Consequent to the separation of duties between Department of Defence (DoD) and Department of Military Affairs (DMA), the first meeting of the Defence Acquisition Council (DAC) under the chairmanship of Raksha Mantri Shri Rajnath Singh was held with the Acquisition Wing being the Secretariat of the DAC. This would lead to better coordination and faster processing of cases with the Acquisition wing being in the overall charge of the Capital acquisition process.
Ordnance Factories are observing their 219th foundation day. The first Ordnance Factory, now known as the ‘Gun and Shell Factory’ at Cossipore in Kolkata was established on this day in 1801. The Ordnance Factories are a conglomerate of 41 ordnance factories under the aegis of its corporate headquarters Ordnance Factory Board (OFB) in Kolkata. The OFB came into existence on April 2, 1979 in the new avatar.
One contract and two Letters of Offer and Acceptance (LOAs) have been concluded with the US side for procurement of Helicopters and Self Protection Suite. The delivery of the helicopters will commence from May, 2021. Countries such as US, Russia, France, Germany, Israel, UK are leading exporters of defence equipment. The Defence requirement of other countries including South Asian countries is not available in public domain.
A Roadmap for Defence Industries Cooperation between the Republic of India and the Republic of Korea (ROK) was exchanged in Ministry of Defence during the bilateral meeting between Shri Rajnath Singh, Defence Minister, Republic of India and Mr. Jeong Kyeong-Doo, Defence Minister, Republic of Korea. The Roadmap envisages facilitation by Korea Plus Centre in arranging meetings, supporting public relations, assisting research and evaluation, while providing information and counselling with regard to ROK companies.
An amount of Rs. 45,705.57 crore has been spent on the import of Defence equipment during the year 2018-19. Percentage of Defence Budget (Defence Services Estimates) spent for the financial year 2018-19 on salaries is 46.10% and on Defence Research & Development Organisation (excluding Salaries) is 4.42%. Weapons in this Ministry are procured under the Capital Acquisition Budget, which amount to 24.73% of Defence Budget for the year 2018-19.
The capital procurement of defence equipment is undertaken based on threat perception, operational challenges and technological changes and to keep the Armed Forces in a state of readiness to meet the entire spectrum of security challenges. During the last three years (2016-17 to 2018-19) and current financial year (upto December, 2019), Government has accorded Acceptance of Necessity (AoN) to 138 capital acquisition proposals that promote indigenous sourcing/manufacturing.
Various reforms/steps have been taken to enhance Defence exports. These reforms have provided a big boost to defence exports in the recent times. The authorisation for defence exports in the country have grown seven folds in the last two years. Measures taken by the Government to promote Defence Exports. Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) Category 6 titled “Munitions List” that was hitherto “Reserved” has been populated and Military Stores list notified vide Notification No. 115(RE-2013)/2009-2014 dated 13th March, 2015 stands rescinded.
During the last five years 2015-16 to 2019-20 (upto January, 2020), 158 contracts have been signed with Indian vendors and 100 contracts have been signed with foreign vendors for capital procurement of defence equipment for Armed Forces. The defence equipment procured from Indian vendors over the last five years includes Helicopters, Radars, Electronic Fuzes, Bridges, Ballistic Helmets, Bullet Proof Jackets, TI Sights, Rocket launchers and Vehicles.