Defense Ministry and armed forces differ on emergency procurement powers

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The Differences

The EP, under which the services can ink contracts worth up to Rs 300 crore each on their own, lets the forces circumvent the long-winded process of acquiring new systems for modernisation.

Sources in the defense and security establishment told ThePrint that, while the armed forces are seeking emergency procurement powers for capital acquisitions (new equipment), the ministry is of the view that the scheme should cater to sustenance.

“We are in talks. Emergency procurement is much needed and should be continued. The question is what it should be for,” a highly-placed source said.

The Emergency Procurement powers

The Ministry of Defence’s (MoD )Defence Acquisition Council (DAC) granted emergency procurement power to the armed forces to buy, preferably from the Indian sources ( to push the agenda of Atmanibhar Bharat),any kind of equipment urgently needed by them. This financial power can be exercised any number of times over the next six months up to Rs 300 crore at a time subject to availability of funds. It will mostly benefit the Indian Army (IA) which is at the forefront of the Indian response to the Chinese transgression, but otherwise generally known to be slow in inducting equipment.

The usual procurement route

The Defence Acquisition Procedure(DAP 2020) guides all capital or equipment procurements and upgrades by the military. It stipulates a time period of 74-106 weeks to complete a procurement but rarely reaches the target. Usually a Request For Information (RFI) is placed for the concerned platform sought to be purchased after which specifications are issued for it then responses are received. Several bureaucratic steps later,technical assessments and field trials are conducted. An oversight committee would endorse these procedures. After more bureaucratic hurdles, a contract would be negotiated , endorsed and then finally inked.

The Defence Acquisition Council

Headed by the defense minister, with the chief of defense staff, all service chiefs and secretaries, and other high-ranking officials as members, DAC is the Ministry Of Defence’s apex body that decides on all acquisition matters.

Key Procurements for the Indian Armed Forces Under EP

The Army managed to seal 140 procurement deals, spread across four tranches (EP-I to IV) worth Rs 18,000 crore. 

The emergency procurement by the forces include remote-controlled weapon systems, air defense missiles, anti-tank missiles, satellite downlink and recording systems, very small aperture terminal (VSAT), and portable mobile terminals.

For the Army, these also included multi-terrain vehicles, high-mobility reconnaissance vehicles, loitering munitions and drones, among others. 

The initial three tranches saw the Army utilizing approximately Rs 6,500 crore, and finalizing 68 contracts. In EP-IV alone, which spanned from September 2022 to September 2023, more than 70 schemes worth nearly 11,000 crore were inked.For the Airforce, Rafale, LCA Mk1A, C-295, Chinook and Apache Aircrafts have been inducted. Induction of S-400,MRSAM,VSHORADS, and CIWS will enable a layered Air Defence capability. The MiG-29, Jaguar, Mirage-2000 and Mi-17 helicopters are being upgraded in a phased manner. Emerging technological trends like drone technologies including anti drone and swarm drones, Manned-Unmanned Teaming (MUM-T) concepts utilizing UCAV and niche technologies.

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