Question : Defence Procurement Agreements

(a) the number of defence procurement agreements signed by the Government with other countries during the last three years and the current year along with amount involved in such procurement agreements, Country-wise;

(b) whether the Government has adhered to the Defence Procurement Procedure (DPP) in signing such agreements during the said period and if so, the details thereof;

(c) the number of complaints received by the Government for irregularities/corruption in signing such agreements during the said period; and

(d) the other steps taken by the Government in this regard?

MINISTER OF STATE (SHRI SHRIPAD NAIK)
IN THE MINISTRY OF DEFENCE


(a) & (b): Procurement of military equipment and systems are undertaken based upon operation requirements of the Armed Forces as per Defence Acquisition Procedure (DAP)/Defence Procurement Procedure (DPP). The DAP and DPP, inter-alia, provide for capital acquisition for the Armed Forces through Inter Government Agreements (IGA)/Government to Government arrangements such as Letter of Offer and Acceptance (LOA) with friendly foreign countries. During last three years and current year, 20 such IGAs/LOAs have been entered into with Russia and USA for capital acquisitions of defence equipment such as Aircrafts, Helicopters, Frigates, small Arms, Ammunitions etc.

(c) & (d): The capital procurement of defence equipment is carried out as per the provisions of Defence Acquisition Procedure (DAP)/Defence Procurement Procedure (DPP) which contains provisions including the signing of Pre-Contract Integrity Pact (PCIP), Standard Clauses in the contract and submission of Integrity Pact Bank Guarantee (IPBG) by the vendor, with an aim to ensure highest degree of probity and public accountability, transparency in operations, free competition and impartiality. In addition, DAP/DPP provides that complaints arising at any stage of the acquisition process are examined by a panel of nominated and CVC approved Independent External Monitors (IEMs) based on referral by MoD(Acquisition)/any other Department of MoD or suo-moto complaints by the vendors/any other agency. All the ibid provisions ensure desired transparency and objectivity in dealing with the complaints arising out of acquisition process.


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