Defence Procurement Policy Essay

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Equipment remained under the horizon of Government right from its origin. The Industrial Policy of the state had kept defense mechanism production in the populace sector since the first Industrial Policy outlined in the Industry Policy Resolution of 1948. The Industries ( Development & A ; Regulation ) Act, 1951 gave statutory base to the Industrial Policy. The considered determinations has been under the horizon of Government right from its origin. The Industrial Policy of the state had kept defense mechanism production in the populace sector since First Industrial Policy outlined in the Industry Policy Resolution of 1948. The Industries ( Development & A ; Regulation ) Act, 1951 gave statutory base to the Industrial Policy. Under this policy considered determinations made of consecutive authoritiess in favor of this policy left India dependant on foreign industries for its military hardware for about 50 old ages.

Autonomy does non prevent accessing external beginnings for engineering and systems, or external aid in any phase of the production rhythm. It is the grade of dependence on external beginnings that is tested in the instance of India ‘s quest for autonomy. India opted to take an incremental way, in which it was necessary to go on to run into pressing demands through imports while endeavoring hard on accomplishing autochthonal capablenesss in defense mechanism production. However, the degree of dependence over the old ages tilted in favor of imports over indeginisation owing to limited R & A ; D capablenesss, delayed undertaking executing, deficient merchandises and corruptness.

3. The Chinese aggression in 1962 about took the state by surprise and the deficiency of readiness was apparent from the result of the war. The war highlighted the defects in the armed forces in footings of province of the art equipment and vesture and the demand for autonomy and autonomy in defense mechanism production.y Many believed this would be the watershed event in the history of Defence Production. To a certain extent it did hold an influence and the defense mechanism production mechanism was revamped and the Department of Defence Production was set up. Among others the Department of Defence Supplies was created to hammer linkages between the civil industries and defense mechanism production units. The period between1962 – 1990 besides witnessed the puting up of 16 new OFs, but, small advancement was made in the private sector which continued to lend towards lower terminal engineering merchandises.

4. It was non until  non until the epoch of liberalisation, which began in 1991 that the function of private sector and besides that of competition, both domestic and international started playing  industrialisation. Since the epoch of liberalisation, which began in 1991, the function of private sector and besides that of competition, both domestic and international is playing  started playing a much greater portion  greater portion in the national economic system. Naturally, this besides meant alterations in policy for Defence production. The 1990s  greater function in the national economic system. Naturally, this besides meant alterations in policy for Defence production.

Production

The 1990s witnessed a series of far-reaching enterprises in the field of national security, of which defense mechanism industry was a critical constituent. This did take to increased engagement from the private sector in defense mechanism production, but, it was merely by the bend of the century that the Indian fabrication sector became internationally competitory with highest quality criterions, efficiency and fabrication installations.

5. In 2001, the Defence Industry sector in India was opened to 100 % Indian private sector engagement with foreign direct investing permissible up to 26 % . The Indian Defence Industry in the private sector is now bit by bit presuming the function of system planimeter and maker of complete defense mechanism equipment and systems. This is a major displacement in the function of private sector in India from  a paradigm displacement in the function of private sector in the field of  India from its earlier back uping function to the populace sector by providing natural stuffs and constituents, sub-systems etc. With this policy alteration all defense mechanism related points have been removed from Reserved Category and transferred to the accredited class, as a consequence of which private sector can fabricate all types of defense mechanism equipment after acquiring a license. Consequent to the Government ‘s proclamation about the policy alteration, Department of Industrial Policy & A ; Promotion ( DIPP ) in audience with Ministry of Defence, issued elaborate guidelines sing the modes for consideration of applications for grant of Industrial Licence. After the proclamation of policy alterations, there has been a paradigm displacement in the function of private sector in the field of indigenisation, i.e. , from the function of provider of natural stuffs, constituents, sub-systems, they have now become spouses in the industry of complete advanced equipment/system.

The basic aim of leting private sector engagement is to tackle available expertness in the private sector towards the entire defense mechanism attempts and hunt for autonomy. In-built advantages of the private sector are its reservoir of direction, scientific and technological accomplishments coupled with its ability to raise resources. The engagement of private sector with its first expertness and high engineering would non merely augment India ‘s autochthonal defense mechanism production capableness but besides lead to creative activity of employment and substructure in the state, giving a strong drift to the economic system.

