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Mint
a day ago
- Business
- Mint
MoD slashed timelines for some processes in procurement cycle, saved 69 weeks: Defence Secretary
Defence Secretary Rajesh Kumar Singh said that the Ministry of Defence (MoD) has significantly reduced timelines for key military equipment procurement processes as part of major reforms to improve efficiency and promote India's goal of 'Aatmanirbharta' in the defence sector, according to an official release. Speaking at a defence conclave in the national capital on Friday, Singh stated that the decision will save an overall 69 weeks, noting that the Defence Acquisition Procedure (DAP) 2020 is being revisited to reflect current realities, shifting from the traditional nomination-based cost-plus procurement to a competitive pricing model where both public and private sectors can vie for orders. This approach is already being implemented for shipbuilding and recently for the AMCA project, he added. Singh's statement came amid concerns raised by Chief of Air Staff, Air Chief Marshal AP Singh, during his address at the CII Annual Business Summit 2025 on Thursday, where he highlighted ongoing delays in defence projects, unrealistic timelines, and their adverse effect on operational readiness. Air Chief Marshal pointed at the recurring pattern of delays in project execution and criticised the practice of committing to unachievable deadlines in the context of the reported ongoing challenges with projects like the delivery of the aircraft. Singh emphasised the critical role of self-reliance in preserving India's strategic autonomy and achieving the vision of Viksit Bharat while urging private industries to invest heavily in research and development (R&D) and capital equipment to strengthen the domestic defence ecosystem. Deliberating upon India's Defence Vision, Defence Secretary Rajesh Kumar Singh said that it centres around Aatmanirbharta for preserving the strategic autonomy of the country. It is also critical in achieving the broader goal of Viksit Bharat, such as expanding our GDP from the current 4 Trillion Dollars to 32 Trillion Dollars by 2047, growing our manufacturing sector, enhancing India's start-up culture and widening our industrial base, generating employment and also its spin-off benefits that come from the dual use of technology. He underscored the impact of indigenisation over the past decade, stating that India has transitioned from being the top importer in 2015 to becoming one of the top 25 exporters today. Over 100 Indian companies are now exporting to 100-plus countries. The list of products includes missiles such as Brahmos, rocket launchers like Pinaka, simulators, armoured vehicles, the Dornier aircraft, different types of ships, offshore patrol vessels, etc. The upsurge in exports can be gauged from the fact that our exports have grown 30 times in the last ten years to ₹ 23,622 crores in the last financial year. Our defence industry today includes 16 Defence PSUs, 430 licensed companies and approximately 16000 MSMEs. Domestic defence sales also increased from ₹ 43746 crores in 2014 to ₹ 127000 crores in 2023-24. Singh also highlighted record achievements in the financial year 2024-25, noting that the MoD has completely utilised the defence modernisation budget for the first time in the past five years and signed contracts worth a record ₹ 2 lakh crores during the last financial year, which is the highest ever achieved and double that of the figures for 2023-24. This would ensure that the armed forces' modernisation process keeps pace. It would also help the Ministry demand a higher share in the union budget, leading to a minimum defence to GDP ratio of 2.5 per cent in five years as a first step and thereafter to 3 per cent in the medium term.
