Defence budget 2021-2022

[sorcerer]

DAC approves proposals worth Rs 13,700 crore



Defence Acquisition Council (DAC), under the chairmanship of Raksha Mantri Shri Rajnath Singh, has approved capital acquisition proposals of various weapons/platforms/equipment/
systems required by the Indian Army, Indian Navy and Indian Air Force, in New Delhi on February 23, 2021. Three Acceptance of Necessities (AoNs) for an overall cost of Rs 13,700 crore were accorded. All these AoNs are in the highest priority category of Defence Acquisition viz 'Buy [Indian-IDDM (Indigenously Designed, Developed and Manufactured)].


All these acquisition proposals will be indigenously designed, developed and manufactured. These will include inter-alia platforms and systems designed and developed by Defence Research and Development Organisation (DRDO).


To meet the Atmanirbhar Bharat goals of the Government on time-bound defence procurement process and faster decision making and to systematically work towards reducing the time taken for capital acquisition, the DAC also approved that all capital acquisition contracts (delegated and non-delegated) other than D&D cases shall be concluded in two years. The Ministry, in consultation with the Services and all stakeholders, will come up with detailed plan of action for achieving the same.

 

[here2where]

Defence Budget: Military gets 28% less budget than it projected

Defence Budget: Military gets 28% less budget than it projected

Money requested for equipment modernisation slashed by 38 per cent

www.business-standard.com

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and not giving what mil asked for was the norm for the last 4-5 budgets...

 

[Okabe Rintarou]

Defence Budget: Military gets 28% less budget than it projected

Defence Budget: Military gets 28% less budget than it projected

Money requested for equipment modernisation slashed by 38 per cent

www.business-standard.com

.

and not giving what mil asked for was the norm for the last 4-5 budgets...

The article is behind a paywall even though I don't visit this site (meaning I couldn't have used up my free article limit). Sounds like a trashy website with trashy articles clickbaiting with contrarian headlines but then demanding I pay upfront for their nonsense article.

Defence CAPEX grew by 18% to $18.5 Billion this year. That is in addition to the $2.8 Billion spent in emergency purchases since last year despite a global pandemic and recession. CAPEX for Air Force grew by 23% and for the Navy by an astounding 25%.

By the end of this decade, we will see this CAPEX grow to around $67 Billion annual figure (conservative estimate). Compare that to the US Military's CAPEX of $130 Billion and consider the fact that our Naval, Air and Space Forces are a fraction that of the US. That should go to show that Indian military will not lack in funds in the coming years if we put economic growth above short term military budget splurges and it becomes clear why looking at Defence Budget solely from the prism of the military's projected requirements is a poor strategy.

Add to that the fact that we'll be spending around $60 Billion of those $67 Billion annually on purchasing weapons from Indian industry. In addition, if we are exporting weapons worth even $5 Billion annually (GoI's target for 2025), the total money spent on Indian weapons annually will be $65 Billion. That money, $65,000,000,000 will pay salaries of Indian Industry employees, who will use that money to buy goods and services in India, thereby driving up consumption in India and adding another $25 Billion to the GDP. The Indian businesses who profit from the additional $25 Billion consumption by Indian Defence Industry employees will further buy goods and services further adding another $10 Billion to Indian GDP. So net effect of the rise of Indian Military Industrial Complex will be an addition of $100 Billion (60+5+25+10) to India's GDP and more bang for the buck for India's military procurement budget. And that is just by the end of this decade. From there, it will increase even further. If the proposed Rashtriya Suraksha Naivedyam Kosh gets set up, this amount could go up further.

 

[Okabe Rintarou]

So net effect of the rise of Indian Military Industrial Complex will be an addition of $100 Billion (60+5+25+10) to India's GDP and more bang for the buck for India's military procurement budget.

Now consider this. Money spent on Indian weapons, instead of imports will have a $100 Billion positive impact on Indian GDP, then that would create a self-supporting lobby for Indian weapons in India. All the dalals lobbying for Imported weapons would not be able to stand up to this Indian MIC lobby. This is the critical mass, which if reached once, will ensure that no amount of Congress or Libearl Coalition rule will be able to hamper Indian Weapons programs. To ensure that we reach this critical mass, 2024 Elections are the only major hurdle. Other minor hurdles are already taken care off: Support of forces is secured by Officers like Gen Rawat and ACM Bhadauria; Quality of manufacture will be ensured by Private Corporations and meritocracy; Amount of money spent on Indigenous vs imported weapons will be ensured by Rajnath Singh ji's kadi ninda, import ban lists and CAPEX bifurcation under newly created Swadeshi and Videshi heads. All we need now is that this political party continues till 2029 at least.