6. Indigenisation

Now with this policy alteration all defense mechanism related points have been removed from Reserved Category and transferred to the accredited class, as a consequence of which private sector can fabricate all types of defense mechanism equipment after acquiring a license. Consequent to the Government ‘s proclamation about the policy alteration, Department of Industrial Policy & A ; Promotion ( DIPP ) in audience with Ministry of Defence, issued elaborate guidelines sing the modes for consideration of applications for grant of Industrial Licence. After the proclamation of policy alterations, there has been a paradigm displacement in the function of private sector in the field of indigenisation, i.e. , from the function of provider of natural stuffs, constituents, sub-systems, they have now become spouses in the industry of complete advanced equipment/system.

The basic aim of leting private sector engagement is to tackle available expertness in the private sector towards the entire defense mechanism attempts and hunt for autonomy. In-built advantages of the private sector are its reservoir of direction, scientific and technological accomplishments coupled with its ability to raise resources. The engagement of private sector with its first expertness and high engineering would non merely augment India ‘s autochthonal defense mechanism production capableness but besides lead to creative activity of employment and substructure in the state, giving a strong drift to the economic system.

6. Indigenisation in defense mechanism production is now one of the major thrust countries of the Government. Consequently, our attempts are now directed towards decrease of defense mechanism imports and advancing indigenization in defense mechanism production sector with the active support of the Indian Defence Industry, both in the populace every bit good as in the private sector. Assorted stairss have been taken in this way. Government has been sporadically reexamining the Defence Procurement Policy with a position to impart greater transparence and nonpartisanship every bit good as to rush up the acquisition procedure. The last such reappraisal has been undertaken late, as a consequence of which amendments to the Defence Procurement Procedure 2008 – effectual from November 2009 have been introduced.

Students Paper:

 introduced.

7. Procurement of defense mechanism equipment is a extremely specialized activity necessitating extraordinary professional accomplishments and alone properties. It is an intricate and many-sided procedure. It is non a everyday governmental activity that can be performed by all with coveted consequences. Some of the major distinctive features are as follows: –

( a ) Fundss involved are really big and the quality of equipment selected has a profound influence on national defense mechanism potency.

( B ) There  to appreciate that procurance of defense mechanism equipment is a extremely specialized activity necessitating extraordinary professional accomplishments and alone properties. It is an intricate and many-sided procedure. It is non a everyday governmental activity that can be performed by all with coveted consequences. Some of the major distinctive features are as follows: –

Fundss involved are really big and the quality of equipment selected has a profound influence on national defense mechanism potency.

There is

( B )

Students Paper:

 potency.

( B ) There is no unfastened tendering. Invitations are sent to a few selected sellers. A all right balance has to be maintained between demand for bring forthing competition and security demands.

( degree Celsius ) Most  defense mechanism potency.

There is no unfastened tendering. Invitations are sent to a few selected sellers. A all right balance has to be maintained between demand for bring forthing competition and security demands.

Most of ( degree Celsius ) demands.

( degree Celsius ) Most of the sophisticated equipment has to be imported as the autochthonal defense mechanism industry is still in a nascent phase.

( vitamin D ) There

 security demands.

Most of the sophisticated equipment has to be imported as the autochthonal defense mechanism industry is still in a nascent phase.

There are

( vitamin D )

Students Paper:

 phase.

( vitamin D ) There are a limited figure of manufacturers in the universe market and still fewer are ready to portion with their top of the line merchandises. The job gets compounded where engineering transportation is sought as an indispensable portion of the bundle.

( vitamin E ) Major

 nascent phase.

There are a limited figure of manufacturers in the universe market and still fewer are ready to portion with their top of the line merchandises. The job gets compounded where engineering transportation is sought as an indispensable portion of the bundle.

Major arm

( vitamin E )

Students Paper:

 bundle.

( vitamin E ) Major arm manufacturers in the universe are, in fact, systems planimeters merely. Assorted sub-assemblies are produced in different states. This complicates the issues while negociating life rhythm support for the equipment, as the export policies of all of them have to be factored in.

