STATEMENT in RESPECT of PARTS (A) to (C) of RAJYA SABHA STARRED QUESTION NO. 221 for 9.12.2014

STATEMENT IN RESPECT OF PARTS (a) TO (c) OF RAJYA SABHA STARRED QUESTION NO. 221 FOR 9.12.2014 REGARDING PROCUREMENT OF POOR QUALITY ARMS AND AMMUNITION.

(a) The total expenditure on defence equipment for Capital Acquisition during the last three financial years is as under:

(Rs. in crore)

Year / Total expenditure
2011-12 / 56281.88
2012-13 / 58768.86
2013-14 / 66850.30

(b) The expenditure on Capital Acquisition and percentages in respect of orders placed on Public Sector Undertakings (PSUs) including Ordnance Factory Board (OFB), Indian Private Sector and Foreign Vendors during the last three financial years is as under:

(i) AIR FORCE

Year / Actuals
(Rs in crore) / Indian Vendors
Per cent/(Rs. in crore) / Foreign Vendors
Per cent/(Rs. in crore)
% share of PSUs (including OFB) / % Share of Private Sector
2011-12 / 27164.09 / 41.37%
(11238.05) / 2.46%
(667.93) / 56.17%
(15258.11)
2012-13 / 31053.00 / 28.98%
(8999.46) / 9.12%
(2832.59) / 61.90%
(19220.95)
2013-14 / 36917.99 / 41.84%
(15446.76) / 1.47%
(543.68) / 56.69%
(20927.54)

(ii) ARMY

Year / Actuals
(Rs in crore) / Indian Vendors
Per cent/(Rs. in crore) / Foreign Vendors
Per cent/(Rs. in crore)
% share of PSUs (including OFB) / % share of Private Sector / Balance of % share*
2011-12 / 10865.93 / 73.10%
(7944.06) / 4.76%
(515.90) / 17.48%
(1899.90) / 4.66%
(506.07)
2012-13 / 10871.79 / 85.52%
(9297.58) / 2.56%
(278.80) / 2.80%
(303.74) / 9.12%
(991.67)
2013-14 / 10426.49 / 82.39%
(8590.10) / 1.91%
(199.50) / 1.30%
(135.89) / 14.40%
(1501.00)

*This pertains to expenditure for which detailed break-up of public/private sector is not maintained.

...... 2/-

: 2 :

(iii) NAVY (including Coast Guard and Joint Staff)

Year / Actuals
(Rs in crore) / Indian Vendors*
Per cent/(Rs. in crore) / Foreign Vendors
Per cent/(Rs. in crore)
2011-12 / 18251.87 / 63.29%
(11550.96) / 36.71%
(6700.91)
2012-13 / 16844.07 / 63.78%
(10743.69) / 36.22%
(6100.38)
2013-14 / 19505.82 / 36.13%
(6852.26) / 64.87%
(12653.56)

* The break-up of expenditure for orders placed on Indian vendors, between the

Public and private sector units, is not maintained by the Navy.

(c) Defence Procurement Procedure provides for extensive Field Evaluation Trials before award of the contract. Post contract, a system of Pre-Dispatch Inspection (PDI) and Joint Receipt Inspection (JRI) exists to address defect and reliability issues. Further, if any defect or reliability issues arise, these are taken up with the vendor as per the terms of the contract.

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