36

STANDING COMMITTEE ON DEFENCE

(2022-23)

(SEVENTEENTH LOK SABHA)

MINISTRY OF DEFENCE

DEMANDS FOR GRANTS (2023-24)

EX SERVICEMEN CONTRIBUTORY
ARMY, NAVY, AIR FORCE, JOINT STAFF, EX-SERVICEMEN
HEALTH SCHEME AND SAINIK SCHOOLS

(DEMAND NOS. 20 AND 21)

THIRTY-SIXTH REPORT

LOK SABHA SECRETARIAT

NEW DELHI

March, 2023 / Phalguna 1944 (Saka)

1
 THIRTY-SIXTH REPORT

STANDING COMMITTEE ON DEFENCE

(2022-23)

(SEVENTEENTH LOK SABHA)

MINISTRY OF DEFENCE

DEMANDS FOR GRANTS (2023-24)

ARMY, NAVY, AIR FORCE, JOINT STAFF, EX-SERVICEMEN

EX SERVICEMEN CONTRIBUTORY
HEALTH SCHEME AND SAINIK SCHOOLS

(DEMAND NOS. 20 AND 21)

Presented to Lok Sabha on 21.03.2023

Laid in Rajya Sabha on 21.03.2023

LOK SABHA SECRETARIAT

NEW DELHI

March, 2023 / Phalguna 1944 (Saka)

2
 CONTENTS
Page No.

COMPOSITION OF THE COMMITTEE (2022-23)………………………… 4

INTRODUCTION ……………………………………………………………… 6

REPORT

PART I

Chapter I Army..................................................................................................... 7

Chapter II Air Force............................................................................................... 19

Chapter III Navy..................................................................................................... 30

Chapter IV Joint Staff............................................................................................. 40

Chapter V Ex-Servicemen Contributory Health Scheme....................................... 43

Chapter VI Sainik Schools...................................................................................... 50

PART II

Observations/Recommendations......................................................................... 56

APPENDICES

Minutes of the Sittings of the Standing Committee on Defence (2022-23) 91

held on 20.02.2023, 22.02.2023, 24.02.2023 and 16.03.2023

3
COMPOSITION OF THE STANDING COMMITTEE ON DEFENCE (2022-23)

SHRI JUAL ORAM - CHAIRPERSON

Lok Sabha
2. Shri Nitesh Ganga Deb
3. Shri Rahul Gandhi
4. Shri Devaragunda Venkappa Sadananda Gowda
5. Shri Annasaheb Shankar Jolle
6. Choudhary Mehboob Ali Kaiser
7. Shri Suresh Kumar Kashyap
8. Shri Rattan Lal Kataria
9. Prof. (Dr.) Ram Shankar Katheria
10.@ Shri Durai Murugan Kathir Anand
11. Kunwar Danish Ali
12. Dr. Rajashree Mallick
13. Shri Reddeppa Nallakonda Gari
14. Shri Uttam Kumar Nalamada Reddy
15. Shri Anumula Revanth Reddy
16. Shri Jugal Kishore Sharma
17. Dr. Shrikant Eknath Shinde
18. Shri Prathap Simha
19. Shri Brijendra Singh
20. Shri Mahabali Singh
21. Shri Durga Das Uikey
Rajya Sabha
22. Dr. Ashok Bajpai
23. Shri Prem Chand Gupta
24. Shri Sushil Kumar Gupta
25. Shri Venkataramana Rao Mopidevi
26. Shri Kamakhya Prasad Tasa
27. Dr. Sudhanshu Trivedi
28. Smt. P.T. Usha
29. Shri G.K. Vasan
30. Lt. Gen. (Dr.) D. P. Vats (Retd.)
31. Shri K.C. Venugopal

@ Nominated w.e.f 08.12.2022.

 Nominated w.e.f 16.11.2022.
______________________
Dr. T.R. Paarivendhar and Shri Kotagiri Sridhar, MPs, Lok Sabha ceased to be Members of the
Standing Committee on Defence w.e.f 16.11.2022

4
 SECRETARIAT

1. Smt. Suman Arora - Joint Secretary

2. Dr. Sanjeev Sharma - Director
3. Shri Rahul Singh - Deputy Secretary

5
 INTRODUCTION

I, the Chairperson of the Standing Committee on Defence (2022-23), having been

authorised by the Committee, present this Thirty-sixth Report (Seventeenth Lok Sabha) on
Demands for Grants of the Ministry of Defence for the year 2023-24 on ‘Army, Navy, Air
Force, Joint Staff, Ex-Servicemen Contributory Health Scheme and Sainik Schools
(Demand Nos. 20 and 21)’.

2. The Demands for Grants of the Ministry of Defence were laid on

08 February, 2023 in Lok Sabha. The Committee took evidence of the representatives of
the Ministry of Defence on 20, 22 and 24 February, 2023. The draft Report was considered
and adopted by the Committee at their Sitting held on 16 March, 2023.

3. The Committee wish to express their thanks to the officers of the Ministry of Defence
and representatives of the Services/Organisations for appearing before the Committee and
furnishing the material and information which the Committee desired in connection with
examination of the Demands for Grants.

4. For facility of reference and convenience, Observations/Recommendations of the

Committee have been printed in bold letters in Part II of the Report.

New Delhi; JUAL ORAM

17 March, 2023 Chairperson
26 Phalguna, 1944 (Saka) Standing Committee on Defence

6
 REPORT

CHAPTER – I

ARMY

The Committee are aware and it is well-understood fact that Army is the land
component of the Armed Forces. Indian Army strengthens the idea of India and lives by
national values. Army is dedicated to preserving national interests, safeguarding
sovereignty, territorial integrity and unity of our Nation. The challenges before Army include
thwarting proxy wars, arresting internal threats, assist the Government and the people of
India during all needs and crises such as natural disasters etc. The budgetary demands for
Army are contained in Demand Nos.19 and 20.

1.2 For examination of the Demands for Grants of Army for the year 2023-24, the
Committee had sought from the Ministry of Defence a statement indicating the proposed
and earmarked outlay at Budget Estimate (BE), Revised Estimate (RE) and actual
expenditure for Army during the last five years including 2022-23, separately for Capital and
Revenue segments along with projection and allocation in the BE 2023-24. The details
submitted to the Committee are tabulated below:-

A. REVENUE (Rs. in Crore)

Year BE RE Expenditure
Projection Allocation Projection Allocation
2018-19$ 1,51,814.73 1,27,059.51 1,41,456.91 1,29,812.34 1,34,241.38
2019-20 1,52,321.32 1,40,398.49 1,52,424.82 1,42,773.83 1,42,529.38
2020-21 1,65,228.28 1,45,785.88 1,53,436.68 1,44,545.67 1,39,903.33
2021-22 1,70,705.28 1,47,644.13 1,68,657.23 1,57,619.06 1,57,092.05
2022-23 1,74,038.35 1,63,713.69 1,80,526.71 1,73,335.62 1,27,935.76*
2023-24 1,84,989.60 1,81,371.97 - - -

($ - Excludes Military Farms and ECHS which were shifted from Army to modified
Grant -MoD(Miscellaneous) in FY 2016-17 and reverted back to DSE in FY 2019-
20).
*Figure upto December, 2022.
Note: RE 22-23 and BE 23-24 figures are subject to approval of the Parliament.

7
 B. CAPITAL (Rs. in Crore)

Year BE RE Expenditure
Projection Allocation Projection Allocation
2018-19$ 44,572.63 26,815.71 41,614.41 26,815.71 27,438.66
2019-20 44,660.57 29,511.25 46,032.00 29,666.90 29,000.88
2020-21 50,373.60 32,462.38 39,019.17 33,283.28 26,320.93
2021-22 51,492.10 36,531.90 38,344.90 25,377.09 25,130.94
2022-23 46,844.37 32,115.26 32,598.49 32,598.49 21,600.25*
2023-24 37,341.54 37,341.54 - - -

($ - Excludes Military Farms and ECHS which were shifted from Army to
modified Grant -MoD(Miscellaneous) in FY 2016-17 and reverted back to DSE
in FY 2019-20).
*Figure upto December, 2022.
Note: RE 22-23 and BE 23-24 figures are subject to the approval of the
Parliament.

Revenue Budget

1.3 The Committee understand that the Revenue budget comprises of two main
components, salary and non-salary. A major portion of the budget head primarily goes for
salary expenses which is a fixed expenditure. The non-salary expenditure caters to the
expenses on stores, ration, transportation, fuel, etc. which are essential for regular training
and operational preparedness of the Army. In Budget Estimates (BE) for FY 2023-24,
against Revenue Head, projection of Army was Rs. 1,84,989.60 crore and allocation to be
made is Rs. 1,81,371.97 crore, hence allocation lessened by Rs. 3617.65 crore. In case of
Revised Estimates (RE) for FY 2022-23, under Revenue head, Army’s projection was Rs.
1,80,526.71 crore and allocation made was Rs. 1,73,335.62 crore. The allocation is short of
demand by Rs. 7191.09 crore, however, the expenditure incurred till December 2022 was
Rs. 1,27,935.76 crore.

Capital Budget

1.4. Capital Budget cardinally provides for expenditure on modernisation, enhancement

of force level, infrastructure development, etc. Under Capital Head, in BE for FY 2023-24,
Army’s projection was Rs. 37,341.54 crore and the same amount was allocated to it. There
is no deduction allocation vis-a-vis demand, though it is quite less than BE 2022-23
projection of Rs. 46,844.37 crore. In RE 2022-23, the projection of Army was Rs. 32,598.49
crore and there was no deduction in allocation. However, the expenditure in three quarters
of FY 2022-23 i.e. upto December 2022 was only Rs. 21,600.25 crore.

8
1.5 During oral evidence, on under utilization of budget, the Chief of Defence Staff
apprised the Committee as under:

“ पछले साल क िजतनी कै पटल बजट म हमार र वायरमट थी, हमने पूरा यू टलाइजेशन कया
है । Most of the things, at least on the revenue part, बीई टे ज म भी जो भी आपक
र वायरमट है , हमार जो मता है वह रे वे यू के हसाब से भी है और कै पटल के हसाब से भी है ।
रे वे यू म इस बार सरकार ने, जो भी आपक रक् वायरम स थी, बीई टे ज म दे द , जो क मेरे
याल से ओवर ऑल दे खा जाए तो 30-40 पसट जंप है । कै पटल क र वायरमट भी काफ हसाब
से मलती है ।”

Further, a representative of Army submitted as under:

सर, आपने जो तीस हजार करोड़ क बात कह , जो कै पटल बजट इस साल के लए है , यह है जो इस

साल का करट ए सपडीचर है कै पटल हे ड के अंदर और जो committed liabilities of the
previous year ो योरमट के लए एलाटमट कया है । अगल जो नई कै पटल क स ह, वे 50 से
70 हजार करोड़ के अंदाज के अंदर अगले साल खच होगा।

On the question of whether this amount is sufficient, I would like to say that this is
a function of our capacity to manufacture and produce. पहले सपोट के ऊपर काफ नभर
रहते थे, we are going in for domestic production. The capacity of the domestic
industry is increasing by every month. िजसके बारे म हमने कल भी िज कया था, जो
लोकल डोमेि टक इं ड के अंदर कै प सट है , वह दन त दन बढ़ रहा है ।

दस
ू रा, हमको यह भी मानना चा हए क अभी इंटरनेशनल बाडर के अंदर जो हालात है , माउ टनेस
टे रेन है , िजतना ….. खच कर सकता है , उतना हम नह ं खच कर सकते ह। It is a function of
economy. Its GDP is higher. But having said that, हमार र वायरमट डफस है , हम
पहाड़ का इ तेमाल करते हुए अपनी हफाजत कारगर तर के से कर सकते ह। अगर वह हमला करना
भी चाहता है तो हम माउ टे न टे रेन का इ तेमाल करगे। So, the amount of investment that
we need to defend is much less than for his requirement to do an offensive. हम
यह नह ं बता रहे ह क हमारे पास ऑफि सव करने क मता नह ं है , हम वह मता रखते ह। हमार
ाथ मकता है क हम टे रटो रयल इंट ट को मेनटे न कर, Having said that, यह काम लगातार
चलता रहता है , मॉडनाइजेशन का सल सला भी चलता रहता है । हम आपको आ वासन दे ना चाहते
ह क हमार को शश म कमी नह ं है । गवनमट क तरफ से भी पैसा दे ने म कोई कमी नह ं है । But
definitely, in the coming years, you will see much more agility in domestic
manufacturing and domestic procurement.”

9
1.6 As regards to need for modernisation and technological upgradion on a war footing
the Chief of Defence Staff submitted as under:

“Sir, the hon. Member’s concern is about the Defence R&D budget. While the
FA(DS) will be able to give you the correct figures and how we have increased this
R&D budget, I would just like to draw the attention of the Committee on two things.
One is the Defence R&D budget which has been given to the DRDO. That is one
part of the budget. There are also DPSUs who have their own budgets for Defence
R&D. I had recently gone to BEL. They have an innovation centre. They spend some
part of their profits on R&D.

Similar thing is happening in private sector. It is not only us who are funding under
iDEX and Technology Development Fund to private sector for R&D, but they
themselves also spend a lot of money on R&D, etc. While all this is meagre as
compared to expenditure incurred by developed countries, like America or China, but
a big headway has been made. We should not consider the Budget which is only
related to DRDO which has been given for Defence R&D but we should consider it in
its entirety. Then, probably that will give you a better and a more holistic kind of a
picture.”

Further, Financial Advisor (DS) clarified in this regard:

“I would just like to mention two things. The Budgetary allocations for Defence are
a function of two aspects. One is the demands projected by the Army based on
their requirements, and the other is the expenditure which they have been
incurring in the past. It is the balance of the two. I would just like to mention that in
the past five or six years, the expenditure of the Army as far as the capital is
concerned, has been in the range of Rs. 25,000 crore to Rs. 28,000 crore. Despite
that, during the last year the Budget which was based on their demand, has been
Rs. 32,000 crore, including modernization. During the current year, it has been
increased to Rs. 37,000 crore. It is based on the demand which the Army has
projected. It has already been increased. This also includes the roads which we
were talking about earlier. Apart from the money which has been given to us for
roads in the Army Budget, Rs. 5,000 crore was also allocated for the Border Road
Organisation. That also complements the Army. So, the actual spending is much
more than what is reflected in the Army Budget. That Rs. 5,000 crore goes entirely
for the Army.”

1.7 On the issue of huge gap between projection and the allocation, a representative
briefed the Committee as under:

“Thank you Sir. This aspect of projection was brought out earlier also by the
Committee during the MoD presentation. That projection is done around the time
between July and September for the next financial year. So, when we do that
projection, it is a rough estimate as to what we will require. As we come closer to
the financial year, we become more accurate with our assessment. It is an iterative

10
 process which we follow with Defence Finance in the Ministry of Defence Finance.
Ahead of that, as FADS had explained, they have an iterative process with the
Ministry of Finance.

Whatever we have been allocated at the beginning of the financial year, I agree
with you that it is below the actual projections. However, it is much more this year,
when we see the salary component it is exactly equal to the demand. The non-
salary component is short only by about Rs. 3,600 crore.

This is an unprecedented jump. We have never had a 30 per cent increase at the
BE stage. This year, we have got 30 per cent increase. What it will enable us to do
is that we will be able to carry out better planning for the rest of the financial year.
We will be able to from now itself have long lead schemes. Otherwise, what
happens is that when we get money towards the end of the year, we cannot
execute a long lead scheme at that stage.

Coming to the specifics of your question that if there is Rs. 6,000 crore short,
hypothetically, how do we manage that? What we do is that I explained to you that
there are these minor heads under which we utilised the NSR component, that is
the Non-Salary Revenue component. Now, in that there are priority heads, which
we cannot do without because they are operational related. They are our
requirements of operational works; our requirements of transportation of troops
from one place to the other; the AOC stores, which are the ammunition, the
equipment for our jawans, these receive the highest priority and they are given the
full allocation or the maximum allocation.

For the remaining, such as we have got Medical and Veterinary Stores as also
works. Works is the one, which is a large chunk, but here normally we end up
falling short of money, which is not the case this year. So, we manage it in this
matter that we make the allocation less over here. Here, we can absorb later on
when we get more money at the Supplementary Stage or at the RE stage. This is
how we are able to manage our requirements.”

1.8 On the reduced projection of capital for the year 2023-24 in comparison to 2022-23,
a representative submitted as under:

“Sir, firstly, the projections, as I explained, were done when we projected those
Rs. 47,000 crore, that would have been somewhere in the middle of the previous
financial year. As we moved along, the actual projections came down and we were
able to get what we wanted from the Ministry of Defence.

The example, which I would like to share with you is that in the year prior, we were
not able to expend money almost Rs. 10,500 crore because of the COVID
pandemic, which were largely made-up during the current financial year. Now, for
the coming financial year, that is 2023-2024, whether the money is adequate or
not, the allocations are exactly equal to what we have asked for. This is the first
time that we have got 100 per cent allocations.

11
But your query was that why have we reduced our requirements from Rs. 47,000
crore last year to Rs. 37,000 crore, the figure that we have given this year.

Regarding the process of estimation, earlier when we were not automated and
when we did not have a full idea of how much the committed liabilities would be,
we tended to ask for a little more and it was generally accepted that we got a little
lesser than that. But, of late, in conjunction with the Ministry of Defence and the
Ministry of Finance, we have got much more clarity on our committed liabilities and
the new schemes which are coming up. We have a full assurance. If you see, we
have got more money during the supplementary as well as the RE. Therefore, our
estimates have become absolutely as per our requirement and more accurate.
Because of that, we have brought it down. We already have an assurance from
the Ministry of Finance that more money will be given in capital if required.”

Further, on the subject, Financial Advisor (DS) stated:

“Sir, I will try to address a part of your question. The first question was about whether
there is some kind of a jugglery which has been done through the Budget. We would
like to point out that right now the Government’s emphasis is on capital expenditure.
Whatever we are asking, we are getting. The exact figure is because of that.
Whatever army asked for was given. It was a rounded figure. It was Rs.1,62,000
crore that we asked for.

……….Not at all, Sir. I would like to bring to your notice that the expenditure which
the Army makes, as I mentioned, is a function of what the demand and what they
actually have been expecting. If you see, you yourself mentioned, it is ranging
between Rs.29,000 crore and Rs.25,000 crore. Despite that, in the current year
Rs.32,000 crore has been given to the Army and we are hopeful that they will
expend that. We have increased it to Rs.37,000 crore. Though the trend of
expenditure does not show in the past, yet taking into account that that is needed,
we have done that.”

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Percentage Share of Army Budget

1.9 The Committee desired to know the percentage share of Army budget, both in
Revenue and Capital segments, out of the total Defence Budget during the last five years.
The data furnished by the Ministry of Defence is tabulated below:

“Percentage share of Revenue and Capital allocation for Army out of Defence
Services Estimates (DSE) for the last five years is given below:

(Rs. in Crore)
Year BE (Defence Army %age Army %age Army %age
Service (Revenue) share (Capital) share (Revenue + share
Estimates)# Capital)

2018-19 2,79,305.32$ 1,27,059.51 45.49 26,815.71 9.60 1,53,875.22 55.09

2019-20 3,05,296.07 1,40,398.49 45.99 29,511.25 9.67 1,69,909.74 55.66
2020-21 3,23,053.00 1,45,785.88 45.13 32,462.38 10.05 1,78,248.26 55.18
2021-22 3,47,088.28 1,47,644.13 42.54 36,531.90 10.53 1,84,176.03 53.06
2022-23 3,85,370.15 1,63,713.69 42.48 32,115.26 8.33 1,95,828.95 50.82

(# DSE includes Army, Navy, Air Force, Joint Staff, DRDO, Ordnance Factories, NCC,
& DGQA Budget)
($ - Excludes Military Farms and ECHS which were shifted from Army to modified Grant
–MoD(Miscellaneous) in FY 2016-17 and reverted back to DSE in FY 2019-20)

1.10 There is an evident decrease in percentage share of revenue budget of Army out of
Defence Services Estimates from 45.49 per cent in 2018-19 to 42.48 per cent in 2022-23 and
in capital budget share from 9.60 percent in 2018-19 to 8.33 per cent in 2022-23.

Budget for Modernization

1.11 The Committee were apprised that in the Defence Services Estimates (DSE), there
is no separate allocation of funds for Committed Liabilities (CL) and New Schemes (NS). In
the FY 2022-23, an amount of Rs. 25,908.85 Crore was allocated to Army at BE stage
under Capital Acquisition (Modernization) Head. Further, earmarking between Committed
Liabilities and New Schemes is carried out by Service HQrs based on prioritization among
the projects/schemes and the progress of contractual milestones. Against these allocations,
an expenditure of Rs. 18,503.87 Crore (upto December, 2022) has been incurred in FY
2022-23. Keeping in view the pace of expenditure, additional funds to the amount of Rs.
1,142.15 Crore were allocated to the Army in RE 22-23 over BE 22-23. Surrender, if any,
will be known at the time of finalization of Modified Appropriation of current financial year
2022-23.

13
1.12 The Committee were further apprised through a written submission as under:

“……..that Under Modernisation (Capital Acquisition) Head, Army had sought

additional allocation of Rs. 16,293.19 Crore in first supplementary and Rs.
13,400.08 Crore in second and third supplementary stage in FY 2018-19 for
meeting expenditure on account of: Committed Liabilities for HAL projects; cash
outgo for Apache; vehicles being procured ex-trade by MGO; emergency power
procurement and critical 10(i) and Committed Liabilities of existing contractual
terms and liabilities including impact of CATSAA. However, the Ministry did not
receive any additional allocations at the Supplementary stages.

In FY 2019-20, Army had sought additional allocation of Rs. 13,978.42 Crore in

first supplementary and Rs. 8,118.00 Crore at second supplementary stage under
Modernisation (Capital Acquisition) Head for meeting expenditure on account of:
committed payments to HAL, foreign Committed Liabilities, DPSUs, Brahmos and
Pvt. Vendors, and procurement of critical vehicles to meet the operational
requirements. However, the Ministry did not receive any additional allocations at
the Supplementary stages.

In FY 2020-21, Army had sought additional allocation of Rs. 7,300 Crore in first
supplementary to cater for shortfall towards Committed Liabilities, emergency
powers-2020 and requirement for construction of offices in connection with Central
Vista Project. No additional funds were sought at second and final supplementary
stage under Modernisation (Capital Acquisition) Head.

Under Modernisation (Capital Acquisition) Head, Army had sought no additional

allocation at first, second and final Supplementary stages in FY 2021-22.

Army had sought no additional allocation at first stage in FY 2022-23 under

Modernisation (Capital Acquisition) Head.