( degree Fahrenheit ) Countries  the bundle.

Major arm manufacturers in the universe are, in fact, systems planimeters merely. Assorted sub-assemblies are produced in different states. This complicates the issues while negociating life rhythm support for the equipment, as the export policies of all of them have to be factored in.

( degree Fahrenheit ) Countries have different norms for issue of license for export. Many impose riders on the use of equipment. Yet, there are states whose domestic Torahs preclude assured subsequent nutriment of the equipment bought.

( g ) There factored in.

States have different norms for issue of license for export. Many impose riders on the use of equipment. Yet, there are states whose domestic Torahs preclude assured subsequent nutriment of the equipment bought.

There are strong political

( g )

Students Paper:

 bought.

( g ) There are strong political and corporate anterooms at work to force their merchandises. Defense mechanism procurances are per se linked to a state ‘s foreign policy and diplomatic involvements.

( H ) As  equipment bought.

There are strong political and corporate anterooms at work to force their merchandises. Defense mechanism procurances are per se linked to a state ‘s foreign policy and diplomatic involvements.

As there

 .

( H )

Students Paper:

 involvements.

( H ) As there is an component of secretiveness in the procurance procedure, all determinations come under examination later. Therefore, it becomes indispensable to follow the process diligently. Deviations, if any, have to be accounted for. All determinations have to be and must be seen to be above board and in the state ‘s involvement. This besides  and diplomatic involvements.

As there is an component of secretiveness in the procurance procedure, all determinations come under examination later. Therefore, it becomes indispensable to follow the process diligently. Deviations, if any, have to be accounted for. All determinations have to be and must be seen to be above board and in the state ‘s involvement.

Choice of

 . This besides makes the staff covering with procurance over cautious, particularly due to figure of still ongoing enquiries after Tehelka.

( J )

Students Paper:

 Tehelka.

( J ) Choice of the most suited equipment is a complex and time-consuming procedure as a big figure of officials are involved.yy

( K ) Fine

 state ‘s involvement.

Choice of the most suited equipment is a complex and time-consuming procedure as a big figure of officials are involved.yy

Need for

( K ) Fine balance has to be maintained between inquiring for province of the art engineering and handiness of such engineering for sale, while fixing the QRs.

Hindrances In Procurement

8. Preparation of GSQR. A comprehensive survey of recent instances reveals that faulty preparation of SQRs has been the principal cause for hold in most instances.yThe SQR is truly the basic edifice block on which the complete building of the procurance system is based. The full procurance procedure is directed towards acquiring the equipment, which satisfies the laid down SQRs. Deviations to SQRs can merely be sanctioned by the Defense Minister on the recommendations of the Defense Procurement Board ( DPB ) , and is a extremely complex and time-consuming process.yPoorly conceived, formulated and drafted SQRs create confusion, lend themselves to misunderstandings, vitiate the environment, and cause immense holds. At times, the whole procedure has to be aborted at an advanced phase or a figure of particular dispensations obtained to regulate frailties.

9. In order to fix the SQR, the covering board of directors collects all available books on the equipment and calendered catalogues of the makers. The best features of all known equipment are compiled as indispensable demands. By and large, there is a penchant to include as many characteristics as possible to show outrageousness and exhaustiveness of the work done. As the bill of exchange travels upwards in official hierarchy, it gathers more parametric quantities. Every officer feels that he must lend his spot by proposing extra commissariats. The procedure therefore goes on. Once the bill of exchange is circulated to other members of the O.K.ing commission, it receives farther judicial admissions from the care bureaus, development organisation and the quality control people. The concluding SQR takes the form of a well-compiled `wish list ‘ of Utopian dimensions. Highly ambitious capablenesss are sought without mention to their viability and attainability. Equivocal features like it should be rugged, it should be able to defy field conditions etc, are constantly included in the SQR.

10. AoN Stage. The major grounds for hold in allowing AoN are the political condition/ will and inability to warrant the instance by SH. In add-on, turf war between services, expostulations by DRDO/ DDP etc besides contribute to the hold.

