Army seeks Rs 10 lakh crore for modernization in next 5 years

Facing severe “hollowness” in its military preparation, the Indian Army has projected a requirement of Rs. 10 lakh crore for modernization under the 12^th defence five year plan beginning 2012.

Major procurements of the Indian Army have been in limbo for years now owing to sluggish defence procedures adversely impacting the fighting capabilities of the force. Ammunition, aviation, air defence, night vision devices and artillery remain critical areas.

According to sources, the projected requirement will be met over a span of five budgets. The New Army Chief General Bikram Singh had already made it clear that modernization will remain his top priority and the projection was given before the beginning of his Nepal visit.

The proposal will have to get a nod from the Finance Ministry and the prevailing economic conditions will make it a herculean task. Sources indicate that the Finance Ministry is likely to allocate scaled down budgets. Out of the total defence budget of Rs 1.93 lakh crore for the financial year of 2012-13 the Indian Army has got Rs. 96, 564 crore, only a meager 24 percent of it – Rs. 13,803 crores - will be spent in buying new weapons and platforms. Defence Minister AK Antony had assured to seek an additional budget of Rs. 50,000 crore for the current financial year. But the plan has now been put on hold due to the sluggish economic growth of the country.

The Indian Army has been planning to raise two mountain strike divisions to be deployed along Indo-China border in the North-East that alone is estimated to cost around Rs. 60,000 crore and complete the infrastructure development in the Eastern Army Command that will cost the Army’s coffers around Rs.10,000 crore. The Indian Army has also envisaged spending close to Rs. 40,000 crore for equipping its mechanized infantry and tanks with night fighting capabilities.

Moreover, the Army wants to have a squadron each of attack/armed, reconnaissance and tactical battle-support helicopters for each of its 13 Corps and the three strike corps headquartered at Mathura, Ambala and Bhopal will get more air assets.

Procurement worth Rs. 20,000 crore cleared by DAC

In a major boost to the aging Air Defence of the Indian Army, the Defence Acquisition Council (DAC) on Thursday cleared the procurement of three regiments of Quick Reaction Surface to Air Missiles (QRSAMs). The Indian Army will be floating tenders to replace its obsolete Russian Kvadrat missile systems. (The three units will be inducted in the 12th five year plan, while the rest five units will be inducted in the next five year plan).

The focus on the obsolete air defence came following the leak of the confidential letter written by former Indian Army Chief General VK Singh in March. The letter pointed out that 97 percent of the Air Defence of the force has become obsolete. 

Various other procurements were considered during the 2 hour-long marathon meeting attended by the three Defence Minister, Minister of State for Defence, Service Chiefs and Defence Secretary. Other projects cleared include-

1. Procurement of 14 Dornier aircraft of the Indian Air Force from public sector undertaking Hindustan Aeronautics Ltd (HAL) valuing around Rs. 1,000 crore

2. After the success of the pilot project of the Air Force Network (AFNET), plans to implement it across the country was also approved at the cost of Rs 7000 crore

3. Proposals of the Navy and the Coast Guard to procure 116 30 mm surface guns for their warships were also approved.