1.13 Details of additional requirements projected by Army under modernization (Capital

Acquisition) at RE stage and the allocation made during the last five years are as under:-

(Rs. in Crore)
Year BE RE Additional funds RE
Allocation Projection projected at RE Allocation
stage over BE
allocations
2018-19 21,338.21 34,738.29 13,400.08 21,168.21
2019-20 23,000.63 36,979.05 13,978.42 23,517.31
2020-21 26,068.61 31,961.00 5,892.39 26,068.61
2021-22 30,636.90 30,636.90 0.00 19,485.09
2022-23 25,908.85 27,051.00 1,142.15 27,051.00
Note: RE 22-23 figures are subject to approval of the Parliament.

14
 “The allocations made above at RE stage were based on pace of expenditure,
critical requirement of other Services and overall resource envelope available
under Capital Head. It may be added that the allocated funds are optimally
utilized towards operational activities. If required, the schemes are reprioritized to
ensure that urgent and critical capabilities are acquired without any compromise
to operational preparedness of the Defence Services.”

1.14 The Committee desired to know whether there is any provision in the budget for
drones, a representative of Army submitted as under:

“नाथ ई ट म ो स का इ तेमाल हो रहा है । तीन अलग-अलग क म के ो स होते ह। एक हाई

ए ट टयूड ोन है । एक मी डयन ए ट टयूड ोन है और एक लोअर एि टटयूड
टे ि टकल/ऑपरे शनल ोन है । हमारे पास तीन क म के ो स मौजद
ू ह। खास तौर पर जो
मी डयन एि टटयूड लॉ ग एं योरस िजसे बोलते ह, वह एक बार उड़ता है तो 36 घंटे तक
लगातार काम म जुड़ सकता है । उस टाइप के हमारे पास म ट प स लेटफॉ स ह। पेशल 6
मह न के अंदर हमने सेटेलाइट कं ोल ो स को भी उस इलाके म डे लॉय कया है , जो लॉ ग
रज म जाकर स वलांस कर सकते ह। इसके अलावा हर यू नट के अंदर जो छोटे ो स ह, उनम से
कुछ इं डिजनस भी ह और एक ि वच लेड बोलकर एक कंपनी है , िजसे हाल ह म स लाई कया
है । म मोटे तौर पर यह बताना चाहता हॅू ं क जो स वलांस क ज रत है , उसके लए िजतने भी
लेटफॉ स क ज रत है , वह मौजद
ू है और उसको इ तेमाल करते हुए हम स वलांस कर रहे ह।”

1.15 During the oral evidence, on the subject, through power point presentation, a
representative of Indian Army submitted as under:

“The modernisation budget would be utilized to make delivery-based payments

for weapons, ammunitions and other warlike equipment as also for payments
against new acquisitions. A number of acquisition schemes are in advanced
stages of approval, and we are hopeful of their fructification in Financial Year
2023-24. Emergency procurement powers assigned to the Indian Army in
October 2022 are being fully exploited to meet emergent requirements of
frontline troops deployed on the northern and western borders.”

Planning and Procurement

1.16 On planning and procurement, the Ministry submitted as under:

“Defence Capital acquisition is carried out in accordance with the Defence

Procurement Procedure (DPP)/Defence Acquisition Procedure(DAP) and
undertaken through Ten years Integrated Capability Development Plan(ICDP),
Five Years Defence Capability Acquisition Plan (DCAP) and Annual Acquisition
Plan (AAP).The cases listed in the approved Annual Acquisition Plan (AAP) are
15
 progressed as per the DPP/DAP provisions and funds allocated and budgeted
under the capital Acquisitions heads of concerned Service for the given financial
year.

Details of AoNs accorded for Army during last financial year 2021-22 and current
Financial year 2022-23 (upto 31.12.2022) are given below :-

2021-22 2022-23 (upto Dec,2022)

No. of AoN Value (Rs. in Cr.) No. of AoN Value (Rs. in Cr.)

8 17,010.75 21 43,667.92

29 AoN worth about Rs. 60678.67 Cr. have been accorded during last Financial
year 2021-22 and current financial year 2022-23 (upto Dec,2022) which are under
various stages of the Acquisition process for induction of the equipment in the
services in subsequent years.

1.17 During the oral evidence, on the subject, through power point presentation, a
representative of Indian Army submitted as under:

“The emergency procurement powers were assigned to the Indian Army with effect
from October 2022. Procurement under these delegated powers has enhanced
the ISR and fighting capability of troops deployed in northern and western borders
manyfold. This was met with the positive response by the Indian industry.”

Indigenization

1.18 The Committee wanted to know about the efforts made by Army towards realization
of indigenisation and self-reliance. In this connection, it was informed by Ministry of Defence
that during the last five financial year (2017-18 to 2021-22) and current Financial year 2022-
23 (upto December, 2022), total 90 capital acquisition contracts have been signed for
capital procurement of defence equipment for Army, out of which 62 contracts worth about
84% of total contracts value, have been signed with Indian Vendors for capital procurement
of defence equipment.

1.19 Details of capital expenditure incurred on Indigenous procurement for Defence

Equipments by the Army for the last five year as intimated to the Committee are as under:-

(Rs. in Crore)
Financial Year Indigenous Procurement
2017-18 17,897.62
2018-19 17,690.47
2019-20 19,619.62
2020-21 17,446.83
2021-22 17,290.96

16
1.20 On the issue of efforts towards indigenization a representative of the Indian Army
submitted as under:

“The Atmanirbharta initiative of the Government of India is fully supported by the

Indian Army through multiple initiatives and outreach to academy and industry
through the Army Design Bureau, the Directorate of Indigenization, the Army
Technology Board and a host of other establishments like Srijan Application,
Department of Defence Production and the iDEX initiative.

Modernization through induction of indigenous weapons and platforms is being

explored further. In the current Financial Year, AoNs worth Rs.99,569 crore have
been accorded for procurement of new equipment and weapons from indigenous
sources.”

Further on indigenisation, Chief of Defence staff submitted as under:

“Regarding indigenisation, you take it from 2014 onwards, there was Make In
India followed by Atmanirbharta or Indigenisation, whatever we actually started
has come true because of this Ukrainian crisis and now we realise that had we
been producing things indigenously, we would not have been dependent on
foreign sources. When we look at indigenisation of equipment and inventory
which we hold, we should look at two parts. One is capital equipment which we
are going to purchase like high quality and high-tech equipment which is rather
difficult and the other one is the segment which deals with spares, MROs and
things like that which is a large component like ammunition. This is the second
portion in which the volumes are huge and there is a capacity. It is not that our
nation is static. A large number of MSMEs etc. and a lot of people have showed
talent including in the private sector and it is largely driven by the private sector.
In the ordnance factories, we have carried it out because of the issues that you
mentioned. They underwent some kind of reforms. We have corporatized those
ordnance factories.

There are now seven kinds of DPSUs. They perform on a competitive

basis as a tender. Earlier, they used to place indents on ordnance factories. They
used to give the demand of 500 rifles and 5000 uniforms. Now, all that indent has
been turned into a supply order which has conditions like they have to give it in
time and the payments will be released accordingly. There is nothing for them
other than to compete and diversify. But that is a separate subject. That does not
come under my domain.

Are the costs of indigenisation competitive or not? When we start

anything, the cost will obviously be high. You will not get two or three people
even in the private sector to manufacture ammunition or rifles. There will be one
vendor only and the investment in R&D will be initially high. So, for a foreign
vendor who has been supplying, obviously, its cost will be slightly lesser. So,
cost-wise, I think we are still not matching. But it is better to do it indigenously

17
 even if it is a higher cost. That is what I would suggest so that we have a base.
Once we start doing it which the Government is doing now, in a large number of
things, we are doing only indigenously, probably, over a period of time, the cost
will also come down. The quality will also improve in the private sector as well as
the in the industry.”

Further CDS submitted:

…….सर, आ मनि◌भरता के बारे म अगर हम बात कर, आपने वसुधैव कुटु बकम ् क क बात
कह , अगर आ मनि◌भरता को दे ख तो इसका पहला श द ह आ म है , जो से फ-
रि◌यलाइजेशन और से फ-कांफि◌डस है । से फ-रि◌यलाइजेशन म भी पहला श द से फ है ।
जब हम आ मनि◌भरता क बात कर रहे ह, तब हम केवल वेप स क ह बात नह ं कर रहे ह या
आ स-ए युनि◌शन क ह बात नह ं कर रहे ह, इसम हमार थॉट ोसेस भी शामि◌ल है । हम
वे टन े जी या वे टन टे टि◌ स को य इनकॉरपोरे ट कर? ऐसी हमार जो चीज हमारे
लि◌ए ए ल केबल ह, य न उनक ह बात क जाए और उसी तरह क े नि◌◌ंग हो। इसलि◌ए
इसम हम आ स एंड ए यूनि◌शन के बि◌यॉ ड दे खना पड़ेगा। इस चीज का फायदा हम लाँग टम
म मि◌लेगा, य कि◌ द ु मन हमार टै टि◌ स और हमार अंडर टडि◌◌ंग को नह ं समझ
पाएगा। इसी तरह हमारे यहां वि◌कसि◌त कि◌ए गए वेप स क कैपेबि◌ ट के बारे म उनको
पता नह ं रहे गा। आज अगर हम एक हवाई जहाज या मि◌साइल खर दते ह तो उसक रज,
मता, उसम कौन सा सीकर है , कैसे वह जाम हो सकता है आदि◌ सार चीज लोग को पता
होती है । इसलि◌ए इं डि◌जि◌नस डेवलपमट और इंडि◌जि◌नस टै टि◌ स म फायदा है ।”

Vintage and other category of equipment

1.21 During deliberations an issue regarding implementation status of the

recommendation made by the Standing Committee on Defence in 2018 that modern armed
force should have one-third of its equipment in the vintage category, one-third in the current
category, and one-third in the state-of-the-art category was also raised. A representative of
Army submitted as under:

“Sir, you are right. It was 30:40:30. 30 per cent was to be new generation
equipment, 40 per cent was to be current equipment and 30 per cent could be the
older generation equipment. Currently, the situation is, approximately, 15 per cent
is new generation equipment, around 40 per cent is current equipment, and the
balance is the older generation equipment. So, this is the transition that we have
to go about. There is some time to go before we are able to reach the ideal state
of 30:40:30.”

18
 CHAPTER – II

AIR FORCE

Air Force leverages airpower of the Armed Forces. For effective command and
control, the IAF has various commands, under which there are different stations and units
located at various places throughout the country. Humanitarian assistance during disaster
relief is another vital and momentous role of Indian Air Force. The budgetary demands for
Air Force are contained in Demand Nos.19 and 20.

2.2 The Committee had sought from the Ministry of Defence a Statement indicating the
proposed and earmarked outlay at Budget Estimates, Revised Estimates and actual
expenditure for Air Force during the last five years including 2022-23, separately for Capital
and Revenue segments along with projection and allocation in the BE 2023-24. The details
submitted to the Committee are as follows:-

A. REVENUE
(Rs. in Crore)
Year BE RE Expenditure
Projection Allocation Projection Allocation
2018-19 35,260.79 28,821.27 32,407.37 28,105.43 28,291.25
2019-20 34,849.50 29,601.69 40,382.40 29,951.69 30,124.31
2020-21 43,904.17 29,962.66 44,605.21 31,742.07 32,825.23
2021-22 44,992.90 30,652.53 48,816.59 34,283.02 34,375.46
2022-23 50,692.44 32,873.46 54,997.72 44,728.10 29,214.45*
2023-24 68,081.58 44,345.58 - - -
*Figures are upto December, 2022.

B. CAPITAL
(Rs. in Crore)
Year BE RE Expenditure
Projection Allocation Projection Allocation
2018-19 77,694.74 35,770.17 68,579.46 35,770.17 36,451.74
2019-20 74,894.56 39,347.19 81,301.99 44,947.19 45,104.23
2020-21 66,207.29 43,281.91 72,955.18 55,083.91 58,207.95
2021-22 77,140.56 53,214.77 71,176.39 53,214.77 53,217.19
2022-23 85,322.60 56,851.55 56,264.54 53,871.17 27,631.50*
2023-24 58,808.48 58,268.71 - - -
*Figures are upto December, 2022.
Note: RE 22-23 and BE 23-24 figures are subject to approval of the Parliament.

Revenue Budget

The Revenue budget comprises of two main components, salary and non-salary.
Major portion of the budget head primarily goes for salary expenses which is a fixed
expenditure. The non-salary expenditure caters to the expenses on stores, ration,
19
transportation, fuel, etc. which are essential for regular training and operational
preparedness of Air Force. In Budget Estimates (BE) for Financial Year 2023-24, against
Revenue Head, projection of Air Force has been Rs. 68,081.58 crore and allocation to be
made is Rs. 44,345.58 crore. In case of Revised Estimates (RE) for Financial Year 2022-
23, under Revenue head, Air Force’s projection was Rs. 54,997.72 crore and allocation
made was Rs. 44,728.10 crore. The allocation is short of demand by Rs. 10,269.62 crore
and the expenditure incurred till December 2022 was Rs. 29,214.45 crore.

Capital Budget

Capital Budget chiefly provides for expenditure on modernisation, enhancement of

force level, infrastructure development, etc. Under Capital Head, in Budget Estimate for
Financial Year 2023-24, Air Force’s projection was Rs. 58,808.48 crore and allocation to be
made is Rs. 58,268.71 crore. There is a deduction of Rs. 539.77 crore in allocation vis-a-vis
demand. In RE, 2022-23 the projection of Air Force was Rs. 56,264.54 crore against which
an allocation of Rs. 53,871.17 crore was made, hence, Rs. 2393.37 crore short of demand.
However, the expenditure in three quarters of Financial Year 2022-23 i.e. upto December
2022 was only Rs. 27,631.50 crore.

2.3 During the deliberations on Demands for Grants 2023-24, a representative of Air
Force deposed to the Committee as under:

“इसम दे खा जा सकता है क सारा एलोकेटे ड बजट ए फ शएंटल यू टलाइज हुआ था। एयरफोस
के लए जैसे-जैसे पैसे क ज रत पड़ी, एडी वेट बजट एलोकेशन से परू हो गयी। अगर इस बजट
को कै पटल और रे वे यू म ेक डाउन कर तो रे वे यू म एलोकेशन एडी वेट रहा है और िजस
परपज़ के लए एलोकेशन हुआ था, उसे इ तेमाल कया गया है । रे वे यू बजट का एलोकेशन
सेलर म जाता है और जो अदर दै न सेलर कोडेड होता है , इससे े नंग, इ ा चर, मै टे नस
और स टे नस कया जाता है । इस तरह से ऑलमो ट 40-50 परसट ड यूशन सेलर और
अदर दै न सेलर म कया जाता है । वायुसेना का अ धकतर रोल लाइंग रले टड ऑपरे शन म
कया जाता है जो काफ महं गा पड़ता है , इस लए 25 परसट ऑफ अदर दै न सेलर का
ए सप डचर यूल म ह होता है ।”

2.4 On a query regarding sharp decline in BE projection as compared to the last year’s
projection, a representative of Air Force replied:

“Sir, as far as projection is concerned, our projection last year was Rs. 85,000
crore and we finally got allocation of Rs. 57,000 crore which we consumed. This
year, the projection itself has been less because of this Russia-Ukraine war as
some of our deliveries are not taking place. So, we have already been told that
those deliveries will not take place. So, we have taken that part of the
component out. There is no point in projecting that. Otherwise, whatever we

20
 have been requiring, when we are making payments, it is stage-wise payment,
so we take into account any project that we get into, as to what is the stage
payment that is likely to take place in that year and based on that we project and
we do sometimes make changes even in that because certain things get delayed
because of the other countries involved, especially, and till now we have not had
any problem in terms of when we needed the money and we did not have. Both,
Russia and Ukraine are delivering things to us”.

Further on reduced projection, a representative submitted as under:

“Sir, as far as reduced projection is concerned, some part of it covers spares,

…………. But there is a major project …… where the deliveries have been
stopped because of the war going on. So, we had a major delivery in this year,
which is not going to take place. They have given us in writing that they are not
able to deliver it. That is why the major part of projection has been reduced”.

Percentage Share of Air Force Budget

2.5 The Committee desired to know the percentage share of Air Force budget, both in
Revenue and Capital segments, reasons of mismatch in projection, allocation and
expenditure, out of the total Defence Budget during the last five years. The data furnished
by the Ministry of Defence is tabulated below:
(Rs. in Crore)
Year BE (Defence Air Force %age Air Force %age Air Force %age
Services (Revenue) share (Capital) share (Revenue + share
Estimates#) Capital)
2018-19 2,79,305.32$ 28,821.27 10.32 35,770.17 12.81 64,591.44 23.13
2019-20 3,05,296.07 29,601.69 9.70 39,347.19 12.89 68,948.88 22.59
2020-21 3,23,053.00 29,962.66 9.27 43,281.91 13.40 73,244.57 22.67
2021-22 3,47,088.28 30,652.53 8.83 53,214.77 15.33 83,867.30 24.16
2022-23 3,85,370.15 32,873.46 8.53 56,851.55 14.75 89,725.01 23.28
(# DSE includes Army, Navy, Air Force, Joint Staff, DRDO, Ordnance Factories, NCC, & DGQA
Budget)
($ - Excludes Military Farms and ECHS which were shifted from Air Force to modified Grant -
MoD(Miscellaneous) in FY 2016-17 and reverted back to DSE in FY 2019-20)

2.6 The Committee can see that there is an evident decrease in percentage share of
revenue budget of Air Force, out of Defence Services Estimates from 10.32 per cent in
2018-19 to 8.53 per cent in 2022-23. At the same time, there is a increase in capital budget
share from 12.81 percent in 2018-19 to 14.75 percent in 2022-23. It is quite less if
compared to allocation made in the year 2021-22, which was 15.33 per cent. However,
there is an increase in absolute terms under both revenue and capital heads during the
same time period.

Budget for Modernization

2.7 In the Defence Services Estimates (DSE), there is no separate allocation of funds for
Committed Liabilities (CL) and New Schemes (NS). Further, earmarking between
Committed Liabilities and New Schemes is carried out by Service HQrs based on
21
prioritization among the projects/schemes and the progress of contractual milestones. In the
FY 2022-23, an amount of Rs. 52,749.98 crore was allocated at BE stage under
Modernisation (Capital Acquisition) Head (which includes Committed Liabilities and New
Schemes). However, no additional funds were allocated to Air Force in RE 2022-23 over BE
2022-23. Against these allocations, an expenditure of Rs. 25,770.81 crore (upto December,
2022) has been incurred in FY 2022-23. Surrender, if any, will be known at the time of
finalization of Modified Appropriation of current financial year 2022-23.

2.8 In FY 2021-22, Air Force had sought additional allocation of Rs. 11,747 Crore in first
supplementary to cater for shortfall towards Committed Liabilities, etc under Capital
Acquisition (Modernisation) Head. No additional allocation was received in First
Supplementary. In second supplementary, an additional amount of Rs. 17,848.65 Crore had
been sought to cater for Committed Liabilities, new schemes, and future operational
capabilities of IAF, etc. No additional allocation was received in Second Supplementary. In
Third and final batch of Supplementary, no additional funds had been sought by Air Force
under Capital Acquisition (Modernisation) Head.

2.9 In First Supplementary 2022-23, no additional funds were sought by Air Force under
Capital Acquisition (Modernisation) Head.

2.10 Details of additional requirements projected by Air Force under modernization

(Capital Acquisition) at RE stage and the allocation made during the years 2021-22 and
2022-23 are as under:-
(Rs. in Crore)
Year BE RE Projection Additional RE
Allocation projection at Allocation
RE over BE
2021-22 49,320.77 67,169.42 17,848.65 50,090.77
2022-23 52,749.98 52,750.00 0.02 50,621.76
Note: RE 22-23 figures are subject to approval of the Parliament.

2.11 It may be seen from the table given above that Air Force’s allocation were increased
at RE stage by Rs. 770 Crore over BE 2021-22. However, no additional funds were
allocated to Air Force in RE 2022-23 over BE 2022-23 under Capital Acquisition
(Modernization) Head. The allocations made above at RE stage were based on pace of
expenditure, Committed liabilities of Air Force and overall resource envelope available
under Capital Head. The allocated funds are optimally utilized towards operational activities.
If required, the schemes are reprioritized to ensure that urgent and critical capabilities are
acquired without any compromise to operational preparedness of the Defence Services.

Planning and Procurement

2.12 When asked about details of the acquisitions planned for the years 2023-24 and
2024-25 including proposed dates of acquisition, revised schedules and funds expended on
the projects, the Ministry, in a written submission, replied as under:

22
 “Planned acquisitions for these years include Basic Trainer Aircraft (BTA) (HTT-
40), Medium Power Radar (MPR) (Arudhra), Indoor Free Fall Simulator (Vertical
Wind Tunnel), Close in Weapon System (CIWS), Additional Mirage 2000 Aircraft
(Twin Seater), Ground Based System (Khoj), High Power Radar (Replacement),
Design and development of Foldable Fiber glass Mat (FFM) for rapid Runaway
Repair for IAF, Six Additional Dornier-228 Aircraft, AL-31 Aero Engine for Su-30,
Wet Lease of Flight Refueling Aircraft (FRA), High Frequency (HF) Trans
receiver Static, DR-118 RWR for Su-30 MKI Aircraft, RD-33 Aero Engines for
MiG-29 Aircraft, Technical Position (TP) for BrahMos Missile at AF Station
Thanjavur and Wind Profiler”.

Indigenization

2.13 The Committee were briefed that Air Force is vigorously pursuing indigenisation and
expenditure is being done as per committed liabilities and internal earmarking of budget for
domestic capital acquisition. The Committee wished to be apprised about the details of the
acquisitions made by Air Force from indigenous sources during the years 2021-22 and
2022-23. In this connection the following details were furnished to the Committee:

“(a) The details of Capital Acquisition (New Contracts only) made by Air Force
from domestic source during the last five year i.e. FY 2018-19 to 2022-23
(upto 31 Jan 23) and expenditure made during the same period is
mentioned below:

FY No of Total Expenditure (Rs in Cr)

Contracts Contract
Value
2018-19 36 1,156.20 17.90
2019-20 34 5,855.05 823.87
2020-21 63 49,455.53 6,541.38
2021-22 35 4,135.70 1,524.90
2022-23 27 2,454.75 345.75 (upto 31 Jan 23)

(b) Further, the expenditure incurred on Domestic Procurement from FY

2018-19 to 2022-23 (upto 31 Jan 23) under Capital Acquisition is as
under:
FY Expenditure (Rs in Cr)
2018-19 5,648.66
2019-20 16,461.54
2020-21 36,638.14
2021-22 29,911.37
2022-23 18,866.60 (upto 31 Jan 23)

2.14 On the issue of funds dedicated for acquisition from indigenous sources during the
year 2023-24, the Ministry in its written replies submitted as under:

23
 “Yes Planned cash outgo (Committed Liabilities) under Domestic Expenditure is
Rs. 29,316.56 Cr out of total allocation BE 2023-24”.