11. Issue of RFP. RFP is a stamp forwarded to selected sellers with a fixed day of the month ( normally three months ) for response as per given format. Some of the grounds for doing hold are as under: –

( a ) Vendor Base Analysis. Due to security grounds the RFP is non unfastened to all like a normal stamp, but is forwarded to selected sellers. Vendor base analysis is carried by the SHQ. In instances where dearly-won and complex equipment are involved, constantly instances land up as individual seller instances or ailments from sellers are received for non including them in the sellers list, which leads to withdrawal of RFP therefore detaining the instance

( B ) RFP includes assorted clauses like guarantee, merchandise support, beginning, patent right, ToT, payment footings, exchange rate fluctuation, unity treaty, autumn, option clauses etc. there are instances wherein because these clauses were non formulated decently, RFP had to be withdrawn due to multiple reading of the clauses.

( degree Celsius ) Requirement of ToT/ MToT. The instance necessitating Tot/ MToT delay the RFP as there is a demand to take inputs/ remarks from experts. Furthermore, more such instances are dropped as less figure of sellers are willing to portion with the engineering.

12. TEC. Major grounds for hold are as under: –

( a ) Delayed/ deficiency of response from the sellers to the questions of TEC.

( B ) Need to avoid rejection of sellers on little issues and abide by the DPP wherein the equipment has to follow with all RFP SQR parametric quantities.

( degree Celsius ) Requirement of taking departmental positions of care bureau, production bureau, DGQA etc, which is clip devouring.

( vitamin D ) Lack of answerability of MoD functionaries to lodge to the clip allotted for treating the file.

13. Tests. Present system of tests is really clip consuming and involves figure of bureaus. Tests involve user tests ( may include summer and winter tests ) , Technical and Environmental Evaluation, Maintainability Evaluation Trial ( MET ) , EMI/EMC Evaluation and may be secrecy tests in certain instances. Facilities and bureaus for these tests are located at different locations ensuing in seller traveling his equipment to these locations.

14. Most of the tests are conducted at `No Cost No Commitment ( NCNC ) footing. Tests involve immense sum of outgo by the sellers due to which figure of sellers are non willing to take part in the tests.

15. Number of times the installations required for tests are non available or are non equal in order to maintain gait with the figure of equipment required to undergo the tests ensuing in farther detaining the tests.

16. More frequently than non the test units are elaborate entirely on the footing of their location and units consider tests to be an boring fuss and handle them in a casual mode. There is a inclination on the portion of test units and intermediate commanding officers to present new elements thereby corrupting the study. Focus of the test squad is constantly on happening the mistakes with the equipment with the of purpose of urging betterments without recognizing that the equipment will be rejected with such study.

17. There is a inclination to formalize same QR by more than one bureau and giving contradictory sentiments.

18. CNC. During the CNC

Students Paper:

 the CNC constantly a battery of corporate attorneies, fiscal experts and executives trained in dialogue techniques represent the sellers. On the  for commercial dialogues. Constantly, a battery of corporate attorneies, fiscal experts and executives trained in dialogue techniques represent the seller. They are

 . On the other manus the staff negociating with them lacks negociating accomplishments and fiscal cognition. As per process, there is a demand to bench mark the monetary value before opening the commercial offer of the seller. Due to hapless fiscal cognition, at times benchmarked monetary value is wholly different from the monetary value quoted by the seller, ensuing in drawn-out dialogues

19. Post Contract Delays. Inability of the seller to bring forth the equipment in big measure, particularly complex equipment like guns, armored combat vehicles, aircrafts etc.

20. Requirement of Pre Dispatch Inspection ( PDI ) and Joint Receipt and Inspection ( JRI ) by specializers which is clip devouring.

21. Certain govt opinions like necessity of despatching the equipment through Shipping Corporation of India, add to the hold.

22. Misc.

( a ) Tenure. The functionaries involved in procurance have limited term of office with no back land cognition of the processs. This is true for functionaries in SHQ every bit good as in MoD. This has been found to be one of the causes for slow acquisition procedure.

( B ) Requirement of Integration of Equipment. Most of the clip there is a demand to incorporate the equipment being procured with the in service equipment. This leads to less figure of sellers willing to come frontward for command and besides failure of the undertaking due to inability of a willing seller to incorporate the equipment successfully.

