Question: Will the Minister of DEFENCE be pleased to satate :-

(a) the details of the expenditure incurred by the Government in importing the defence products during each of the last three years and the current year, category-wise and country-wise;

(b) whether there is rampant corruption in defence deals;

(c) if so, the details thereof along with the steps taken / proposed to be taken by the Government to check such corruption; and

(d) the present status of indigenisation in defence production along with the steps taken/ proposed to be taken by the Government to boost indigenisation in this regard?

Answer: Minister of Defence (Shri A.K. Antony)

(a) Defence equipment has in the recent past been imported from various countries including Russia, USA, Israel, France, United Kingdom, Germany, Poland, Singapore etc. Category and country-wise details of expenditure as received from Service Headquarters are at Annexure-A.

(b) & (c) The Defence Procurement Procedure (DPP) contains stringent provisions aimed at ensuring the highest degree of probity, public accountability and transparency. However, whenever, any allegation of corruption in defence deals is received, the same is examined by the Ministry and wherever necessary, it is referred to the appropriate agency for investigation. Suitable action is also taken against the vendors and persons found guilty in such cases.

(d) Several steps are being taken by the Government to promote manufacture of defence equipment within the country. Defence Production Policy actively encourages indigenous manufacture of defence equipment. For foreign procurement cases, Transfer of Technology is sought, wherever required. The “Offset” policy also encourages indigenous production.

Further, the latest edition of Defence Procurement Procedure-2013 gives a boost to the Indian Defence Industry, both in the Public and the Private Sector, by according a higher preference to the ‘Buy (Indian)’, Buy and Make (Indian)’ and ‘Make’ categorisation, bringing further emphasis to the ‘Indian Content’ and simplifying the ‘Buy and Make (Indian)’ procedure.

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Defence Acquisition

Defence Economics & Industry