2.15 During the deliberations on Demands for Grants 2023-24, on self-reliance and
indigenisation, a representative of Air Force deposed to the Committee as under:

“आपने जो दस
ू र बात कह है , जो इंपोट वसज आ म नभर भारत है , जैसा मने पहले भी
कहा था क अभी हम एक बैलस ाइक करना है । हम अपनी इं ड को भी मौका द, ले कन
हमार अपनी जो कैपे ब लट है , वह भी कम न हो। इसी लए ज र है क कुछ चीज इंपोट करनी
पड़गी। अगर कसी चीज म 19-20 का फक है , तो भारत क बनी हुई 19 को भी वीकार करना
पड़ेगा, ता क हम उसको भी बढ़ावा दे सक। जो है पी म स है , अभी वह काम चल रहा है । जो
114 एय ॉ स का कॉ ै ट है , वह हम बाहर से खर द रहे ह, ले कन उसका मै युफै चर भारत
म होगा। जो एलसीए माक वन डजाइन हो रहा है , माक वन का ऑलरे डी आडर दया जा चक
ु ा है
और माक टू का सीसीएस नोट अ ूव हो चक
ु ा है । अमका का सीसीएस नोट मूव हो चक
ु ा है । जो
ोसेस है , वह समानांतर चल रहा है ।”

He further apprised the Commttee:

…….to add to the indigenisation part, I would like to also submit that we have
base repair depots in our country, which, for the last many years, have been
working towards indigenising many of the components, especially, those that are
required by us on a routine basis, like seals, washers in large numbers. We have
been largely successful in this. There are certain BRDs which specialised in this
process. HAL is already making the engine for the Su-30 in our country at
Koraput. So, a lot of elements of this are already getting indigenised. Of course,
to say that we will be 100 per cent independent, will never be possible. That is
sure”.

“Sir, on the third point, which you brought out, about indigenisation of
weapons, fortunately this is one area where we are on a very strong side. In the
last two or three years, after the crisis happened, a lot of push has been given to
indigenisation of weapons. A lot of our DRDO projects are now fructifying. We
are very confident. In two or three projects, we are already in the process of
integration. These are all long-range weapons with precision. So, we are looking
at that.

At the same time, with the foreign OEMs having now understood the
requirement of making in India, a lot of foreign companies are tying up with
Indian partners and those weapons are getting made in India. We are in the
process of placing orders on Indian firms for these weapons which are already
integrated. I think, in terms of weapons, we should be much more comfortable.
Hopefully, on the main cases of FRA and multi-role fighter aircraft, we should be
moving ahead quickly”.
24
25
Force Level

2.16 On the strength of the Indian Air Force, through power point presentation, a
representative of Air Force submitted as under:

“अपनी का ब लयत क शु आत म फाइटर एयर ा ट से करता हूं। वायुसेना क

आथराइ ड ै थ 42 फाइटर कवा न क है , उसके मुकाबले अभी क सं या 31 है , जो अगले
दस साल म भी बढ़े गी नह ं बि क 2029 तक घट सकती है । दो कवा न नयी जेनरे शन के
जहाज से लैस होगा, एलसीए और एमआरएफए रड शन को अरे ट कर सकते ह, हमारे
एमआरएफए का डसीजन इस रड शन को संभालने के लए ज र है । जब मालवाहक
वमान को दे खा जाए तो हमार ि थ त काफ बेहतर है । आज सी-17, सी-130 और आईएल 76
से हमार र च और सामन ढ़ोने क मता म काफ इजाफा हो चक
ु ा है । अब हम परु ाने जहाज को
ए ो को सी-295 से र लेस कर रहे ह। सी-295 वमान काफ मता म बनेगा, वायु सेना का वक
हॉस एन-32 क र लेसमट क शु आत एक म डयम ांसपोट ऐयर ा ट के इंड शन से होगी।
ांसपोट ल ट के बारे म बताउं , ि वक डपलॉयमट एवं लोबल लेवल पर र च हो गई है और
यह हमार पॉवर ोजे शन म काफ इ हान ्समट करती है ।

हे ल कॉ टर ल ट म सं या पया त है । अभी पछले कुछ साल म अपाचे और चनुक को

छोड़कर िजतने भी हे ल कॉ टर इंड ट हुए ह, वह इसी दे श म बने हुए ह। लाइट यू ट लट
हे ल कॉ टर इं डयन म ट रोल हे ल कॉ टर के इंड शन क तैयार चल रह है । परु ाने जहाज
काफ सं या म ह, मीग-17 सीर ज के ह, उनको भी अप ेड कया जा रहा है । इसम अगर
समराइज कर तो हे ल कॉ टर ल ट, अटै क कैपे ब लट , इंड शन और जट े थ के हसाब से
ठ क है ।

आकाश म मार करने वाल ेपा क बात कर, यह काफ हे द ड दखाता है और

अगले दस साल म हमारा कवा न म काफ इजाफा होगा। अगर आप इंडे स को दे खगे तो ये
वेपन हर दरू के ह, शाट रज से लेकर म डयम रज और लांग रज के ह। इसम भी अ धकांश वेपन
इं डिजनस डेवलप हो रहे ह।

कसी भी वायु यु ध म कुछ ऐसे वमान होते ह जो यु ध के लए बहुत मह वपूण होते ह।

इनको हम क बै ट इनेबलस कहते ह। इनक वाि टट कम होती है ले कन लड़ाई के आउटकम
म बहुत ह मह वपूण रोल अदा करते ह। इसम लाइट र यूलस एयर ा ट हवा म दस
ू रे जहाज
को र यूल करता है , अभी हमारे पास छह ह और छह और को ज रत को भी ो ेस कया जा
रहा है । एयर ोन वा नग और कं ोल स टम िजसको एड यूएसीएस कहते ह, अभी हमारे पास
तीन एवै स ह, दो ए डशनल एवै स को इंड ट करने का ए स लोरे शन चल रहा है । तीन
26
 एईड यूसी जहाज को डीआरडीओ ने बनाये ह । इसके अलावा, छह और एईड यूसी
एयर ा ट को इंड ट करने का ए स लोरे शन जार है । छह एयरबस -321 जहाज को
डीआरडीओ क म द से एईड यूसी माक –II ोजे ट के तहत modify कया जा रहा है ।

स नल इंटे लजस और क यु नकेशन इंटे लजस के लए िजसको इले ॉ नक इंटे लजस

कहा जाता है , दो बोइंग 737 जहाज है और अभी ए-319 जहाज को भी डफस म न ने खर दा
है , िजसको हम इस रोल म मो डफाई करगे। अगर शां तकाल म हमारा टा क दे खा जाए तो उसम
एयर डफस यु धकाल क तरह नरं तर उतना ह मह वपण
ू रहता है । इस ोजे शन को अगर
आप दे खगे तो एयर पेस म ै फक दखाता है , इस ै फक को नरं तर मो नटर करना एक
नेटवक ऑफ एयर डफस रडार से कया जाता है । इसम म यम रज और ऊची रज क रडार हमारे
पास लगभग गैप- कवरे ज दे ती है । यह रडार का सारा नेटवक एक इंट ेटेड एयर कमांड एंड
कं ोल स टम से कराया जाता है जो क भारत म बनाया गया इं डिजनस नेटवक है । इस सारे
नेटवक म अगर कोई घुसपै ठए पाया जाता है तो उसको चैलज करने के लए कसी भी समय
चौबीस घंटे जहाज टड बाई पर रहते ह। पछले साल 41 वार ै बल कए गए थे जो क एयर
पेस वायलेशन होने पर कए गए थे । इन ै बल का उ दे य ये डटर म ड कया जाता
है क घुसपै ठए का क म यल जहाज है या कोई द ु मन का जहाज है ।”

2.17 On the issue of squadrons strength, during the oral evidence, a representative of
Indian Air Force submitted as under:

“जो 31 वा स को 42 वा स तक करने क बात है , म नह ं बता पाऊंगा क यह कब

तक होगा। हम पछले बहुत साल से को शश कर रहे ह आगे बढ़ने क , ले कन कुछ ोसीजस
होते ह, िजनको फॉलो करना होता है । दस
ू रा, जैसे हम एचएएल से कसी रे ट पर कुछ जहाज
मलने ह, हम जो 40 एलसीए चा हए थे, वे काफ समय पहले मल जाने चा हए थे। वे अब मल
रहे ह, अभी भी हमारे पास 40 से दो जहाज कम ह ह।“

Further, a representative of Air Force added:

“सर, यह कह पाना मिु कल है क यह कब तक पूरा होगा, ले कन अभी हम िजस रे ट पर चल

रहे ह, हमने ो योरमट म जो ऑडस दे रखे ह, अगर वे मलगे और अगर इन 114 जहाज का
केस ो ेस होता है , हम 2030 तक 29 से 31 वा न के बीच रह सकते ह। हम उससे नीचे नह ं
जाएंगे। हमारे मग 21 जहाज को फेज-आउट करना ज र है ।”

2.18 Further on the subject, the Ministry was asked on the LCA induction in squadrons
and is Air Force is comfortable with this, a representative of Air Force submitted as under:

27
 “As far as LCA and other type of aircrafts are concerned, in every Air Force,
we will have to have a mix of all types of aircrafts because every aircraft has a
certain role. You cannot have all aircrafts of one class. As far as LCA is
concerned, it does fit in. We have to remember that it was designed as a
replacement for MIG-21. The aircraft has come up quite well. It is meeting those
requirements quite well. Yes, if you ask, everybody would like to have all Fifth-
Generation aircrafts. But we have to see what we can get, what is available in
the market. We also have to see what will happen tomorrow. If we keep buying
them from the open market in the world, we will never become self-reliant. So,
we need to give a push to our own industry also. We need to hold their hands
and Air Force is committed towards that. We will make a happy mix and that is
why we are going in for MRFA contract for 114 aircrafts. It was, actually, 8
squadron of LCA and MRFA”.

2.19 About the delay in LCA project, a representative of Air Force deposed to the
Committee as follows:

“It is not in Air Force’s domain to conduct this study. But, as users or as the
people who needed it, what I can say is, we had made an aircraft before this. The
last aircraft that we designed was Marut. So, after a gap of 30 years plus, we are
now trying to make a fighter aircraft inhouse. We took a giant leap. We had to
take a call. We could have gone for some middle level or one generation below
aircraft. LCA is the four plus generation aircraft. We could have gone for a third-
generation aircraft with the conventional controls and with all rudimentary dials in
old avionics but we had to catch up with technology. I think it was a very good
step taken, though we have taken much longer than what we should have.

We were learning our lesson. We cannot call them failures but there are a lot
of road blocks. Then, the sanctions came in after our nuclear test. That caused a
lot of drawbacks. That is where we started thinking of that we should have most
of the technologies inhouse. But the flyby wire system of that aircraft and the
entire control law has been written by Indians inhouse. In the avionics, the entire
architecture is Indian, and it has been revised once fully. That means what we
conceived in the beginning and what we are flying today are two different
architectures. The one we are flying today is called federated architecture. If I
can use the word, it is, plug and fly. You can integrate any new weapon or any
new system much easily now.

So, as far as avionics is concerned, we are very close to where the world is.
But, yes, in engine technology, we need a lot to catch up. As far as airframe and
other parts are concerned, I think there again we are very close to where the
world is, except for some technologies like the actuators and all that, which we
are now doing flight testing at the moment. The flight testing is on. By the way,
most of us, all three of us, sitting here have been test pilots in LCA programme.
So, we know it. It is very close to our hearts. I think he will add on to it.

28
 Further, a representative of Air Force submitted as under:

“I will add on to it because this was related to my previous job. I was heading
the flight testing. I just cleared the LCA’s final operational clearance. So, I can tell
you that while you are right that it was conceived in the 90s’, but what we are
flying today is very different from what was actually conceived at that point of
time. We have kept pace with technology because lot of the avionics have
changed over the time. The squadrons, which are flying today, are flying the
latest avionics which is available with us in the rest of the fleet, which is also
good. That is one part of it.

Like he mentioned about the flyby wire, a lot of other countries were not
willing to share some of the critical technologies. So, these are some things on
which we have to learn on our own, and, of course, learning takes its own time.
But today we are much better prepared. Hopefully, in the next aircraft, we will not
take as much time as today”.

Modernisation of Air Field Infrastructure (MAFI) Project Phase-II (MAFI-II)

2.20 On a query regarding the budgetary allocation made and actual expenditure incurred
for modernizing airfields during the last five years, the Ministry in its written reply stated as
under:

“The details regarding the budgetary allocation made and actual expenditure
incurred for modernizing airfields during the last five years is appended below:

(Rs. in crore)
Sl No. Project Name Contracted Amount paid
Amount
1. Project Modernisation of Air Field 1215.35 1215.35
Infrastructure (MAFI) Phase -I
2. Project MAFI Phase -II 1187.17# 565.7
Total 2402.52 1781.05

# Contract value reduced from 1189.44 Crore to 1187.17 Crore after contract
amendment No.03 dated 30 Sept 21”.

2.21 On the issue of future plans of modernisation of airfields, the Ministry in its written
reply submitted as under:

“The contract for modernization of 24 airfields [including Ojhar (HAL) and

Vadodara (AAI) where Navigation aids required for military aviation are being
installed], nine airfields of Indian Navy and two airfields each of Indian Coast
Guard, and Aviation Research Centre (ARC) as a part of Project MAFI II has
been sanctioned by Govt of India. The project is expected to be completed in
October, 2024”.
29
2.22 The Ministry in its written replies informed that MAFI Project has already been
completed modernisation at 35 airfields and on 18 airfields modernisation planned. In the
North-Eastern par of India modernisation of 7 airfield completed in phase I & II and 3
airfields planned in phase II

Manpower

2.23 The Committee desired to be apprised about the shortage of manpower in Air Force.
On the issue, a representative of Air Force submitted as under:

“Sir, the shortage of officers is around 600 against the authorised establishment
of around 12,606. The shortage of men as of today is 3 per cent of the authorised
cadre, and it would increase around 10 per cent of the authorised in 2026 if we
take the proposed accretions into account. About 9500 posts are lying with the
Ministry of Finance for approval. If those come in, the shortage will remain
between 3 to 5 per cent. So, effectively, that much is the training reserve also
which we already keep. So, there would not be a major shortage”.

30
 CHAPTER – III

NAVY

The Committee find that Navy is prime manifestation of India’s maritime power which
shapes maritime domain and safeguards national maritime interests. To safeguard our
national maritime interests, continuous Mission Based Deployments are being undertaken
by the Indian Navy. Indian Ocean Region (IOR) has multiple security challenges as it
contains major shipping lines and nearly 1,20,000 vessels transit through various choke
points. Almost 13000 vessels are in IOR at any point of time. The region is centre of gravity
of piracy and trans-national crimes and also locus of 70 percent of world’s natural disasters.
Providing humanitarian assistance during disaster is another vital role played by Indian
Navy.

3.2 For examination of the Demands for Grants of Navy for the year 2023-24, the
Committee had sought from the Ministry of Defence a Statement indicating the proposed
and earmarked outlay at Budget Estimates (BE), Revised Estimates (RE) and actual
expenditure for Navy during the last five years including 2022-23, separately for Capital and
Revenue segments alongwith projection and allocation in the BE 2023-24. The details
submitted to the Committee are as follows:-

A. REVENUE
(Rs. in Crore)
Year BE RE Expenditure
Projection Allocation Projection Allocation
2018-19 23,747.75 19,571.37 24,420.58 20,795.04 20,856.23
2019-20 27,086.29 22,211.71 28,737.09 22,786.71 22,387.31
2020-21 32,237.96 22,934.75 28,379.84 23,347.69 23,166.05
2021-22 34,256.83 23,360.68 30,069.08 23,925.91 23,834.99
2022-23 34,701.66 25,406.42 34,441.48 30,734.58 19,840.03*
2023-24 36,605.04 32,284.20 - - -
*Figures are upto December, 2022.

B. CAPITAL
(Rs. in Crore)
Year BE RE Expenditure
Projection Allocation Projection Allocation
2018-19 35,695.41 20,848.16 30,735.65 20,890.87 21,509.60
2019-20 37,220.98 23,156.43 40,123.18 26,156.43 27,446.68
2020-21 45,268.31 26,688.28 51,769.28 37,542.88 41,666.76
2021-22 70,920.78 33,253.55 50,011.38 46,021.54 45,028.64
2022-23 67,622.96 47,590.99 47,727.03 47,727.03 24,206.45*
2023-24 52,804.75 52,804.75 - - -
*Figures are upto December, 2022.

Note: RE 22-23 and BE 23-24 figures are subject to approval of the Parliament.
31
Revenue Budget

The Committee understand that the Revenue Budget comprises of two main
components, salary and non-salary. Major portion of the budget head primarily goes for
salary expenses which is a fixed expenditure. The non-salary expenditure caters to the
expenses on stores, ration, transportation, fuel, etc. which are essential for regular training
and operational preparedness of Navy. In Budget Estimates (BE) for FY 2023-24, against
Revenue Head, projection of Navy was Rs. 36,605.04 crore and allocation to be made is
Rs. 32,284.20 crore, with a reduction of Rs. 4320.84 crore. In case of Revised Estimates
(RE) for FY 2022-23, under Revenue head, Navy’s projection was Rs. 34,441.48 crore and
allocation made was Rs. 30,734.58 crore. The allocation is short of demand by Rs. 3706.9
crore, However, the expenditure incurred till December 2022 was merely Rs.
19,840.03 crore.

Capital Budget

The Committee are also aware that Capital budget cardinally provides for
expenditure on modernisation, enhancement of force level, infrastructure development, etc.
Under Capital Head, in BE for FY 2023-24, Navy’s projection was Rs. 52,804.75 crore and
the same has been allocated. In RE 2022-23, the projection of Navy was Rs. 47,727.03
crore and the same has been allocated. However, the expenditure in three quarters of FY
2022-23 i.e. upto December 2022 was only Rs. 24,206.45 crore.

3.3 During examination of Demand for Grants 2023-24, a representative of Indian Navy,
through a Power Point presentation before the Committee on budget submitted the
following information:

“नेवी का टोटल बजट वष 2018-19 से कंट यूअसल बढ़ रहा है । Indian Navy’s share of
defence budget at BE 2023-24 stage has increased from 17.78 per cent in
financial year 2022-23 to 18.26 per cent in financial year 2023-24. पछले कई वष
से भारतीय नौसेना ने कै पटल टू रे वे यु रे शयो हे द टे ट म बरकरार रखा है । फाइन शयल ईयर
2022-23 म कै पटल टू रे वे यु रे शयो 68:32 है , जो हमारे नेवी के मॉडनाइजेशन ला स को
और जोर दे ता है । नौसेना के मॉडनाइजेशन के त कै पटल बजट के बी टे ज म सन ् 2018-19
से सालाना 21 परसट बढ़ोतर दे खी गई है । ऐसी बढ़ोतर हमारे क मटे ड लाइ ब लट और
मॉडनाइजेशन के त नए कॉ ै ट को क लूड करने म ो साहन दे ते आ रह है । इन
मॉडनाइजेशन ला स म इ ा चर भी शा मल है , जो बढ़ती नौसेना क बढ़ती डमा ड के
त है । यहां पर म हाइलाइट करना चाहूंगा क नौसेना के ोजे ट लंबी अव ध के होते ह, चाहे
वह वार शप कंस शन हो या इ ा चर क ज रत हो। इसी कारण नरं तर बढ़ते बजटर
एलोकेशन और सपोट हमारे बढ़ते नेवी के लए बहुत अ नवाय है ।

32
 हम रे वे यु बजट म यान द तो सन ् 2018-19 से तकर बन 12 परसट सालाना ोथ
दे खी गई है । इसम सेलर और नॉन सेलर एलोकेशन भी शा मल है । नॉन सेलर या अदर दै न पे
एंड अलाउं सेस ओट पीए सेगमट को दे ख तो एवरे ज ईयर ऑन ईयर ोथ तकर बन 14 परसट क
बढ़त हुई है । इस बजट एलोकेशन को हम नेवी के ऑपरे श स, े नंग, मे टे नस और रोज क
ग त व धय को जार रखने के लए इ तेमाल करते ह। The allocation for next financial
year has grown by 55 per cent with respect to BE 2022-23, जो हमार नौसेना के
संचालन और जीवन आधार के लए बहुत ह लाभदायक ह गे।”

3.4 In line with the discussion, the Committee desired clarification on RE and the
projected requirements. In this regard, the Financial Advisor (Defence Services) informed
the Committee as under:

“As I mentioned earlier, the revenue budget caters for salary as well as non-
salary. You are concerned with non-salary. They had an allocation of around Rs.
9000 crore there. They needed around 14,000 crore. They got the entire amount.
That is why you will not see much difference between the increase over the last
year and the BE. They got exactly what they wanted. The reason why they
wanted this was on account of fuel. The fuel prices have really gone up. So, they
wanted money on that account which was given to them.

They were given around Rs.1000 crore only for that. Then, they were given
money for ration. They wanted around Rs.115 crore. They got that money.
Then, they wanted around Rs.4386 crore on account of emergency
procurement. That was also given to the Navy. I have the details of all the
requirement which totals up to Rs.13,000 crore”.

It was supplemented as under:

“Sir, their projected requirement was exactly the same. The requirement
which they have got is what they had projected. I mean in fact इसका र वायरमट
28 हजार करोड़ पए था what they wanted for revenue. They have got that. They
wanted around Rs.51,000 crore for capital. They have got that. The total
amount which they needed was Rs.79,000 crore. We did a complete review.
That is the money which they wanted for the current BE. That is what they have
been given.”

3.5 On the issue of projection, Financial Advisor (Defence Services) submitted as

under:

“The projection initially when they had done last year, it was slightly higher
because of the preliminary thing which they had. But in the RE, we managed to
get money which met their committed liabilities and other things. That is why the

33
 figures now what we have got is more than sufficient to meet their current
requirements”.