( degree Celsius ) Influence by Variour Lobbies. Assorted political and corporate anterooms try to act upon the instance fro their vested involvement. At times retired ground forces officers are besides involved in the same. Frequent complaints/ anon. letters are received by RM/MoD/ SHQ ensuing in enormous clip being spent by the staff to decide the issue/ prepare answers and figure of times instances are dropped due to such ailments.

( vitamin D ) Political Situation in the Country. Political state of affairs in the state plays a major function in the procurance as major determinations of allowing the AoN is taken by the DAC. It has been seen that no such determinations are taken by the DAC when govt is about to alter or the governing party is busy in a major political activity like by polls etc.

( vitamin E ) Need for Indigenisation. There has ever been a pursuit for autonomy. India, for a long clip, has ever been promoting autochthonal production. However, it has been merely depending on PSUs and DRDO, which someway have non performed upto the outlooks. Delayed undertakings, hapless quality merchandises have been the hallmark of these organisations.

( degree Fahrenheit ) Covering With Irregularity. Due to the sheer sum of money involved, defense mechanism trades and irregularities/ bribes/ corruptness ever go manus I manus. It has been seen that while covering with abnormality, the action taken by the govt were in such hastiness that modernisation of the forces has suffered. In many instances major sellers have been banned while the question is traveling on. While taking such actions, govt should maintain national involvement in head. In the instance forbiddance of Bofors, we lost in footings of using the engineering transportation for which money was already paid. Latest instance of forbiddance of Singapore Technology has put our acquisition of 155 millimeters ULH on clasp.

hypertext transfer protocol: //www.ciidefence.com/defenceindustry.asp? id=1

Deba R. Mohanty Changing Times? India ‘s Defence Industry in the twenty-first Century

R. D. Pradhan, Debacle to revival: Y.B. Chavan as Defence Minister, 1962-65, Orient Blackswan, 1999, pp.134

y

Kaushik Roy, Armed Forces of Independent India 1947-2006, Manohar Publishers and Distributors, 2010, pp.319.

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hypertext transfer protocol: //www.defense-aerospace.com/article-view/verbatim/112343/indian-ministers-talk-up-defense-opportunities.html

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Master papers text

Chapter IV

DEFENCE PROCUREMENT POLICY

A state ‘s military strength is determined by its economic might, as the Industry provides the military with the wherewithal to contend the state ‘s wars. India ‘s desire to accomplish autonomy has ever been at that place, but, restraints of engineering and resources have prevented the procedure from fructifying to the extent desired. Since independency, the policy associating to Strategic Defence Production has been germinating. Production of defense mechanism equipment remained under the horizon of Government right from its origin. The Industrial Policy of the state had kept defense mechanism production in the populace sector since the first Industrial Policy outlined in the Industry Policy Resolution of 1948. The Industries ( Development & A ; Regulation ) Act, 1951 gave statutory base to the Industrial Policy. The considered determinations made of consecutive authoritiess in favor of this policy left India dependant on foreign industries for its military hardware for about 50 old ages.

Autonomy does non prevent accessing external beginnings for engineering and systems, or external aid in any phase of the production rhythm. It is the grade of dependence on external beginnings that is tested in the instance of India ‘s quest for autonomy. India opted to take an incremental way, in which it was necessary to go on to run into pressing demands through imports while endeavoring hard on accomplishing autochthonal capablenesss in defense mechanism production. However, the degree of dependence over the old ages tilted in favor of imports over indeginisation owing to limited R & A ; D capablenesss, delayed undertaking executing, deficient merchandises and corruptness.

3. The Chinese aggression in 1962 about took the state by surprise and the deficiency of readiness was apparent from the result of the war. The war highlighted the defects in the armed forces in footings of province of the art equipment and vesture and the demand for autonomy and autonomy in defense mechanism production.y Many believed this would be the watershed event in the history of Defence Production. To a certain extent it did hold an influence and the defense mechanism production mechanism was revamped and the Department of Defence Production was set up. Among others the Department of Defence Supplies was created to hammer linkages between the civil industries and defense mechanism production units. The period between1962 – 1990 besides witnessed the puting up of 16 new OFs, but, small advancement was made in the private sector which continued to lend towards lower terminal engineering merchandises.

