MoD: Defence Procurement Policies Issues and Discussions

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 08 Jul 2019 15:29

https://www.indiabudget.gov.in/ccen.php
https://www.indiabudget.gov.in/customs.php
https://www.indiabudget.gov.in/doc/cen/cus1919.pdf
exempts goods when imported into India by the Ministry of Defence,
Government of India or the defence forces,

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 16 Jul 2019 14:49

New web site of
The Defence Offsets Management Wing (DOMW) under the Department of Defence Production will be responsible for formulation of Defence Offsets Guidelines and all matters relating to post contract management.
https://domw.gov.in/Index/vendordetails


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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 18 Jul 2019 15:28

http://pib.nic.in/PressReleseDetailm.aspx?PRID=1579096

Ministry of Defence
Defence Corridor
Posted On: 17 JUL 2019 3:35PM by PIB Delhi
In pursuance to the budget announcement (2018-19) of Hon’ble Finance Minister, it has been decided to set up two Defence Industrial Corridors in the Country, one in Uttar Pradesh and another in Tamil Nadu. Subsequently, six nodes in Uttar Pradesh Defence Corridor viz. Agra, Aligarh, Chitrakookt, Jhansi, Kanpur and Luchnow have been identified. Similarly, for Tamil Nadu Defence Corridor, five nodes viz. Chennai, Coimbatore, Hosur, Salem, and Tiruchirappalli have been identified.

Till date, six consultation meetings of stakeholders each in Uttar Pradesh and Tamil Nadu were organized across its various nodes.

During the Aligarh meet held on 11th August, 2018, investments of over Rs.3700 crore were announced for Uttar Pradesh Corridor by OFB/DPSUs& Private Industries. Similarly, during the Tiruchirappalli meet held on 20th January, 2019, an investment of over Rs.3100 crore were announced by OFB/DPSUs& Private industries for Tamil Nadu Defence Corridor.

Further, Government has also appointed a consultant for the preparation of Detailed Project Report for the Defence Corridors.

Hindustan Aeronautics Limited (HAL) has planned capital investment of Rs.1200 crore over the period of 5 years in their units located at Lucknow, Kanpur, Korwa and Naini. Modernization program of factories under OFB is primarily focused on manufacture quality product with cost effectiveness, taking into account the current and long term future requirements for Indian Armed Forces.

This information was given by Raksha Rajya Mantri Shri Shripad Naik in a written reply to Shri Mahabali Singh in Lok Sabha today.
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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby ramana » 18 Jul 2019 22:48

X-Posting....
tsarkar wrote:Great posts by Mody & Vidur. I would request Rakesh to archive these posts and print it on the first page of relevant threads.

mody wrote:Incase of Akash, unfortunately the additional requirement for 7 squadrons is under the head of SRSAM. If you recall, a few years a back there was global tender sent out for SRSAM. However, once Akash had been inducted, it was found that it could do this role very well. It could hit small targets at very low heights consistantly. Hence, the requirement was dropped in favour of Akash and many on BRF rejoiced. Now for MoD the problem is that BDL has increased the price, citing inflation, which is justified, and now, this contract had to be approved in liu of SRSAM, for which the price from some of the international suppliers might have been lower. However, those systems were perhaps pure point defense systems, with much less capable radar etc. But no one is willing to take a call on this and approve the order. The result is that apart from Pune and Gwalior, we do not have Akaksh SAMS, guarding the skyes on the western border and still make do with the old Pechora SAMS. The production line at BDL remains idle.


There are behavioral issues as well.

Bharat Rakshak members are able to scour print, video and internet material and form a balanced and correct opinion. I personally found fascinating a link posted by Karan M of Dutch experience in Afghanistan of Spike missile seeker facing the same issues like Nag missile seeker differentiating targets when ambient temperature was high. I share that link to everyone I know who thinks Nag technology is inferior. Actually Nag is ahead of the curve than Spike because the issue was identified earlier and corrective action initiated much before Spike faced the same issue.

Typically services personnel spend field postings at remote locations where internet bandwidth is not good, so most of their knowledge of technological developments come from glossy international magazines like Janes, Flight Global and Aviation Week & Space Weekly. Some Indian magazines like Vayu also make it to the mess & library but they're filled with visually appealing advertisements and curated interviews of global arms industry personnel.