Budget for Modernization

3.6 The Committee were apprised that in the Defence Services Estimates (DSE), there
is no separate allocation of funds for Committed Liabilities (CL) and New Schemes (NS). In
the FY 2022-23, an amount of Rs. 45,749.81 Crore was allocated at BE stage. However, no
additional funds were allocated to Navy (including Jt. Staff) in RE 22-23 over BE 22-23
under Modernisation (Capital Acquisition) Head (which includes Committed Liabilities and
New Schemes). Further, earmarking between Committed Liabilities and New Schemes is
carried out by Service HQrs based on prioritization among the projects/schemes and the
progress of contractual milestones. Against these allocations, an expenditure of Rs.
22,746.31 Crore (upto December, 2022) has been incurred in FY 2022-23. Surrender, if
any, will be known at the time of finalization of Modified Appropriation of current financial
year 2022-23.

i) Supplementary FY 2021-22:- Under Modernisation (Capital Acquisition) Head, Navy

had sought additional allocation of Rs. 13,500 Crore in First supplementary and Rs.
16,383.31 Crore in Second supplementary stage in FY 2021-22 for meeting expenditure
on account of: P8I, MRH and other Aviation Committed Liabilities; Weapon equipment/
systems, missiles, torpedoes; Emergency procurements, custom duty payments;
shipping projects, submarine cases; shipbuilding/ submarine projects viz. Indigenous
Aircraft Carrier, P75 Submarines, P17A frigates, P15B Destroyers, ASW Shallow Water
Craft Varsha and Strategic Infrastructure Projects, etc. No additional allocation was
received in First Supplementary. However, in second supplementary, an additional
allocation of Rs. 1,125.18 Crore had been received. In Third and final batch of
Supplementary, no additional funds had been sought by Navy.
ii) Supplementary FY 2022-23:- No additional funds have been sought by Navy in First
Supplementary under Capital Acquisition (Modernisation) Head in FY 2022-23.
iii) Details of additional requirements projected by Navy (including Jt. Staff) under
modernization (Capital Acquisition) at RE stage and the allocation made during the
financial years 2021-22 and 2022-23 are as under:-
(Rs. in Crore)
Year BE Allocation RE Projection Additional projection RE Allocation
made in RE over BE
2021-22 31,505.54 47,820.04 16,314.50 44,141.73
2022-23 45,749.81 45,018.22 - 45,018.22
Note: RE 22-23 figures are subject to approval of the Parliament.

iv) It may be seen from the table given above that Navy’s allocation were increased at
RE stage by Rs. 12,636.19 Crore in 2021-22. These additional allocations were made to
cater for Committed Liabilities of Navy. Also, the allocated funds are optimally utilized
towards operational activities. If required, the schemes are reprioritized to ensure that
urgent and critical capabilities are acquired without any compromise to operational

34
 preparedness of the Defence Services. However, no additional funds were sought by
Navy in RE 2022-23 over BE 2022-23.

Indigenisation

3.7 When asked about acquisitions made by the Navy from indigenous sources during
the last five years and the status of the outlay spent on indigenous acquisitions during the
same period, the Ministry in their written reply stated as under:

“During the last five years 2017-18, 2018-19, 2019-20, 2020-21 & 2021-22, total
78 capital acquisition contracts for the Indian Navy worth ₹ 57156.82 Crs. were
signed with the Indian vendors. List of the Acquisition made by the Navy from
Indigenous sources during the last five years as tabulated below:-

Years Contract Value ( In Crs)

2017-18 1742.43
2018-19 27809.58
2019-20 18231.81
2020-21 4845.09
2021-22 4527.91

The details of Financial outgo on Indigenous acquisitions is as tabulated below:-

FY Financial Outgo (Rs in Crs)

2017-18 12,991.76
2018-19 15,182.49
2019-20 17,401.50
2020-21 23,047.51
2021-22 27,823.41
Total 96,446.67

3.8 On the issue of funds dedicated for acquisition from indigenous sources during the
year 2023-24, the Ministry in its written replies stated as under:

“70:30 percent ratio has been earmarked towards procurement from Indigenous
and Foreign sources during FR 23-24”.

3.9 During oral evidence, on indigenisation, a representative of Indian Army through

power point presentation submitted as under:

“भारतीय नौसेना सरकार के आ मनि◌भर भारत अभि◌यान म सदै व आगे रह है । हम

इं डि◌जि◌नस शि◌प बि◌ डि◌◌ंग ो ाम क तरफ पूर तरह कमि◌टे ड ह और हमने अब तक

35
 132 शि◌ स भारतीय शि◌पया स म बनाए ह। भारतीय नौसेना आ मनि◌भर होने क तरफ
त पर है और हम वि◌ वास है कि◌ वष 2047 तक हम पूर तरह आ मनि◌भर हो जाएंगे।
इकोनोमि◌क सव ऑफ इं डि◌या, 2022-2023, जो हाल ह म मि◌नि◌ ऑफ फाइनस ने
प लि◌श कि◌या है , उसम शि◌पबि◌ डि◌◌ंग इंड के मह व और नौसेना के रा नि◌माण
के ति◌ योगदान के बारे म हाईलाइट कि◌या गया है । शि◌पबि◌ डि◌◌ंग वारा नौसेना
आ मनि◌भरता को काफ ो साहन दे ती आ रह है । केवल नौसेना के शि◌पबि◌ डि◌◌ंग
ोजे स म 65 ति◌शत योगदान एंसि◌लर इंड और एमएसएमई का रहा है । केवल
आईएनएस वि◌ ांत के ोजे ट म शि◌पयाड के 2 हजार इ लाइज के अलावा, 500
एमएसएमई और 12 हजार एंसि◌लर इ लाइज को लाभ मि◌ला है । पी17 अ फा ोजे सम
लगभग तीन-चौथाई इनवे टमट वापस इंडि◌यन इकोनोमी म आया है ।

भारतीय नौसेना ने पि◌छले साल 2 सि◌त बर को आईएनएस वि◌ ांत, जो हमारे दे श का पहला
इं डि◌जि◌न एयर ा ट कैरि◌यर है , को कमीशन कि◌या। दो ह ते पहले हमने वि◌ ांत पर
मि◌ग-29के और एलसीए नेवी लड़ाकू वि◌मान क लै डि◌◌ंग और टे क-ऑफ भी हासि◌ल कर
लि◌या। हम दनु ि◌या के उन चनु ि◌ दा दे श म शामि◌ल हुए ह, जि◌ ह ने इं डि◌जि◌नस
एयर ा ट कैरि◌यर पर इं डि◌जि◌नस फाइटर एयर ा ट को ऑपरेट कि◌या हो। आईएनएस
वि◌ ांत के कमीशन के अवसर पर इंडि◌यन नेवी ने अपना नया वज भी अपनाया है ।
आईएनएस वि◌ ांत के अलावा वष 2022 म इं डि◌यन नेवी ने दो अ य जहाज - आईएनएस
ममागोव और आईएनएस अ वेष को कमीशन कि◌या।“

Planning and Procurement

3.10 When asked about details of the acquisitions planned for the years 2023-24 and
2024-25 including proposed dates of acquisition, revised schedules and funds expended on
the projects, the Ministry, in a written submission, replied as under:

a. 35 Schemes worth ₹ 1,20,797.31 Crs have been accorded AoN for

acquisition. Out of these, 32 worth Rs 1,16,382.10Crs are planned through
Indian vendor and only 03 Schemes worth Rs 4415.21 Crs are planned
through Global vendor. The contract for the schemes are likely to be signed
during FY 2023 -24 and FY 2024-25.

36
 b. Details of Schemes accorded AoN/CNC Negotiated Cost for contracting are
as follows:-
(Rs in Crs)
Anticipated
S. No. Scheme
Cost
1. Fleet Support Ships/Fleet Tanker (FSS) - Sec A 17,000.00
2. Cadet Training Ship - Sec B 3065.14
3. Procurement of Upgraded SRGM (R/o) 2,346.88
4 Next Generation Offshore Patrol Vessels (NGOPVs))- Sec B 8,934.00
5. Procurement of High Data Rate VLF-HF Receivers 257.05
6. Lynx U-2 for 11 NGOPV & two WWR (R/O) 1918.77
7. SDR (Portables) Version -1 - MP Version -2- FP Version - 3- 265.50
HH
8. Modernisation of Naval Aircraft Yards (NAY)-Kochi and Goa on 365.27
'Turnkey' Basis
9. Special Maintenance Tools and Special Test Equipment 40.26
(SMT/STE) for shore based Repair Facility at NSRY(PB)and
Shore Based Training Facility at INS Shivaji for Integrated
Platform Management System(IPMS) Fitted Onboard LCU MK
IV Ships
10. Setting up of Naval Aircraft and Ship Instrumentation Including 247.00
Telemetry (NASI)
11. Upper Air Sounding System (UASS) - Make II 16.00
12. Procurement of Bottom Opening Dumb Barges 55.31
13. Implementation of ERP solution (AIIMS) for NAI organization 89.68
14. Procurement of Integrated Platform Management System with 110.21
Motion Control (IPMS-MC) Simulator in-house developed By
WESEE For Project – 75 Submarines
15. Universal Proximity and DA Fuze (with electronics adaptable to 22.50
76 mm to 127 mm ammunition) for 76/62 Gun Ammunition
16. Digital Beam forming Based Satellite TV (DB2ST) - Make II 64.90
17. Three Phase Static Inverter for ELTA MPR - Make II 8.44
18. Next Generation Corvettes (NGC) 36430.00
19. Procurement of 500 Ton Self Propelled Water Barges (Karwar 65.71
and Mumbai)
20. 500 Ton Fuel Barge 170.1
21. Procurement of Six Integrated Bridge System (IBS) 29.15
22. AI in SCM & Logistics 2.15
23. Procurement of Infantry Weapon Training Simulator (IWTS) 57.77
24. Dornier MLU 2200.27
25. Procurement of Expendable Aerial Targets (EATs) 165.03
26. DPR, Consultation for Contract Conclusion and Project 9.42
Monitoring for Strategic Special Assets Facility (SSAF)
27. Other Schemes (9 Nos)* 18419.27
* Details of these schemes are sensitive in nature.

37
3.11 Ministry was asked to provide the sanctioned and existing number of vessels, planes
and helicopters in Navy, in this regard, the Ministry in its written replies submitted as under:

i) Vessels. The present Force level of IN includes more than 130 ships and
submarines. To augment the surface force levels, 43 ships/ submarines are
under construction at various shipyards. Further, AoN also exists for
indigenous construction of 51 ships and 06 submarines and 111 Naval Utility
Helicopters (SP Model) to be built indigenously.The capacity and capability
development/ modernisation of the Indian Navy is being undertaken in
accordance with the Long Term Integrated Perspective Plan (LTIPP).

ii) Planes and Helicopters. The number of assets required of various types of
aircraft, is calculated based on IN’s envisaged tasks and missions, available
surface assets, areas of interest and other factors, as promulgated in LTIPP
2012-27. The existing number of planes and helicopters is 273 (Fixed wing
aircraft – 143, Helicopters – 130). Presently, there is a shortfall of planes and
helicopters for reconnaissance and transport, which is being mitigated
through progressive procurement.

MANPOWER

3.12 The Committee desired to be apprised about the gap between the required and the
existing manpower (officers and PBOR) in Navy. The details shared with the Committee are
as under:

Manpower status of officers (excluding Medical & Dental) and sailors as on 30

Nov 22 vis-à-vis the shortages is as follows:-

Sanctioned
Category Borne Strength Shortages % Short
Strength
Officers 11911 10344 1567 13.2
Sailors 76243 65153 11090 14.55

Operational Prepardness and threat perception

3.13 During the oral evidence, on the issue of preparedness as well as the threat
perception through power point presentation, a representative of Indian Navy submitted as
under:

“हमारे े स और चैलजेज क तरफ लाना चाहूंगा। हमारे ेट परसे शन के तहत …. और …. ह

हमारे पोटशि◌यल मि◌लि◌ े स ह। … अपनी मेरि◌टाइम कैपेबि◌ ट को काफ तेजी से
बढ़ा रहा है । In just over a decade, …. has grown from 250 to more than 350 navy

38
 ships which is the largest navy in the world. पि◌छले साल …. म 7 बड़े जहाज और एक
पनडु बी कमीशन कया। इसके अलावा, …. ने अपने थड एयर ा ट कैरि◌यर को भी लांच
कि◌या है । ….. नेवी क ोथ के साथ-साथ उनके ऑपरे श स भी बढ़ चक
ु े ह और कि◌सी भी
समय …. के पांच से नौ जहाज इंडि◌यन ओशि◌यन र जन म ऑपरेट करते ह और …. के
रि◌सच वेस स भी ऑपरे ट करते ह, जो हमार सि◌ योरि◌ट को भावि◌त कर सकते ह। भारत
के खि◌लाफ …. और ….. क मि◌ल भगत संभव है । अगर आप ….. नेवी को आज से वष
2030 तक तुलना कर तो फोस लेव स म 50 तक व ृ धि◌ का ोजे शन है । इस व ृ धि◌ म ….
का सबसे बड़ा योगदान रहेगा, इसलि◌ए भारतीय नौसेना को अपनी कैपेबि◌ ट एनहांस करना
बहुत अनि◌वाय है ।
इनके अलावा हमारे मेरि◌टाइम डोमेन म काफ सार अलग-अलग चुनौति◌यां ह, जो आप
न पर दे ख सकते ह। इन नॉन- े डि◌शनल े स को रोकने के लि◌ए भी नेवी हमेशा तैनात
रहती है । को टल सि◌ योरि◌ट मैकेनि◌ स को बढ़ावा दे ने के लि◌ए नेशनल कमांड, कं ोल,
क यूनि◌केशन, इंटेलि◌जस नेटवक 51 इंडि◌यन नेवी और को ट गाड टे श स को कने ट
करती है और सारे इ फामशन को बखब
ू ी इंटि◌ ेट करती है । वाइंट ऑपरे शन सटर, जो मंब
ु ई,
को चि◌, वि◌शाखाप टनम और पोट लेयर म ह, वे परू तरह से इंटि◌ ेट होकर 24X7 काम
कर रहे ह। हाल ह म भारतीय नौसेना ने को टल डि◌फस ए सरसाइज – सी वि◌जि◌ल का
तीसरा एडीशन संचालि◌त कि◌या। इस ए सरसाइज म नौ को टल टे स और चार यूनि◌यन
टे रि◌टर ज से 17 गवनमट एजसीज ने भाग लि◌या। कुल मि◌लाकर इसम 18 हजार लोग ने
पाटि◌ सपेट कि◌या, जि◌नम 800 एनसीसी कैडे स भी शामि◌ल थे। माच, 2021 से अब तक
नौसेना ने 6 एंट नाक टि◌ स ऑपरे श स कंड ट कि◌ए ह, जि◌ससे समु पर से गुजरते हुए
नाक टि◌ स े ड पर भार भाव पड़ा है । I am certain the Hon. Committee would agree
that considering the ever-growing threats and challenges in the region as I have
updated, capability building by the Indian Navy to meet its mandated roles is
essential. To counter emerging threats, a balanced built-up of the Navy is
required whether it is ships, submarines or aircrafts which can only be enabled
by sustainably assured funding.”

3.14 In line with the discussion, it was further submitted by Chief of Defence Staff &
Secretary (DMA) as under:

“म नेवी क तरफ ेट को एनालाइज करने क को शश क ँ गा। य द कह ं पर थोड़ा-बहुत

ऐड करना चाहगे, तो म नेवी क मदद लँ ग
ू ा।
य द हम …. नेवी को दे ख, तो आज क तार ख म, उनक थ लगभग 355 श स क
है । श स क सं या के हसाब से, आज क तार ख म भी वह द ु नया क सबसे बड़ी

39
 नेवी है । उ ह ने ….. को ओवरटे क कर लया है । आज से चार-पाँच साल बाद उनके श स
क थ लगभग 555 होगा। उसके मुकाबले दे ख, तो आज इं डयन नेवी क जो थ है ,
वह लगभग 131 श स है । िजतने श स के ऑडर दए गए ह, िजतने कं शन म ह,
वे लगभग 160 के आसपास ह। हमार योजना लगभग 200 नेवी श स को बनाने क
है । ले कन हम िजस हसाब से चल रहे ह, उसके अनुसार लगभग 155 से 160 श स
के आसपास होगा। अभी नेवी म 131 श स ह। य द सफ न बर के हसाब से दे खा
जाए, तो ये न बस काफ कम ह। ले कन हम दो-तीन बात को यान म रखना चा हए
य क ये सार चीज यो ेफ के ऊपर नभर करती ह। …..

The Committee drew attention to the fact that an aircraft carrier is highly capital
intensive in nature and the current scenario have been witnessed in the ongoing war that
with the use of the new technology it may be easy to destroy the large ships which may
result into the waste of huge amounts of money. Accordingly they wanted to know the
actual need for the third aircraft carrier keeping in view the operational efficacy and with the
deterrence angle. The Committee also took note of the fact that the need for the third
aircraft has persistently been raised by the Navy in the past also.

3.15 In this regard, the Defence Secretary candidly stated as under:

"..... I would like to explain one important thing which all the hon. Members are
aware of, and in fact, the hon. Committee has been promoting this aspect very
much. The manufacturing of a submarine ship and an aircraft carrier is a
momentous thing. In fact, it boosts the economy in such a fashion that it brings
about transformation in the entire industry. If Cochin Shipyard is involved in the
manufacturing of an aircraft carrier, it spins-off the steel industry or avionic
industry. So, we have acquired these skills with great effort. The Shipyard Indian
Industry has acquired these skills with great effort because of the emphasis laid
on Make-in-India. So, when we do the planning, we must also plan for the skills,
which include, manufacturing skills, design skills, and integration skills. These
have to be kept in mind."

40
 CHAPTER – IV

JOINT STAFF

The Committee found that Joint Staff act as single point organization for joint
manship in Ministry of Defence which integrates policy, doctrine, war-fighting and
procurement. The role and responsibilities of the organization has witnessed expansion
ever since its inception in the year 2001.

4.2 For examination of the Demands for Grants of Joint Staff for the year 2023-24, the
Committee had sought from the Ministry of Defence a statement indicating the proposed
and earmarked outlay at Budget Estimate(BE), Revised Estimate(RE) and actual
expenditure for Joint Staff during the last five years including 2022-23, along with projection
and allocation in the BE 2023-24. The details submitted to the Committee are as follows:-

(Rs. in Crore)
Year BE RE Expenditure
Projection Allocation Projection Allocation
2018-19 5,796.53 3,796.94 4,776.21 3,890.66 3,661.61
2019-20 5,422.83 4,109.41 4,813.30 4,199.13 3,770.48
2020-21 5,893.10 4,461.44 4,894.61 4,012.58 3,565.12
2021-22 6,251.11 4,543.04 4,684.83 4,146.26 3,715.26
2022-23 5,473.28 4,462.35 6,014.25 5,498.39 2,958.76*
2023-24 6,543.78 6,060.45 - - -
*Figures are upto December, 2022.

Note: RE 22-23 and BE 23-24 figures are subject to approval of the Parliament.

4.3 During examination of Demands for Grants 2023-24, a representative of Joint Staff
through a Power Point Presentation before the Committee submitted the following
information:

“HQ IDS also manages and supports the entire financial aspects and
capability building of more than 120 units placed under the Joint Staff
organisation. HQ IDS undertakes net assessment of potential adversaries. The
Chief of IDS, as the Chairman of Defence Crisis Management Group,
coordinates response of armed forces during crisis situation warranting
humanitarian assistance and disaster relief operations within and outside
India......

.......HQ IDS, manages prestigious training institutions like National

Defence Academy, Staff College, and College of Defence Management which
impart training not only to officers of Indian armed forces but also officers from
friendly foreign countries. Whilst doing so, highest standards of training in
professional, intellectual, physical and moral leadership using proven and
41
 innovative concepts, technologies, and modern practices is ensured with a view
to produce competent potential future leaders for the armed forces.

......Towards enhancing the future war fighting capabilities,तीन नई

ऑगनाइजेशंस – Armed Forces Special Operation Division, Defence Cyber Agency
and Defence Space Agency का गठन कया गया था। The activities of these
organizations over the years have progressively increased both in scope and
substance. Their sustenance and capability development also devolves on Joint
Staff Budget.”

He further stated:

“अब म वाइंट टाफ एलोकेशन पर बात करना चाहूंगा और संयु त टाफ बजट का
ववरण तुत क ं गा। डेटा म एसएफसी शा मल नह ं है । आईडीएस, मु यालय ने व ीय वष
2023-24 के लए कुल 5,670.46 करोड़ पए ा त कए ह, जो हमारे सटि◌सफै शन लेवल को
92 तशत तक ले जाता है । इसम 3,843.31 करोड़ पए रे वे यु तथा 1827 करोड़ पए
कैपीटल के ह। Of the total revenue allocations, Rs. 1497.03 crore has been
allocated for operational sustenance and maintenance requirements of the
various Joint Staff organizations. क पैरे टव डेटा न पर दखाया गया है । यहां म
पेशल मेनशन करना चाहूंगा क वष 2023-24 के लए हम बीई दोगुना यादा दया गया है , जो
सराहनीय है । This enhancement at the BE stage itself would benefit the Joint Staff
organization which are growing not only in stature, size but the overall
responsibility in undertaking their planned training, operational and other
functional activities smoothly since the very beginning of the Financial Year. The
capital allocations for the Financial year 2023-24 as displayed in the slide is
considered adequate. The entire funds as projected by the Headquarter (IDS)
had been allotted thereby supporting us in our endeavours”

4.4 The Committee took note of the details of additional requirements projected under
Revenue and Capital Heads in respect of Joint Staff at RE 22-23 stage which is as under:-

(Rs. in Crore)
Revenue Capital Total
BE Allocation 3,194.67 1,267.68 4,462.35
RE Projection 4,610.53 1,403.72 6,014.25
Additional amount sought in RE 1,415.86 136.04 1,551.90
RE Allocation 4,094.67 1,403.72 5,498.39
Note: RE 22-23 figures are subject to approval of the Parliament.

i) The Committee found that Joint Staff had been allocated Rs. 386 Crore in
the First supplementary against projection of Rs. 586 Crore under Revenue
42
 Head in the FY 2022-23. However, no additional funds were sought by Jt.
Staff in the First Supplementary under Capital Head in FY 2022-23.

ii) The allocations made above at RE stage were based on pace of

expenditure, critical requirement of other Services and overall resource
envelope available. It may be added that the allocated funds are optimally
utilized towards operational activities. If required, the schemes are
reprioritized to ensure that urgent and critical capabilities are acquired
without any compromise to operational preparedness of the Defence
Services.

Theaterisation of Armed Forces

4.5 During oral evidence, when enquired about the theaterisation of Armed Forces, Chief
of Defence Staff stated as under:

“We have tried to get the three Services on board on this issue of theaterisation
which is a fundamental issue. When we look at theaterisation, I should say that
there are three things closely interlinked with this: theaterisation, integration and
jointness. When we say theaterisation, it is creating organisational structures
which will do joint kind of a planning, execution of operation and its monitoring,
etc. This can only come about when there is sufficient amount of integration
among the three Services. When we say integration, it is information flow,
intelligence, communications, joint logistics, etc. If we integrate that then
obviously this will help creating of theatre commands. Lastly, something on a
jointness which is intangible in the sense that we should be able to communicate
with each other freely which means even where we meet actually rather than
looking at each Service in an adversarial kind of manner. This is brought about
by number of institutions which get trained together. We do staff college
together. This creates a bonding between us. That will help in the process of
integration and theaterisation. Regarding where have we reached till now, as far
as creation of joint theatre command is concerned, we have a number of
meetings between the three Service chiefs and myself. ………….. We should
be able to create theatre commands”.

43
 CHAPTER – V

EX-SERVICEMEN CONTRIBUTORY HEALTH SCHEME (ECHS)

The Committee found that the ECHS was launched on 01 April, 2003. The aim of
ECHS is to provide quality healthcare to Ex-Servicemen (ESM) Pensioners and their
dependants.