The Print
2 days ago
- Business
- The Print
Defence Secy bats for competitive bidding, says Centre cut red tape to save up to 69 weeks
He revealed that the 'government has already cut timelines across multiple stages of the procurement process, potentially saving up to 69 weeks'. Speaking at the Confederation of Indian Industry (CII) Annual Business Summit held here Thursday and Friday, Singh emphasised the defence ministry's ongoing efforts to reduce procurement delays and implement structural reforms aimed at boosting private sector participation in the defence economy. New Delhi: Defence Secretary Rajesh Kumar Singh has stressed the need to move away from the traditional nomination-based, cost-plus procurement model—historically dominated by public sector undertakings (PSUs)—and adopt competitive bidding to create a level playing field for both public and private defence manufacturers. He added that the ministry is currently revising the Defence Acquisition Procedure (DAP) 2020 to better align with operational realities and expedite decision-making. Implementations of these reforms are underway in key programmes such as shipbuilding and the Advanced Medium Combat Aircraft (AMCA) programme. As ThePrint reported in March, the ministry had then approved a proposal to nearly halve procurement timelines—an initiative expected to feature in the updated DAP, anticipated later this year. Among changes under consideration are introduction of deemed licensing beyond a defined time frame to ensure accountability, removal of outdated practices such as product reservation for defence PSUs and streamlining of procedural bottlenecks that have historically slowed defence acquisitions. Defence Secretary Singh's comments come at a time when delays in defence production and delivery remain a pressing concern. Earlier at the same event, Air Chief Marshal A.P. Singh also alluded to these challenges, citing constant delays in defence projects and failure to stick to delivery schedules, especially of fighter jets. 'While signing the contract itself, sometimes we are sure that it is not going to come up, but we just sign the contract. Uske baad dekhenge kya karna hai (we'll see what to do about it later). Of course the process gets vitiated,' he said. This was a direct reference to the contract for the 83 Tejas Mk-1A contract signed in 2021, delivery of which is yet to begin. ThePrint had in 2021 reported that while the IAF signed the contract with state-owned HAL, the fear was that the delivery would not begin on time. The first aircraft was to be handed over to the IAF in February last year. While assuring the private sector of improved ease of doing business and a level playing field, the defence secretary further stressed the importance of long-term investments in research and development, saying that the future of India's defence sector will rest on the depth of its innovation capacity. He underlined that companies without adequate engineering manpower, capital equipment or willingness to invest in R&D would have limited relevance in the country's strategic ecosystem. Defence Research and Development Organisation (DRDO) chief Dr Samir V. Kamat, who also spoke before him at the summit, echoed these views, stating that both the government and private sector must increase their R&D outlays. 'Today, we spend 5 percent of our defence budget on R&D. The Raksha Mantri has promised that in the next five years, this will be scaled up to 10 percent,' he said. He further stressed that the private sector must also match this commitment by dedicating a similar proportion of their budgets to research. Further, Air Chief Marshal A.P. Singh, during his remarks urged the industry to voluntarily commit a tenth of their budgets to innovation. Drawing a parallel with the Sikh practice of 'dasvandh', the tradition of donating one-tenth of one's earnings for collective welfare, he said such a step was necessary to build credible self-reliance in defence. (Edited by Amrtansh Arora) Also Read: India used this battlefield hack to keep Soviet-era missile systems firing against Pakistan in Op Sindoor
India Gazette
2 days ago
- Business
- India Gazette
MoD slashed timelines for some processes in procurement cycle, saving about 69 weeks: Defence Secretary
New Delhi [India], May 31 (ANI): Defence Secretary Rajesh Kumar Singh announced that the Ministry of Defence (MoD) has significantly shortened timelines for key processes in the military equipment procurement cycle as part of sweeping reforms aimed at boosting efficiency and advancing India's goal of 'Aatmanirbharta' in the defence sector, as per an official release. Speaking at a defence conclave in the national capital on Friday, Singh stated that the decision will save an overall 69 weeks, noting that the Defence Acquisition Procedure (DAP) 2020 is being revisited to reflect current realities, shifting from the traditional nomination-based cost-plus procurement to a competitive pricing model where both public and private sectors can vie for orders. This approach is already being implemented for shipbuilding and recently for the AMCA project, he added. Singh's remark followed serious concerns raised by the Chief of Air Staff and Air Chief Marshal AP Singh during his address at the CII Annual Business Summit 2025 on Thursday over persistent delays in defence projects, the systemic issue of unrealistic timelines, and their impact on operational readiness. Air Chief Marshal pointed at the recurring pattern of delays in project execution and criticised the practice of committing to unachievable deadlines in the context of the reported ongoing challenges with projects like the delivery of the aircraft. Singh emphasised the critical role of self-reliance in preserving India's strategic autonomy and achieving the vision of Viksit Bharat while urging private industries