IANS

NEW DELHI

WITH time and cost escalations plaguing military acquisitions, Financial Advisor (Defence Services) AK Chopra admitted on Wednesday that the procurement systems are still far from being perfect and are still evolving.

“If anybody says the Indian defence procurement system is perfect, I think it is still far from being one. It is still evolving,” Chopra, who inaugurated a daylong workshop on ‘Streamlining the Indian Defence Procurement System’ organised by the Observer Research Foundation (ORF) here, said.

Noting that India had a joint secretary handling the procurements of the respective services till 1992, when the first defence acquisitions rules were prepared, Chopra said the Kargil war in 1999 and the resultant review by a committee and a group of ministers led to the system, as it exists today, being evolved.

He said the 1992 “rules of the game” were an internal document and was not known to those outside the ministry.

But the first Defence Procurement Procedure (DPP), brought out in 2002, was a public document.

“Since then, the DPP has been going through numerous revisions and has expanded substantially.” The reason for the expansion of the DPP provisions was the constant “useful” feedback received by the ministry from the industry and think-tanks and went on to include provisions such as the integrity pact to uphold probity and offsets clause to energise the Indian industry.” The way the defence procurement system is structured, it tries to find a fine equilibrium among three stated objectives that are competing with each other - expeditious fulfilment of requirements of the services, development of Indian industry, and the procedures conforming to high standards of transparency and probity,” he said.

Chopra noted that the different stake-holders in the defence procurement cycle have conflicting interests.” The services want the entire procurement done yesterday; for the Indian industry, the emphasis is on giving them greater share and greater role in the whole procurement; and the watchdog agencies keep a watch on transparency and probity,” he said.

Chopra noted that the different stake-holders in the defence procurement cycle have conflicting interests.” The services want the entire procurement done yesterday; for the Indian industry, the emphasis is on giving them greater share and greater role in the whole procurement; and the watchdog agencies keep a watch on transparency and probity,” he said.” It is a fine balance, where the equilibrium keeps on shifting,” he added.