Indian Army and Air Force Complete Emergency Procurements

• 09 Oct 2023

The Indian Army has successfully concluded the fourth phase of Emergency Procurements (EP) between September 2022 and September 2023, totalling over 70 schemes and amounting to nearly Rs. 11,000 crore.

Key Points

• Objective of Emergency Procurements: The primary goal of Emergency Procurements (EP) was to address crucial operational deficiencies, particularly along India's Northern Borders, ensuring national security.
• Allocation of Funds: The funds allocated for these procurements were distributed across various categories.
• Approximately Rs. 1,300 crore was invested in weapon systems, while Rs. 1,300 crore was allocated to 7-8 projects for protective equipment.
• Delivery Timeline: As per the stipulations of the Defence Ministry, deliveries for the fourth tranche of EP must be completed within 12 months.
• Emergency Financial Powers: These emergency financial powers were granted to the armed forces after key events such as the 2016 Uri terror attack, the 2019 Balakot air strikes, and the 2020 standoff with China in Eastern Ladakh.
• Savings and Domestic Procurement: The EP mechanism not only facilitated swift procurements but also resulted in significant savings, primarily through domestic industry engagement.
• In the first three tranches, savings of around Rs. 550 crore were realized, and the fourth phase alone led to savings of approximately Rs. 1,500 crore.
• Key Upgrades: Notable upgrades achieved through the EP mechanism included remote control weapon systems, air defence missiles, anti-tank missiles, surveillance equipment, drones, counter-drone systems, UAVs, ballistic helmets, and more.
• Boost to Domestic Defence Industry: The EP mechanism demonstrated the increasing capability of the domestic defence industry, with about 50% of contracts awarded to Indian vendors in the first three tranches.
• Under EP-4, all 70 schemes were contracted with Indian suppliers, further promoting indigenous defence production.