When they get a staff role and posted to HQ, more often than not, their bandwidth gets pre-occupied with family matters that they couldn't attend to during their field posting. 99% of the cases staff posting is requested due to family related exigencies, that include child birth, education, higher education, medical issues of family members, especially aged parents, marriage of children.

Procurement activities are part of staff roles. This includes preparation of QRs. Here too, more often than not, holistic research is not undertaken and sales presentation and literature is used as the basis of forming QRs.

Now comes the clincher. Even in the civil commercial space across any sector, the vendor/OEM/Service Provider who presents well often wins our attention because we think the articulate presentable person would be able to deliver. Someone may have a technically superior offering, but if he is unable to present or articulate it well, the message doesnt go through or the ability to deliver is unclear.

Most companies - Google, Amazon, Facebook, Apple hire the best & smartest grads in B Schools and put them in a Sales/Business Development/Marketing role. Their sales personnel articulate crisply while their marketing creates immersive and pervasive content across print and digital media.

In the Indian DPSU context, Sales and Marketing are seen as overheads. So these functions have people who have not shined in R&D or Production and parked in Sales and Marketing. They also have retired service officers but they're often looked down upon by their service batchmates/coursemates who got promoted compared to the DPSU employed retired officer who didnt get promoted in service & had to leave.

The MNC's also have expense budget and often hold their presentations in a 5 Star hotel with lighting and special effects while a DPSU struggles to make a power point slide aesthetic and relevant.

Digressing a bit, my dear wife and our cook expect me to eat whatever they cook depending on their mood. My daughter has watched Masterchef and understands the concept of plating and making food visually appealing. Wife too understands it but would do so only if we have guests at home or some special occasion.

In context of defence sales, PSUs expect Services to take whatever they dish out. Prototypes that may be fundamentally good often lack fit & finish. Ergonomics is often totally lacking. Personnel accompanying if pointed a flaw would yawn and say,"so what if the salt is in excess, eat the bloody food or go hungry coz I wont make anything else."

On the other hand MNCs send prototypes that are sleek and appealing like a Ferrari with personnel accompanying it treating Service Evaluators like waiters from the Taj would serve customers.

HAL/DRDO's material at Farmborough and Paris Air Shows are atrocious. Its like serving Tinda Masala where everyone else is serving 5 star meals.

And HAL's participation at Farmborough and Paris Air Shows are more for covering our Babu's foreign trips than a serious marketing effort.

So, given the difference in customer experience, even small flaws in indigenous products are magnified while major issues with MNC products are white-washed with sugary assurances of being rectified in due course of time.

Products like C-130, C-17, P-8I, Rafale come with a comprehensive service package and availability guarantees.

Indigenous products Dhruv suffered seriously from lack of spares and logistics for over a decade since induction that Indian Army had to arrange on its own. Its only with the recent Indian Coast Guard order that HAL is offering PBL.

http://hal-india.co.in/Maiden%20Ground%20R/ND__230

Ecuador's Dhruv crashes were blamed on pilot and maintenance errors but looking at the bigger picture, no car company blames drivers for car crashes because drivers are buyers even though drivers DO actually cause crashes.

https://economictimes.indiatimes.com/ne ... 624013.cms
https://timesofindia.indiatimes.com/ind ... 425469.cms

IAF training command know Pilatus will resolve any issues with PC-7 - or atleast make an assurance - whereas for HAL HPT-32 engine fuel starvation issues, everyone thinks, "what to do next"? If HAL CMD at that point of time given IAF CAS a solid assurance and put his best engineers on the job to solve the issue, the perception would have been wholly different.

Such behavioral issues like customer experience plays a major role in procurement.

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby Rishi_Tri » 19 Jul 2019 04:02

Defence Production India

Verified account

@DefProdnIndia Jul 14

A push for #MakeInIndia

MoD opens firing ranges for testing of armament by pvt industry.
OFB Firing Ranges
OF Varangaon & AFK Kirkee
DDG Ammn. OFB Hqrs., AYUDH BHAWAN 10 A SK BOSE ROAD, KOLKATA-1
Ph - 033-22480982
For more info visit: http://www.makeinindiadefence.gov.in/
@SpokespersonMoD

ADG (M&C) DPR @SpokespersonMoD
Jul 16

In a major shift from past, Raksha Mantri Sh @rajnathsingh accords approval to pvt sector industry to compete with Ordnance Factories and Def PSUs for RM’s Awards for Excellence. For guidelines pls click - https://www.ddpmod.gov.in http://makeinindiadefence.gov.in http://www.dgqadefence.gov.in

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 09 Aug 2019 13:46

I am not able to post this in General Military news thread ????????

