New Delhi: The Indian Army, Navy and Air Force are in the process of signing over 100 contracts under the emergency procurement powers given to them.
These powers were first given to the armed forces after the 2016 Uri attack to help them circumvent the slow bureaucratic system of procurement, and under these, the services can ink contracts worth Rs 300 crore each on their own.
Since 2016, these emergency procurement powers have been renewed multiple times, and have now been extended for an additional six months.
The latest extension has been given because the forces needed more time to complete the process of procurement that was initiated in the financial year 2022-23, sources in the defence and security establishment told ThePrint.
According to sources, these procurements, which will be indigenous with at least 60 per cent localisation, will cater to a large number of niche technology, drones and ammunition.
This comes even as the Union Ministry of Defence (MoD) raced against time to sign a spate of large-scale procurement orders before the lapse of the budget allocation for the 2022-23 financial year.
For example, with just two days left for the end of the financial year on 31 March, the ministry signed contracts worth several thousand crores.
Sceptics, however, point out that such a rush in wrapping up contracts does not make the defence ministry look good as it shows lack of planning.
“It is akin to the Public Works Department rushing to spend the allotted money towards the end of the fiscal lest it is taken back,” a critic told ThePrint.
Sources, however, argued that the procurement process takes time and orders inked towards the end of the fiscal had gone through multiple levels of processes over the last two years before being finalised.
“The March rush is always there, including in the defence ministry, just like other ministries. The capital budget has also increased every year and hence the spending powers increase,” Laxman Kumar Behera, chairperson, Special Centre for National Security Studies at Jawaharlal Nehru University, told ThePrint.
“Also, the fact is that they are not signing many contracts with foreign companies but with Indian companies. It might take time initially because of the various trials, but it is good in the long term,” he added.
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Contracts signed over two days
On 30 March, the ministry signed contracts for the procurement of an improved Akash air defence system and 12 Weapon Locating Radars Swathi (Plains) for the Army at an overall cost of over Rs 9,100 crore.
While the Akash systems are manufactured by Bharat Dynamics Limited, Swathi is manufactured by Bharat Electronics Limited (BEL).
On the same day, the ministry inked a contract with BrahMos Aerospace Private Limited (BAPL) for procurement of Next Generation Maritime Mobile Coastal Batteries (Long range) weapon system and BrahMos missiles at an approximate cost of over Rs 1,700 crore.
It also signed contracts with Indian shipyards — Goa Shipyard (GSL) and Garden Reach Shipbuilders & Engineers (GRSE) — for the acquisition of 11 Next Generation Offshore Patrol Vessels and six Next Generation Missile Vessels at an overall cost of about Rs 19,600 crore.
A contract with BEL for the procurement of 13 Lynx-U2 Fire Control Systems for the Indian Navy at a total cost of over Rs 1,700 was also signed the same day.
On 31 March, the defence ministry signed a contract with Ultra Dimensions Pvt Ltd in Visakhapatnam for the modernisation of Naval Aircraft Yards at Goa and Kochi at a cost of about Rs 470 crore.
(Edited by Nida Fatima Siddiqui)
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