Defence Procurement

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  • Krishnakanth asked: How do the terror groups fund themselves? How do they procure the ammunition & technology required?

    Vivek Chadha replies: India faces different types of internal security threats. The groups involved raise funds from different sources ranging from state sponsorship, extortion and taxation, crime and smuggling, amongst others.

    The militancy in J&K presents a classical case of state-sponsored and financed terrorism. The ISI employs state and private resources like drug money, donations and charities, as well as the globalised network for raising and moving funds from the Gulf countries. This support is further augmented by funding from the Kashmiri diaspora and NGOs. These are thereafter used as part of Pakistan’s proxy war against India, thereby bringing various components of finding together.

    Most insurgencies of the Northeast receive funding from extortion and taxation, which is a local source. This is supplemented by trafficking of drugs, weapons and counterfeit currency. The insurgencies in the region have limited state-sponsored funding from outside and raising finances through private sources is the norm.

    The case of CPI (Maoist) led insurgency is similar, with local financial resources providing bulk of its funding. There is as yet no substantive evidence of state sponsorship of the insurgency, nor have the insurgents profited substantially from the globalised financial environment.

    However, in the case of Indian Mujahideen (IM), state sponsorship in the form of financial support from Pakistan, privatisation through criminal activities to raise funds and exploitation of globalised networks for moving financial resources, yet again brings the trinity together.

    The groups then use the funds collected to smuggle weapons, explosives and technology based equipment like satellite radios, from across the border. India has porous borders with Nepal, which is exploited. Similarly, borders with Bangladesh, Myanmar and Pakistan are often used for pushing in weapons and ammunition.

    Also, refer to the following:

    http://idsa.in/askanexpert/fundingforHurriyatandseparatistgroupsinKashmir; and
    http://idsa.in/askanexpert/Whatismeantbyhawalatransaction

    Dushyant Singh,“Severing the Hawala Trail to and from India”, Journal of Defence Studies, 3 (4), October 2009.

    Analytical Quality Ranking of Equipment under Procurement: An Improvement of Contemporary Practice

    Parameters, dimensions and operational requirements specified by the user must be evaluated exclusively by the user trial team, while DGQA must concentrate only on the testing of quality encompassing the product design, the material used and the manufacturing process in addition to the environmental testing of the product under simulated conditions.

    March 20, 2013

    Coping with the Aftermath of Transgressions in the VVIP Helicopter Deal

    By now making software development ineligible for discharge of offsets we might be depriving ourselves of what was considered necessary only a couple of months ago. This could also prove to be a setback for the Indian software industry.

    March 13, 2013

    Role of the Services in Capital Acquisition

    The systems and procedures for capital acquisitions, introduced by the MoD in 2001-02, provide a decisive, if not the final, say to the Services, including the Indian Coast Guard.

    February 22, 2013

    Defence Acquisition: International Best Practices

    Defence Acquisition: International Best Practices
    • Publisher: Pentagon Press
      2013

    This book is a compendium of papers presented and circulated in the International Seminar on Defence acquisition organised by the Institute for Defence Studies and Analyses on July 12-14, 2011. Written by the practitioners, industry leaders and subject experts, the book brings out the best international practices in defence acquisition.

    • ISBN ISBN 978-81-8274-711-1,
    • Price: ₹. 1295/-
    • E-copy available
    2013

    Efficiency of Quality Assurance in Army Procurements

    This article gives an overview of the evolution of Quality Assurance (QA) in army procurements as also various shortcomings in the contemporary principles and practices that cause delays in procurements and their possible solutions. The list of shortcomings is not exhaustive; however, due care has been taken to bring out the most important ones which need immediate attention. The causal factors of these shortcomings have been analysed and recommendations to overcome them have also been listed to make the QA practice more efficient and minimize delays due to QA.

    January 2013

    A Level-Playing Field that Isn’t: How India’s Defence Offset Procedures Could Discriminate against Indian Bidders

    It is time that India’s offset regulations and defence procurement procedures are weeded for provisions formalising differential treatment against Indian bidders.

    January 15, 2013

    SC Vaid asked: The process of arms procurement is winding and complex. By the time a proposal is finalised, new weapons emerge. How can the process be improved?

    Mahendra Prasad replies: In order to hasten up the procurement process, several long and short-term organisational and procedural re-engineering would be required. Few suggestions have been listed below:

    Short-term measures

    • Defence procurement being a highly specialised job, pre-induction training of service officers and bureaucrats before entrusting them the responsibility of procurement is a must. Presently, most of them learn the nuances of procurement on the job.
    • Every procurement should be treated as a separate project with a dedicated team headed by a project manager. Presently, a lot of overlap of responsibility among various functionaries exists, and in many cases, delays occur as few functionaries in the chain fail to deliver their part of the job in time.
    • Strict adherence to the laid down time lines. In case of delay, a delay report must be prepared. The report must identify the reasons and sources of delay in unambiguous terms.
    • Give longer tenures to service officers (minimum five years) involved in the procurement process.

    Long-term measures

    • Establishment of Defence Acquisition College.
    • Continuous tracking of latest technological trends.
    • Vendor development instead of just stopping at vendor registration.
    • A liberal defence production policy.

    A Critique of India’s Defence Offset Guidelines 2012

    A Critique of India’s Defence Offset Guidelines 2012

    Some of the provisions in the DOG do not seem to be well thought out, provide greater leeway to the foreign companies, and have a potentially negative potential on eligible manufacturing sector, particularly defence manufacturing.

    September 03, 2012

    Rafale MMRCA Deal: Last Minute Glitches?

    The Rafale deal is especially important as it is IAF’s best bet to stem and even reverse the recent and continuous fall in the combat aircraft squadrons fielded.

    August 30, 2012

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