Military Acquisitions, Partnerships & Developments

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Re: Military Acquisitions, Partnerships & Developments

Postby arshyam » 05 Jul 2019 23:13

I would be happy if they simply made MoD allocations non-lapsable.

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Re: Military Acquisitions, Partnerships & Developments

Postby nam » 05 Jul 2019 23:45

arshyam wrote:I would be happy if they simply made MoD allocations non-lapsable.

Let's take the example of MMRCA purchase. It started off in 2004 and sort of concluded in 2016. For 12 years, let's say you add 2 billion "non-lapsable" fund. You have 24 billion by 2016.

Contract negotiated with Dassault to pay 8 billion over 15-20 years. Signing amount 1 billion. What will you do with the remaining 23 billion? which has been lying in the bank for 12 years and not even considering interest, which would in real probably given you you close to 35 billion!

Money which could have been used for other important project, lying in bank un-used, becoz GoI & MoD took 12 years to sign the contract!

The problem is not the money.. the problem is out procurement process and import habit, which becomes expensive due to inflation.

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Re: Military Acquisitions, Partnerships & Developments

Postby nam » 06 Jul 2019 00:03

Let's list out the "modernization" requirement, big items

Tanks: IA wants only T90. Having been producing 100 per year.
IFV: FRCV is stuck in the "process". Cheaper to upgrade BMP with new engine, armour and probably an APS, but not considered.
Artilery: Dhanush, OFB cannot produce fast enough. ATAGS still in trials. K9 SPH on track, IA does not want large numbers
Ammo: OFB cannot produce fast enough..

Want more squadron: Does not want LCA MK1 production to be ramped up. does not more Su30, Want only uber expensive and imported Rafale and we have to pay 3 times the actual price for ToT to HAL ! No one in sane mind to want TOT at 3 times the price.

5G option: This is true modernaisation. But what are the option? No one except US has a 5G solution. And we don't want F35! Neither IAF wants to spend on AMCA!

Our shipyard is full of orders and cannot finish on time! No money throwing is going to help.
SSN: Only PSU can build this and cannot build fast enough.
And please don't tell me a nuke carrier is a critical modernization requirement.

Local Production:
As the amount of local production, specially private, the cost of equipment will come down. 10 sqd of firangi SAM would cost 4-5 times more than 10 sqd of Akash.

So where do we intend to spend on extra 2-3 billion in the next 1 year?

Our problem is our procurement process. Not money. MoD cannot answer the simple question, while asking for money. GoI: where do you intend to spend it?

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Re: Military Acquisitions, Partnerships & Developments

Postby Vips » 06 Jul 2019 17:57

Budget 2019: Duty exemption to improve cash flow of forces.

The withdrawal of customs duty on imported defence items that are not manufactured in India is likely to improve cash flow for the armed forces but a lack of additional funds is expected to hit defence modernisation.

Finance minister Nirmala Sitharaman reversed the customs duty on defence items that was imposed in 2016, a move that will reduce paperwork for the forces. Prior to this, customs duty paid for such items was loaded onto the purchase price by foreign vendors, creating an unnecessary bureaucratic chain. Interests of Indian manufacturers will be protected as the exemption has been given to only those items that are not made in India.
Defence minister Rajnath Singh said that the move will augment the defence budget by Rs 25,000 crore on account of savings in expenditure on customs duty over the next five years (Benefit of just 5,000 Crores a year)

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Re: Military Acquisitions, Partnerships & Developments

Postby abhik » 08 Jul 2019 07:11

Budget 2019: Defence allocation disappoints military - The Hindu ... 313288.ece
Navy and Air Force have no money left for new deals, and may default on earlier payments as well

I'd watch out for attempts to squeeze other PSUs like they are doing to HAL.

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