Implementing the outlined 27 reform measures in four broad areas – Planning, Defence Budget, Acquisition and Make in India – would strengthen defence preparedness and build a credible defence industrial base.
There is a need to make it clear in the text of Paragraph 72 of DPP 2016 that no vendor other than the Development-cum-Production partner or the nominated Production Agency will be permitted to enter the tendering process at the post prototype development stage.
The acrimonious debate in the public space on the acquisition of Rafale aircraft has been primarily focused on a few issues. The debate does not inform the public about the long, arduous and complex nature of the programme and the joint effort invested in it. The uniqueness of this programme is also not in the public domain. It does not specifically inform the lay person as to the rationale for restricting the numbers to two squadrons, and carries on oblivious of the collateral effect it may have on future acquisition programmes.
While the purpose of the Fall Clause, a price safety mechanism in rate contracts, is indubitable, some issues concerning its applicability and implications, both for the buyer and the seller, merit a review.
India needs a comprehensive space security architecture consisting of a dedicated Space Command for operational aspects as well as an exclusive Defence Space Research Agency to focus on scientific and technical aspects.
A dynamic offset policy has to include a mechanism for identifying the causes for likely delay or default on the part of vendors in discharging their obligation and removing the impediments faced by them
Shortage of funds even to service the committed liabilities raises questions about the financial affordability of the defence modernisation programme and viability of the push for ‘Make-in-India’ in defence.
That the AK-203 would be produced in India with 100 per cent indigenous content in less than three years makes it a win-win deal for the Army and the Make in India initiative, with Ordnance Factory Korwa emerging as the biggest winner.
The CAG report relating to the Indian Air Force has highlighted various anomalies and the unprofessional manner in which defence acquisitions are handled.
The eight per cent hike in the interim defence budget 2019-20 is bound to further intensify the resource problem of the MoD, which is already battling a massive shortage of funds.
Design and Development of Equipment by DRDO, DPSUs and Ordnance Factories
There is a need to make it clear in the text of Paragraph 72 of DPP 2016 that no vendor other than the Development-cum-Production partner or the nominated Production Agency will be permitted to enter the tendering process at the post prototype development stage.