Defence Capital Procurement
DATE: 16 SEP 2020
During last financial year (2019-20), 38 contracts have been signed with Indian vendors and 32 contracts have been signed with foreign vendors. During the current Financial Year 2020-21 (Upto July 2020), 10 contracts have been signed with Indian vendors and 6 contracts have been signed with foreign vendors for capital procurement of defence equipment for Armed Forces.
Out of the total of 48 capital acquisition contracts signed with Indian vendors from April 2019 to July 2020, 18 contracts have been signed with DPSUs/PSUs/OFB/DRDO/ISRO and 30 contracts have been signed with Indian Private vendors.
All efforts are made to optimally use budgeted funds for meeting committed liabilities relating to already concluded capital acquisition contracts and for new schemes contracted during the year.
The details of expenditure incurred under Capital Acquisition (Modernisation) of Armed Forces, under Defence Service Estimates (DSE), for the last five years is as under:-
| Year | Actual Expenditure(Rs. in Crore) |
| 2015-16 | 62,235.54 |
| 2016-17 | 69,280.16 |
| 2017-18 | 72,732.20 |
| 2018-19 | 75,892.85 |
| 2019-20 | 91,128.74 |
While evaluating competitive bids for Defence contracts between DPSUs and Private Sector entities, no advantage is given to DPSUs. The competitive bids are evaluated based on the RFP terms and conditions.
This information was given by Raksha Rajya Mantri Shri Shripad Naik in a written reply to Col. Rajyavardhan Rathore in Lok Sabha today.
