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Rediff.com  » News » India inked arms deals worth $4.27 bn in over 5 years

India inked arms deals worth $4.27 bn in over 5 years

May 14, 2012 16:48 IST

India has signed defence offset contracts worth $4.27 billion in the last five-and-a-half years and Rs 1,17,319 crore has been spent on acquisition of military products from various indigenous sources, government told the Lok Sabha on Monday.

In a written reply to the House, Defence Minister A K Antony said, "17 offset contracts have been signed so far with a value of about $4.279 billion... Offset policy was introduced in 2005. It is a relatively new policy and is in the process of evolution. The first offset contract was signed in 2007."

The defence ministry also tabled a report on the contracts which were signed by the country with an obligation of 30 per cent offset clause.

While the offset contracts worth around $3.435 billion were signed while procuring aircraft and systems for the Indian Air Force, Navy booked total offsets of worth $843 million while acquiring fleet tankers, maritime reconnaissance aircraft, radars and UAVs.

Tabling a report on capital acquisition for the defence forces, the minister said that in 2006-07 Rs 21,612.24 crore was spent for the purpose, followed by 17,993.08 crore in 2007-08.

In 2008-09, Rs 20,347.74 was spent by the government. Last year, the sum spent on acquisition of defence products was Rs 31,445.55 crore, he said.

Since 2007, IAF has spent money on acquisition of new systems and aircraft and upgradation of the existing ones.

Some of the major contracts include the deal to upgrade existing fleet of MiG-29 fighter aircraft, acquisition of C-130J and C-17 transport aircraft and upgrade of mirage-2000 planes.

Replying to a question on amount spent on capital acquisition from foreign sources, Antony said, Rs 15,443.01 crore was spent in 2010-11.

From 2008-09, the total amount spent on capital acquisition through foreign sources was Rs 39,039.87 crore.

"Procurement of defence equipment is done from various indigenous as well as foreign sources in accordance with the Annual Acquisition Plan (AAP)... Defence equipment have been imported from various countries including Russia, USA, Israel, France, United Kingdom, Germany, Poland, Singapore etc. during the last three years," Antony said.

In reply to a question on transparency in defence deals, Minister of State for Defence M M Pallam Raju said, "Meetings are held at various levels to review the performance of DPSUs at which they are asked to maintain probity and transparency in their dealings."

Defence PSUs have also been instructed to enter into "Integrity Pact" with their vendors to avoid all forms of corruption by following a system that is fair, transparent and free from influence, Raju told the House.

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