4. It was non until the epoch of liberalisation, which began in 1991 that the function of private sector and besides that of competition, both domestic and international started playing a much greater portion in the national economic system. Naturally, this besides meant alterations in policy for Defence production.yThe 1990s witnessed a series of far-reaching enterprises in the field of national security, of which defense mechanism industry was a critical constituent. This did take to increased engagement from the private sector in defense mechanism production, but, it was merely by the bend of the century that the Indian fabrication sector became internationally competitory with highest quality criterions, efficiency and fabrication installations.

5. In 2001, the Defence Industry sector in India was opened to 100 % Indian private sector engagement with foreign direct investing permissible up to 26 % . The Indian Defence Industry in the private sector is now bit by bit presuming the function of system planimeter and maker of complete defense mechanism equipment and systems. This is a major displacement in the function of private sector in India from its earlier back uping function to the populace sector by providing natural stuffs and constituents, sub-systems etc. With this policy alteration all defense mechanism related points have been removed from Reserved Category and transferred to the accredited class, as a consequence of which private sector can fabricate all types of defense mechanism equipment after acquiring a license. Consequent to the Government ‘s proclamation about the policy alteration, Department of Industrial Policy & A ; Promotion ( DIPP ) in audience with Ministry of Defence, issued elaborate guidelines sing the modes for consideration of applications for grant of Industrial Licence.

After the proclamation of policy alterations, there has been a paradigm displacement in the function of private sector in the field of indigenisation, i.e. , from the function of provider of natural stuffs, constituents, sub-systems, they have now become spouses in the industry of complete advanced equipment/system. The basic aim of leting private sector engagement is to tackle available expertness in the private sector towards the entire defense mechanism attempts and hunt for autonomy. In-built advantages of the private sector are its reservoir of direction, scientific and technological accomplishments coupled with its ability to raise resources. The engagement of private sector with its first expertness and high engineering would non merely augment India ‘s autochthonal defense mechanism production capableness but besides lead to creative activity of employment and substructure in the state, giving a strong drift to the economic system.

6. Indigenisation in defense mechanism production is now one of the major thrust countries of the Government. Consequently, our attempts are now directed towards decrease of defense mechanism imports and advancing indigenization in defense mechanism production sector with the active support of the Indian Defence Industry, both in the populace every bit good as in the private sector. Assorted stairss have been taken in this way. Government has been sporadically reexamining the Defence Procurement Policy with a position to impart greater transparence and nonpartisanship every bit good as to rush up the acquisition procedure. The last such reappraisal has been undertaken late, as a consequence of which amendments to the Defence Procurement Procedure 2008 – effectual from November 2009 have been introduced.

7. Procurement of defense mechanism equipment is a extremely specialized activity necessitating extraordinary professional accomplishments and alone properties. It is an intricate and many-sided procedure. It is non a everyday governmental activity that can be performed by all with coveted consequences. Some of the major distinctive features are as follows: –

( a ) Fundss involved are really big and the quality of equipment selected has a profound influence on national defense mechanism potency.

( B ) There is no unfastened tendering. Invitations are sent to a few selected sellers. A all right balance has to be maintained between demand for bring forthing competition and security demands.

( degree Celsius ) Most of the sophisticated equipment has to be imported as the autochthonal defense mechanism industry is still in a nascent phase.

( vitamin D ) There are a limited figure of manufacturers in the universe market and still fewer are ready to portion with their top of the line merchandises. The job gets compounded where engineering transportation is sought as an indispensable portion of the bundle.

( vitamin E ) Major arm manufacturers in the universe are, in fact, systems planimeters merely. Assorted sub-assemblies are produced in different states. This complicates the issues while negociating life rhythm support for the equipment, as the export policies of all of them have to be factored in.

( degree Fahrenheit ) Countries have different norms for issue of license for export. Many impose riders on the use of equipment. Yet, there are states whose domestic Torahs preclude assured subsequent nutriment of the equipment bought.

( g ) There are strong political and corporate anterooms at work to force their merchandises. Defense mechanism procurances are per se linked to a state ‘s foreign policy and diplomatic involvements.