5.2 The Committee have been intimated that ECHS Central Organisation is located at
Delhi and functions under the Chief of Staff Committee (CoSC) and is headed by Managing
Director, ECHS, a serving Personnel. The scheme was launched on 1st April, 2003. There
are 30 Regional Centres, 427 ECHS Polyclinics and 3097 empanelled Private Health Care
Organizations for providing treatment. ECHS has membership of approximately 55 lakhs
including veterans and their dependants. 353 out of 748 districts of the country are covered
under ECHS. ECHS is also an attached office of Department of Ex-Servicemen Welfare
(DoESW), Ministry of Defence.

5.3 The existing Command and Control Structure of the Army, Navy and Air Force have
been given the administrative and financial powers to run this Scheme. Station
Commanders exercise direct Control over the ECHS polyclinics. Regional Centres ECHS
are under Command HQ/ Area HQ. Central organization ECHS functions as a part of
Adjutant General’s Branch, Army HQ.

5.4 In reply to a question about the categorization of ECHS Polyclinics, the Ministry
apprised the Committee through a written reply as under:

“(a) Polyclinics are categorized as either Military or Non-Military, depending on

whether a Military hospital is co-located or not and are further categorized into
five types, i.e. Type A to E, based on the number of Ex-servicemen residing in
that area. They are :-

Ser Category of Polyclinic No. of Ex-Servicemen

No.
(i) Type A Above 20,000
(ii) Type B Above 10,000
(iii) Type C Above 5,000
(iv) Type D Above 2,500
(v) Type E (Mobile) Above 1,500 (for remote areas)

(b) Approximately 55 lakh beneficiaries including ESM and their dependents

are presently availing ECHS benefits.

(c) The requirement of new Polyclinics as also dependency of ESM on various

Polyclinics is reviewed from time to time for opening new Polyclinics or upgrading
/downgrading existing polyclinics.”

44
Budget

5.5 The details of projections, allocation and expenditure by ECHS for the last five years
along with projections for 2023-24 are as follows:

FY Projection Allocation Expenditure

(Rs. in crore) (Rs. in crore) (Rs. in crore)
2018-19 4686.00 3198.02 3258.00
2019-20 5733.00 5199.21 5193.60
2020-21 6892.00 5321.28 4579.63
2021-22 5643.61 4870.75 4864.66
2022-23 5777.51 5143.51 4347.74
(as on 11.01.2023)
2023-24 5780.00 - -

5.6 The Ministry furnished the following information to the Committee about additional
funds provided at the supplementary stage during FY 2022-23:

“The following supplementary/additional funds have been provided in CFY 2022-

23:-

(i) Rs 1000.00 Cr was allotted from Major Head 8000 (Contingency

Fund of India) on 14 Sep 2022 towards payment of MTRE which is
now recouped with the Major Head 2076, Minor Head 107, Sub Head
E and Code Head 365/00 Medical Treatment Related Expenditure
(MTRE).

(ii) Rs 11.00 Cr was allotted under Code Head 363/01 (Medical Store)
on 19 Oct 2022.

(iii) Rs 250.00 Cr was allotted under Code Head 363/01 (Medical Store)
on 16 Nov 2022.

(iv) Rs 300.00 Cr was allotted under Code Head365/00 (MTRE)

on 21 Nov 2022.

5.7 On the issue whether expenditure on medicine included in the ECHS budget, a
representative of ECHS submitted as under:

“स वस हॉि पट स म इनके इलाज के लए मे ड स स वगैरह का जो बजट है , तो हम

डीजीएफएमएस को दे ते ह, वह मे ड स स का इ तेमाल वहां कया जाता है ।

45
 डॉ टस क सैलर नॉमल स वस बजट से होती है , मगर जो दवाईयां ह, वे ईसीएचएस के बजट से
ह ल जाती ह और वह दवाइयां उनको वहां द जाती ह।”

5.8 On the issue of budgetary allocations and expenditure, a representative of ECHS

submitted as under:

“सर, वष 2022-23 म अभी तक हम लोग को 5,429 करोड़ पये का एलोकेशन हो चक

ु ा है ।
अगर आप पछले साल के मुता बक दे ख तो यह तकर बन 600 करोड़ पये
यादा हुआ है ।
इसका जो ए सप डचर है , उसम कर ब 88 परसट ए सप डचर हुआ है । अभी 31 माच तक हमारा
ए सप डचर पूरा हो जाएगा। वा तव म, कुछ यादा ए सप डचर होने क भी उ मीद है । हम
उसके लए भी बातचीत कर रहे ह।”

Authorized and actual manpower for ECHS Polyclinics

5.9 The details of authorized and actual manpower at ECHS Polyclinics as informed to
the Committee are as under:

(a) Details of authorised and actual manpower at ECHS Polyclinics are as

under:-

Ser No Appointment Auth Manpower Actual Manpower

(i) Medical Officer 955 955
(ii) Medical Specialist 200 182
(iii) Radiologist 61 04
(iv) Gynecologist 61 57
(v) Dental Officer 471 425
(vi) OIC Polyclinic 410 410
(vii) Para Medical 2528 2528
(viii) Driver 488 488
(ix) Non Medical Staff 1640 1640
Total 6814 6689

(b) There has been no shortfall in the existing authorised manpower. The
unutilised vacancies are due to non-availability of Specialists in small town and
remote areas. This is a dynamic figure and rationalization within existing
authorisation is undertaken accordingly. However, the ever increasing beneficiary
base has mandated initiation of a proposal to enhance the contractual
manpower.

46
5.10. The Committee desired to know about proposal for enhancing the contractual
manpower in ECHS clinics/ polyclinics, in a written statement, the Ministry submitted as
under:

“A case for De-Novo review of ECHS Polyclinics has already been carried out
which would include establishment of 17 new Polyclinics, upgradation of 42
ECHS Polyclinics, re-location of 19 Polyclinics with placement of 91 new &
conversion of 20 existing Type ‘E’ Polyclinics to MMUs. The establishment of
new polyclinics, upgradation of polyclinics will enhance the authorised number of
contractual employees by around 2000. The proposal is under consideration with
MoD.”

5.11 During the oral evidence of the Committee, on the issue of shortage of specialists, a
representative of ECHS submitted as under:

“महोदय, ईसीएचएस पॉल ल न स म जो पेश ल स होते ह, वे टाइप-ए और बी पॉल

ल न स म काम करने के लए अ धकृत होते ह। मे डकल पेश ल ट, गाइनॉकोलॉिज ट और
रे डयोलॉिज ट, ये तीन तरह के पेश ल स अ धकृत होते ह। एक लाख पये त मह ने के
हसाब से इ ह र युमरे शन दया गया है । जैसा क आप जानते ह क बाहर इन सब वशेष क
जो सैलर है , वे यादा ह। यहां यह कम होने क वजह से उनक इ लॉयमट यहां उतनी नह ं
होती है । ले कन, जो ावधान दया गया है , िजसम ए स स वसमेन क टमट ए पैने ड
हॉि पट स म करवा सकते ह तो जब वे ऐसे पॉल ल न स म जाते ह, जहां पेश ल स नह ं
ह तो फर ओपीडी के लए भी वे ए पैने ड हॉि पट स म जा सकते ह और टमट करा सकते
ह।”

Payment of pending bills by ECHS to empanelled private hospitals

5.12 When asked regarding the steps the Ministry is taking to redress the problem of
unsettled ECHS medical bills of the private recognized hospitals pending for payment, the
Ministry, in a written submission, stated as under:

“Steps taken to redress the problem of unsettled ECHS medical bills of private
recognized hospitals are as under:-

(i) Continuous monitoring of Turn Around Time (TAT) with Bill Processing
Agencies (BPA).
(ii) Monitoring of response to ‘Need More Information (NMI)’ cases with
empanelled hospitals for early processing.
(iii) Demand for allocation of additional funds. In FY 2022-23, Rs 1000 Cr
were allotted from Contingency Fund in Sep 22 and Rs 300 Cr were
allotted in Nov 2022 under Medical Treatment Related Expenditure
47
 (MTRE). More allotment is expected at RE State to clear the unsettled
medical bills.”

5.13 During oral evidence of the Committee, a representative of ECHS further clarified on
the subject:

“सर, हर साल कर ब प ह सौ करोड़ पये से दो हजार करोड़ पये के बल इन ोसेस होते ह।

बजटर ोसेस बीई और आरई टे ज पर आ खर फाइनेि शयल ईयर म होता है , उस हसाब से पेमट
कया जाता है । अभी हम आरई टे ज तक के पैसे मल चक
ु े ह, उसका पेमट अभी तक कया गया है ।
पैसा दोबारा रए ो एट होकर अगर कुछ मलेगा तो हम लोग उसका पेमट करगे।”

5.14 During discussion on Demands for Grants 2023-24, the Committee enquired about
fake bills raised by the empanelled hospitals and action taken in this regard, a
representative stated as under:

“महोदय, सबसे पहले तो ए पैने ड हॉि पट स म टमट तभी हो सकता है जब उसे एक वै लड

रे फरल के तौर पर दया जाता है । यह रे फरल ईसीएचएस पॉल ल नक म ह कराया जाता है ।
उसका एक खास न बर होता है और इसम आई.ट . का एक पूरा स टम बनाया गया है । वहां
जाने के बाद उस न बर क जांच होती है । उनके डेटा हमारे डेटाबेस से लाया जाता है । हॉि पट स
के अ दर भी उनके काड वाइप करने के लए स टम बनाए गए ह, िजसम उनक फोटो से
पहचान हो सकती है । ये सार सु वधाएं क गयी ह। पछले चार साल म इनके ऊपर काफ काम
कया गया है । आप जो यह कह रहे ह तो इन सबको परू ा चेक करने के लए ये सार चीज कराई
जाती ह ता क फज बल न बने”

Integrated complex at ECHS policlinics for Ex-servicemen during the treatment

5.15 On being asked about providing accommodation at ECHS policlinics for ex-
servicemen during the treatment, a representative of ECHS submitted as:

“सर, इसको यान म रखते हुए एक नये कांसे ट पर काम शु कया है । वह यह है क एक् स
स वसमैन कां ले स के तौर पर डेवलप करने का काम कर रहे ह। द तर, रे ट हाउस,
पॉल ल नक सब एक ह जगह आ जाएं, इसक को शश कर रहे ह।”

…….सर, पॉल ल नक म कई बार दरू से लोग आते ह, उनको दवाई नह ं मलती है , लेट हो
जाता है तो उनको कना पड़ता है । छोट -छोट जगह म यह कं लट आ रह है । इंट ेटेड

48
 कां ले स क तरफ हम बढ़ने क को शश कर रहे ह। इसे कुछ जगह स शन कया है । इसम टे ट
गवनमट को भी कुछ पैसे दे ने पड़ते ह, जमीन भी दे नी पड़ती है । जहां पुराने बन चक
ु े ह, वहां तो
लाना मिु कल हो रहा है । अ ट मेटल हम ईसीएचएस पॉल ल नक के आसपास कुछ न कुछ
बनाना पड़ेगा।

ECHS in far flung areas

5.16 On being asked about the steps taken by Ministry to increase the out reach of ECHS
in far-flung areas, the Ministry forwarded the following information:

“The requirement of new Polyclinics as also dependency of ESM on Polyclinics is

reviewed from time to time with an objective to open new Polyclinics as also for
upgrading/downgrading the existing ones. Under the scheme, there is a
provision for Mobile Polyclinics for catering to requirements of far flung areas. 17
Mobile Polyclinics have been sanctioned in the State of Uttarakhand, Karnataka,
Himachal Pradesh, Assam, Arunachal Pradesh, Punjab, Madhya Pradesh,
Jammu & Kashmir and West Bengal.

Fixed Medical Allowance (FMA) has been granted to all ECHS beneficiaries who
are residing in far flung areas where Polyclinics are not available.

The Performance Bank Guarantee (PBG) rates were reduced in non-CGHS

areas/cities to facilitate more hospitals to empanel with the ECHS.

A proposal for establishment of 111 Mobile Medical Units (MMUs) including the
existing 20 Type ‘E’ (Mobile) Polyclinics is under consideration to increase the
reach of ECHS to remote locations and hilly/mountainous terrain.”

5.17 Further on the subject, if there is no polyclinic is there any substitute, a

representative submitted before the Committee as under:

“There is a fixed medical allowance given if somebody is not interest in taking

this benefit. They get fixed medical allowance of Rs.1,000 per month.”

5.18 On the question of contemplating the facilities of mobile ECHS Polyclinics, the
Ministry submitted as under:

“There are 17 Mobile Polyclinics existing in the country presently. Order for
MMUs for these Mobile Polyclinics has already been placed by the MGS Branch.
These Mobile Polyclinics offer Medical Services to all beneficiaries including
women & children. Facility of online Tele-consultation is proposed to be
commenced from Financial Year 2022-23.”

49
Other Relevant Issues - establishing a ECHS polyclinic at Vatakara taluk, Kozhikode,
Kerala

5.19 During the course of evidence following issue came before the Committee regarding
establishing a ECHS polyclinic at Vatakara Taluk, Kozhikode, Kerala.

“It is a long-standing demand of thousands of ex-servicemen residing in this vast

area. There are more than 6000 ex-servicemen in this taluk in an area spreading
from the foothills of Western Ghats to the sea shore of the Arabian Sea. Most of the
hamlets and villages in the east of the tehsil are inaccessible by public transport.
Some of the ex-servicemen who are sick have to make it on foot to reach a road only
accessible by road to reach the bus station and proceed to the District headquarters
at Kozhikode or Kannur. Travelling straight three hours to reach ECHS polyclinic
causes unspeakable hardship to 70-plus year old veterans. Consequent to this
hardship and difficulty, many of the ex-servicemen living in the area are fleeced by
civil clinics.”

50
 CHAPTER – VI

SAINIK SCHOOLS

The Committee found that the scheme of Sainik Schools was conceived during 1961
as a collaborative effort between the Central Government and State Government so that the
parts of the country, which did not have this kind of facility, should have Sainik Schools. The
first aim of the Sainik Schools is to prepare cadets for entry into the National Defence
Academy and Indian Naval Academy. The next aim is to remove regional imbalance in the
officers cadre in the Armed Forces. It is for this purpose that the scheme envisages 67%
reservation for students domiciled in the State where the Sainik School is located. Another
important role is to provide training to develop body, mind and character so that young
cadets become good and responsible citizens of the country. There are 33 Sainik Schools
in 23 States and one in UT with about 16000 cadets, three schools are in U.P, two schools
each in seven States and one school each in 15 States and one UT.

6.2 Details of budget allocation for Sainik Schools during last five years, as submitted to
the Committee are given as under:

Financial Budget Projected Budget Allocated

year (in Rs Crore) (in Rs. Crore)
2018-19 124.00 84.22
2019-20 115.00 40.40
2020-21 Budget Projected under BE: 116.00 329.36
Revised Budget Projected under RE: 217.44
2021-22 Budget Projected under BE: 137.68 300.00
Revised Budget Projected under RE: 300.00
2022-23 Budget Projected under BE:170.87 200.00
Revised Budget Projected under RE: 235.08
2023-24 Budget Projected under BE: 175.87 To be allocated by DGFP

6.3 Details of budget provided to Sainik Schools by the State and Central Government in
the last three years is as given below.
(Rs. in Lakhs)
2019-20 2020-21 2021-22
Central Govt. Share 4039.93 31938.29 11950.98
State Govt. Share 11899.53 10270.99 22598.10
Total 15939.46 42209.28 34549.08

51
Challenges and constraints faced by Sainik Schools

6.4 The Committee desired to be apprised about the challenges and constraints being
faced by Sainik Schools along with the steps being taken by the Ministry to obviate these
challenges. A detailed note in this regard was furnished to the Committee which states:

“The following are a few major problems faced by these schools and the
measures taken by the Ministry to resolve the problems:-

(a) Pay & Pension to the Staff: Prior to implementation of revision of

th
VI CPC, most of the Sainik Schools were self-sustaining. However, post
implementation of VIth CPC and VIIth CPC pay scales, Sainik Schools
were facing funds constraints especially related to payment of Pay and
Pension to their Staff. The Government allocates additionally grant for
paying 100% additionality of pay and allowances, pension and family
pension arising out of difference between Vth &VIIth Central Pay
Commission to the Staff of Sainik Schools.

(b) Inadequate Infrastructure: Sainik Schools are well endowed in

the matter of land, buildings and infrastructure, however, few schools
being more than 60 years old, their infrastructure have depleted over a
period of time. In order to maintain the existing infrastructure, the Ministry
provides Grant in aid to the tune of Rs. 1 Crore to each School every year
as per their demand. In addition, the Ministry provides grant in aid to these
Sainik Schools from time to time for augmentation/ modernisation of their
infrastructure. Towards this, the Ministry provided one time grant in aid of
Rs. 109 crore in 2020-21 to these Sainik Schools for construction of girls
hostel. Further, the Ministry has also taken steps to persuade States to
provide their share of infrastructure development of the Schools. This has
borne fruit wherein the States have provided Rs. 225 crore to the Schools
during 2021-22 for augmentation/ maintenance/ construction of their
infrastructure.

(C) Demand for New Sainik Schools: The Ministry received various
proposals from the State Government(s) for opening of Sainik Schools in
their State(s). To address this, the Government has introduced and
approved an initiative to set up 100 new Sainik Schools across the country
in partnership mode with NGOs/Private/State Government Schools. As on
date, Sainik Schools Society has signed Memorandum of Agreement with
18 such New Sainik Schools in various States/UTs across the Country.
This has paved the way for outreach of Sainik School pattern of education
to a considerable extent in all parts of the Country. Further, process to
approve more New Sainik Schools is underway.”

52
Infrastructure for girl students in the Sainik Schools

6.5 The Ministry was asked to provide the details regarding existing and required
infrastructure for girl students in the Sainik Schools in the country and steps being taken to
expedite admission of girl students in Sainik Schools. The Ministry in its reply stated as
under:

“Funding of Rs. 109 Crore was set aside by Ministry of Defence during
2020-21 for Sainik Schools for infrastructure creation of required facilities for Girl
students from Academic Year 2021-22. The following steps have been taken by
Sainik Schools for smooth induction of the girl cadets:- (a) A separate hostel with
barbed wire fencing is provided for the girl cadets to ensure their safety. (b) To
ensure the security and well-being of girl cadets in hostel, the following personnel
are appointed, exclusively to look after the girl cadets:- (i) One Physical
Education Master/Physical Training Instructor Cum Matron (Female) who
accompanies the girl cadets throughout the day in all the training activities. (ii)
One Nursing Sister for the medical requirements for the cadets. (iii) Two female
General Employee for housekeeping and maintenance of Girls Hostel. (c)
Separate washrooms are provided to the girl cadets in the Hostel, sports fields,
auditorium, mess and academic block for their convenience and ease. (d) CCTV
cameras are installed at various places for the safety of girl cadets. 3. The girl
cadets are to be trained along with the boy cadets in the same training pattern
which involves Academics, PT, Games, Drill and other Co-curricular activities for
their overall growth. They are to be given equal opportunities in the School to
develop as cadets and join the Defence Forces in future.”

6.6 In this regard, during presentation before the Committee, a representative of the
Ministry stated as under:

“.. 10 per cent of the total seats in class VI are reserved for girls, ensuring a
minimum number of 10 girls in each school. The number of girls will cross 1,000
during this academic year after the admission process is over. Whilst more and
more girls are being admitted in Sainik Schools, the efforts to improve the
infrastructure of each Sainik School is also going on. Towards this, Rs.3.3 crore
have been provided to 28 Sainik Schools by the Ministry of Defence for
construction of girls’ hostel with all allied facilities and security measures.
Construction of girls’ hostel is in progress in each school.”

Opening of 100 Sainik Schools under Public-private partnership

6.7 In a Power Point Presentation made before the Committee, the representatives of
the Ministry of Defence briefed about new schools:

“The salient features of the New Sainik School Scheme are, in accordance
with the Government of India’s decision, 100 Sainik Schools under PPP mode
will be set up in the first phase. These schools will be located in all the States of
the country. Online applications were invited from desirous schools, and 18 new

53
 Sainik Schools have been approved by the MoD till date. These 18 new Sainik
Schools are already functioning.

The Ministry of Defence has not laid any restriction on the new Sainik
Schools to run only Sainik School pattern of education. New Sainik Schools can
have separate vertical for Sainik Schools pattern as well as non-Sainik Schools
pattern. These new schools can be day schools or residential schools.

The criteria for merit-based admission in the new Sainik Schools will be
same as the existing 33 Sainik Schools wherein students will be given admission
based on merit obtained in all-India level Common Admission Test conducted by
the National Testing Agency.

A need was felt to orient teachers of new Sainik Schools so that they can
conduct the specified curriculum more effectively. Accordingly, the teachers of
new Sainik Schools have undergone a centralised training at IITE, that is, Indian
Institute of Teachers Education at Gandhinagar.

The Government has also decided to provide annual fees support of 50

per cent of the fee, subject to upper limit of Rs.40,000 per annum for 50 per cent
of the classes, again subject to upper limit of 50 students on merit-cum-means
basis”.

6.8 On the subject, a representative of the Sainik Schools further supplemented as

under:—

“पीपीपी मोड पर नए सै नक कूल खोले जा रहे ह, जब हम इनके नॉ स तय

कर रहे थे तो हमने यान रखा क परु ाने 33 कूल, जो भारत सरकार चला रह है ,
इनको उसी हसाब से एलाइन कया जाए। जमीन क बात छोड़ द, य क यह एक ऐसी
चीज थी िजसके कारण नए कूल खुलने म द कत आ सकती थी। पुराने सै नक कूल
म जमीन काफ थी, इस लए हमने जमीन का नाम आव यकता के हसाब से डाइ यूट
कया, ले कन इतना तब भी रखा है क सै नक कूल म ब च को जो भी ग त व धयां
करानी ह, वे अ छे से हो सक। इनम पुराने कूल के क रकुलम के हसाब से ह रखा
है । यहां तक क हमने इतनी यू नफा मट रखने क को शश क है ता क ब च क
यू नफाम, कु रकुलम, सलेबस एक हो।

इसके अलावा एस ्टाब लश सै नक कूल को दे खकर भी वे सीख क कस तरह

से कोस संचा लत कया जा रहा है । इसके लए यह यव था बनाई गई है क जो नए
सै नक कूल ह, वहां के ब चे और ट चस को पुराने सै नक कूल म भेज ता क वे दे ख
सक क कस तरह से सब कुछ कया जा रहा है । नए सै नक कूल के ट चस क

54
 कै प सट सह तर के से डेवलप हो, इसके लए उनको एक यू नफाम े नंग दे रहे ह जो
पुराने ट चस को दे ते थे। उसी इं ट यूट से उनके लए े नंग मॉ यूल बनाया है और इसे
हमने क पलसर कया है ।

इसके अलावा वचार कया जा रहा है कि◌ इंट सव इं पे शन और करै शन का

रजीम रख ता क बार-बार जाकर दे खा जाए और अगर कह ं लगता है क सुधार क
आव यकता है और वे पीछे रह रहे ह, वहां उनको सलाह दे कर सुधार करवाया जाए। अब
द कत यह है क जो नए कूल शु
हुए ह, उनका यह पहला सेशन है और वहां केवल
छठ लास चल रह है । 50 ब चे सै नक कूल मोड पर चल रहे ह। जैसे-जैसे इनक
सं या बढ़े गी, हम उ मीद है क उनके क चर म काफ चज होगा। ब च के एड मशन
के लए कॉमन ए जाम रखा गया है । ऐसा नह ं है क पीपीपी मोड वाले ब च का कसी
दस
ू रे सोस से सलै शन कर रहे ह। जो लोकल ब चे उस कूल के ह, िजनके लए 60
तशत सी स रखी ह, उनको भी एनट ए ए जाम के ू ह आना होता है । हमार
को शश है क टडड कह ं भी डाइ यूट न ह , हम िजस तर के से परु ाने कूल चलाते थे,
वह क चर, वह सलेबस और उसी तरह काम का माहौल नए कूल म हो। यह हमारे
वशेष टागट पर रहे गा य क हम भी इसक चंता है क अगर यह क म आई है तो
इसे सह तर के से चलना चा हए। हमार पूर को शश है क इस पर यादा यान द और
सुधार लाते रह।”

6.9 When enquired whether Ministry of Defence has exclusively made financial
allocations for this purpose, the Ministry in its written replies stated as under:

“An Annual Fee assistance of 50% of fee (subject to an upper limit of Rs

40,000 per annum) for 50% of the class strength (subject to an upper limit of 50
students) per year from class 6th onwards to class 12, on Merit-cum-Means basis
shall be provided under the scheme.

