Performance and Efficiency Audit of Armed Forces to Begin

New Delhi. The government has set up an apex committee to conduct performance and efficiency audit of the armed forces to provide “valuable inputs” to the top level management through reliable, objective and independent information highlighting shortcomings in planning, implementation, systems affecting outputs/outcomes in specific and quality of expenditure/management in general, parliament was informed on August 5.

The mandate to carry out the audit was given to CGDA on July 14. The broad areas that have been identified for the conduct of the audit include defence capital procurements, provisioning, logistics, inventory levels, maintenance of platforms/assets, role and performance of the Authority Holding Sealed Particulars (AHSP) etc, Minister of State for Defence Ajay Bhatt said in a written reply in the Lok Sabha.

The apex committee can also recommend any other specific area for performance and efficiency audit. This will constructively promote economy, effectiveness and efficiency in governance by creating the necessary environment of accountability and transparency in the organization and ensure that the operations are effectively carried out through continuous improvement, Bhatt added.

The members of the committee include the Defence Secretary as Chairman, Vice Chiefs of the three Services, Secretary Defence (Finance)/FA(DS), Chief of Integrated Staff Committee (CISC), Controller General of Defence Accounts (CGDA), Director General (Acquisition) and other senior officials of Ministry of Defence and Defence Research and Development Organisation (DRDO).

Modernization of the armed forces involves the acquisition of new state-of-the-art platforms, technologies and weapon systems to upgrade and augment defence capabilities and is a continuous process based on threat perception, operational necessities and technological changes to keep the armed forces in a state of readiness to meet the entire spectrum of security challenges. Government attaches highest priority to ensure that the armed forces are sufficiently equipped to meet any operational requirement which is achieved through induction of new equipment and technological upgradation of capabilities.

The equipment requirements of the armed forces are planned and progressed through a detailed process which includes Ten Years Integrated Capability Development Plan (ICDP), Five Years Defence Capability Acquisition Plan (DCAP) and Annual Acquisition Plan (AAP) and deliberations by the Defence Acquisition Council chaired by the Defence Minister.

Government is pursuing a large number of initiatives to achieve higher levels of indigenization and self-reliance in the defence sector by harnessing the capabilities of the public and private sector industries in the country. These measures include according priority and preference to procurement from Indian vendors and liberalization of the licensing regime.

The Defence Acquisition Procedure (DAP)-2020 has been driven by the tenets of Defence Reforms announced as part of the government’s Aatmanirbhar Bharat Abhiyan by promoting indigenous design, development and manufacturing of defence equipment, platforms, systems and sub-systems. The DAP 2020 accords the highest priority to Buy Indian (Designed, Developed and Manufactured) (IDDM). To encourage production of these weapons/platforms in India, lists of weapons/platforms for ban on import have been notified.

A new category of Buy (Global-Manufacture in India) has been introduced to enable ab-initio indigenization of spares. This category encourages Foreign Original Equipment Manufacturers (OEMs) to set up manufacturing/maintenance entities through its subsidiary in India.

The definition of Indian Vendor has also been aligned to the new FDI policy.

The government has introduced Make II & Make III categories with the objective of self-reliance by involving greater participation of Indian industrial eco-system including private sector. The simplified Make-II procedure has been notified for Industry funded development projects. Reservation on orders up to Rs. 100 crore/year for MSMEs and Small Shipyards has been provided. Government has also promulgated the policy on Strategic Partnership in the Defence Sector to encourage broader participation of the private sector in manufacture of major defence platforms and equipment.