PIB News Update: Raksha Rajya Mantri Shri Shripad Naik has informed that Modernisation of the Armed Forces is a systematic process undertaken through a Fifteen years Long Term Integrated Perspective Plan (LTIPP), Five Years Services Capital Acquisition Plan (SCAP) and the Annual Acquisition Plan (AAP). The modernisation process aims at keeping the Indian Armed Forces 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 pursuing initiatives to achieve higher levels of indigenisation and self-reliance in the defence sector by harnessing the capabilities of the public and private sector industries in the country. These measures include according priority and preference to procurement from Indian vendors and liberalization of the licensing regime. Defence Procurement Procedure (DPP) accords the highest priority to Buy Indian (Indigenously Designed, Developed and Manufactured) (IDDM). The ‘Make’ procedure has been simplified with provisions for earmarking projects not exceeding development cost of Rs.10 crores (government funded) and Rs. 3 crores (Industry funded) for Micro, Small and Medium Enterprises (MSMEs); and with provisions for involving private industry as production agencies and technology transfer partners. Government has also promulgated the policy on Strategic Partnership in the Defence Sector to encourage broader participation of the private sector in manufacture of major defence platforms and equipment.
During last five financial years (2014-15 to 2018-19), 164 contracts worth about Rs 1,49,259.07 crore have been signed with Indian vendors for capital procurement of defence equipment for Armed Forces.
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