Arming the Defence Forces : Procurement and Production Policies

Contents: Preface. Introduction. 1. Analysis of defence procurement procedures and acquisition systems. 2. Acquisition of new equipment and defence systems and streamlining defence procurement organisation. 3. Procedure for maintenance of existing equipment in service and revenue procurements. 4. Defence research and technology development. 5. Indigenisation and self reliance in defence production. 6. The way ahead - dynamic procurement process. Endnotes. Bibliography. Index.

"The aim of defence procurement and production is to ensure quality, timeliness and value for money in provision of defence equipment to the armed forces. The existing defence procurement procedures have been operative since 1992, with only marginal updates or changes. These pertain to two processes - 'acquisitions' on the capital account and 'purchases' on the revenue account. Recently, new system and broad structures have been announced. However, the operating procedures have not been defined; these would necessarily need to be set out and modernised.

Indigenisation and self reliance' have been the cardinal goals of India's policy of fulfilling defence requirements. To be self-sufficient, a country must not only have the material resources but also the expertise to undertake design and development. Do we have the right strategy for our defence R&D? Are our defence production agencies in the public sector functioning in the correct perspective? Is the private sector participation adequate? India's military expenditure in 1995 was $8 billion, whereas even a small country like Taiwan spent $13 billion in the same period. India's defence budget, considering its size and security concerns, is one of the lowest. We need to carry out budgetary reforms. Our procurement apparatus, primarily dependent on imports, is both inadequate and in need of streamlining and modernisation."  (jacket)