Economic Survey | Capital budget allocated for defence fully utilised since 2016-17
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The allocated capital budget for defence has been fully utilised since 2016-17, reversing the earlier tendencies of give up of funds, in keeping with the Economic Survey 2020-21.
“The trend of underutilisation of defence budget has also been reversed from financial year 2016-17,” the Survey acknowledged. The allocation of defence budget. together with civil estimates and pensions for 2020-21, was ₹4,71,378.00 crore, which was ₹40,367.71 crore over the budget estimates of 2019-20.
Due to the lengthy procurement course of and delays in finalising offers in time prior to now, unused funds had been returned on the finish of the monetary 12 months.
Emergency procurements
Last 12 months, the armed forces went for a collection of emergency procurements since the stand-off with China in May alongside the Line of Actual Control (LAC) in Eastern Ladakh. At the Army Day tackle on January 15, Army Chief Gen. Manoj Naravane stated that final 12 months, 38 offers have been made by means of ‘emergency and fast track’ route price about ₹5000 crore and as well as, capital procurements price ₹13,000 crore have been concluded.
Talking of efforts to spice up indigenisation of weapons methods, the Economic Survey stated the Defence Public Sector Undertakings (DPSU) and Ordnance Factories (OFs) have been striving to extend the indigenous content material of the gear and merchandise manufactured by them. “The indigenous content [Degree of Indigenisation] as on March 31, 2020 was 74.56%,” it famous.
On efforts to spice up non-public sector participation in home manufacturing, it stated that as a coverage, the DPSUs and OFs have been outsourcing lots of their necessities and “the value of outsourcing in terms of value of production for the FY 2019-20 stands at 41.70%.”
Wide vendor base
Further, over time, a large vendor base had been developed that included numerous medium and small scale enterprises and huge industries. Exports from the Ordnance Factory Board (OFB), the DPSUs and the non-public sector [based on authorisation issued by the Department of Defence Production (DDP)] had elevated from ₹4,682 crore in 2017-18 to ₹9116 crore in 2019-20, the Survey stated.
Since the opening of defence sector to non-public participation in 2001, to date 44 Foreign Direct Investment (FDI) proposals and Joint Ventures have been authorised for manufacture of varied gear, each within the public and the non-public sectors. Also, the Department for Promotion of Industry and Internal Trade (DPIIT) had issued 496 industrial licences to non-public corporations until September 2020 for manufacture of a variety of things, it added.
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