( H ) As there is an component of secretiveness in the procurance procedure, all determinations come under examination later. Therefore, it becomes indispensable to follow the process diligently. Deviations, if any, have to be accounted for. All determinations have to be and must be seen to be above board and in the state ‘s involvement. This besides makes the staff covering with procurance over cautious, particularly due to figure of still ongoing enquiries after Tehelka.

( J ) Choice of the most suited equipment is a complex and time-consuming procedure as a big figure of officials are involved.

( K ) Fine balance has to be maintained between inquiring for province of the art engineering and handiness of such engineering for sale, while fixing the QRs.

Hindrances In Procurement

8. Preparation of GSQR. A comprehensive survey of recent instances reveals that faulty preparation of SQRs has been the principal cause for hold in most instances.yThe SQR is truly the basic edifice block on which the complete building of the procurance system is based. The full procurance procedure is directed towards acquiring the equipment, which satisfies the laid down SQRs. Deviations to SQRs can merely be sanctioned by the Defense Minister on the recommendations of the Defense Procurement Board ( DPB ), and is a extremely complex and time-consuming process. Poorly conceived, formulated and drafted SQRs create confusion, lend themselves to misunderstandings, vitiate the environment, and cause immense holds. At times, the whole procedure has to be aborted at an advanced phase or a figure of particular dispensations obtained to regulate frailties.

9. In order to fix the SQR, the covering board of directors collects all available books on the equipment and calendered catalogues of the makers. The best features of all known equipment are compiled as indispensable demands. By and large, there is a penchant to include as many characteristics as possible to show outrageousness and exhaustiveness of the work done. As the bill of exchange travels upwards in official hierarchy, it gathers more parametric quantities. Every officer feels that he must lend his spot by proposing extra commissariats. The procedure therefore goes on. Once the bill of exchange is circulated to other members of the O.K.ing commission, it receives farther judicial admissions from the care bureaus, development organisation and the quality control people. The concluding SQR takes the form of a well-compiled `wish list ‘ of Utopian dimensions. Highly ambitious capablenesss are sought without mention to their viability and attainability. Equivocal features like it should be rugged, it should be able to defy field conditions etc, are constantly included in the SQR.

10. AoN Stage. The major grounds for hold in allowing AoN are the political condition/ will and inability to warrant the instance by SH. In add-on, turf war between services, expostulations by DRDO/ DDP etc besides contribute to the hold.

11. Issue of RFP. RFP is a stamp forwarded to selected sellers with a fixed day of the month ( normally three months ) for response as per given format. Some of the grounds for doing hold are as under: –

( a ) Vendor Base Analysis. Due to security grounds the RFP is non unfastened to all like a normal stamp, but is forwarded to selected sellers. Vendor base analysis is carried by the SHQ. In instances where dearly-won and complex equipment are involved, constantly instances land up as individual seller instances or ailments from sellers are received for non including them in the sellers list, which leads to withdrawal of RFP therefore detaining the instance

( B ) RFP includes assorted clauses like guarantee, merchandise support, beginning, patent right, ToT, payment footings, exchange rate fluctuation, unity treaty, autumn, option clauses etc. there are instances wherein because these clauses were non formulated decently, RFP had to be withdrawn due to multiple reading of the clauses.

( degree Celsius ) Requirement of ToT/ MToT. The instance necessitating Tot/ MToT delay the RFP as there is a demand to take inputs/ remarks from experts. Furthermore, more such instances are dropped as less figure of sellers are willing to portion with the engineering.

12. TEC. Major grounds for hold are as under: –

( a ) Delayed/ deficiency of response from the sellers to the questions of TEC.

( B ) Need to avoid rejection of sellers on little issues and abide by the DPP wherein the equipment has to follow with all RFP SQR parametric quantities.

( degree Celsius ) Requirement of taking departmental positions of care bureau, production bureau, DGQA etc, which is clip devouring.

( vitamin D ) Lack of answerability of MoD functionaries to lodge to the clip allotted for treating the file.

13. Tests. Present system of tests is really clip consuming and involves figure of bureaus. Tests involve user tests ( may include summer and winter tests ) , Technical and Environmental Evaluation, Maintainability Evaluation Trial ( MET ) , EMI/EMC Evaluation and may be secrecy tests in certain instances. Facilities and bureaus for these tests are located at different locations ensuing in seller traveling his equipment to these locations.

