Govt’s Rs15 lakh cr plan for new defence equipment

NEW DELHI: In a major shift to ramp up military readiness, the Ministry of Defence (MoD) has prepared an ambitious plan to spend $233 billion (Rs15 lakh crore) over the next 11 years on buying or producing new equipment, including warships, fighter jets, submarines, aircraft carriers and around 500 helicopters.

Ajay Banerjee

Tribune News Service

New Delhi, August 23

In a major shift to ramp up military readiness, the Ministry of Defence (MoD) has prepared an ambitious plan to spend $233 billion (Rs15 lakh crore) over the next 11 years on buying or producing new equipment, including warships, fighter jets, submarines, aircraft carriers and around 500 helicopters.

The money is projected as part of the financial requirements for the long-term integrated perspective Plan (LTIPP) for 2012-2027.

The MoD seeks an annual 8 per cent hike in existing capital spending that is allocated in each year’s budget for new military equipment meant for the Army, Navy and the Indian Air Force.

According to the plan, the MoD has set a target, including induction of an additional 170 fighter jets for the IAF, 12 additional submarines, 500 various types of helicopters, additional artillery guns and tanks for the Army and another indigenous sea-borne aircraft carrier.

Though the plan appears to be big, the MoD seeks a gradual and assured hike. The capital spending for the present fiscal ending March 31, 2017, is Rs86,340 crore ($12.69 billion). The entire planned hike for the next 11 years will average out to an annual spend of $20.27 billion.

The move comes after Defence Minister Manohar Parrikar asked the Ministry to lay out the financial cost of the military equipment acquisition planned and bring it “in sync” with the existing average hikes possible in the Union Budget. “An annual hike of 8 per cent for capital spending is in sync with the anticipated hikes that for now vary on a year-to-year basis,” a source said.

The LTIPP lists out the equipment that is needed but it did not have the detailed cost of everything. It already has a technology perspective capability road map to enable the DRDO, Defence Public Sector Unit and the private industry to plan their research and development.

The LTIPP lays down the expected contingencies of the services and what would be the response. It lists capabilities and expected time frames. Further how these options would be achieved whether by indigenous development or by procurement from aboard.

In the case of targets of copters, submarines, fighter jets, warships and aircraft carrier, the plan is to make in India. Various joint ventures are being encouraged with foreign manufacturers.