The approved schools will be incentivized with an amount of Rs. 10 Lakh

as training grant to each such school annually based on annual academic
performance of the students in class 12th”

6.10 On the provision of appointment of Retired Army Officers as Principals, if regular

serving Army officials are not available, a representative of Sainik Schools submitted as
under:

55
 “ कसी आम अ धकार को नए कूल म पो ट करना फजीबल नह ं होगा। हमने ऐसा
कया है क पीपीपी मोड के हर नए कूल के पास जो सै नक कूल होगा, उसे मे टोर बनाया गया
है । वहां का जो ं सपल होगा, उसका सप
ु र वजन इस कूल पर रहे गा।

उसक गाइडस रहे गी और उनके हसाब से सारा क रकुलम भी चलेगा। वे पूरा सुपर वजन
भी करगे। इस तरह क एक मोडा लट एट क गई है , ता क जो सै नक कूल के ऑम
ऑ फसस ह, जो ं सप स ह, वे एक सुपर वजन इन नये कू स के ऊपर रख सक।”

He further stated:

“सर, उसम हमार ओर से कोई रोक नह ं है , य क ये ाइवेट कू स ह, वे अपने

ं सपल वगैरह क नयुि त खद
ु ह करते ह। ले कन, हम लोग ने एनकरे ज तो कया है , जैसे
फिजकल े नंग के लए उनके पास ट चस नह ं ह तो वे रटायड स वस मैन क तरफ दे ख सकते
ह और उसको रख सकते ह।”

6.11 To a specific query of the Committee regarding services of JCOs and NCOs as
Principals and instructors in the schools due to acute shortage of teachers in Sainik
schools, a representative of Sainik Schools submitted as under:

Firstly, thanks for recognizing the potential of the KCOs, NCOs of the Army
Educational Corps. I am sure we have the same kind of potential with the Air
Force and the Navy counterparts as well.

जहां तक इनके यू टलाइजेशन का सवाल है , ये बहुत का बल लोग ह। अगर सै नक कूल चाहता

है क हम इनका एक पैनल द या इनको कंसीडरे शन म लेना चाहती है , तो मेरे याल से इसम
कोई द कत नह ं होनी चा हए। ये एक पॉ लसी ड सजन है । म इसको सै नक कूल सोसाइट के
ऊपर छोड़ दे ता हूं। जहां तक सेना श ा कोर का सवाल है , अगर ये पोजल आता है , तो हम इस
पर वचार कर सकते ह।

56
 OBSERVATIONS/RECOMMENDATIONS

ARMY

Budget

1. The Committee note that the Army is the land component of the Armed Forces.

Indian Army strengthens the idea of India and lives by national values. Dedicated to

preserving national interests, safeguarding sovereignty, territorial integrity and unity

of our Nation. The challenges before the Army include thwarting proxy wars,

defeating/arresting internal threats, assist the Government and the people of India

during all needs and crises including natural and manmade disasters. To perform all

the duties with perfection, the Army needs Revenue as well as Capital Budget as per

the projection. For the financial year 2023-24, the Army projected for Rs. 1,84,989.60

crore and surprisingly very close to the projection, allocated Rs. 1,81,371.97 crore,

just Rs. 3,617.63 crore less than the projection. During the financial year 2022-23,

against the projection of Rs 1,74,038.35 crore, it was allocated only Rs. 1,63,713.69

crore, which was reduced by Rs. 10,324.66 crore. In the RE same year, the Army

made a projection of Rs.1,80,526.71 crore but the allocation was Rs 1,73,335.62 crore.

The Committee find that until December, 2022, the Army is able to spend only Rs

1,27,935.76 crore and Rs 45,399.86 crore is to be spent in the coming three months.

This in the opinion of the Committee, would require prudent fiscal planning and

concerted efforts. The Committee would like to know the final outcome in this regard

from the Ministry consequent to the end of Financial Year while furnishing the Action

Taken Notes. The Committee understand that a major portion of the budget head

primarily goes for salary expenses which is a fixed expenditure. The non-salary

57
expenditure caters to the expenses on stores, ration, transportation, fuel, etc. which

are essential for regular training and operational preparedness of the Army,

therefore, the Committee recommend that the trend which has been introduced with

favourable allocation this year under the Revenue Head should be continued in the

coming years also. It is needless to state here that regular interactions may be held

with the Ministry of Finance as soon as the proposals for the subsequent budget are

formed.

2. Under Capital Head, in BE for the financial year 2023-24, Army’s projection was

Rs. 37,341.54 crore and to the surprise of the Committee, the same amount has been

allocated to it. There is no deduction allocation vis-a-vis demand, though it is quite

less than BE 2022-23 projection of Rs. 46,844.37 crore. In RE 2022-23, the projection

of the Army was Rs. 32,598.49 crore and there was no deduction in allocation.

However, the expenditure in three quarters of FY 2022-23 i.e. upto December 2022

was only Rs. 21,600.25 crore. The Committee understand that Capital Budget

cardinally provides for expenditure on modernisation, enhancement of force level,

infrastructure development, etc, which are essential not only for the modernization of

the Army but also to safeguard territorial integrity. The Committee feel that Capital

Projection should be incremental in nature, invariably consistent and it should not be

less than that of a previous year so to absorb the inflationary trends. During

deliberations, the issue of increased defence spending of hostile neighbours was

discussed and a parallel was drawn. In this regard, the Committee opine that though

the expenditure on salaries of manpower deployed is fixed and an essential

component, the budget should cater as to induct state-of-the-art weapon systems

58
and development of other infrastructure at the borders which at any cost can not be

compromised. Our expenditure should be in proportion to the increase in defence

spending of our neighbours, therefore, the Committee recommend that the Capital

Budget of the Army should be increased to have a deterrent capacity to ward off at

least two hostile neighbours. The issue of standarised three percent spending on

Defence Budget out of the GDP, as discussed during the sittings and brought out in

other portions of the Reports on DFG must be seen as a guiding principle.

Percentage Share of Army Budget

3. From the data supplied by the Ministry, the Committee note that there has

been a constant decline in the percentage share of the Army in the Defence Budget.

The Army was given 45.49 per cent of the Defence Revenue budget in the year 2018-

19, which declined to 42.48 per cent in the year 2022-23. In the capital budget

segment, the share declined from 9.60 per cent in 2018-19 to 8.33 per cent in 2022-

23. The overall percentage also declined from 55.09 per cent in the year 2018-19 to

50.82 in 2022-23. The Committee are aware of the fact that the Army is responsible

for the security of vast land borders and operating as an agency for counter-

insurgency, therefore, the Committee recommend that the share of the Army in the

total Defence Budget should not decline.

Budget for Modernization

4. The Committee note from the replies submitted that in the Defence Services

Estimates (DSE), there is no separate allocation of funds for Committed Liabilities

(CL) and New Schemes (NS). In the Financial Year 2022-23, an amount of Rs.

59
25,908.85 crore was allocated to Army at BE stage under Capital Acquisition

(Modernization) Head. Further, earmarking between Committed Liabilities and New

Schemes is carried out by Service HQrs based on a prioritization among the

projects/schemes and the progress of contractual milestones. Against these

allocations, an expenditure of Rs. 18,503.87 crore (upto December, 2022) has been

incurred in Financial Year 2022-23. The Committee further note that keeping in view

the pace of expenditure, additional funds to the amount of Rs. 1,142.15 crore were

allocated to the Army in RE 2022-23 over BE 2022-23.

5. The Committee also note that under Modernisation (Capital Acquisition) Head,

Army had sought additional allocation of Rs. 16,293.19 crore in the first

supplementary and Rs. 13,400.08 crore in the second and third supplementary stages

in Financial Year 2018-19. However, the Army did not receive any additional

allocations at the Supplementary stages. During the Financial Years 2019-20, 2020-21

also Army did not receive any additional allocations at the Supplementary stages. As

no allocations were made all these years for meeting expenditure on account of

Committed Liabilities for HAL projects; cash outgo for Apache; vehicles being

procured ex-trade by MGO; emergency power procurement and critical 10(i) and

Committed Liabilities of existing contractual terms and liabilities including the

impact of Countering America's Adversaries Through Sanctions Act (CATSAA),

foreign Committed Liabilities, DPSUs, Brahmos and Pvt. Vendors and procurement

of critical vehicles to meet the operational requirements is seen by the Committee as

a scenario which may affect the operational preparedness of the Army, which could

have been avoided by allocating a certain amount at the Supplementary Grant’s

stage.

60
6. The Committee are happy to note that the Army had sought no additional

allocation at the first, second and final Supplementary stages in Financial Years

2021-22 and 2022-23. In this regard, the Committee are of the view that allocations at

Supplementary Grant’s stage are very crucial as by that time all the liabilities are in

the last stage and funds are needed for it, therefore, the Committee recommend that

Army may be given additional funds at the supplementary grants stage so that the

capital acquisitions are not hampered leading to deferred payments ultimately

inviting legal implications/penalties and country’s preparedness remains intact.

7. The Committee understand that the Committed Liability refers to payments

anticipated during a financial year in respect of contracts concluded in previous

years. Under the Defence Services Estimates, Committed Liabilities constitute a

significant element in respect of the Capital acquisition segment, since one project

may span several financial years. New Schemes include new projects/proposals,

which are at various stages of approval and are likely to be implemented in near

future. As mentioned in the first para, there is no separate allocation and these are

catered through Capital Acquisition (Modernization) budget, however, for clarity and

better planning, the Committee desire that separate allocation should be earmarked

for Committed Liabilities and New Schemes.

61
Planning and Procurement

8. The Committee find that Defence Capital acquisition is carried out in

accordance with the Defence Procurement Procedure (DPP)/Defence Acquisition

Procedure(DAP) and undertaken through Ten years Integrated Capability

Development Plan(ICDP), Five Years Defence Capability Acquisition Plan (DCAP) and

Annual Acquisition Plan (AAP).The cases listed in the approved Annual Acquisition

Plan (AAP) are progressed as per the DPP/DAP provisions and funds allocated and

budgeted under the capital Acquisitions heads of concerned Service for the given

financial year. 29 Acceptance of Necessity (AoN) worth about Rs. 60678.67 crore

have been accorded during the last financial year 2021-22 and current financial year

2022-23 (upto Dec, 2022) which are under various stages of the Acquisition process

for induction of the equipment in the services in subsequent years.

9. The Committee were informed during the oral evidence that emergency

procurement powers were assigned to the Indian Army with effect from October

2022, which has enhanced the fighting capability of troops.

10. The Committee understand that conventional wars were fought in only three

modes i.e. land, air and water, but recently there is a paradigm shift in the technology

used in fighting a war. There have been innovations and experiments in western

countries, and the use of drones, space, cyberspace etc has increased the sphere of

war, which can fight from very distant locations in a remote controlled mode. In this

regard, the Committee desire that the country should develop a robust digital

infrastructure besides improvement of the existing weaponry.

62
Indigenization

11. The Committee find from the replies submitted by the Ministry that during the

last five financial year (2017-18 to 2021-22) and the current Financial year 2022-23

(upto December, 2022), a total of 90 capital acquisition contracts have been signed

for capital procurement of defence equipment for Army, out of which 62 contracts

worth about 84% of total contracts value, have been signed with Indian Vendors for

capital procurement of defence equipment.

12. During oral evidence also, a representative of the Army apprised the

Committee that the Atmanirbharta initiative of the Government of India is fully

supported by the Indian Army through multiple initiatives and outreach to the

academy and industry through the Army Design Bureau, the Directorate of

Indigenization, the Army Technology Board and a host of other establishments like

Srijan Application, Department of Defence Production and the Innovations for

Defence Excellence i.e. iDEX initiative. This modernization through the induction of

indigenous weapons and platforms led to Acceptence of Necessasity i.e. AoNs

worth Rs. 99,569 crore for procurement of new equipment and weapons from

indigenous sources in the current Financial Year.

13. The Committee appreciate the efforts made by the Ministry towards

indigenization and expect that this would continue and the country would see 100

per cent contract value going to Indian vendors for indigenously produced items in

the years ahead to come.

63
Vintage and other category of equipment

14. The Committee while examining Demands for Grants of the Ministry for the

year 2018-19 (41st Report of 16th Lok Sabha) had learnt that any modern Armed

Forces should have one-third of its equipment in the vintage category, one-third in

the current category and one-third in the state of the art category and noted that

Indian Army had 68 per cent of equipment of vintage category, 24 per cent of the

current category, and only eight per cent of the state-of-the-art category. During

deliberations, a representative of the Army apprised the Committee that the ratio

is 30:40:30. 30 per cent was to be new generation equipment, 40 per cent was to be

current equipment and 30 per cent could be older generation equipment. Presently,

the situation has improved and approximately, 15 per cent is new generation

equipment, around 40 per cent is current equipment, and the balance is older

generation equipment. Considering the efforts the Government is making for

indigenization, the Committee wish and hope that Army would able to achieve this

logical ratio in the coming years. However, the Committee at this stage can only

recommend that steps so taken to accomplish this feat must be furnished to the

Committee at the time of sending Action Taken Replies.

AIR FORCE

Budgetary Provisions

15. While examining Demand Nos. 19 & 20 in respect of the Air Force for the year

2023-24, the Committee find that in Revenue Section, Air Force projected Rs.

68,081.58 crore against which an allocation of Rs. 44,345.58 crore has been made.

64
The allocation is deficient by Rs. 23,736 crore and approximately 34 per cent lower

than the projection. As informed the non-salary expenditure caters to the expenses

on stores, ration, transportation, fuel, etc. which are essential for regular training and

operational preparedness of the Air Force, therefore, a 34 per cent cut in the

allocation would definitely hamper the training and operational preparedness of the

Air Force, therefore, to avoid such situation, the Committee desire that during

Supplementary Grants and Revised Estimate stages, the allocation as per the

projection should be provided to the Air Force.

16. The Committee also note that in the year 2022-23, the final allocations made to

Air Force at RE Stage was Rs. 44,728.10 crore whilst the expenditure incurred till

Dec, 2022, was Rs. 29,214.45 crore. The Committee express the hope that the rest of

35 per cent funds will be spent in the last quarter and there would be no

underspending.

17. In the Capital segment case, the Committee find a considerable gap in

projections made in the years 2022-23 and 2023-24. In the year 2022-23, the Ministry

projected a sum of Rs. 85,322.60 crore, whereas, in the year 2023-24, the projection

made is just Rs 58,808.48 crore. It is a known fact that the Capital Budget of a

department chiefly provides for expenditure on modernisation, enhancement of

force level, infrastructure development etc, a cut of Rs. 26,514.12 crore is a huge

sum, though a representative of the Ministry during deliberations has stated that

Russia-Ukraine war has affected some of the deliveries, as the country is sourced

most of the supplies from indigenous sources, this sum seems to be on the upper

side. Therefore, the Committee would like to comprehend the reason behind such a

65
phenomenon and desire that a brief note may be submitted by the time of supplying

the action taken replies. The little solace may be found in the financial figures of

2023-24, if it is not compared to any other year, as this year the projection under

Capital Head is Rs. 58,808.48 crore and the allocation is just Rs. 539.77 crore short

of that. The Committee are of the view that there should be no major gap between the

two so that the Air Force can make long and short-term plans to acquire capital

assets.

18. The Committee note that RE allocation for the year 2022-23 was Rs. 53,871.17

crore, however, the Air Force was able to spend only Rs. 27,631.50 crore up to

December 2022, leaving almost the same amount of Rs. 26,239.67 crore to be spent

in the last quarter. In this regard, the Committee want to state that judicious use of

money should be made by the Air Force through advanced planning and proactive

approach and underspending should be avoided at any cost.

Percentage Share of Air Force Budget

19. From the data supplied by the Ministry, the Committee note an evident

decrease in the percentage share of the revenue budget of the Air Force, out of

Defence Services Estimates. The budget of the Air Force decreased from a high

of 10.32 per cent of DSE in 2018-19 to 8.53 per cent in 2022-23. At the same time,

there is an increase in capital budget share from 12.81 per cent in 2018-19 to 14.75

per cent in 2022-23, but it was less than the allocation made in the year 2021-22 at

15.33 per cent. In this regard, the Committee desire that being a Capital intensive

force it should have a lion’s share in the capital budget of DSE.

66
Budget for Modernization

20. The Committee note that in the Defence Services Estimates (DSE), there is no

separate allocation of funds for Committed Liabilities (CL) and New Schemes (NS).

Further, earmarking between Committed Liabilities and New Schemes is carried out

by Service HQrs based on a prioritization among the projects/schemes and the

progress of contractual milestones. The Committee also note that in the Financial

Year 2022-23, an amount of Rs. 52,749.98 crore was allocated at BE stage under

Modernisation (Capital Acquisition) Head (which includes Committed Liabilities and

New Schemes). However, no additional funds were allocated to Air Force in RE 2022-

23 over BE 2022-23. Against these allocations, an expenditure of Rs. 25,770.81 crore

(up to December, 2022) has been incurred in Financial Year 2022-23. As stated in the

earlier para of the recommendation there is a huge gap between the projections for

the year 2022-23 and 2023-24, therefore, the Committee are of the view that fund

slated for modernization should always be incremental. The Committee also desire

that there should be a separate allocation for Committed Liabilities and New

Schemes, under the Modernisation/capital budget to figure out what goes for the

Committed Liabilities and how much is left there for the purchase of new equipment.

This will help in better planning and optimal utilization of available allocations.

Planning and Procurement

21. The Committee note from the data supplied on the acquisitions planned for the

years 2023-24 and 2024-25 include Basic Trainer Aircraft (BTA) (HTT-40), Medium

Power Radar (MPR) (Arudhra), Indoor Free Fall Simulator (Vertical Wind Tunnel),

Close in Weapon System (CIWS), Additional Mirage 2000 Aircraft (Twin Seater),

67
Ground Based System (Khoj), High Power Radar (Replacement), Design and

development of Foldable Fiber glass Mat (FFM) for rapid Runaway Repair for IAF, Six

Additional Dornier-228 Aircraft, AL-31 Aero Engine for Su-30, Wet Lease of Flight

Refueling Aircraft (FRA), High Frequency (HF) Trans receiver Static, DR-118 RWR for

Su-30 MKI Aircraft, RD-33 Aero Engines for MiG-29 Aircraft, Technical Position (TP)

for BrahMos Missile at AF Station Thanjavur and Wind Profiler. The Committee wish

that the Ministry of Defence negotiate and finalise the plan to contain the deficit of

equipment and aircraft.

Indigenization

22. The Committee note that Air Force is vigorously pursuing indigenisation and

expenditure is being done as per committed liabilities and internal earmarking of

budget for domestic capital acquisition. The Committee are happy to note that Air

Force procured Rs. 5,648.66 crore worth of goods in the year 2018-19, Rs. 16,461.54

crore in the year 2019-20, 36,638.14 crore in the year 2020-21, Rs. 29,911.37 crore in

the year 2021-22 and Rs. 18,866.60 crore(upto 31 Jan 23) in the year 2022-23. During

deliberations also, a representative of the Air Force apprised the Committee that

though Air Force has signed a contract for the procurement of 114 aircraft from a

foreign country but it would be manufactured in India. The Committee further note

that Air Force has indigenized many components required for regular use through its

Base Repair Depots. The Committee understand that 100 per cent indigenization is

not possible and feasible, however, they recommend that constant, continuous

efforts should be made towards achieving whatever is achievable and making the

country self-reliant.

68
Force Level

23. During a presentation before the Committee, a representative of the

IAF informed that the authorized strength of the IAF is 42 fighter squadrons,

however, as on date it has 33 active fighter squadrons. Considering approximately 20

aircraft per squadron, the country needs at least 180 fighter aircraft in the present

circumstances. The Air Force also has an ageing fleet of MiG 21 and other aircraft

which are soon going to phase out from the services, making rapid depletion in

squadron strength of the force. The Committee are of the view that as the country is

inching towards global leadership, security threats from neighbours has also

become more prominent, which should be suitably addressed, therefore, they desire

that IAF should always be combat-ready to counter a two-front collusive threat.

24. The Committee find that there has been considerable delay in the supply of 40

LCA from HAL to IAF and as on date, 38 aircraft have reached the Air Force. The

case of procurement of 114 Multi-Role Fighter Aircraft, in advanced stage, in case it

also goes LCA or Kaveri ways, the Government should consider buying state of the

art fifth generation fighter aircraft over the counter without losing time to keep the

force in a comfortable position.

25. The Committee also observe that the capital funding provided to IAF is not at

all commensurate with the envisaged requirements such as buying a large number of

fighter aircraft. In light of this factor, the Committee urge upon the Ministry of

Defence to take necessary steps in consultation with the Ministry of Finance to that

procurement of fighter aircraft is not further delayed due to want of funds.

69
26. In respect of transport aircraft, the Committee are happy to note that the

situation is improving. The Committee were informed that AN-32, the main transport

plane presently available with Air Force is being replaced with C-295 planes. Aircraft

like C-17, C-130 and Royal 76 are also increasing the power projection and quick

transport of necessary equipment of the Air Force.