 

[sorcerer]

Indigenous Aircraft and Submarines


Posted On: 17 MAR 2021 2:45PM by PIB Delhi



Indian Navy has placed orders for following indigenous aircraft and submarines:-


(1) Aircraft by Hindustan Aeronautics Ltd (HAL)


(i) 12 Dorniers


(ii) 16 Advanced Light Helicopters (ALH MK III)


(iii) 8 Chetak helicopters


(2) Submarines: Six Scorpene class submarines are being built by Mazagon Dock and Shipbuilders Limited (MDL) under Project-75.


There are some delays in the projects. Reasons for delays are as follows:-


(1) Aircraft: The deliveries have been delayed due to the supply chain disruptions caused by COVID-19 pandemic.


(2) Submarines: The delays have been caused due to the various defects observed during the trials of the submarines, requirement of certain modifications and delays in the supply of items required for construction by the collaborator / ToT provider - Naval Group, France.


The outbreak of Covid-19 pandemic has further impacted the delivery schedule of the submarines.


In the interest of national security, the details cannot be divulged. However, the existing submarine fleet is being maintained combat worthy through life extension & modernization/upgradation.


This information was tabled in a written reply by Raksha Rajya Mantri Shri Shripad Naik to a question asked by Shri Ravindra Kushwaha and others in Lok Sabha today.

 

[sorcerer]

Raksha Mantri Shri Rajnath Singh approves Rs 498.8 crore budgetary support for Defence innovation through iDEX - DIO


Posted On: 13 JUN 2021 10:39AM by PIB Delhi



Raksha Mantri Shri Rajnath Singh has approved the budgetary support of Rs 498.8 crore to Innovations for Defence Excellence (iDEX) - Defence Innovation Organisation (DIO) for the next five years. The budgetary support will provide a big boost to the ‘Aatmanirbhar Bharat Abhiyan’ of Prime Minister Shri Narendra Modi as iDEX–DIO has the primary objective of self-reliance and indigenisation in defence & aerospace sector of the country.


The creation of the iDEX framework and establishment of the DIO by the Department of Defence Production (DDP) is aimed at creating an ecosystem to foster innovation and technology development in defence and aerospace by engaging Industries including MSMEs, start-ups, individual innovators, R&D institutes & academia and provide them grants/funding and other support to carry out R&D development which has good potential for future adoption for Indian defence and aerospace needs.


The scheme, with budgetary support of Rs 498.8 crore for the next five years, is aimed at providing financial support to nearly 300 start-ups/MSMEs/individual innovators and 20 partner incubators under the DIO framework. It will support increased awareness in the Indian innovation ecosystem about defence needs and, conversely, in the Indian Defence establishment about the potential of the Indian innovation eco-system to deliver innovative solutions to meet their needs.


The DIO, with its team, will enable the creation of channels for innovators to engage and interact with the Indian Defence production industry. The long-term effect to be realised by the group is the establishment of a culture, where enlisting the effort of innovators by the Indian military is commonplace and frequent.


The scheme aims to facilitate rapid development of new, indigenised and innovative technologies for the Indian defence and aerospace sector to meet their needs in shorter timelines; create a culture of engagement with innovative start-ups to encourage co-creation for defence and aerospace; empower a culture of technology co-creation and co-innovation within the defence and aerospace sector and boost innovation among the start-ups and encourage them to be a part of the ecosystem.


The DDP will release funds to DIO for setting up and managing the iDEX network in the form of Partner Incubators (PIs); communicating with innovators/start-ups/technology centres of MSMEs through the PIs including the PIs of Department of Science and Technology regarding defence and aerospace needs; organising various challenges/hackathons to shortlist potential technologies and entities and evaluating technologies and products developed by innovators/start-ups in terms of their utility and impact on the defence and aerospace setup. The other activities include enabling and funding pilots using innovation funds dedicated to the purpose; interfacing with the Armed Forces top brass about key innovative technologies and encouraging their adoption into the defence establishment with suitable assistance; facilitating scale-up, indigenisation and integration in manufacturing facilities for successfully piloted technologies and organising outreach activities all across the country.

 

[Narasimh]

AM Nambiar hit the nail on the head. Our budget needs to be managed efficiently