to invest heavily in research and development (R&D) and capital equipment to strengthen the domestic defence ecosystem. Deliberating upon India's Defence Vision, Defence Secretary Rajesh Kumar Singh said that it centres around Aatmanirbharta for preserving the strategic autonomy of the country. It is also critical in achieving the broader goal of Viksit Bharat, such as expanding our GDP from the current 4 Trillion Dollars to 32 Trillion Dollars by 2047, growing our manufacturing sector, enhancing India's start-up culture and widening our industrial base, generating employment and also its spin-off benefits that come from the dual use of technology. He underscored the impact of indigenisation over the past decade, stating that India has transitioned from being the top importer in 2015 to becoming one of the top 25 exporters today. Over 100 Indian companies are now exporting to 100-plus countries. The list of products includes missiles such as Brahmos, rocket launchers like Pinaka, simulators, armoured vehicles, the Dornier aircraft, different types of ships, offshore patrol vessels, etc. The upsurge in exports can be gauged from the fact that our exports have grown 30 times in the last ten years to Rs 23,622 crores in the last financial year. Our defence industry today includes 16 Defence PSUs, 430 licensed companies and approximately 16000 MSMEs. Domestic defence sales also increased from Rs 43746 crores in 2014 to Rs 127000 crores in 2023-24. Singh also highlighted record achievements in the financial year 2024-25, noting that the MoD has completely utilised the defence modernisation budget for the first time in the past five years and signed contracts worth a record Rs 2 lakh crores during the last financial year, which is the highest ever achieved and double that of the figures for 2023-24. This would ensure that the armed forces' modernisation process keeps pace. It would also help the Ministry demand a higher share in the union budget, leading to a minimum defence to GDP ratio of 2.5 per cent in five years as a first step and thereafter to 3 per cent in the medium term. (ANI)
Time of India
2 days ago
- Business
- Time of India
MoD slashed timelines for some processes in procurement cycle, saving about 69 weeks: Defence Secretary
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi [India], May 31 (ANI): Defence Secretary Rajesh Kumar Singh announced that the Ministry of Defence (MoD) has significantly shortened timelines for key processes in the military equipment procurement cycle as part of sweeping reforms aimed at boosting efficiency and advancing India's goal of ' Aatmanirbharta ' in the defence sector, as per an official at a defence conclave in the national capital on Friday, Singh stated that the decision will save an overall 69 weeks, noting that the Defence Acquisition Procedure (DAP) 2020 is being revisited to reflect current realities, shifting from the traditional nomination-based cost-plus procurement to a competitive pricing model where both public and private sectors can vie for approach is already being implemented for shipbuilding and recently for the AMCA project, he remark followed serious concerns raised by the Chief of Air Staff and Air Chief Marshal AP Singh during his address at the CII Annual Business Summit 2025 on Thursday over persistent delays in defence projects, the systemic issue of unrealistic timelines, and their impact on operational Chief Marshal pointed at the recurring pattern of delays in project execution and criticised the practice of committing to unachievable deadlines in the context of the reported ongoing challenges with projects like the delivery of the emphasised the critical role of self-reliance in preserving India's strategic autonomy and achieving the vision of Viksit Bharat while urging private industries to invest heavily in research and development (R&D) and capital equipment to strengthen the domestic defence upon India's Defence Vision, Defence Secretary Rajesh Kumar Singh said that it centres around Aatmanirbharta for preserving the strategic autonomy of the country. It is also critical in achieving the broader goal of Viksit Bharat, such as expanding our GDP from the current 4 Trillion Dollars to 32 Trillion Dollars by 2047, growing our manufacturing sector, enhancing India's start-up culture and widening our industrial base, generating employment and also its spin-off benefits that come from the dual use of underscored the impact of indigenisation over the past decade, stating that India has transitioned from being the top importer in 2015 to becoming one of the top 25 exporters today. Over 100 Indian companies are now exporting to 100-plus countries. The list of products includes missiles such as Brahmos, rocket launchers like Pinaka, simulators, armoured vehicles, the Dornier aircraft, different types of ships, offshore patrol vessels, etc. The upsurge in exports can be gauged from the fact that our exports have grown 30 times in the last ten years to Rs 23,622 crores in the last financial year. Our defence industry today includes 16 Defence PSUs, 430 licensed companies and approximately 16000 MSMEs. Domestic defence sales also increased from Rs 43746 crores in 2014 to Rs 127000 crores in also highlighted record achievements in the financial year 2024-25, noting that the MoD has completely utilised the defence modernisation budget for the first time in the past five years and signed contracts worth a record Rs 2 lakh crores during the last financial year, which is the highest ever achieved and double that of the figures for would ensure that the armed forces' modernisation process keeps pace. It would also help the Ministry demand a higher share in the union budget, leading to a minimum defence to GDP ratio of 2.5 per cent in five years as a first step and thereafter to 3 per cent in the medium term.
