Antony has asked the army to streamline its acquisition process and fix accountability in case of procurement delays.
Defence minister AK Antony on Monday met the three service chiefs to sort out problems plaguing the forces.
While he asked the army to streamline its acquisition process to fix accountability in case of delays in procurement, he approved a plan for development of capabilities and introduced a major change in offset policy by including transfer-of-technology.
Monday’s meeting to review proposals related to capital acquisition in the service came in the backdrop of General VK Singh’s letter to the prime minister highlighting the lack of defence preparedness. Antony met the general for the first time since the letter became public and subsequently the Tatra trucks scam came to the fore.
In an hour-long meeting with Gen Singh and other senior officers from the army and ministry officials, Antony appeared in favour of giving more financial power to service headquarters if that would hasten the acquisition of equipment and weapon systems. “He asked the ministry and the army to examine the possibility of compressing the time taken for technical evaluations and trials,” Sitanshu Kar, defence ministry spokesperson, said.
Later at the defence acquisition council (DAC) meeting, chaired by Antony, a long-term integration purchase plan (LTIPP) and the 12th defence plans (for the year 2012-2017) were cleared. The LTIPP lists long-term requirements of the armed forces and envisages private sector participation.
Apart from Gen Singh, IAF chief NAK Browne and navy chief Nirmal Verma were present at the meeting. The 12th Defence Plan, approved by the DAC, charts the roadmap for development of capabilites of the three forces in tune with their future operational requirements and the role, which the country will play within the region and outside.
The DAC also approved revised defence offset guidelines where it recognised transfer of technology for discharge of offset obligations, meeting a key demand of foreign companies. The “offset policy” mandates that foreign manufacturers have to source at least 30% of their products and services through Indian or joint venture companies registered and manufacturing in India for any contract worth more than Rs300 crore.
At present, the vice-chiefs of the army, the airforce and the navy can approve defence contracts worth Rs50 crore or less. The defence secretary can approve deals worth Rs75 crore; the defence minister deals worth Rs500 crore; the ministry, along with the finance ministry, deals worth Rs1,000 crore; and only the cabinet committee on security can approve deals over Rs1,000 crore.
Defence secretary Sashi Kant Sharma and director general (acquisition) Vivek Rae were among the others present at the meeting.
Another meeting will be held next month to review the progress in view of the decision/s taken in Monday’s meeting.
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