Question: Will the Minister of DEFENCE be pleased to satate :-

(a) the category-wise details of total expenditure incurred by the Ministry in importing defence items, hardware / software / electronics, during 2009-10, 2010-11 and 2011-12;

(b) the various measures undertaken to reduce imports by increasing internal production through various sources in the manufacture of defence items, hardware / software / electronics, category-wise; and

(c) the various measures undertaken to eradicate corruption specially involving imports of defence items?

Answer: Minister of Defence (Shri A.K. Antony)

(a) Service-wise details of expenditure are at Annexure-A.

(b) Several steps are being taken by the Government to promote manufacture of defence equipment within the country. Defence Production Policy has been announced in January, 2011 to encourage indigenous manufacture of defence equipment. ‘Buy & Make (Indian)’ and ‘Make’ categories have also been introduced in the Defence Procurement Procedure (DPP). For foreign procurement cases, Transfer of Technology is sought, wherever required. The “Offset” policy also encourages indigenous production.

Further, amendments to DPP-2011 recently approved by the Defence Acquisition Council also aim at increasing indigenous capacity in Defence Sector.

(c) The Defence Procurement Procedure (DPP) contains stringent provisions aimed at ensuring the highest degree of probity, public accountability and transparency.

The Standard clauses in a contract include the following to check irregularities:-

(i) Signing of Pre Integrity Pact.

(ii) Penalty for use of undue influence.

(iii) Prohibiting use of agents and payment of commissions.ARMY

AIR FORCE

The total expenditure on Indian Air Force Capital Acquisition from foreign sources during the last three years is as given below:- (Rupees in crore)

Note: The IAF procurements are undertaken for the complete system such as Aircraft, Radars, Missile etc. The hardware, software and the electronic equipment are embedded in the system for which the contract is processed and their segregation is not practical.

Navy

Note: Information in the desired categories is not readily available.

Coast Guard
Rupees (in crore)

Miscellaneous

Defence Economics & Industry