Defence Budget Allocation & Defence Procurement Procedure : News & Discussions

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time axis should be from left to right, it should increase. are they targeting the middle east audience?
 
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Apparently 90,000 crores earmarked for building up wastage reserves including fuel for 10 days of intense fighting + 30 days of intermittent fighting as per Clutterji in his latest CTC episode based on the threat assessment of the Chinese, the late CDS - Gen Rawat gave both Clutterji & his colleague Snehesh Alex Philip in one of his last interviews before his untimely demise.

Good! That's a start considering our war preparations against the Chinese was no where to be seen though infrastructure work seemed to be gaining pace. It has an increased outlay too.

I hope they build on this taking this to 30+60 days or better still 30+90 days in a graduated manner before the decade is out. Further , hope to see them gear up mfg & imports to rapidly increase production during war time besides building up war wastage reserves from the very first week of war to build up inventories catering to 45+150 days scenarios & beyond too.
 

Although in terms of absolute numbers the figures have gone up, look at the extreme R.H.S column indicating percentage of the total expenditure. That tells a tale of it's own particularly after Galwan 2020.

Of particular interest as far as our discussion which has been going on since the last 6-7 yrs across different sites & forums , pls note the numbers for 2022 . Now, we're given a new date of 2026 or was it 2028 ? @Sathya
 
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Although in terms of absolute numbers the figures have gone up, look at the extreme R.H.S column indicating percentage of the total expenditure. That tells a tale of it's own particularly after Galwan 2020.

Of particular interest as far as our discussion which has been going on since the last 6-7 yrs across different sites & forums , pls note the numbers for 2022 . Now, we're given a new date of 2026 or was it 2028 ? @Sathya

That's because indian economy is expanding at a higher rate than defense expenditure..

U would see in 5 years by 2028 , how indian defense budget grows..

Once the Oil bond is paid, I don't know when 2026,

Of the Rs 1.34 lakh crore of oil bonds, only Rs 3,500 crore of principal has been paid and the remaining Rs 1.3 lakh crore is due for repayment between this fiscal and 2025-26, she had said on August 16.

The government has to repay Rs 10,000 crore this fiscal year (2021-22). Another Rs 31,150 crore is due to be repaid in 2023-24, Rs 52,860.17 crore in the following year and Rs 36,913 crore in
2025-26.


It is indeed 2026 .

Please Note between 2023-26 , we need to higher amount, so we might see budget % cuts somewhere.
 
That's because indian economy is expanding at a higher rate than defense expenditure..

U would see in 5 years by 2028 , how indian defense budget grows..

Once the Oil bond is paid, I don't know when 2026,

Of the Rs 1.34 lakh crore of oil bonds, only Rs 3,500 crore of principal has been paid and the remaining Rs 1.3 lakh crore is due for repayment between this fiscal and 2025-26, she had said on August 16.

The government has to repay Rs 10,000 crore this fiscal year (2021-22). Another Rs 31,150 crore is due to be repaid in 2023-24, Rs 52,860.17 crore in the following year and Rs 36,913 crore in
2025-26.


It is indeed 2026 .

Please Note between 2023-26 , we need to higher amount, so we might see budget % cuts somewhere.
It's not about any year. With Modi at helm, every single year will make both India's economy and defence stronger and stronger. Modi is not perfect, but his intentions are and that's what really matter.
 
That's because indian economy is expanding at a higher rate than defense expenditure..

U would see in 5 years by 2028 , how indian defense budget grows..

Once the Oil bond is paid, I don't know when 2026,

Of the Rs 1.34 lakh crore of oil bonds, only Rs 3,500 crore of principal has been paid and the remaining Rs 1.3 lakh crore is due for repayment between this fiscal and 2025-26, she had said on August 16.

The government has to repay Rs 10,000 crore this fiscal year (2021-22). Another Rs 31,150 crore is due to be repaid in 2023-24, Rs 52,860.17 crore in the following year and Rs 36,913 crore in
2025-26.


It is indeed 2026 .

Please Note between 2023-26 , we need to higher amount, so we might see budget % cuts somewhere.
I've a slightly different perspective on this. Bonds keep maturing all the time . In addition to these liabilities you have the farm subsidies too which'd have been gradually eliminated if those laws were still in effect . Add to that the massive food & vaccination program we tan for 2 yrs + .

Now how will you dissect this in the light of the events of the LAC in 2020 ? 👇

Post in thread 'Transport Aircraft of IAF - C-130J, C-17 Globemaster, C295: Updates & Discussions' Transport Aircraft of IAF - C-130J, C-17 Globemaster, C295: Updates & Discussions

I'd post Rohit Vats's thread reasoning on the entire RFI later today but for now just ponder over this & pls be informed that in all probability we'd be going in for 80 nos this decade onwards in a phased manner as usual, say 20+30+30 .

Assuming we sign the contract for C-130J @80-90 million USD / unit by 2027-28 & get the entire complement of transporters by 2033 we'd have spent 2-3 billion USD incl spares & ISE between 2027-33 . Now while this deal is necessary it's by no means urgent or more critical then our need for refuellers or ISR aircraft about which nothing is being done or moving & more importantly is it more critical than the elephant in the room the need for more FAs primarily the Rafales ? How do you explain this ?
 
