We have cut acquisition timelines: Defency Secretary

Faced with procedural delays in procurement of military equipment, the Ministry of Defence has slashed the timelines in the process to save about 69 weeks.

This was stated by Defence Secretary RK Singh at a defence conclave held in New Delhi on May 29-30.

The Defence Acquisition Procedure 2020 that lays down the procurement process in detail is being revisited to reflect the current realities, the Defence Secretary said, adding,“there is a need to shift away from the traditional nomination based cost-plus procurement focused mostly on the public sector”.

A more competitive pricing model allows both the public and private sector to compete for orders. This approach is already being implemented for ship-building and recently for the advanced medium combat aircraft project, he added.

While assuring the private sector about improved ease of doing business and a level-playing field, the Defence Secretary reiterated the need to focus on research and development and capital formation through investments in capital equipment, machinery and engineering strength.

In the longer run, companies which do not have the engineering manpower or the capital equipment or the willingness to invest in R&D should not think of entering into the defence domain.

He said over 100 Indian companies were now exporting to 100-plus countries today. The list of products includes missiles such as Brahmos, rocket launchers like Pinaka, simulators, armoured vehicles, the Dornier aircraft, different types of ships, offshore patrol vessels etc.  Exports have grown 30 times in the last 10 years to Rs 23,622 crore in the last financial year.

The ministry, he said signed contracts valued at Rs 2 lakh crore during the last financial year, which is the highest ever achieved and double that of the figures for 2023-24. This would help the ministry in demanding higher share in the Union Budget, leading up to a minimum defence to GDP ratio of 2.5% in five years as a first step and thereafter up to 3 per cent in the medium term.