As part of the efforts to build up emergency reserves of spares and ammunition, the Army has sought ₹20,000 crore from the Ministry of Defence (MoD). This comes at the same time the MoD has sought ₹20,000 crore more to meet its financial requirement.
The Army’s request is meant to meet the procurements being made under the emergency powers of the Vice-Chief of Army Staff. “We are looking at making up for the deficiencies in phases, which will take several years. We have asked for ₹20,000 crore for the next round of orders. The file has been sent to the MoD,” a senior officer told The Hindu .
The Vice-Chief of Army was recently given unlimited financial powers to make emergency purchases so as to make up critical deficiencies in 46 types of ammunition and spares for 10 types of weapons to build stocks for 10 days of intense fighting. The decision was part of a review of defence preparedness after the Uri terror attack.
In the first phase of the procurements ending March, 19 contracts worth ₹12,000 crore were signed, with 11 of them for ammunition alone. “In all, there are 400 major items and other smaller items,” the officer said.
These purchases are done through the revenue stream, and for in-service equipment. So there is no need to go through the Defence Acquisition Council, a route that will cause delays, especially in capital procurements.
CAG flags lacunae
Earlier this month, in a report to Parliament, the Comptroller and Auditor-General (CAG) found deficiencies in the Army’s War Wastage Reserves to fight an intense war of 10 days and 40 days.
According to MoD officials, Defence Secretary Sanjay Mitra put forward a proposal early this month to the Finance Ministry for allocation of ₹20,000 crore, besides the defence budget of ₹2.74 lakh crore for 2017-2018. “The request is for covering financial shortages and to meet overall requirements. We are fully prepared to meet any immediate eventuality,” one official said, clarifying that the request had nothing to do with the stand-off between Indian and Chinese troops along the tri-junction in Sikkim. “It is a fact that we have several requirements, but none would adversely impact our immediate responses,” the source said. While a part of the extra-allocation could go towards routine expenses, some of it would be used for urgent capital procurements, officials said.
A majority of the defence budget is taken up by the revenue component and pension, and little is left for capital procurements. Even in the capital allocation, a significant portion goes towards committed liabilities. The recently imposed customs duty has added to the strain.
