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Defence Ministry and armed forces differ on emergency procurement powers

The EP allows the services to ink contracts worth up to Rs 300 crore each on their own. The ministry wants to use the scheme for sustenance, while the forces want to buy new equipment.

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New Delhi: The defence ministry and the armed forces are in talks for the next set of emergency procurement (EP) powers — which was started as an interim arrangement after the 2016 Uri attack — but differ on what it should be spent on, ThePrint has learnt. 

The EP, under which the services can ink contracts worth up to Rs 300 crore each on their own, lets the forces circumvent the long-winded process of acquiring new systems for modernisation.

Sources in the defence and security establishment told ThePrint that, while the armed forces are seeking emergency procurement powers for capital acquisitions (new equipment), the ministry is of the view that the scheme should cater to sustenance.

“We are in talks. Emergency procurement is much needed and should be continued. The question is what it should be for,” a highly-placed source said.

ThePrint in October reported that with the last tranche of the EP given to the armed forces getting over, the Army is seeking to institutionalise the scheme. 


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How EP has helped forces 

The EP was extended to all three services — Army, Navy and Air Force — four times and they all have gone ahead and acquired multiple offensive and defence systems since then. 

For example, the Army managed to seal 140 procurement deals, spread across four tranches (EP-I to IV) worth Rs 18,000 crore.

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.

The same holds true for the Indian Navy and the Air Force, which has spent funds on procuring drones, missiles and communication systems, among others.  

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. 

What the forces bought under EP

The emergency procurement by the forces include remote-controlled weapon systems, air defence missiles, anti-tank missiles, satellite downlink and recording systems, very small aperture terminal (VSAT), and portable mobile terminals.

For the Army, these also included multi-terrain vehicles, high-mobility reconnaissance vehicles, loitering munitions and drones, among others. 

The initial three tranches saw the Army utilising approximately Rs 6,500 crore, and finalising 68 contracts. In EP-IV alone, which spanned from September 2022 to September 2023, more than 70 schemes worth nearly 11,000 crore were inked. 

(Edited by Richa Mishra)


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