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Contracts worth Rs 18,000 cr inked, Army seeks to ‘institutionalise’ emergency procurement powers

EP or emergency procurement power was extended to Army, Navy and Air Force. In case of Army, EP has been instrumental in capital procurement through 140 schemes across 4 tranches.

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New Delhi: With the last tranche of the Emergency Procurement power (EP), given to the armed forces as an interim arrangement after the 2016 Uri attacks, getting over last week, the Army is seeking to institutionalise the scheme that helps it circumvent the long-drawn procurement process, ThePrint has learnt.

The EP was extended to all the three Services Army, Navy and Air Force. 

In the case of the Army, EP has been instrumental in the capital procurement through approximately 140 schemes, spread across four tranches (EP-I to IV), sources in the defence and security establishment said. 

It helped the Army fill up critical gaps in multiple fields including fire-power, drone warfare, mobility, communication and personal protection of soldiers, among others, added sources.

As reported by ThePrint, the EP was first given to the armed forces after the 2016 Uri attack to help them circumvent the slow bureaucratic system of procurement, and under it, the services can ink contracts worth up to Rs 300 crore each on their own.

Following tension along the borders with China in 2020, the provisions were reintroduced.

The primary objective of the EP was to plug critical operational gaps, especially along the northern borders. 

Major upgrades facilitated through the EP mechanism encompassed remote-controlled weapon systems, air defence missiles, anti-tank missiles, satellite downlink & recording systems, very small aperture terminal (VSAT), and portable mobile terminals.

These also included secure Army mobile systems, all-terrain vehicles, high-mobility reconnaissance vehicles, radars, loitering munitions, drones, counter drone systems, high-endurance UAVs, ballistic helmets, navigation systems, and simulation systems.

The initial three tranches saw the Army utilising approximately Rs 6,500 crore, and finalising 68 contracts. 

Sources said this included over Rs 1,800 crore spent on modern weapons, equipment, and ammunition, besides almost an almost equivalent amount used for communication-related equipment. 

About Rs 900 crore was dedicated to 10 contracts for surveillance equipment, while close to Rs 1,500 crore was allocated for 14 projects on drones and counter drone systems, and nearly Rs 1,000 crore for enhancing mobility in various terrain and engineering equipment, it is learnt.

In EP-IV alone, which spanned from September 2022 to September 2023, more than 70 schemes worth nearly 11,000 crore were inked.

“While the EP initiative has been pivotal in addressing immediate operational requirements, it’s evident that such a mechanism needs to be institutionalised for the long term,” said one source.


Also read: After Navy, Air Force unveils new ensign with IAF crest


EP-IV expenses

Breaking down the EP-IV expenditures, sources said about 6-7 schemes for weapon systems consumed Rs 1,300 crore, while another Rs 1,300 crore was used across 7-8 projects for protective equipment.

Additionally, 9-10 schemes were allocated almost Rs 1,500 crore for intelligence, reconnaissance, and surveillance, while Rs 2,000 crore was reserved for about 10 projects focusing on drones and counter drones.

Communication-related equipment comprised about a dozen plus projects, absorbing approximately Rs 1,800 crore, sources said, adding that a significant amount of Rs 3,100 crore was used for about 25 projects on survivability and training.

Fifty percent of contracts in the first three tranches were awarded to the domestic industry.

EP-IV has concluded more than 70 schemes, amounting to close to Rs 11,000 crore, all of which are contracted with Indian vendors, it is learnt.

(Edited by Smriti Sinha)


Also read: Territorial Army inducts Mandarin experts, in ‘advanced stage’ to rope in cyber experts


 

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