(a) the steps taken by the Government to check irregularities in defence procurement deals;
(b) whether the Government has formulated any policy to bring transparency in defence deals;
(c) if so, the salient features of the said policy;
(d) the amount of funds allocated for defence procurement during the last three years;
(e) the amount of the said funds utilised so far; and
(f) the reasons for non-utilisation of the remaining funds?
MINISTER OF DEFENCE(SHRI A.K. ANTONY)
(a) to (f): A statement is attached.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF LOK SABHA UNSTARRED QUESTION NO. 2385
FOR ON 9.8.2010
The objective of Defence Procurement Procedure (DPP) is to ensure expeditious procurement of
approved requirements of the Armed Forces in terms of capability sought within the time-frames
prescribed by optimally utilizing allocated budgetary resources. While achieving this
objective, these procedures demonstrate the highest degree of probity and public
accountability, transparency in operations, free competition and impartiality. The provisions
incorporated in DPP for checking irregularities and to ensure transparency include;
(i) An ‘Integrity Pact’ between the Government department and the bidder for all contracts
above Rs.100 crores; (ii) Dealing directly with Original Equipment Manufacturers (OEM) or
Authorised vendors or Government Sponsored Export Agencies (applicable in case of countries
where domestic laws do not permit direct export by OEMs);(iii) Major decisions in the
acquisition process being taken in a ‘Collegiate’ manner; (iv) Enhanced transparency in the
conduct of field trials;(v) Pre-bid meetings with the vendors; (vi) Prohibiting the use of
undue influence by the seller for obtaining any contract with the Government; (vii) Prohibiting
the engagement of any individual or firm to recommend to the Government the award of a contract
to the seller, and the payment of any amount in respect of any such recommendation.
The details of allocation and utilization of funds for capital budget during the last three
years are as follows:-
(Rs. in crores)
Year Budget Estimates Revised Estimates Actual Expenditure
2007-2008 32826.80 28110.01 27903.42
2008-2009 37482.77 30614.64 30000.42
2009-2010 40367.72 35146.88 38427.00