The Hindu : National : Defence Ministry seeks higher allocation

Online edition of India's National Newspaper
Sunday, Feb 17, 2008
ePaper | Mobile/PDA Version

National

National

Defence Ministry seeks higher allocation

Sandeep Dikshit

The government’s stand is very clear. There is no question of middlemen in deals: Antony

Revised procurement policy likely by April
Indigenous fighter aircraft project won’t be scrapped

— Photo: S. Subramanium

FOR THE RIGHT CHOICE: Defence Minister A.K. Antony going round the 5th International Land and Naval System Exhibition, Defence Expo 2008, after inaugurating it at Pragati Maidan in New Delhi on Saturday.

NEW DELHI: The Defence Ministry has sought a higher allocation for the next year for purchasing major capital equipment. It is confident of utilising most of the funds this fiscal despite the cancellation of a couple of big ticket purchases on grounds of probity, Defence Minister A. K. Antony said on Saturday.

Mr. Antony’s observation comes in the context of criticism by parliamentary committees of lax defence planning. With long time taken to conclude defence deals, the Ministry, in successive years, could not finalise contracts before the end of the fiscal year and had to surrender the unspent allocation to the exchequer.

Inaugurating the biennial Defexpo here, Mr. Antony said a revised Defence Procurement Policy would “in all probability” be unveiled by April. The Ministry was deliberating on the proposed changes carefully as it did not want to change the policy frequently.

“Deliberations are going on with regard to a few important issues such as banking of offset credits, transfer of technology, licensing requirements for software industry, etc, that are of concern to the industry, both foreign and Indian.”

“Friendly to all”

Asked about the massive presence at the expo of the U.S. arms majors, stagnation in Russian attendance and the absence of China, Mr. Antony said, “We are friendly to everyone. We do not have favourites, nor do we want to be negative. The real test would be to get the most advanced technology at a reasonable price. In the past there was hesitation by some countries to supply weapons but now all have realised there are real opportunities in India.”

The Minister said defence purchases were on track. Although two or three contracts were cancelled, the government did not want to compromise on transparency. “We cancelled the tenders as at a later stage we found that something was wrong. We were not concerned which country was participating.”

Asked about voices being heard in the establishment about the presence of middlemen, he was categorical: “The government’s stand is very clear. There is no question of middlemen in defence deals.”

Slip-ups

As for developing an indigenous fighter aircraft, Mr. Antony said that despite hiccups, the project would not be abandoned. But he acknowledged slip-ups in producing the Kaveri engine for the fighter with the government negotiating with a foreign company for assistance.

The Indian Air Force, which in the past was unwilling to accept even one light combat aircraft (LCA), is now ready to accept two squadrons.

“India will ultimately produce the LCA. It will be in the sky in a few years. We won’t abandon the project. The aim is to produce the LCA. The Kaveri engine will take time, otherwise things are proceeding according to schedule.”

Printer friendly page
Send this article to Friends by E-Mail

National