Major activities of Department of Defence for the month of May,2019 & June,2019

https://mod.gov.in/dod/sites/default/fi ... ay19_0.pdf
https://mod.gov.in/dod/sites/default/fi ... 019n_0.pdf

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby JayS » 17 Aug 2019 14:47

Another review of DPP:

https://twitter.com/sneheshphilip/statu ... 0087805953

Breaking: RM @rajnathsingh approves a Committee to review Defence Procurement Procedure to strengthen ‘Make in India’. Chaired by DG (Acquisition), it will review Defence Procurement Procedure (DPP) 2016 and Defence Procurement Manual (DPM) 2009.

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 25 Aug 2019 14:22

https://mod.gov.in/dod/sites/default/files/majoractjuly19.pdf
Major activities of Department of Defence for the month of july,2019

Project up-gradation of Samyukta electronic warfare system by BEL for 920 crore

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby Karan M » 25 Aug 2019 16:26

Please post these in Mil Acquisitions thread. This one is for Policy discussion.

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 08 Jun 2020 13:42

Refining Draft Defence Offset Guidelines 2020
by
Laxman Kumar Behera
Research Fellow at Manohar Parrikar Institute for Defence Studies and Analyses, New Delhi

https://idsa.in/policybrief/refining-draft-defence-offset-guidelines-2020-lkbehera
Image

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 18 Aug 2020 13:09

http://ficci.in/pressrelease-page.asp?nid=3857


Govt working on the second negative import list of defence products: Secretary, DDP, Ministry of Defence
Aug 17, 2020
Industry will have to meet the needs of future wars with future products


NEW DELHI, 17 August 2020: Mr Raj Kumar, Secretary, Department of Defence Production, Ministry of Defence today said that the government is working on the second negative import list of defence items. He added that it will be a continuous process and government will, periodically, expand the list.



Addressing a webinar 'Army Make Projects-2020', organized by FICCI, jointly with the Indian Army, Mr Kumar invited the Indian industry to invest and explore opportunities in the defence sector. "We are also examining when the second list will come, and we expect you (industry) to come forward and start investing to meet our requirements," he added.



He said that the announcement of the first set of embargoed items on imports will further boost and accelerate the process of indigenization. "Industry will also have to meet the needs of future wars with future products. The Industry will now have to shoulder the responsibility of catering to the requirements of embargoed items domestically," Mr Kumar emphasized.



He further said that the government has launched various policy initiatives to make the sector more attractive for the private sector. "All policies of the government, including the Defence Industrial Corridors, Defence Production and Export Promotion Policy and the Negative Import List are focusing to ensure that our industry becomes the top producer of defence items in the world," he said.



Highlighting the potential of Army Make Projects-2020, Mr Kumar said that the industry should stand up to the needs of the Army, both in terms of quality as well as quantity and be price competitive. "We want to Make for India and for the world. We also want you to export and the government will stand side by side with the industry to promote exports," he assured.



In order to attract more foreign investments in the defence sector, Mr Kumar said, "The proposal for up to 74% FDI in defence sector through automated route has already been submitted to the Cabinet." He added that the announced draft Defence Production and Export Promotion Policy 2020 focuses on attaining target of US$ 25 billion of domestic production and US$ 5 billion of exports by 2025.



Lt Gen SK Saini, Vice Chief of the Army Staff, Indian Army said the Indian defence industry has radically changed in the last few years and it can emerge as a global hub of defence equipment. He further assured the industry of full support from the Indian Army. "It will always be an honour for us to fight and win wars with equipment Made in India and made by Indians," he added.



He also urged the industry to adopt latest technology to make world class equipment. "Developing indigenous and local capabilities to confront the emerging security challenges is an imperative," he emphasized.



To further support the industry, Lt Gen Saini also highlighted that the Indian Army is giving impetus to promote MSMEs and small-scale industries to become part of the defence production. He also assured providing hand holding to industry in developing the prototype with a dedicated team of officers. "In an endeavour to quickly execute the projects, time for certain internal procedures has been telescoped," added Lt Gen Saini.