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Business Standard
3 days ago
- Business
- Business Standard
Defence ministry weighs licensing reform; DAP 2020 revision by Nov-end
Defence Secretary Rajesh Kumar Singh calls on private sector to scale up R&D and capital equipment investment while assuring full govt support A more expeditious industrial licensing process in defence is among the suggestions being considered as part of reforms to further enhance competition and private-sector participation in the sector, a government source told Business Standard. This was a day after Defence Secretary Rajesh Kumar Singh underscored the importance of disruptive reforms in licensing and ease of doing business to break down entry barriers in defence manufacturing and support grassroots investors. The revision of the Defence Acquisition Procedure (DAP) 2020 document, aimed at streamlining the defence procurement policy, will be completed within six months — by the end of November — added the source. In line with the decision of the Ministry of Defence (MoD) to observe 2025 as the 'Year of Reforms', a committee under the Additional Secretary and Director General (Acquisition) is driving procedural reforms in DAP 2020. The reforms aim to eliminate redundancies and make the acquisition process more efficient in meeting the needs of the armed forces, while also addressing the pain points of the defence industry, including private firms. Addressing industry leaders at the annual business summit of the Confederation of Indian Industry (CII) in New Delhi, the defence secretary had described the defence industry as the last vestige of the licence permit Raj — because it continues to have industrial licensing under the Industrial Development and Regulation Act. 'This means all the ills of the licensing Raj in terms of delays — getting a licence, which should take six months, takes one to two years, given the need for clearances from the Department of Defence Production, security clearance from the Ministry of Home Affairs, and from the state's Home Department.' Noting that policymakers increasingly recognise that reducing entry barriers and expanding the industrial base are crucial in an era of disruptive technological change, where incumbency may not withstand innovation from upstart firms in modern warfare, Singh outlined four reforms — some already underway — that could give the domestic defence industry a significant fillip. 'The concept of deemed licensing beyond a certain timeframe to put accountability on the government departments concerned; shifting entirely from cost-based pricing to competitive bidding; removing legacy aspects like product reservation for public-sector units; and slashing procurement timelines by weeding out rigid and redundant procedures. These can lead to genuine broadening and diversification of our defence industrial base.' 'At this stage, deemed licensing is one of the suggestions. It still has to be negotiated through the system,' added the source quoted earlier. At present, India has one of the largest defence industrial complexes in the developing world: 16 defence public sector undertakings (DPSUs) under the administrative control of the MoD, over 430 licensed companies, and about 16,000 micro, small and medium enterprises (MSMEs). Highlighting at the CII summit how the MoD would in the past surrender part of the military modernisation budget each year due to protracted procurement procedures, Singh assured change was already underway, but emphasised that more still needed to be done. 'The MoD has already crunched the process timelines for various steps in the procurement cycle. Hopefully, that will save us about 69 weeks overall. It's important, but it's not enough.' Describing DAP 2020, which lays out the country's defence procurement procedures in detail, as a 'voluminous' document, the secretary said: 'It is time for it to be revised wholesale to reflect current realities. It needs shifting from the traditional nomination-based, cost-plus procurement focused mostly on the public sector, to a much more competitive pricing model where both the public and private sectors compete for orders.' Singh also highlighted how for shipbuilding and the Advanced Medium Combat Aircraft (Amca) programme, this approach was already being implemented. 'It's critical because this is increasingly an innovation-led, technology-driven industrial economy that we are witnessing.' Between 2016-17 and 2024-25, India's total defence production nearly doubled — from Rs 74,054 crore to Rs 1.46 trillion (Rs 1,46,000 crore) — while the private sector's contribution rose by over 2.2 times, from Rs 14,104 crore to over Rs 32,000 crore. Yet, its share in overall production remained largely rangebound, fluctuating between 19 per cent and 22 per cent. Assuring private-sector companies that the government was working on improving the ease of doing business, creating a level playing field between them and the DPSUs, and inundating them with a surge of orders, the secretary called for much greater focus from the private sector on research & development (R&D), and on private-sector capital formation through investments in capital equipment, machinery and engineering strength. 'In the longer run, companies which do not have the engineering manpower, or the capital equipment, or the willingness to invest in R&D, should not even think of entering into the defence domain, because your contribution to India's strategic autonomy will be minimal until you make those investments in creating a localised manufacturing ecosystem within the country.' In recent years, the United States and Europe have seen a surge in venture capital-backed military technology unicorns disrupting traditional defence R&D, contracting, and acquisition. Focused on platforms using computer vision, networking, and artificial intelligence, these non-traditional firms have leveraged commercially derived technologies to challenge incumbents like Lockheed Martin. Some have pushed to move beyond cost-plus contracts and are privately funding R&D, developing products without firm orders or specific user requirements, and selling them off the shelf. Their equipment are fast becoming integral to global arsenals, though they still cannot replace the costly manned platforms built by traditional players.
