As the armed forces grapple with the shortage of state of the art weapon, a Defence Ministry report admits that the NDA Government’s ambitious ‘Make in India’ programme has failed to take off and the procurement process is crippled by various issues. The internal fact-finding report was prepared by Minister of State for Defence Subhash Bhamre.
Flagging issues like lack of accountability, multiple decision-making heads, delayed execution, and no real time-monitoring, the report pointed out that out of 144 proposed deals, only to eight to ten per cent matured within specified timelines. The Defence Ministry on Monday refused to comment on the document.
The report comes at a time when the Indian Air Force (IAF) urgently needs fighter jets to bolster its depleting squadron strength and the Navy desperately requires more submarines and warships to replace its ageing fleet. The Army is facing critical shortage of ammunition besides long range artillery guns to equip itself to fight a two-front war with Pakistan and China.
Mentioning that the Defence deals go through a nine-stage process before the contract is finally inked, the report said that due to duplication of processes, delayed comments and lack of project-based approach, delays are 2.6 times to 15.4 times the deadline.
The report said the ‘Make in India’ project for manufacturing sophisticated weapons systems ranging from warship, submarines to fighter jets “continues to languish at the altar of procedural delays and has failed to demonstrate its true potential.”
Observing that there is lack of synergy between the three Services, which is impacting critical capability requirements, the document says various departments of the Defence Ministry also “appear to be working in independent silos” driven by their interpretation of policy and procedures.
Quoting an example, it says once the proposed deal enters the Request for Proposal (RFP) stage when the competing vendors are asked to submit their bids, the average time taken to clear files is 120 weeks which is six times more than rules laid down by the Ministry in 2016.
Claiming that the armed forces “continue to view the Acquisition Wing (of the Defence Ministry) as an obstacle rather than a facilitator,” it stressed the need for a “tectonic change in mindset of the Ministry officials and the need of the hour is assigning responsibility and accountability.”
During the technical trials and evaluation stage when the weapon systems of the competitors are put through field tests, the report states “the average time taken is 89 weeks, which is three times more than authorised.”
Similarly, the Cost Negotiation Committee (CNC) stage is delayed about 10 times more than permissible timeframe due to the Defence Ministry not able to benchmark costs with global standards. It is more so when an item is procured for the first time or involved Transfer of Technology, it says.
After going through such a long-drawn procedure, the deal can be cancelled by the Finance Ministry or the Cabinet Committee on Security (CCS), the report says adding the Finance Ministry or the CCS is not aware of the Defence Ministry’s plans.