Mr Sanjay Jaju, Joint Secretary (DIP), Ministry of Defence said that R&D is not limited to DRDO and DPSU. Design and development will benefit the competitive private sector. Make 2, idex, Strategic Partnership are examples of these. "DPSUs are given a target of 5000 items to indigenize revenue items. They have released EOI to industry in the development of prototypes," he said.



Mr Jaju said that with regards to the negative list, buy Indian or IDDM (Indian-Indigenously Designed, Developed and Manufactured), will not be affected. "But if any RFI/RFP is under global route, the industry should call attention to the relevant user, "he added.



Lt Gen SS Hasabnis, Deputy Chief of Army Staff (Planning & Systems), Indian Army, said, "Start-ups and small firms are acting as makers of change. They have the capability of playing a key role in the overall indigenizing process in the defence sector and thus reducing the import bill," he added.

Lt Gen A Arun, DG PP, Indian Army, said that we must focus on technologies that will help us fight the war of tomorrow rather than products of the past.


Mr SP Shukla, Chairman, FICCI Defence and Aerospace Committee and Group President (Defence, Aero, Agri and Steel); Member of the Group Executive Board, Mahindra Group said that the 'Make To' policy gives a larger scope for Indian industries to look for business opportunity with the defence forces.

Mr Arun T Ramchandani, Co-Chair, FICCI Defence & Aerospace Committee and EVP, Guns Missiles & Armoured Systems (GMA) BU, L&T Defence said that COVID has highlighted the importance of self-reliance. The way forward would be to manufacture our own products...

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby ramana » 19 Aug 2020 11:15

Some of the critics here should form product design companies for those 5000 items and see how they can be produced.

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 26 Aug 2020 17:07

http://newsonair.com/News?title=Defence ... e%20sector.

Aug 15, 2020
8:02AM
Defence Minister Rajnath Singh launches SRIJAN portal for Indigenization in Defence Sector
@rajnathsinghDefence Minister Rajnath Singh has launched a portal SRIJAN which is a one stop shop online portal that provides access to the vendors to take up items for indigenization.

Speaking on the occasion, Mr Singh said this will help industry partners to play an active role in the goal of self-reliance in the defence sector. Pursuant to Atmanirbhar Bharat announcement, Department of Defence Production has developed an indigenization portal, https://srijandefence.gov.in/, as 'opportunities for Make in India' in Defence.

The Defence Minister called upon the Indian industry partners to show complete commitment and take proactive participation in the pursuit of Indigenization and self-reliance in the Defence Sector. He said Self-reliance in Defence manufacturing has been envisioned not only as a domestic requirement but also with export perspective and can be made possible with concerted efforts.

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 25 Sep 2020 15:29

https://pib.gov.in/PressReleasePage.aspx?PRID=1658897
Ministry of Defence
Webinar with Israel on Defence Industry Global Outreach for Collaborative Partnership: Webinar and Expo held on 24 Sep 2020
Posted On: 25 SEP 2020 9:33AM by PIB Delhi
A webinar between India and Israel was held on 24/09/2020. The Theme of webinar was “Indian Defence Industry Global Outreach for Collaborative Partnership: Webinar and Expo”. It was organized under the aegis of Department of Defence Production, Ministry of Defence through SIDM.

This webinar is the first in the series of webinars which will be organized with friendly foreign countries in order to boost defence exports and achieve defence export target of $5 billion in the next five years.

Defence Secretaries and other senior MoD officials from both the countries participated in the webinar and spoke about enhancing the defence cooperation between both the nations.

Creation of Sub Working Group (SWG) on Defence Industrial Cooperation between India and Israel was announced in the webinar. The main objective of the SWG will be Transfer of Technology, Co-development & Co-production, Artificial Intelligence, Innovation and Joint Export to friendly foreign countries.

A MoU was also signed between Kalyani Group and Rafael Advanced Defence Systems during the webinar.

A Knowledge paper by SIDM-KPMG was released by Dr Ajay Kumar, Defence Secretary on the occasion.

The webinar was attended by more than 300 delegates and 90 virtual exhibition stalls have been set up for the Expo.