14. Most of the tests are conducted at `No Cost No Commitment ( NCNC ) footing. Tests involve immense sum of outgo by the sellers due to which figure of sellers are non willing to take part in the tests.

15. Number of times the installations required for tests are non available or are non equal in order to maintain gait with the figure of equipment required to undergo the tests ensuing in farther detaining the tests.

16. More frequently than non the test units are elaborate entirely on the footing of their location and units consider tests to be an boring fuss and handle them in a casual mode. There is a inclination on the portion of test units and intermediate commanding officers to present new elements thereby corrupting the study. Focus of the test squad is constantly on happening the mistakes with the equipment with the of purpose of urging betterments without recognizing that the equipment will be rejected with such study.

17. There is a inclination to formalize same QR by more than one bureau and giving contradictory sentiments.

18. CNC. During the CNC constantly a battery of corporate attorneies, fiscal experts and executives trained in dialogue techniques represent the sellers. On the other manus the staff negociating with them lacks negociating accomplishments and fiscal cognition. As per process, there is a demand to bench mark the monetary value before opening the commercial offer of the seller. Due to hapless fiscal cognition, at times benchmarked monetary value is wholly different from the monetary value quoted by the seller, ensuing in drawn-out dialogues

19. Post Contract Delays. Inability of the seller to bring forth the equipment in big measure, particularly complex equipment like guns, armored combat vehicles, aircrafts etc.

20. Requirement of Pre Dispatch Inspection ( PDI ) and Joint Receipt and Inspection ( JRI ) by specializers which is clip devouring.

21. Certain govt opinions like necessity of despatching the equipment through Shipping Corporation of India, add to the hold.

22. Misc.

( a ) Tenure. The functionaries involved in procurance have limited term of office with no back land cognition of the processs. This is true for functionaries in SHQ every bit good as in MoD. This has been found to be one of the causes for slow acquisition procedure.

( B ) Requirement of Integration of Equipment. Most of the clip there is a demand to incorporate the equipment being procured with the in service equipment. This leads to less figure of sellers willing to come frontward for command and besides failure of the undertaking due to inability of a willing seller to incorporate the equipment successfully.

( degree Celsius ) Influence by Variour Lobbies. Assorted political and corporate anterooms try to act upon the instance fro their vested involvement. At times retired ground forces officers are besides involved in the same. Frequent complaints/ anon. letters are received by RM/MoD/ SHQ ensuing in enormous clip being spent by the staff to decide the issue/ prepare answers and figure of times instances are dropped due to such ailments.

( vitamin D ) Political Situation in the Country. Political state of affairs in the state plays a major function in the procurance as major determinations of allowing the AoN is taken by the DAC. It has been seen that no such determinations are taken by the DAC when govt is about to alter or the governing party is busy in a major political activity like by polls etc.

( vitamin E ) Need for Indigenisation. There has ever been a pursuit for autonomy. India, for a long clip, has ever been promoting autochthonal production. However, it has been merely depending on PSUs and DRDO, which someway have non performed upto the outlooks. Delayed undertakings, hapless quality merchandises have been the hallmark of these organisations.

( degree Fahrenheit ) Covering With Irregularity. Due to the sheer sum of money involved, defense mechanism trades and irregularities/ bribes/ corruptness ever go manus I manus. It has been seen that while covering with abnormality, the action taken by the govt were in such hastiness that modernisation of the forces has suffered. In many instances major sellers have been banned while the question is traveling on. While taking such actions, govt should maintain national involvement in head. In the instance forbiddance of Bofors, we lost in footings of using the engineering transportation for which money was already paid. Latest instance of forbiddance of Singapore Technology has put our acquisition of 155 millimeters ULH on clasp.

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Deba R. Mohanty Changing Times? India ‘s Defence Industry in the twenty-first Century

R. D. Pradhan, Debacle to revival: Y.B. Chavan as Defence Minister, 1962-65, Orient Blackswan, 1999, pp.134

Kaushik Roy, Armed Forces of Independent India 1947-2006, Manohar Publishers and Distributors, 2010, pp.319.

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