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Amid China stand-off, Indian Defence ministry seeks additional Rs 200 billion for combat readiness of armed forces

August 09, 2017

NEW DELHI: Aug 9 (INP) The Indian defence ministry has sought an "urgent" additional allocation of Rs 200 billion for military modernization as well as day-to-day operating costs, in a move that comes when Indian and Chinese troops continue to remain locked in a tense standoff near the Sikkim-Bhutan-Tibet tri-junction since mid-June. Times of India said MoD officials led by defence secretary Sanjay Mitra told their finance ministry counterparts in a meeting that the Rs 20,000 crore was urgently required in addition to the Rs 2.74 lakh crore allocated for defence in the 2017-2018 budget. "The MoD officials said almost 50% of the capital and 41% of the revenue outlays in the defence budget had already been utilized in the ongoing fiscal. Moreover, the new customs duty on arms imports had also burnt a big hole in the defence budget. The finance ministry said the MoD request will be examined at the earliest," said a source. As it is, the Rs 1,72,774 crore revenue outlay for day-to-day costs and salaries by far outstrips the capital one of Rs 86,488 crore for new weapon systems and modernization in the existing 2017-18 defence budget. Moreover, the bulk of the capital outlay is earmarked for "committed liabilities or instalments" for deals inked earlier. Incidentally, the Rs 2.74 lakh crore outlay works out to just 1.56% of the projected GDP, the lowest such figure since the 1962 war with China, the newspaper said. As was first reported by TOI last month, the armed forces have projected a requirement of Rs 26.84 lakh crore ($416 billion) over the next five years under the 13th Defence Plan (2017-2022) to ensure requisite military modernization and maintenance to take on the collusive threat from Pakistan and China as well as to safeguard India's expanding geostrategic interests. The newspaper quoting sources said if the Army has operational deficiencies in artillery guns, infantry weapons, light helicopters, night-fighting capabilities and the like, the IAF does not have enough fighters, mid-air refuellers, AWACS (airborne warning and control systems) and drones. The Navy, in turn, is struggling with shortages in the number of submarines, multi-role helicopters and minesweepers. Given the "operational military hollowness", the defence ministry after the Uri terror attack in September last year had delegated emergency financial powers to the three Services to procure ammunition and spares to ensure they had enough reserves for "10 days of intense fighting". This had led to contracts worth Rs 23,700 crore being inked with countries like Russia, Israel and France so that the armed forces could maintain adequate stockpiles and combat readiness for "short and intense wars". INP/AH