****

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby Kakarat » 28 Sep 2020 19:06

India does away with offsets for G-to-G defence deals with CAG's Rafale report out

The new Defence Acquisition Procedure (DAP), cleared by the defence ministry on Monday, has done away with the need of foreign companies investing at least 30 percent of the contract value in the Indian manufacturing sector if the deal is being processed under the government to government or single vendor case.

Officials said that this could result in savings as anecdotal evidence suggests that foreign companies increase the contract price by 8-10 percent to cater for the offsets clause. However, competitive multi vendor procurement cases will still have the offsets clause.

“No offset has led to a transfer of technology, most have to do with product purchase as has been brought out in a recent Comptroller and Auditor General report,” Director General (Acquisition) Apurva Chandra said in response to a ET query.

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby saumitra_j » 28 Sep 2020 20:18

Cross posting from military acquisitions thread:

One of the best news today:

The Defence Acquisition Council meeting held under the Chairmanship of Raksha Mantri Shri Rajnath today approved proposals for Capital acquisitions of various equipment required by the Indian Armed Forces at an approximate cost of Rs 2,290 crore. These include procurement from Domestic Industry as well as Foreign vendors.

Under the Buy Indian (IDDM) category, the DAC approved procurement of Static HF Tans-receiver sets and Smart Anti Airfield Weapon (SAAW). The HF radio sets will enable seamless communication for the field units of Army and Air Force and are being procured at an approx. cost of Rs. 540 crore. The Smart Anti Airfield Weapon being procured at an approx. cost of Rs. 970 crore will add to the fire power of Navy and Airforce.

Further, to equip the Frontline Troops of the Army the DAC also accorded approval for procurement of SIG SAUER Assault Rifles at a cost of approx. Rs.780 crore.

Source: MOD Press Release

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby abhik » 28 Sep 2020 23:28

Kakarat wrote:India does away with offsets for G-to-G defence deals with CAG's Rafale report out

The new Defence Acquisition Procedure (DAP), cleared by the defence ministry on Monday, has done away with the need of foreign companies investing at least 30 percent of the contract value in the Indian manufacturing sector if the deal is being processed under the government to government or single vendor case.

Officials said that this could result in savings as anecdotal evidence suggests that foreign companies increase the contract price by 8-10 percent to cater for the offsets clause. However, competitive multi vendor procurement cases will still have the offsets clause.

“No offset has led to a transfer of technology, most have to do with product purchase as has been brought out in a recent Comptroller and Auditor General report,” Director General (Acquisition) Apurva Chandra said in response to a ET query.

May turn out to be a great step if we actually start moving towards developing and building most of our needs indigenously. There is really no need for multi vendor tender tamasha in most cases, the forces know exactly what they want. and now Indian companies will be forced to invest in R&D into their own designs rather than chasing after safe-bet offsets.
Also one hopes they remove other red tape like the "integrity clause" where the company has to submit a huge bank guaranty to assure they have not indulged in any corruption to win the deal, I suppose steps like these also inflate the cost of weapons greatly.

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby rpartha » 28 Sep 2020 23:53

No one country has developed their own defense industry... US and Russia acquired the knowledge from Germany and they spent years to hone the skill. China in turn pretty much got whatever they have through reverse engineering or stealing... India should focus on home grown products in certain field
and ban any external purchase and then go for joint development for other areas.. even then you will not receive tech transfer but given the way things happening, indian companies along with foreign vendors can jointly supply ammunitions for others too..

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 01 Oct 2020 16:17

Image

Image

Defence Minister Rajnath Singh unveils Defence Acquisition Procedure, says DAP aligned with PM's vision of Atmanirbhar Bharat
The DAP 2020 will be applicable with effect from October 1

https://zeenews.india.com/india/amid-india-china-border-tension-union-defence-minister-rajnath-singh-unveils-defence-acquisition-procedure-dap-2020-2313033.html

https://www.mod.gov.in/dod/whats-new

Defence Acquisition Procedure (DAP) 2020 MOD (11.14 MB) pdf 30 Sep 2020

https://www.mod.gov.in/sites/default/files/DAP2030new.pdf

https://pib.gov.in/PressReleasePage.aspx?PRID=1659746

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby ramana » 02 Oct 2020 08:29

Vidur, Pranam.