27. As far as helicopters are concerned, the Committee were given to understand

that medium lift main helicopters Mi-17 will are being upgraded and except Apache

and Chinuk helicopters, all other inducted helicopters are made in India. In this

regard, the Committee are of the view that for these aircraft and helicopters also a

comprehensive database of phasing and replacing must be ready with the Air Force

so that if capital budget is not being utilized for fighter aircraft, these machines could

be purchased and capital budget does not lapse.

Modernisation of Air Field Infrastructure (MAFI) Project Phase-II (MAFI-II)

28. The Committee note from the information supplied by the Ministry that for

Modernisation of Air Field Infrastructure (MAFI) Phase –I, the Ministry has paid the

contracted amount of Rs. 1215.35 crore. For the Phase-II of the project, the contract

value has been reduced from Rs. 1189.44 crore to Rs 1187.17 crore after contract

amendment No.03 dated 30 Sept 21. The Committee would like to know the reason

for the same at the time of supply of Action Taken Replies. The Committee find some

satisfaction in the reply of the Ministry that the modernization of 24 airfields

[including Ojhar (HAL) and Vadodara (AAI) where Navigation aids required for

military aviation are being installed], nine airfields of Indian Navy and two airfields

70
each of Indian Coast Guard, and Aviation Research Centre (ARC) as a part of Project

MAFI II has been sanctioned by Govt of India and the project is expected to be

completed in October, 2024. The Committee, while appreciating the pace at which

the Phase-II work has started off, emphasise that the targets are achieved within the

given time frame. The Committee also desire that the project relating to Advance

Landing Grounds as announced in the Union Budget 2023 should also be given

priority and completed in time bound manner.

Manpower

29. During the deliberations before the Committee, a representative of the Air

Force submitted that the shortage of officers is around 600 against the authorised

establishment of around 12,606. The shortage of men as of today is 3 per cent of the

authorised cadre, and it would increase around 10 per cent of the authorised in 2026

if we take the proposed accretions into account. The Committee note that about 9500

posts are lying with the Ministry of Finance for approval. In this respect, the

Committee desire that the matter should be persuaded with the Ministry of Finance at

the highest level so there would be no shortage of manpower essential for the

operations of the Air Force.

NAVY

Budget

30. The Committee understand that Indian Navy carries the phenomenal task of

national defence as Indian Ocean Region have multiple security challenges and

nearly 1,20,000 ships transit through various choke points and almost 13000 Ships

71
are in IOR at any given point of time. In this regard, a representative of Navy during

the presentation before the Committee stated that the Navy's share in the Defence

budget has grown from 17.78 per cent in 2022-23 to 18.26 per cent in 2023-24.

31. The Committee on examination of the Demands for Grants of Navy for the year

2023-24, note that under Revenue segment Navy projected for Rs. 36,605.04 crore at

BE stage, however, it was allocated only Rs. 32,282.20 crore, resulting in a gap of

Rs. 4320.84 crore. Surprisingly, during evidence, the representatives of the Navy

termed this shortfall as a growth of close to 14 per cent on year to year basis. It is a

known fact that the Revenue Budget caters for the salary of personnel, operation,

training, maintenance, repairs and day-to-day functioning of the Navy, which are

particularly vital for the overall preparedness of the Service. It seems while

calculating the 14 per cent growth formula, the Navy did not factor for any inflation.

32. The Committee note that in BE 2023-24 under Capital Head Navy projected Rs.

52,804.75 crore as its annual expenditure. Against this projection, the Committee see

that this year’s allocation is pragmatic and supportive for the Navy as the Ministry

actually allocated the same amount as projected, although, this projection is Rs.

14,818.21 crore less than the projection it made in the year 2022-23. This also

indicates that the requirements of Navy for new Scheme have decreased, and gone

down which may affect its modernization drive. The Committee would also like to

know the reason for the lower projection in comparison to last year.

33. The Committee recommend that from next year onwards a separate statement

of the net budget be provided after taking into account the inflation as it is a

72
recurring and unavoidable phenomenon in all aspects of economic theory which

applies to Navy also.

Indigenisation

34. During the course of the examination of DFG, the Committee were apprised of

the efforts made by the Navy towards indigenization. In the last five years 2017-18,

2018-19, 2019-20, 2020-21 & 2021-22, total of 78 capital acquisition contracts for the

Indian Navy worth ₹ 57156.82 crore were signed with the Indian vendors. However,

on the perusal of the list of Acquisitions made by the Navy from Indigenous sources

during the last five years, it is evident that contract value is continuously going down

from Rs 27809.58 crore in the year 2018-19. In the year 2019-20, it became Rs.

18231.81 crore then in the year 2020-21, it went down to Rs. 4845.09 crore and in the

year 2021-22, it further went down to Rs. 4527.91crore. Although the trend of

acquisition seems to be not healthy as it should, the assurance given by the Ministry

that 70:30 per cent ratio earmarked towards procurement from indigenous sources

and foreign sources, raises the hope that in the long run, the country would become

self-reliant in defence production. The Committee wish and hope that the Ministry

would work towards achieving this goal in a short span of time.

Operational Preparedness and threat perception

35. The Committee note that 35 Schemes worth Rs 1,20,797.31 crore have been

accorded Acceptance of Necessity (AoN) for acquisition. Out of these, 32 Schemes

worth Rs 1,16,382.10 crore are planned through Indian vendors and only 03 Schemes

worth Rs 4415.21 crore are planned through a Global vendor. The contract for the

73
schemes are likely to be signed during FY 2023-24 and FY 2024-25. The present

Force level of Indian Navy includes more than 130 ships and submarines. To

augment the surface force levels, 43 ships/ submarines are under construction at

various shipyards. Further, AoN also exists for the indigenous construction of 51

ships and 06 submarines and 111 Naval Utility Helicopters (SP Model) to be built

indigenously. As stated by the Ministry, the capacity and capability development/

modernisation of the Indian Navy is being undertaken in accordance with the Long-

Term Integrated Perspective Plan (LTIPP). The Committee also note that the number

of assets required for various types of aircraft, is calculated based on Indian Navy’s

envisaged tasks and missions, available surface assets, areas of interest and other

factors, as promulgated in LTIPP 2012-27. However, there is a shortfall of planes and

helicopters for reconnaissance and transport, which is being mitigated through

progressive procurement. The Committee in this regard want to state that the

Ministry should assess the threat perception which has increased many folds in view

of hostile nations in the neighbourhood and the increase in trade in the Indian Ocean

Region. The Committee desire that necessary steps should be taken so that all the

envisaged procurements progress well within the schedule and our Navy becomes

omnipotent in Indian Ocean Region.

36. The Committee understand that the construction of Air Craft Carriers takes an

unduly long time due to the complexities involved. In view of the uncertain decision

on the procurement, the Committee desire that the Government should think of

developing our islands and land area of advantageous peninsular shape of the

country as the bases of missiles and aircraft like stationary Air Craft Carriers.

74
Manpower

37. From the data furnished by the Ministry, the Committee find that sanctioned

strength of officers in the Navy (excluding medical & dental officers) is 11911 whilst

the Borne Strength is 10344 leading to a shortage of 1567 officers, making it 13.2 per

cent of total Officers strength. In the case of sailors, the sanctioned strength is

76243, while the borne strength is 65153 which leads to a shortage of 14.55 per cent.

The Committee also note from the statement submitted by the Ministry that Indian

Navy is making various efforts to fill up vacancies in a systematic and time-bound

manner, which is a continuous process. Towards this, Indian Navy undertakes

induction of officers and recruitment of sailors twice every year to fill up vacancies

i.e. making Indian Navy Website attractive, visit to Schools/ Colleges, MoU with

Common Services Centres, Permanent Commission to SSC Officers, Candidate

Friendly Recruitment Process, Image Projection Campaign (IPC) and induction of

NCC Cadets to join the Navy as Officers and Sailors. The Committee while

appreciating extensive measures taken by the Navy desire that the Navy should keep

on looking at innovative methods and projecting jobs of the Navy as challenging and

attractive to draw the eligible youth to overcome the deficiency of manpower.

Induction of Third Aircraft Carrier

38. The Committee are aware of the needs and requests of the Navy in regard to

manufacturing a third aircraft carrier have been brought before them several times.

They take note of the fact that given the geographical structure of India whereby we

have Arabian Sea on West and Bay of Bengal on the East, two Aircraft Carriers are

consistently required for meeting the threat perceptions and for

75
preparedness/augmenting striking capabilities during war. They are also aware of

the fact that maintenance of an aircraft undertakes a long period. Depending on the

type of short/normal/long/midlife refit through which carrier undergo, it would

definitely take a period ranging from six months to two years. Likewise, induction of

an aircraft carrier is a long gestation exercise. The Committee are not oblivious of

the fact that from the state of planning till complete operationalization, it may take a

period ranging from ten to fifteen years. In the wisdom of the Committee, the entire

budget for a carrier is not required in a single particular year but in a staggering

manner which may be spread out till the eventual operationalization of the carrier.

During the Study Visits and consequent to the visit to warships especially to the

aircraft carrier Vikramaditya, the Committee find that they are very well equipped with

the self defence and surveillance systems.

39. The Committee while acquiescing with the logic of the Defence Secretary given

during the deliberations that shipbuilding of this class gives a boost to the

economy/employment and strengthens us in terms of retention of the acquired

capabilities, the Committee in no uncertain words recommend that Ministry may take

a final decision, chalk out a trajectory and start the planning process for the third

aircraft carrier which would eventually enhance India’s maritime capabilities. The

progress made in this regard may kindly be intimated to the Committee at the time of

furnishing the Action Taken Notes.

76
 JOINT STAFF

Budget

40. The Committee note that in the Budget Estimates for 2023-24, Joint Staff has

made a projection of Rs. 6,543.78 crore against which an allocation of Rs. 6,060.45

crore has been provided resulting into a shortfall of Rs. 483.33 crore. However,

during the deliberations before the Committee, a representative of Joint Staff

apprised the Committee that BE allocation of 5670.46 crore, excluding SFC has been

doubled in comparison to year 2022-23. As per information given, this allocation

gives a satisfaction level of 92 per cent to Joint Staff.

41. The Committee understand that Joint Staff act as single point organization for

jointmanship in Ministry of Defence which integrates policy, doctrine, war-fighting

and procurement and find that during the years role of Joint Staff has risen many

folds. Presently, it supports financial aspects and capability building of more than

120 units. The Committee further note that Integrated Defence staff formulates

policies and doctrines to coordinate, synergize, enhance and optimise operation

capability, training and other functional aspects such as foreign cooperation,

logistics, communications, medical, and harmonises identification and acquisition of

modern capabilities and technologies by the three services.

42. The Committee while appreciating the role and responsibilities of HQ

Integrated Defence staff/Joint Staff which has also been given indigenization aspect

of our Defence Forces recommend that sufficient budgetary support without a cut as

proposed in the projections must be provided to Joint Staff. It should also be

77
ensured that budgetary allocations at the stage of RE and supplementary grants

may also be given as per the projection as Joint Staff has been assigned with a

crucial responsibility to keep an optimum level of coordination between the Forces

during operations and has been entrusted with the dispensation of three major

organizations namely Armed Forces Special Operation Division, Defence Cyber

Agency and Defence Space Agency.

43. The Committee also note that in the last financial year i.e. 2022-23, the Joint

Staff had been able to utilize only Rs. 2958.76 crore till December 2022.

Consequently, the resultant factor was that nearly Rs. 2539.63 crore out of Rs.

5498.39 crore allotted at RE stage still remained to be spent in the fourth quarter of

the financial year. Here, the Committee would like to draw the attention of the

Ministry on the prudent principles of Financial Expenditure Management, where bulk

spending in last quarter is considered as an unhealthy trend. While recommending

for enhancing the budgetary allocations for Joint Staff, the Committee also desire

that budget allocated during BE and RE stages should also be spent fully and there

should be no under spending.

Theaterisation of Armed Forces

44. The Committee note that the plan for theaterisation of armed forces,

or creation of integrated theatre commands has been considered by the forces at the

highest level. The Committee concur with the views expressed by the Chief of

Defence Staff regarding the early creation of theatre commands. The Committee are

also of the view that synchronized efforts are needed as in a war-like situation, and

therefore, recommend that tenacious integration of all the wings of armed forces is

78
not only necessary but of paramount importance. In a war like situation such an

integration would act swiftly, with precision and also in a cost saving manner by

reducing the paraphernalia. This assimilation would definitely help in the optimal

utilization of resources of armed forces and would bring down the defence

expenditure in future, therefore, they recommend that theaterisation of armed

forces should be completed by setting out pragmatic targets and if required in a

phased manner. The Committee would like to be informed of the developments

which will take place during the intervening period i.e. from the date of presentation

of this Report till the submission of Action Taken Notes to the Committee.

EX-SERVICEMEN CONTRIBUTORY HEALTH SCHEME (ECHS)

Budget

45. The Committee note that close to 55 lakh beneficiaries including ESM and their

dependents are presently availing ECHS benefits. In the financial year 2021-22,

against the projection of Rs. 5643.61 crore, ECHS was allocated Rs. 4870.75 crore but

the actual utilization was Rs. 4864.66 crore. The next year projection and allocation

both were raised and stood at Rs. 5777.51 crore and Rs. 5143.51 crore respectively

and the organisation was able to spend Rs. 4347.74 crore by January 11, 2023. In the

last two and half months it has to spend Rs.795.77 crore, for that, the Committee are

hopeful that it would achieve the target and that there would be no surrender of

funds as witnessed in the year 2020-21.

79
Vacancies in ECHS Polyclinics

46. The Committee find that there is a gap between authorized and actual

manpower at ECHS Polyclinics. There are 182 Medical specialists against the

Authorised Manpower of 200, in the field of Radiology, there are 61 Radiologists

authorized but only 4 Radiologists are available, in Gynecology against the

authorized strength of 61, only 57 are available. In the field of Dental, against the

authorized strength of 471, only 425 are available. However, as per the Ministry, there

has been no shortfall in the existing authorised manpower. The unutilised vacancies

are due to the non-availability of Specialists in small towns and remote areas. The

Committee do not concur with the view of the Ministry that this is a dynamic figure

and rationalization within existing authorisation is undertaken accordingly. We all are

oblivious of the fact that there are numerous number of medical colleges both that of

Government and private which give post graduate degrees and every year accretion

in the number of super specialists is recorded. Here the Committee can only

recommend that very planned and concerted efforts may be undertaken by the

Ministry to appoint Super Specialists in the poly clinics in the small towns and

remote areas with the Committee’s recommendation to enhance their salaries which

is contained in the succeeding paragraphs, the Committee have every reason to

believe that super specialists would come forward to join these polyclinics. While

recommending so, the Committee would like to have a factual note containing inter-

alia as to what kind of attempts were made during the last five years to appoint

super specialists in small towns and remote areas and what were the number of

applicants, procedure of selection etc.

80
47. The Committee further note from the reply submitted by the Ministry that a

case for De-Novo review of ECHS Polyclinics has already been carried out which

would include the establishment of 17 new Polyclinics, upgradation of 42 ECHS

Polyclinics, re-location of 19 Polyclinics with the placement of 91 new & conversion

of 20 existing Type ‘E’ Polyclinics to Mobile Medical Units (MMUs). The establishment

of new polyclinics and the upgradation of polyclinics will enhance the authorised

number of contractual employees by around 2000. The proposal is under

consideration with MoD.

48. During the oral evidence, a representative of ECHS apprised the Committee

that specialists are authorized to work in Type-A and Type-B polyclinics only where

the concentration of the ESM population is above 20,000 and 10,000 respectively. The

Committee were informed that Medical Specialist, and Radiologist Gynecologist are

given Rs one lakh per month as remuneration, which is much less than what they are

paid outside, therefore, vacancies always exist. Considering the plight of old age

ESM who gave their youth to the country, the Committee recommend that the

remuneration of specialists should be matched with that of other hospitals and till

the time alternate arrangement should be made for ESM.

Payment of pending bills by ECHS to empanelled private hospitals

49. From the reply submitted by the Ministry to resolve perennial problem of

unsettled ECHS medical bills of the private recognized hospitals, the Committee note

that the Ministry is continuously monitoring Turn Around Time (TAT) with Bill

Processing Agencies (BPA), monitoring response to ‘Need More Information (NMI)’

cases with empanelled hospitals for early processing and also demanded additional

81
funds. ECHS has been allocated Rs 1000 crore in the year 2022-23, from

Contingency Fund in September 2022 and Rs 300 crore in November 2022 under

Medical Treatment Related Expenditure (MTRE). More allotment is expected at RE

State to clear the unsettled medical bills. The Committee wish and hope that such

regular allotments are being provided by the Ministry to the ECHS, so some of the

predicament of ESM would be redressed, and the private hospital would not reject

ESM for admission and treatment.

50. While lauding the efforts taken by the Ministry in clearing the pending bills, the

Committee are aware that the issue of pendency surfaces before the Committee

during the examination of DFGs every year. In this regard before commenting

anything substantial the Committee would like to be apprised on the following sets of

information:-

(i) The numbers of ESM/Dependents who approached all the polyclinics

combined during the last three years;

(ii) The number of ESM who approached all defence hospitals combined for

treatment of themselves and the dependent during the last three years;

and

(iii) The number of ex serviceman/dependent who were referred for super

specialty treatment in private hospitals.

The idea to gather such statistics is to come to a conclusion as to arrive at a

comparable figure whether more referrals were done or they were treated in

polyclinics/defence hospitals. These figures may be supplied while furnishing the

Action Taken Notes to the Committee.

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 On the issue of checking fake bills, though the Ministry has taken various

measures like a proper referral from ECHS Polyclinic, checking of number issued,

ECHS photo card swiping system etc. but the suspicion regarding raising such bills

always exists. In this regard, the Committee recommend that a robust constant

monitoring mechanism should be developed using the latest software and Artificial

Intelligence to foolproof the system and to check this menace of fake bills which if

succeed gives a loss to the exchequer.

Integrated complex at ECHS policlinics for Ex-servicemen during the treatment

51. The Committee are happy to learn that Integrated complex for Ex-servicemen

is being developed for ESM, wherein Offices, Polyclinics, transit accommodation etc

would be placed in one place. This step would definitely help ESM who come for

medicine and office work from far-flung areas. The Committee are of the opinion that

this step would resolve most of the problems of ESM and, therefore, recommend that

adequate budget should be provided to ECHS and work should be completed in time

bound manner.

ECHS in far-flung areas

52. The Committee note that to increase the outreach of ECHS in far-flung areas,

the Ministry has sanctioned 17 Mobile Polyclinics in the State of Uttarakhand,

Karnataka, Himachal Pradesh, Assam, Arunachal Pradesh, Punjab, Madhya Pradesh,

Jammu & Kashmir and West Bengal. These Mobile Polyclinics offer Medical Services

to all beneficiaries including women & children also. Soon facility of online Tele-

consultation is proposed to be commenced. Besides this, the Performance Bank

83
Guarantee (PBG) rates were reduced in non-CGHS areas/cities to facilitate more

hospitals to empanel with the ECHS. And the Ministry has submitted a proposal for

the establishment of 111 Mobile Medical Units (MMUs) including the existing 20 Type

‘E’ (Mobile) Polyclinics under consideration to increase the reach of ECHS to remote

locations and hilly/mountainous terrain. In addition to that, a Fixed Medical

Allowance (FMA) has been granted to all ECHS beneficiaries who are residing in far-

flung areas where Polyclinics are not available.

53. The Committee find some satisfaction that over the years with the increase in

ESM the organization is growing and devising new methods to help ESM. The

Committee hope that with these new proposed arrangements to be put in place in

the coming years, medical related problem of ESM would come to the lowest level, if

not completely vanish.

Other Relevant Issues - establishing an ECHS polyclinic at Vatakara taluk,

Kozhikode, Kerala

54. During deliberations, the Committee were apprised of the plight of more than

6000 ex-servicemen residing in Vatakara Taluk, an area spreading from the foothills

of the Western Ghats to the seashore of the Arabian Sea under Kozhikode district

of Kerala. The area consists of hamlets and villages in the east of the tehsil which is

inaccessible by public transport. The Committee in this regard recommend that

ECHS should establish a ‘Type C’ polyclinic as per the norms to mitigate the

problems of ESM residing in this area. This exercise should be completed in a time

bound manner under intimation to the Committee.

84
 SAINIK SCHOOLS

Budget

55. The Committee note that primary aim of the Sainik Schools is to prepare

cadets for entry into the National Defence Academy and Indian Naval Academy. The

next aim is to remove regional imbalance in the officers' cadre in the Armed Forces.

To achieve the objective, expansion of Sainik Schools has started in a big way with

the announcement of the opening of 100 new Sainik Schools in a new mode which

has been brought out in the succeeding paragraphs. It is a well-known fact that such

expansions need a budgetary support from the nodal Ministry, in this case Ministry

of Defence. However, on the perusal of the data provided by the Ministry, it is

revealed that in the year 2021-22, the Budget Projected by Sainik Schools under BE

was Rs 137.68 crore, which was revised to Rs 300.00 crore and allocated by the

Ministry. During the year 2022-23, Budget Projected under BE was Rs 170.87 crore

and RE for the same year was Rs 235.08 crore, however, it was reduced by

approximately Rs. 35 crore and allocated to Rs. 200 crore. This year (2023-24) Sainik

School asked for a Budget of Rs 175.87 crore, which is yet to be allocated by Director

General of Financial Planning (DGFP). The Committee feel that bearing in mind the

expansion and opening up of the new Sainik School, there should be no reduction in

the budget, rather the Ministry should allocate more budget for a smooth transition

of Sainik School from 33 in numbers to 133 in coming years.

56. The Committee are happy to learn that this year the State Government’s share

has been increased by almost double to Rs 22598.10 lakh in 2021-22 from Rs

10270.99 lakh in 2020-21, while the Central Government share has reduced from Rs.

85
31938.29 lakh in 2020-21 to Rs 11950.98 lakh in 2021-22. The Committee desires the

Ministry to be more proactive and ensure that this trend continues in coming years

also.

Challenges and constraints faced by Sainik Schools

57. The Committee note that post implementation of VIth CPC and VIIth CPC pay

scales, self-sustaining Sainik Schools are facing funds constraints especially related

to payment of Pay and Pension to their Staff. The Government allocates additional

grants for paying 100% additionality of pay and allowances, pension and family

pension arising out of the difference between Vth & VIIth Central Pay Commission to

the Staff of Sainik Schools. In this regard, the Committee recommend that the

Ministry of Defence should extend the requisite financial support expeditiously to

Sainik Schools to take the issue to a logical conclusion and to remove all pending

anomalies as far as the pay and allowances are concerned. The Committee would

also like to seek a clarification while furnishing the Action Taken Notes whether the

issues of Pay and Pension of the staff pertains only to Fifth and Seventh CPC or

Sixth CPC also recommended for the hike in such allowances.

