Govt Takes Money Back, Army Battles for Arms

Bangalore: Indian Army’s modernization plan for the current fiscal has been gravely hit with Finance Ministry re-appropriating Rs 3,000 crore allegedly on account of delayed spending last month. The force is left with only Rs 950 crore to spend for its 106 plan proposals as reported by Shishir Gupta, Hindustan Times.

The non-availability of funds has resulted in Army’s critical modernization proposals being delayed this year. It includes delay in procurement of ultra light howitzers for artillery, rising of a Pinaka multi-barrel rocket regiment, replacements in the helicopter fleet, component level repair facility for T-90 tanks and equipment for Special Forces. In addition there is also serious shortage of armor piercing shells for tanks and artillery.

As per Defense Ministry sources, out of the total allocation of some Rs 10,000 crore that was set as modernization budget for 2011-2012 for the Indian Army, 4,000 crore was spent by the military towards committed liabilities. Rs 2,000 crore was given to Director General, Ordnance Factories out of the remaining amount.

66 percent of the defense budget had been spent by December 2011 said top ministry officials while they also confirmed that Finance Ministry had taken away Rs 3000 crore from Army’s modernization budget last month as the military acquisition process was slow.

On the other hand, Army says that only Rs 320 crore has been spent on 106 proposals that were submitted to the Defense Ministry for military modernization plan at the beginning of the fiscal. A senior official from the headquarters said “What modernization we can do with only Rs 950 crore left for a million-strong force,” as reported by Hindustan Times.

Even though the Army blames the Finance Ministry for re-appropriating Rs 3,000 crore, the latter says the money was taken back as there was no way the military could have spent it this year due to delayed decision making.