Modernization of Armed Forces
The details of budget estimates, revised estimates, actual expenditure and underutilization of funds on modernization of armed forces during the last three years are as follows:-
(Rs. in crore )
| Year | Budget Estimates | Revised Estimates | Actual Expenditure | Savings |
| 2013-14 | 73,444.59 | 66,406.41 | 66,850.30 | — |
| 2014-15 | 75,148.03 | 66,151.73 | 65,862.38 | 289.35 |
| 2015-16 | 77,406.69 | 65,400.00 | 62,235.54 | 3,164.46 |
No amount remained unspent during year 2013-14, while only a minor sum of 289.35 crore remained unspent during 2014-15 as a cumulative effect of small savings under various heads of account. During 2015-16 savings have occurred due to various reasons including slow progress in UAV Heron contracts/ major shipbuilding contracts, slow progress of strategic forces command and signal intelligence projects, non conclusion of submarine projects etc.
The details related to the percentage of funds allocated for modernization of armed forces spent on buying indigenous equipment are as follows:
(Rs. in crore )
| Year | Actual | Amount spent on buying of indigenous equipment | Percentage |
| 2013-14 | 66,850.30 | 31,768.19 | 47.53% |
| 2014-15 | 65,582.34 | 40,589.98 | 61.89% |
| 2015-16 | 61,761.80 | 39,339.68 | 63.70% |
Modernization of Armed Forces is a continuous process based on threat perceptions, operational challenges and technological changes to keep the Armed Forces in a state of readiness to meet various security challenges. This is achieved through induction of new equipment and technological upgradation of capabilities. The equipment and capabilities to be acquired for the Armed Forces are identified through a comprehensive planning process and after deliberations at various levels.
Government is pursuing several measures to realize progressively higher levels of indigenization and self- reliance in defence sector. To this end, the Defence Procurement Procedure 2016 (DPP 2016) has provisions which accord higher priority to procurement from Indian vendors. Notwithstanding this, import of defence equipment may be necessitated to meet operational requirements and when indigenous equipment is not available.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Kesineni Nani in Lok Sabha today.
Source :PIB