Keep in mind that 6500 crore won't be paid. At Max 15-20 is down payment. Rest will be paid over 6 years when HTT-40 will be delivered.
Defence Budget Allocation & Defence Procurement Procedure : News & Discussions
- Thread starter Ashwin
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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.
Defence: Just 50 Per Cent Of Allocated Budget Spent By Armed Forces Amid Western Sanctions On Russia
The Indian Armed forces were able to spend just over 50 per cent of the allocated budget for Capital Expenditure (capex) till 1 February 2023, due to the Russia-Ukraine war and the Covid-19 pandemic, The Indian Express reportedswarajyamag.com
We have 28,000 crores for Russia which we aren't able to pay currently.
Apart from that let's see.
Of the remaining 21,600 crore rupees of IN's CAPEX , considering that the 1st payment will at the very most by 20% of the contract, additional deals , like 10-12 MQ9B, 3-4 Scorpenes, etc too can be easily signed before 31 March.
And CCS clearance doesn't mean much, considering that if the deal isn't actually signed, then that will mean that the remaining amount will be forfeited.
However Indian Navy seems to be better placed. And if these deals fructify, will see them reaching a minimum of 70-75% utilisation.
The real looser among the pack is Indian Airforce, which still has like 25,000 crores to spend....
Doesn't the CCS clearance means the deal has to be and must be signed?
IAF can sign the deal for 244 AA guns along with the radars. Their main procurement programs are still far in the future.
Yes it means it has to be signed, but the thing is it needs to be signed before 31st March. Or else these unused funds will be returned.
And the signed deals will withdraw from 2023-24 CAPEX funding.
They wanted to buy 3 squadrons of Rudra. That's a domestic purchase. That should be initiated.
Apart from that the 767 conversion program, they should try to see if it can be signed.
The issue is that they had like 3-4 months with 50% CAPEX unspent. What were they doing? What's the top brass thinking? This pretty much shows lack of capacity to plan and manage.
IAF should start looking at IIM graduates to manage things. Because they themselves are lost.
Result of dalali, these *censored*ers were sleeping till now . There is huge backlog of indigenous systems but still they won't procure them even if they have to surrender all the money.
According to officials, the three services are yet to fully exhaust their capital budgets for the current fiscal. A major chunk of this unspent funds are Rouble payments worth Rs 28,000 crore for weapons India procured from Russia.
Next-gen missile vessels to radars: Govt on local shopping spree for armed forces
So they waited till the last moment to figure out the alternative way for paying Russia, why they didn't realised earlier and used that time to clear the huge backlog of indigenous deals.
Out of approx 1.5 lakh crore. Only 80,000 crores have been spent. Let's keep 28,000 crores aside.
That still leaves 42,000 crores. Forget the Russian payments. What about wasting the rest?
What exactly Defense ministry was doing? On one side everyone complains shortage of funds and then can’t even spend allocated amount? Even my illiterate grand mother can do better financial planning
.If our forces can’t plan and buy critical items( when enemy is sitting at our door) how can we expect them to have well planned war fighting strategy? It seems our defence top brass is busy playing golf and enjoying parties!!
DDR mention of Make-1 program for Medium Speed Marine Diesel Engine being also cleared.