Mr Amit Cowshish is a former Financial Advisor (Acquisition), Ministry of Defence and former Distinguished Fellow, Manohar Parrikar Institute for Defence Studies and Analyses, New Delhi. Click here for Detailed Profile
The benchmark price could be different from the initial cost estimate because, in many cases, the negotiation stage is reached several years after in-principle approval.
The Thirty-first Report of the Standing Committee on Defence (SCoD)1 was submitted to Parliament on 9 March 2017. The report examined the capital outlay for the defence services for the year 2017–18, procurement policy of the Ministry of Defence (MoD) and defence planning. A glance through the report showed that, apart from a rather sketchy analysis of these issues, the committee has only ended up making hackneyed observations and recommendations that have been made repeatedly in the past without much success.
MoD can leapfrog many of the 11 stages in the procurement programme by taking the measures outlined to fulfil the urgent requirements of the Air Force.
Adhering to the RTI Act in letter and spirit will lead to more responsible decision-making, greater accountability, and more credibility to the actions of the MoD.
Achieving the intended outcomes of the 13th five-year defence plan is critically dependent on the ability of the Ministry of Finance to increase the defence budget by at least 100 per cent from next year onward.
It would be a bold gesture if MoD decides to categorise all development projects under Make-II. This will send a strong message to the industry and to the nation about MoD’s earnestness to promote private sector participation.
Indian industry, which is the intended beneficiary of this preference policy, needs to play a proactive role in facilitating the smooth implementation of the order.
Why the objective sought to be achieved through the strategic partnership scheme could not be attained by resorting to an existing provision in DPP 2016?
To achieve strategically critical self-reliance in defence production, there needs to be a greater focus on co-development, co-production projects with important partners like Israel, with an essential emphasis on exports to third countries. For the full realisation of the potential of the India–Israel defence partnership, India on its part needs to strengthen elements of its procurement processes—including the proper implementation of laid down policies.
Problems of Costing in Defence Procurements
The benchmark price could be different from the initial cost estimate because, in many cases, the negotiation stage is reached several years after in-principle approval.