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jaysimha » 16 Jun 2021 16:30

Ministry of Defence
Raksha Mantri Shri Rajnath Singh releases E-booklet on 20 MoD reforms in 2020;

Terms it as a reflection of Government’s resolve to make defence sector stronger and more efficient
Posted On: 07 JUN 2021 5:54PM by PIB Delhi

https://pib.gov.in/PressReleasePage.aspx?PRID=1725091

https://www.mod.gov.in/sites/default/files/MoD2RE7621.pdf

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby Manish_P » 16 Jun 2021 17:38

Thanks for posting this

I like the part About the increase in defense exports and also how they kept it near the top.

I wish in the next 5 years we see it grow 5 times over (very very challenging I know, unless we do some big ticket items, but will hope)

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby g.sarkar » 19 Jun 2021 11:21

https://swarajyamag.com/defence/explain ... was-needed
Defence
Explained: Corporatisation Of The Ordnance Factory Board And Why It Was Needed
by Prakhar Gupta - Jun 16, 2021
Nothing speaks more about the priorities of the leadership of the Ordnance Factory Board (OFB) than its threat to go on a strike in the middle of a national security crisis.

In July last year, when Indian Army was preparing to take the peaks of the Kailash Range in eastern Ladakh to bring China to the negotiating table, three employees’ federations of the OFB, which operates 41 defence production facilities across the country, were threatening to go on an indefinite strike.
The federations, which claimed to have support of over 70,000 employees, were against the government's move to corporatise the 246-year-old organisation.
The proposed strike was called off by these federations only in October, over a month after they were proposed, after talks with the government.
Over the last decade, at least four separate committees had recommended the corporatisation of the OFB, starting with the T K A Nair committee in 2000. In 2006, the Vijay Kelkar committee reiterated the same, followed by Vice Admiral Raman Puri committee in 2015 and the D B Shekatkar in 2016. But resistance from the OFB meant that there was little to no movement on making the OFB efficient and accountable over the last 20 years.
In 2019, when the government announced its proposal to corporatise the OFB, the organisation had used strikes to scuttle the plan. Not this time.
Despite pushback from the OFB, the Cabinet Committee on Security, headed by Prime Minister Narendra Modi, approved the corporatisation of the OFB in July last year. Less than a year later, the Union cabinet has cleared the proposal to restructure the OFB into seven separate corporate entities on the lines of the nine existing defence public sector undertakings (DPSUs) in the country.
Under this plan, the 41 units currently functional under the OFB will be subsumed under one or the other of the seven new companies.
Each of the seven entities that will emerge will be responsible for a separate sector — ammunition and explosives, vehicles, weapons and equipment, troop comfort items, opto-electronics gear, parachutes and ancillary products.
While OFB has actively pushed back against plans for corporatisation, it has done little to improve its abysmal record on defence production over the years.
.....
Gautam

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Re: MoD: Defence Procurement Policies Issues and Discussions

Postby jamwal » 19 Jul 2021 19:36

https://www.moneycontrol.com/news/india ... 1.html/amp
India set to introduce sweeping changes in defence land policy for the first time in 250 years

According to Ministry of Defence (MoD) officials, who spoke on the condition of anonymity, defence land needed for major public projects – like building of metro, roads, railways, and flyovers – could only be exchanged for land of equivalent value, or after payment of market prices.

Under the new rules, eight EVI projects have been identified, which the acquiring party can provide infrastructure for in coordination with the concerned Service.

They include building units and roads, among other projects. According to the new regulations, the value of land would be determined by a committee headed by the local military authority – in cases under cantonment zones.

For land outside cantonments, the district magistrate will decide on the rate.

Connected moves

There are connected moves on the governmental chessboard as well. The Ministry of Finance (MoF) has pegged monetising defence land as the only way to generate revenue for the proposed non-lapsable modernisation fund.

According to officials, a draft cabinet note on setting up the defence modernisation fund is currently undergoing inter-ministerial consultations, and a final decision is expected soon, following which it will be placed before the Union cabinet for approval.

Says Lt Gen HS Panag (Retd): ``Since defence lands are in the most prime areas all over the country, over the years, politicians and civic officials have demanded that they be used for undertaking developmental activities. Now it seems, it is happening.”

All along the GT Road - from Delhi to Peshawar for instance – there are camping grounds and old depots that are not in use any longer, built by the British Indian Army during the Second World War when troops had to be moved from one place to the other.

"You can monetise the land if the army is not using it and provided, they are given alternate land,” Panag told Moneycontrol.


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