The Indian Express reports that the Army was able to spend only Rs 23,000 crore, which is about 72 per cent of the allocated budget, while the Navy spent Rs 27,500 crore, which is about 56 per cent of its budget.

However, the Air Force was a particular laggard in spending, with only Rs 30,000 crores or 52 per cent of the allocated budget spent till 1 February.

This cumulatively amounts to Rs 80,500 crore, which is just about 52 per cent of the allocated defence budget of Rs 1,52,000 crore for the year 2022-23.

 
The Indian Express reports that the Army was able to spend only Rs 23,000 crore, which is about 72 per cent of the allocated budget, while the Navy spent Rs 27,500 crore, which is about 56 per cent of its budget.

However, the Air Force was a particular laggard in spending, with only Rs 30,000 crores or 52 per cent of the allocated budget spent till 1 February.

This cumulatively amounts to Rs 80,500 crore, which is just about 52 per cent of the allocated defence budget of Rs 1,52,000 crore for the year 2022-23.


3.3 billion USD for IAF. More than enough to cover 50% payments for a batch of 54 fighter jet imports.

2.6 billion USD for Navy. Enough to cover for 4 additional Scorpene and 10 Sea Guardians.
1 billion USD for Army, should order additional Arjun MK1A batch.
 
3.3 billion USD for IAF. More than enough to cover 50% payments for a batch of 54 fighter jet imports.

2.6 billion USD for Navy. Enough to cover for 4 additional Scorpene and 10 Sea Guardians.
1 billion USD for Army, should order additional Arjun MK1A batch.
Navy during Macron visit in March might sign MRCBF + if lucky Additional scorpene.
I've a slightly different perspective on this. Bonds keep maturing all the time . In addition to these liabilities you have the farm subsidies too which'd have been gradually eliminated if those laws were still in effect . Add to that the massive food & vaccination program we tan for 2 yrs + .

Now how will you dissect this in the light of the events of the LAC in 2020 ? 👇

Post in thread 'Transport Aircraft of IAF - C-130J, C-17 Globemaster, C295: Updates & Discussions' Transport Aircraft of IAF - C-130J, C-17 Globemaster, C295: Updates & Discussions

I'd post Rohit Vats's thread reasoning on the entire RFI later today but for now just ponder over this & pls be informed that in all probability we'd be going in for 80 nos this decade onwards in a phased manner as usual, say 20+30+30 .

Assuming we sign the contract for C-130J @80-90 million USD / unit by 2027-28 & get the entire complement of transporters by 2033 we'd have spent 2-3 billion USD incl spares & ISE between 2027-33 . Now while this deal is necessary it's by no means urgent or more critical then our need for refuellers or ISR aircraft about which nothing is being done or moving & more importantly is it more critical than the elephant in the room the need for more FAs primarily the Rafales ? How do you explain this ?

It's Military Diplomacy vs Posturing.

Since it's not urgent, we may be talking about it for the next 5 years..

Even if signed, it's not too bad for us right?
 
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Navy during Macron visit in March might sign MRCBF + if lucky Additional scorpene.


It's Military Diplomacy vs Posturing.

Since it's not urgent, we may be talking about it for the next 5 years..

Even if signed, it's not too bad for us right?
There are two parts to this -

1.) What are the IAF decadal plans or say a 25 yr perspective plan ( I'm not aware how they operate in this regard ) ?

This would be similar to IN plans like for instance they had a 25 yr plan drafted & approved in 1999 for a 24 nos SSK plan by 2024 . That was the original plan . Since then we've seen a lot of acrobatics & semantic jugglery on this .

2.) What are the IAF's plans w.r.t tackling PLAAF in case war breaks out say in 2024 or 2026 or 2028 or 2030 ....and so on ?

The IAF has to war game for each of these individual scenarios keeping in mind the assets they have in say 2024 & the assets PLAAF would have then . In addition to this , they need to consider the assets both the Air Force's are retiring & new inductions .

Whatever inductions & retirements the IAF plans say for example in 2024 must dovetail into their decadal plans or any other long term plan that they have . Into this must come a list of priorities .

Now in the light of all these details where would you place the requirement for a transporter for 18-30 Tons ? The An-32 are good enough till 2035 . In any case after catering to the initial requirements ( replacement for AVROs ) , the C-295 will start replacing the An-32 .

With limited resources in hand , what's more important - a transporter, which no doubt is necessary but where you do have adequate numbers for the present or a Fighter Aircraft where your numbers are rapidly falling & you don't have plenty of options.OTOH , you're not exercising options in hand for reasons you know best .
 
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There are two parts to this -

1.) What are the IAF decadal plans or say a 25 yr perspective plan ( I'm not aware how they operate in this regard ) ?

This would be similar to IN plans like for instance they had a 25 yr plan drafted & approved in 1999 for a 24 nos SSK plan by 2024 . That was the original plan . Since then we've seen a lot of acrobatics & semantic jugglery on this .

