MINISTER OF STATE (SHRI SHRIPAD NAIK)
IN THE MINISTRY OF DEFENCE
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(a) to (e): Modernisation of the Army is a systematic process undertaken through a Fifteen years Long Term Integrated Perspective Plan, Army’s Five Years Capital Acquisition Plan and the Annual Acquisition Plan (two year roll on plan). The modernisation process aims at keeping the Army in a state of operational readiness and optimally equipped with modern weapon systems. The budget allocation for modernisation of defence equipment is utilized to meet the urgent operational requirements of the Defence Forces and for acquisitions of contemporary systems based on the planned priorities of the Defence Forces.
Government is committed towards indigenization and self-reliance in the defence sector. The Defence Procurement Procedure (DPP-2016) accords the highest priority to procurement under Buy Indian (Designed, Developed and Manufactured) (IDDM) category and acquisitions through “Buy” and/or “Make” from Indian vendors. The “Make” procedure has been simplified to ensure increased participation of Indian industry.
During the last three financial years (2016-17 to 2018-19), 149 capital acquisition contracts have been concluded out of which 91 contracts have been placed on Indian vendors for procurement of defence equipment.
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