DARE - Because Entrepreneurs Do

Procurement of defence equipment is made by the Government from various indigenous as well as foreign sources to meet the requirements of the Armed Forces. The import option is exercised when it is necessary to procure the items within a definite time frame on operational grounds to bridge the capability gaps and normally when such equipment cannot be sources indigenously within a specified time-frame. The major part of defence requirement is met through acquisition from indigenous sources. Expenditure incurred on import of defence equipment during the last three years 2006-07, 2007-08 and 2008-09 is as follows:- 

Since procurement is based on security concerns, perspective capabilities, equipment profile and availability of funds, it is not feasible to indicate the future expenditure proposed for the next three years.

During the last three years, 2006-07, 2007-08, 2008-09 a sum of Rs. 1261.45 crores (approx) has been earned in foreign exchange through export of defence equipment/items. In order to reduce dependence on import of defence equipment, DPP-2008 has laid down ‘Make’ procedure to ensure indigenous research, design, development and production capabilities sought by the Armed Forces in prescribed time-frame while optimally utilizing the potential of Indian industry. The procedure is aimed at achieving self reliance in defence equipment. In addition, procurement under ‘Buy (Indian)’ category provides for minimum 30 % indigenous content. Further, an offset clause has been made applicable for all procurement proposals where indicative cost is Rs. 300 crore or more and the schemes are categorized as ‘Buy (Global)’ involving outright purchase from foreign/Indian vendors and ‘Buy and Make with Transfer of Technology’ i.e. Purchase from foreign vendor followed by Licensed Production.

This information was given by Minister of Defence Minister AK Antony in a written reply to Shri Asaduddin Owaisi and others in Lok Sabha.

Source: PIB

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