2.) What are the IAF's plans w.r.t tackling PLAAF in case war breaks out say in 2024 or 2026 or 2028 or 2030 ....and so on ?

The IAF has to war game for each of these individual scenarios keeping in mind the assets they have in say 2024 & the assets PLAAF would have then . In addition to this , they need to consider the assets both the Air Force's are retiring & new inductions .

Whatever inductions & retirements the IAF plans say for example in 2024 must dovetail into their decadal plans or any other long term plan that they have . Into this must come a list of priorities .

Now in the light of all these details where would you place the requirement for a transporter for 18-30 Tons ? The An-32 are good enough till 2035 . In any case after catering to the initial requirements ( replacement for AVROs ) , the C-295 will start replacing the An-32 .

With limited resources in hand , what's more important - a transporter, which no doubt is necessary but where you do have adequate numbers for the present or a Fighter Aircraft where your numbers are rapidly falling & you don't have plenty of options.OTOH , you're not exercising options in hand for reasons you know best .

For a serious and apt reply I lack knowledge .
However I know that we talk for few years without buying.

Why I said C130j is not bad because , our special forces use it. We are trained at it.

USA has developed many versions, specialized equipment s, strategy and training regimen for such..
Even if it isn't cutting edge, it's versatile.

I don't know about info of other contenders.
 
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The Indian Express reports that the Army was able to spend only Rs 23,000 crore, which is about 72 per cent of the allocated budget, while the Navy spent Rs 27,500 crore, which is about 56 per cent of its budget.

However, the Air Force was a particular laggard in spending, with only Rs 30,000 crores or 52 per cent of the allocated budget spent till 1 February.

This cumulatively amounts to Rs 80,500 crore, which is just about 52 per cent of the allocated defence budget of Rs 1,52,000 crore for the year 2022-23.

I think this is criminal . What we're seeing is the same old nonsense where last yr's unspent monies is recycled this yr which is why IAF's CAPEX shows a massive increase .

There was talk in MP's tenure where if the previous yr's CAPEX remained unspent for whatever reason , they'd not be touched & in addition to including the last yr's unspent CAPEX , the present yr's CAPEX budget would also reflect YoY organic growth of a certain percentage over the previous yr.

I sincerely hope we're following this practice & what's happened with the IAF's CAPEX this time around wasn't an exception but the rule . Further , MP had also promised that he'd institute mechanisms to ensure that this practice of surrendering unspent monies is gradually brought down to more acceptable levels if not out right eliminated .

In the light of this information that the IAF is surrendering 48% of it's CAPEX where it's squadron numbers are falling , there's no sign of the ISR & though there's some movement on the AAR & AEW&CS systems , there are no major procurements on the horizon.

I hope those who were ridiculing my opinion a few months ago that all is not right between the IAF & MoD / GoI where the MoD had still not made funds available for the Mk-2 program with the IAF itself appearing lackadaisical & half hearted about the whole issue , take note & perhaps try & explain how can the IAF & more importantly the country afford such risky behaviour.
 
I think this is criminal . What we're seeing is the same old nonsense where last yr's unspent monies is recycled this yr which is why IAF's CAPEX shows a massive increase .

There was talk in MP's tenure where if the previous yr's CAPEX remained unspent for whatever reason , they'd not be touched & in addition to including the last yr's unspent CAPEX , the present yr's CAPEX budget would also reflect YoY organic growth of a certain percentage over the previous yr.

I sincerely hope we're following this practice & what's happened with the IAF's CAPEX this time around wasn't an exception but the rule . Further , MP had also promised that he'd institute mechanisms to ensure that this practice of surrendering unspent monies is gradually brought down to more acceptable levels if not out right eliminated .

In the light of this information that the IAF is surrendering 48% of it's CAPEX where it's squadron numbers are falling , there's no sign of the ISR & though there's some movement on the AAR & AEW&CS systems , there are no major procurements on the horizon.

I hope those who were ridiculing my opinion a few months ago that all is not right between the IAF & MoD / GoI where the MoD had still not made funds available for the Mk-2 program with the IAF itself appearing lackadaisical & half hearted about the whole issue , take note & perhaps try & explain how can the IAF & more importantly the country afford such risky behaviour.
Last year it was less amount. So Army had bought large numbers of Konkurs, Milan etc.

I still believe that atleast 1-2 billion USD worth deals would be signed in these remaining 6-7 weeks. Let's see.
 
3.3 billion USD for IAF. More than enough to cover 50% payments for a batch of 54 fighter jet imports.

2.6 billion USD for Navy. Enough to cover for 4 additional Scorpene and 10 Sea Guardians.
1 billion USD for Army, should order additional Arjun MK1A batch.
And then defense experts complain about budget ?? This is absolutely criminal 😡
 
3.3 billion USD for IAF. More than enough to cover 50% payments for a batch of 54 fighter jet imports.

2.6 billion USD for Navy. Enough to cover for 4 additional Scorpene and 10 Sea Guardians.
1 billion USD for Army, should order additional Arjun MK1A batch.


Government trying to spend the CAPEX.

For IN

1. 3 CTS ordered.

For IAF

1. 70 HTT-40
2. 06 Do-228