Capital Acquisition of defence equipment is undertaken as a continuous activity in accordance with the Defence Procurement Procedure (DPP) to keep the Armed Forces in a state of preparedness to meet the entire spectrum of security challenges. DPP-2016, which was promulgated with effect from 1st April 2016, contains provisions for reducing the timelines for completion of procurement activities. All efforts are made to optimally use budgeted funds for meeting committed liabilities relating to already concluded capital acquisition contracts and for new schemes contracted during the year. The capital Budget and Expenditure for Armed Forces for the last three years are given below:
(Rs. in crore)
The proposal for a non-lapsable Defence Modernisation Fund has not been agreed to by Ministry of Finance.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shrimati K. Maragatham in Lok Sabha today.