Indian private sector company. The first 16 planes would be manufactured abroad by the winning foreign vendor, but it has to transfer technology to its Indian partner for manufacturing the remaining 40 planes. Jaitley-led DAC also decided to push through the Naval requirement for five fleet support ships at a cost of `9,000 crore, apart from patrol vessels and fast patrol vessels, numbering five each, for the Coast Guard, at a cost of `2,000 crore and `360 crore respectively, sources said. Apart from these, the Navy and the Coast Guard’s proposal to buy 32 Advanced Light Helicopters, Dhruv, from HAL, worth `7,000 crore, got the DAC nod.
    The requirement for Army, Navy and IAF, for search and rescue equipment worth `900 crore were also cleared. Jaitley had, in the general budget announced earlier this month, allocated `94,588 crore for defence capital expenditure.
     
  4. power_monger

    power_monger Regular Member

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    7000 crores for 32 Dhruv is bit high which makes it 250 crore per piece..Is there any reason for it to be so high?
     
  5. Hari Sud

    Hari Sud Senior Member Senior Member

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    These approvals are of little values unless the whole system of procurements is modified or buried. All these approvals in principal would be lost in bureaucratic mess, if the process in not modified.

    I would also like to kill those institutional interests which are working against each other that Modi Government is better to bury them in the deepest grave.

    For example the GQSR is worst culprit. It has become institutionalized. It is cumbersome. It is open for corruption. Sometimes specs are skewed to get a specific hardware. Sometimes specs are for pie in the sky item

    Bury the arms merchants in the next deepest grave after you have buried the GSQR. They are source of corruption and media management to favor products which they are representing.

    Do not forget to bury the multiple and often contradictory committee system of decision making. Various committees operate to make their presence felt, hence delays. Retain a few committed and kill the others.
     
  6. Senior_Miguel

    Senior_Miguel Regular Member

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    If you bury the arms merchants, you would have to go for a Government-to-Government deals which in some cases could be even harder, since private companies look only for revenues and Gov's have to think about political ussues concerning particular deals.

    And if you want to bury most of the committeess, it would leave the ones which are spared with an amount of work, they can not do in time and proper manner, hence you will still struggle with delays.
     
  7. Kunal Biswas

    Kunal Biswas Member of the Year 2011 Moderator

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    In last few decades, They did more damage than any-other including assassinations of senior MOD and scientific personals ..

    Malfunctioning arms are in mass and over it needless equipment being purchased with little budget, @Hari Sud is correct in many ways in his assessment ..

     
    Last edited by a moderator: May 10, 2015
  8. ladder

    ladder Senior Member Senior Member

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    RS. 7000 crores is the cost of 32 Dhruvs + Spares and support for those 32 and earlier purchased Dhruvs for IN and CGS.
     
  9. right wing

    right wing Regular Member

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    may be also incrementing hal production capacity..plus some r and d for the foldable blades,newer versions...32 helicopters cant cost 7000crores ..in that case they will be costlier than apaches..
     
    Senior_Miguel likes this.
  10. Ripples

    Ripples Regular Member

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    There are certain things that I have completely failed to understand when it comes to the defence budget and the formation of a modern armed force in India. I am trying to put my questions in brief and to the point and requesting the knowledgeable members of this forum to enlighten me.
    1. The defence budget of India has been consistently out shooting the Pakistani counterpart by 4 times for many years now. Even after considering a twice larger force that India have compared to Pakistan, Indian armed force should have been in a much better state than it appear to be in. Where does the money go ? Where as China with twice the size of Indian forces but with 4 times larges budget is showing for every penny.
    2. When we look at the list of equipment used by Indian armed forces (manly by Navy and army ) we see a major share of indigenous or reverse engineered equipments!!! ( yes I know how am I sounding but as long as wiki is a not fake source and I am not blind I don't see how can I be called wrong ) . Yet Indian forces are always under prepared even vis a vis Pakistan(forget China) ( This is not my fantasy since I am just reiterating the version of army and airforce chiefs ). How can someone justify the "severe lack of ammunition" in Indian armed forces all the time? Is it a joke ?
     
    Last edited: Jul 28, 2014

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