Delayed military supplies will lead to contract cancellation: Defence Secretary

Defence Secretary Rajesh Kumar Singh, in a firm message to the industry, said if the delivery of military equipment is delayed, the contract will be foreclosed.

Singh expressed dissatisfaction with defence manufacturers — both domestic and foreign — who he said often overpromise and then fail to deliver on time.

He said the new process of foreclosing contracts would be applied to emergency procurements (EP) undertaken by the armed forces. Under EP rules, delivery of equipment must be completed within a year of signing the contract. The Defence Secretary noted that both domestic and international suppliers were behind schedule.

“All of it is not solely attributable to domestic manufacturers. But there is a tendency to overpromise and underdeliver,” Singh said at a defence conclave. “The delays are not only by domestic manufacturers. You’ve seen the S-400s getting delayed due to conflicts. Israel’s orders are delayed because of the conflicts it is facing. There are supply chain issues with General Electric engines (from the US),” he added.

He said the ministry needed to crack down more firmly and impose higher liquidated damages on suppliers responsible for delays.

“In the current round of emergency procurement, we have taken a very tough stand: any case where delivery is not completed within one year will be foreclosed,” Singh said, adding, “I intend to ensure this is implemented — regardless of who the supplier is, which company or which country — every contract will be foreclosed after one year.”

Singh also spoke about the planned development of a jet engine to power India’s next generation of fighter aircraft. He said India was in the process of finalising a programme with a leading international engine manufacturer to co-develop a 120 kN jet engine that would be produced entirely within India, with full Intellectual Property Rights (IPR) held domestically.

He did not name the partner country, though it is known that India has decided to collaborate with France under a government-to-government agreement to jointly design and manufacture a new 120 kN engine for the Advanced Medium Combat Aircraft (AMCA).

The Defence Secretary’s comments come a week after Chief of Defence Staff Gen Anil Chauhan urged the Indian private industry to be “truthful” about the level of indigenous content in military equipment and reminded entrepreneurs not to “overpromise” on timelines.