Friday, 7 April 2017

Defence Projects

The Defence Procurement Procedure (DPP)-2016 has provision for capital acquisition of defence equipment under categories of ‘Buy (Indian-IDDM)’, ‘Buy (Indian)’, ‘Buy & Make (Indian)’, ‘Make’, ‘Buy & Make’ and ‘Buy (Global)’. Under ‘Buy (Indian-IDDM)’, ‘Buy(Indian)’, ‘Buy & Make (Indian)’ and ‘Make’ categories, the contracts are signed with Indian vendors, and for ‘Buy & Make and ‘Buy (Global)’ categories, the contracts are signed with foreign vendors. During the last two years and the current year till Dec 2016, the Government has signed 141 contracts with total value of approx. Rs 2,00,011 crore for capital procurement of defence equipment, out of which, 90 contracts worth approx. Rs 83,345 crore have been signed with Indian vendors under ‘Buy (Indian-IDDM)’, ‘Buy (Indian)', ‘Buy & Make (Indian)’ and ‘Make’ categories, while 51 contracts worth approx. Rs l,l6,666 crore have been signed with foreign vendors under ‘Buy (Global)’ and ‘Buy & Make (Global)’ categories of capital acquisition. 

The defence equipment for which contracts have been signed inter-alia include rockets, radars, artillery guns, helicopters, aircraft, missiles, ammunition and simulators. The timelines for operationalization of a contract are governed by the terms and conditions of the contract. The time taken to undertake capital procurement of defence equipment depends on the nature, size and complexity of the equipment. 

As the projects are executed by the respective firms, post award of the contract, the data related to the employment generation in the projects is not maintained in the Department. 

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shrimati Hema Malini in Lok Sabha today. 


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