No Time to Lose May 2024

Mohammad Asif Khan

Following the incursion of Chinese troops on the Line of Actual Control in Eastern Ladakh in early May 2020, the Emergency Procurement (EP) mechanism outlined in the Defence Procurement Manual of 2021 has allowed the armed forces to address crucial deficiencies in combat readiness.

EP powers were first granted to the armed forces by the ministry of defence following the 2016 Uri terror attack. These powers were introduced to help the armed forces circumvent the slow, bureaucratic system of procurement, allowing them to quickly ink contracts for essential equipment and arms.

Under these EP powers, each branch of the armed forces independently signs contracts valued at up to INR 300 crore, bypassing the lengthy procedures typically involved in acquiring new systems for modernisation by Defence Acquisition Procedure (DAP). The EP provision has been extended to all three branches of the military—army, navy and air force—on four occasions, enabling them to procure various offensive and defensive systems.

The army has utilised the EP mechanism to address significant deficiencies across various areas such as firepower, drone warfare, mobility, communication and soldier personal protection, among others. The EP's main aim was to address critical operational shortcomings, particularly along the northern borders.

The emergency procurement conducted by the armed forces encompassed a range of critical systems such as remote-controlled weapon systems, air defence missiles, anti-tank missiles, satellite downlink and recording systems, tiny aperture terminals (VSAT) and portable mobile terminals.

The army is observing 2024 as the ‘Year of Technology Absorption’ to focus on modernisation and technology integration and is working on several projects to reshape and remodel the functional processes to bring in a quantum jump in its capabilities. For the army, these acquisitions also included multi-terrain vehicles, high-mobility reconnaissance vehicles, loitering munitions and drones, among others.

In the initial three phases, the army utilised around INR 6,500 crores, finalising 68 contracts. More than INR 1,800 crores was allocated for the procurement of modern weapons, equipment and ammunition, along with a similar sum utilised for communication and non-communication gear. Additionally, approximately INR 900 crores was earmarked for 10 contracts related to surveillance equipment, and close to INR 1,500 crores was allotted for 14 projects involving drones and counter-drone systems, around INR 1,000 crores was directed towards enhancing mobility across different terrains and acquiring engineering equipment.

Apart from the army, the Indian Air Force (IAF) entered into 65 contracts valued at over Rs 8,000 crores, while the Indian Navy secured 35 contracts worth Rs 4,500 crores during this period. Unlike the initial three tranches, which involved procurement deals with countries such as