Renovating old Infrastructure

58. The Committee note that Sainik Schools are well endowed in the matter of

land, buildings and infrastructure, however, few schools being more than 60 years

old, their infrastructure have depleted over a period of time. In order to maintain the

existing infrastructure, the Ministry provides Grant in aid to the tune of Rs. 1 Crore to

each School every year as per their demand. The Committee further note that in

86
addition, the Ministry provides grant in aid to these Sainik Schools from time to time

for augmentation/modernisation of their infrastructure. Towards this, the Ministry

provided one-time grant in aid of Rs. 109 crore in 2020-21 to these Sainik Schools

for construction of girls' hostel. Further, the Ministry has also taken steps to

persuade States to provide their share of the infrastructure development of the

Schools. The Committee appreciate that the measures taken by the Ministry has

borne fruit wherein the States have provided Rs. 225 crore to the Schools during

2021-22 for augmentation/ maintenance/ construction of their infrastructure.

However, the Committee would not hesitate to recommend that constant dialogue

should be maintained with the State Governments so that instead of one-time

exercise, it would become a permanent phenomenon and our Sainik Schools can

match the best educational institutions not only in infrastructure but also in state-of-

the-art learning tools.

Infrastructure for girl students in the Sainik Schools

59. From the information supplied by the Ministry, the Committee note that

funding of Rs. 109 Crore was set aside by the Ministry of Defence during 2020-21 for

Sainik Schools for infrastructure creation of required facilities for girl students from

Academic Year 2021-22. In this respect, separate hostel with barbed wire fencing is

provided for the girl cadets to ensure their safety. Also to ensure the security and

well-being of girl cadets in the hostel, one Physical Education Master/Physical

Training Instructor Cum Matron (Female) who accompanies the girl cadets

throughout the day in all the training activities. One Nursing Sister for the medical

requirements of the cadets and two female General Employees for housekeeping and

87
maintenance of Girls Hostel are also employed. Separate washrooms are provided to

the girl cadets in the Hostel. Sports fields, auditorium, mess and academic block for

their convenience and ease and also CCTV cameras are installed at various places

for the safety of girl cadets.

60. The Committee are happy to note that the Ministry has taken measures to

ensure that a minimum number of 10 girls in each school are enrolled and these

seats must have a continual reservation 10 per cent out of the total seats in class VI

for girls and in subsequent classes until class 12. The Committee find that the

Ministry is making efforts to improve the infrastructure of each Sainik School and

provided Rs.3.3 crore to 28 Sainik Schools for the construction of girls’ hostel with

all allied facilities and security measures. It is also informed that construction of

girls’ hostel is in progress in each school. As the girl cadets are to be trained along

with the boy cadets in the same training pattern which involves Academics, PT,

Games, Drill and other Co-curricular activities for their overall growth, the Committee

recommend that issues related to girl cadets, whenever these come to the notice of

School authorities, should be taken on priority so the confidence and belief in the

system remains intact.

61. The Committee in their previous report also advised that as the Sainik Schools

had been “only Boys school” for a very long time and since the induction of girl

students had been started recently, therefore an orientation training programme

should be conducted for the faculty/officials and students so that they can be

sensitized to accommodate and respect girls in the school. Consequent to this

observation, the Committee recommend that such exercises shall be conducted on a

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regular basis and they would like to be apprised of the leap forward taken in this

regard from the time of presentation of this Report and furnishing of Action Taken

Note by the Ministry.

Standardized curriculum in new Sainik Schools under Public-private partnership

62. The Committee note that in accordance with the Government of India decision,

100 Sainik Schools under PPP mode will be set up in the first phase. These schools

will be located in all the States of the country. Out of 100, 18 new Sainik Schools are

already functioning. The Committee also note that the Ministry of Defence has not

laid any restriction on the new Sainik Schools to run only Sainik School pattern of

education. New Sainik Schools can have separate vertical for Sainik Schools pattern

as well as non-Sainik Schools pattern. These new schools can be day schools or

residential schools.

63. The Committee further note that the criteria for merit-based admission in the

new Sainik Schools will be same as the existing 33 Sainik Schools wherein students

will be given admission based on merit obtained in all-India level Common

Admission Test conducted by the National Testing Agency.

64. The Committee while noting that the teachers of new Sainik Schools have

undergone a centralized training at IITE, that is, Indian Institute of Teachers

Education at Gandhinagar, recommend that there should be standardized uniform

pattern of education and physical activities otherwise these schools will lose their

relevance and identity.

89
65. The Committee also take note of the fact that five States viz. Sikkim, Tripura,

Telangana, Goa & Meghalaya have no Sainik School. This in the opinion of the

Committee is an imbalance which needs to be rectified by the Ministry by taking very

concerted efforts and come out with a concrete plan within a specified time frame as

to how atleast one Sainik School can be established in each of the five States above.

The Committee, therefore, recommend that all the developments initiated in this

regard be communicated to them within three months in order to enable them to

judge the progress made by the Ministry.

66. The Committee would like to seek one more clarification on the split pattern of

establishing the Sainik Schools in the new PPP Mode. Their specific query is about

the second vertical i.e. such schools can also be established in a non Sainik School

Mode. The Committee would like to have more details on this mode and would like to

be apprised how will this mode accomplish the very purpose of establishing the

Sainik Schools.

Appointment of Retired Army Officers as Principals

67. During deliberations, the issues of Army Officers for appointment in new

schools came up and a representative of Sainik Schools Society apprised the

Committee that the same is not possible due to shortage of regular Army Officers for

such appointments. In this respect, the Committee recommend that Ex-Army

Officers/JCOs/NCOs especially from the Army Education Corps may be appointed as

Principals, vice-principals, instructors and teachers in the new Sainik Schools or in

old Sainik Schools where the vacancies are lying for a long time in want of regular

Officers.

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General

68. The Committee have observed that a good number of students passing out of

the Sainik Schools do not join NDA. In this regard the Committee would like to have

a detailed chart containing the figures for the last five years of each and every Sainik

School clearly bringing out a comparative figure of how many students passed class

12 and how many out of them were selected for NDA or Naval Academy. Based on

the information supplied by the Ministry, the Committee would examine this issue in

depth subsequently.

New Delhi; JUAL ORAM

17 March, 2023 Chairperson
…………... Phalguna, 1944 (Saka) Standing Committee on Defence

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 STANDING COMMITTEE ON DEFENCE (2022-23)

MINUTES OF THE FOURTH SITTING OF THE STANDING COMMITTEE ON

DEFENCE (2022-23)

The Committee sat on Monday, the 20th February, 2023 from 1100 hrs to 1800 hrs in
Main Committee Room, Parliament House Annexe, New Delhi.

PRESENT

SHRI JUAL ORAM – CHAIRPERSON

MEMBERS

Lok Sabha

2. Shri Devaragunda Venkappa Sadananda Gowda

3. Choudhary Mehboob Ali Kaiser
4. Shri Rattan Lal Kataria
5. Kunwar Danish Ali
6. Shri Reddeppa Nallakonda Gari
7. Shri Uttam Kumar Reddy Nalamada
8. Shri Brijendra Singh

Rajya Sabha

9. Dr. Ashok Bajpai

10. Shri Prem Chand Gupta
11. Shri Sushil Kumar Gupta
12. Smt. P.T. Usha
13. Shri G.K. Vasan
14. Lt. Gen. (Dr.) D. P. Vats (Retd.)

SECRETARIAT

1. Smt. Suman Arora - Joint Secretary

2. Dr. Sanjeev Sharma - Director
3. Shri Rahul Singh - Deputy Secretary

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 LIST OF WITNESSES

MINISTRY OF DEFENCE

S. No. Name Designation

General Defence Budget
1. Shri Giridhar Aramane Defence Secretary
2. Lt Gen BS Raju VCOAS
3. Ms. Nivedita Shukla Verma Special Secretary
4. Ms. Rasika Chaube FA(DS)
5. Ms. Dipti Mohil Chawla Additional Secretary/DoD
6. Lt Gen Rajinder Dewan QMG
7. Lt Gen Samir Gupta DG FP
8. Lt Gen MV Suchindra Kumar DCOAS (Strat)
9. Lt Gen Manjinder Singh DCIDS (PP &FD)
10. Lt Gen JB Chaudhari DCOAS (CD&S)
11. Lt Gen C Bansi Ponnappa Adjutant General
12. Lt Gen Arvind Walia E-in-C
13. Lt Gen CP Cariappa MGS
14. Lt Gen V Sreehari DG (MP & PS)
15. Lt Gen. Vineet Gaur DG CD
16. Air Mshl BR Krishna CISC
17. AVM M Mehra ACAS Fin(P)
18. AVM H Bains JS (Air) & JS(Navy)
19. Sh. D.K Rai JS(Plg./Parl) & Estt.
20. Maj Gen k Narayanan JS (Army & TA)
21. Sh. Rajesh Sharma Addl. FA (RS) & JS
22. R Adm Dalbir S Gujral ACIDS (FP & ADM)
23. Rear Admiral CR Praveen Nair ACNS (P&P)
24. Maj Gen Bikramdeep Singh ADG FP
25. Brig Ajay Katoch Brig SP(Plans)
Defence Public Sector Undertaking
1. Shri Giridhar Aramane Defence Secretary
2. Ms. Rasika Chaube FA(DS)
3. Shri T Natarajan Additional Secretary (DP)
4. Ms. Dipti Mohil Chawla Additional Secretary/DoD
5. Shri Shalabh Tyagi JS( P&C)
6. Shri Rajeev Prakash JS (NS)
7. Shri Jayant Kumar JS(Aero)
8. Shri Anurag Bajpai JS (DIP)
9. Shri Surendra Prasad Yadav JS(LS)
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 10. Cmde Siddharth Mishra (Retd) CMD, BDL
11. Shri C B Anantha Krishnan CMD, HAL
12. Shri Bhanu Prakash Srivastava CMD, BEL
13. Cmde Hemant Khatri CMD, HSL
14. Shri Amit Banerjee CMD, BEML
15. Shri Brajesh Kumar Upadhyay CMD, GSL
16. CMDE PR Hari CMD, GRSE
17. Dr. S K Jha CMD, MIDHANI
18. Shri Sanjeev Singhal CMD, MDL
19. Sh. P.Radhakrishna Director (Production)
20. Cmdt Rajeev Panhotra AGM (GSL)
Directorate General of Defence Estate
1. Ms. Rasika Chaube FA(DS)
2. Lt Gen Adosh Kumar DG LW&E
3. Ms. Nivedita Shukla Verma Special Secretary
4. Ms. Dipti Mohil Chawla Additional Secretary/DoD
5. Sh. Rajesh Sharma Addl. FA (RS) & JS
6. Shri Rakesh Mittal JS (L & W / SS)
7. Sh. Ajay Kumar Sharma DGDE
8. Ms. Sonam Yangdol Addl DG
9. Maj Gen Rajdeep Singh Rawal ADG LW&E
10. Ms. Sharmistha Maitra Director (Lands)
11. Sh. Valeti Premchand Addl DG
12. Ms Nigar Fatima Addl DG
13. Ms. Vibha Sharma Addl DG
14. Sh. Amit Kumar DDG
15. Sh. Abhishek Azad Asst DG
16. Sh. Vijay Malhotra Director(Q&C/Works)
Border Roads Organisation
1. Ms. Rasika Chaube FA(DS)
2. Lt Gen Rajeev Chaudhary DGBR
3. Lt Gen Arvind Walia E-in-C
4. Dr Ajay Kumar JS(BR)
5. Sh. Rajesh Sharma Addl. FA (RS) & JS
6. Ms. Nivedita Shukla Verma Special Secretary
7. Sh. Pankaj Agarwal DG(Acq)
8. Ms. Dipti Mohil Chawla Additional Secretary/DoD

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Coast Guard Organisation
1. Ms. Rasika Chaube FA(DS)
2. Ms. Dipti Mohil Chawla Additional Secretary/DoD
3. Sh. Rajesh Sharma Addl. FA (RS) & JS
4. Sh. Manish Tripathi JS(AF/Policy)
5. ADG Rakesh Pal ADG CG & Addl Charge DG ICG
Navy & Joint Staff
1. Ms. Rasika Chaube FA(DS)
2. Lt Gen BS Raju VCOAS
3. Vice Admiral SN Ghormade VCNS
4. Vice Admiral Dinesh K Tripathi COP
5. Lt Gen Manjinder Singh DCIDS
6. Air Mshl BR Krishna CISC
7. Ms. Dipti Mohil Chawla Additional Secretary/DoD
8. AVM H Bains JS (Navy)
9. R Adm Dalbir S Gujral ACIDS
10. R Adm Kapil Mohan Dhir Senior Advisor/DMA
11. R Adm CR Praveen Nair ACNS (P&P)
12. Sh. Rajesh Sharma Addl. FA (RS) & JS

2. At the outset, the Chairperson welcomed the Members of the Committee and
informed them of the agenda for the Sitting i.e. oral evidence of the representatives of
Ministry of Defence in connection with examination of Demands for Grants for the year
2023-24.

3. Thereafter, the Chairperson welcomed the Defence Secretary, representatives of the

Armed Forces and the Ministry of Defence to the Sitting of the Committee convened to
deliberate on various aspects relating to Demands for Grants of the Ministry of Defence for
the year 2023-24.

4. The Chairperson informed all the agenda for the Sitting i.e. oral evidence of the
representatives of Ministry of Defence in connection with examination of Demands for
Grants for the year 2023-24 on the subjects ‘General Defence Budget, Capital Outlay on
Defence Services, Department of Military Affairs (DMA), Ministry of Defence (Civil),
Defence Public Sector Undertakings (DPSUs), Directorate General Defence Estate
(DGDE), Border Roads Organization (BRO), Coast Guard Organisation (CGO), Navy and

95
Joint Staff’ and requested the representatives of the Ministry of Defence to brief the
Committee on various issues included in the agenda for the day. He also drew their
attention to Direction 55(1) of the Directions by the Speaker, Lok Sabha stipulating that the
discussions in the Sitting are to be treated as confidential and are not to be made public till
the Report of the Committee on the subject is presented to Parliament.

5. The Defence Secretary initiated the discussion by giving an overview of Defence

Services Estimates and other Demands for Grants of the Ministry of Defence for 2023-24.
The highlights of the brief given by the Defence Secretary are as under:

i. Enhancement of Rs. 68,371 crore i.e. 13 percent in total Defence Budget

compared to allocation in Budget 2022-23; and
ii. Unprecedented 44 percent jump in non-salary revenue allocation in 2023-24.

6. Then, a Power Point Presentation on General Defence Budget was made before the
Committee. This was followed by detailed deliberations on the following issues:

i. Increase in Defence allocation to meet actual requirement keeping in view

current security scenario;
ii. Planning for upgradation and modernisation of conventional arms and
ammunition taking into account emerging and evolving technologies of
warfare;
iii. Allocation for Research & Development and Defence Research and
Development Organisation (DRDO) in 2023-24;
iv. Timely procurement of equipment, arms and ammunition for the Armed
Forces;
v. Increase in Defence budget for 2023-24 taking into account Revised
Estimates 2022-23, inflation and depreciation of the rupee compared to dollar;
vi. Savings and effect on pensionary liabilities on account of implementation of
Agneepath scheme;
vii. Strategy for achieving complete indigenization and self-reliance in Defence
sector;
viii. Need for increase in recruitment of manpower for Armed Forces;
ix. Defence Budget as percentage of Gross domestic Product (GDP);
x. Creation of non-lapsable Defence Modernisation Fund;
xi. Share of Defence budget in total Budget of the country;
xii. Mismatch between projection and allocation in Defence Budget for the
Financial Year 2023-24;
xiii. Extant systems of checks and balances to prevent incidents of spying;
xiv. Achievement of target of 68 percent of capital acquisition through domestic
sources;
xv. Association with private players in Defence sector;
xvi. Motivation for scientists in Defence sector;

96
 xvii. Selection for strategic partner countries in Defence sector; and
xviii. Comparison with neighboring countries regarding expenditure on
development of infrastructure.
7. The Chairperson, on behalf of the Committee, congratulated the Ministry of Defence,
HAL, DRDO and other participant organizations for successful Aero India 2023 held in
Bengaluru.

8. After tea break, the representatives of the Ministry of Defence and the Defence
Public Sector Undertakings (DPSUs) commenced their briefing on the subject ‘Defence
Public Sector Undertakings’ through their Power Point Presentations.

This was followed by detailed deliberations on the following issues:

i. Recruitment of independent Directors in Boards of DPSUs;

ii. Filling of vacancies in Boards of DPSUs;
iii. Availability of raw materials in the country;
iv. Need for improvement in functioning of Mishra Dhatu Nigam Limited
(MIDHANI);
v. Assistance from private players and academia in Research and
Development in Defence sector;
vi. Coordination of DPSUs with Micro, Small and Medium Enterprises
(MSMEs) in the country;
vii. New contracts acquired by Hindustan Aeronautics Limited (HAL), Bharat
Electronics Limited (BEL) and Goa Shipyard Limited (GSL);
viii. Request received from the State Governments regarding Defence
Industrial Corridors;
ix. Preference for the public sector over private players in Defence
manufacturing;
x. Foreign collaboration by Bharat Dynamics Limited (BDL) for
manufacturing of missiles and rockets;
xi. Production capacity of HAL, time taken for development of a product and
use of indigenous engines;
xii. Availability of health equipment and stents manufactured by MIDHANI in
the market;
xiii. Timeline for manufacturing of Light Combat Helicopter and Aircraft and 5th
Generation Aircraft by HAL;
xiv. Contribution of BEL towards Defence Industrial Corridor in UP;
xv. Time taken by DPSUs for development and delivery of equipment for the
Armed Forces;
xvi. Difference in the 4 positive lists of indigenization;
xvii. Need for intensification of efforts for indigenization and increase in exports
by DPSUs;
xviii. Establishment of Defence corridors and other facilities in Ambala; and
97
 xix. Progress of manufacturing of bulletproof jackets by MIDHANI.

9. Thereafter, a Power Point Presentation by the representatives of the Defence

Estates Organisation (DEO) was made. This was followed by extensive discussion on the
following points:

i. Increase in Revised Estimates allocation to DEO for 2022-23;

ii. Proposal from the State Government for provision of Defence Land;
iii. Issues such as access to roads etc. faced by general public in Cantonment
areas and efforts for resolution of these issues;
iv. Elections for Cantonment Boards;
v. Increase in limit for carrying out ‘repairs’ in Cantonment areas and revision in
bye-laws;
vi. New Cantonment Bill;
vii. Policy regarding handing over of schools and Defence institutions to civil
municipal bodies adjoining the cantonment areas; and
viii. Pendency of cases pertaining to DEO.
10. Followed by DEO, a Power Point presentation on Border Roads Organization (BRO)
was made. The deliberations were held on the subject on following points:

i. Forest and National Green Tribunal (NGT) Clearances for construction by

BRO;
ii. Cost difference between construction of normal road and road constructed by
BRO using new technologies;
iii. Classification of a road as a ‘border’ road;
iv. Difference between allocation under Budget and Revised Estimates for BRO
for the past few years;
v. Budgetary figures for BRO for 2023-24;
vi. Consideration of security, geological and safety parameters by BRO while
executing construction tasks keeping in view recent incident in Joshimath,
Uttarakhand;
vii. Memorandum of Understanding (MoU) with Jharkhand Government for supply
of manpower;
viii. Aid in tourism opportunities due to infrastructure created by BRO; and
ix. Welfare activities in areas from where maximum manpower is employed by
BRO.

11. Thereafter, the Chairperson invited representatives of the Coast Guard Organisation.
The representatives of the Coast Guard Organisation commenced their briefing through a
Power Point Presentation. This was followed by discussion on following points:

98
 i. Adequate capability of the Coast Guard Organisation in terms of manpower
and resources;
ii. Recovery of drugs and curb on drug smuggling achieved by Coast guard in
2021-22 and 2022-23; and
iii. Shortage of manpower in Marine Police in some States.
12. Thereafter, the representatives of the Ministry of Defence commenced their briefing
through a Power Point presentation on Navy and Joint Staff. This was followed by detailed
deliberations inter alia on the following issues:

i. Revised Estimates 2022-23, Budget Estimates 2023-24 and projected

requirement for Navy and Joint Staff;
ii. Cost, Commissioning of indigenous aircraft carrier and proposal for third
aircraft carrier;
iii. Sanctioned strength of National Defence Academy (NDA);
iv. Progress on theaterisation of Armed Forces;
v. Strength of Indian Navy in comparison with neighboring countries;
vi. Intake of girl candidates in Sainik Schools and NDA and plan to absorb them
in the Forces;
vii. Proposal to add new battalions in the Forces;
viii. Proposal to fill up vacant posts at Officers’ level in the Services;
ix. Formalized National Security Policy;
x. Analysis of current threat perception; and
xi. Possibility of the Quadrilateral Security Dialogue (QUAD) evolving into
security and military alliance.

13. The Chairperson, at the end, thanked the representatives of the Ministry of Defence
and the Services for extensive discussion on the Demands for Grants and for responding to
the queries of the Members. The Chairperson also requested the representatives to furnish
information which was not readily available to the Secretariat expeditiously.

The witness then withdrew.

The Committee then adjourned.

A copy of verbatim record of the proceedings has been kept on record.

99
 STANDING COMMITTEE ON DEFENCE (2022-23)

MINUTES OF THE FIFTH SITTING OF THE STANDING COMMITTEE ON

DEFENCE (2022-23)

The Committee sat on Wednesday, the 22 February, 2023 from 1100 hrs. to 1815
hrs. in ‘Main Committee Room’, Parliament House Annexe, New Delhi.

PRESENT

JUAL ORAM – CHAIRPERSON

MEMBERS

LOK SABHA

2 Kunwar Danish Ali

3 Shri D.V. Sadananda Gowda
4 Shri Rattan Lal Kataria
5 Prof. (Dr.) Ram Shankar Katheria
6 Dr. Rajashree Mallick
7 Shri Reddeppa Nallakonda Gari
8 Shri Uttam Kumar Reddy Nalamada
9 Shri Brijendra Singh

RAJYA SABHA
10 Dr. Ashok Bajpai
11 Shri Prem Chand Gupta
12 Shri Sushil Kumar Gupta
13 Shri Kamakhya Prasad Tasa
14 Dr. Sudhanshu Trivedi
15 Smt. P.T. Usha
16 Lt. Gen. (Dr.) D. P. Vats (Retd.)
17 Shri K.C. Venugopal

100
 SECRETARIAT

1. Smt. Suman Arora - Joint Secretary

2. Dr. Sanjeev Sharma - Director

3. Shri Rahul Singh - Deputy Secretary

LIST OF WITNESSESS

MINISTRY OF DEFENCE

ARMY
1 Gen Anil Chauhan CDS & Secretary/DMA
2 Ms. Rasika Chaube FA(DS)
3 Sh. Rajesh Sharma Addl. FA (RS) & JS
4 Lt Gen BS Raju VCOAS
5 Lt Gen MV Suchindra Kumar DCOAS (Strat)
6 Lt Gen JB Chaudhari DCOAS (CD&S)
7 Lt Gen Samir Gupta DG FP
8 Lt Gen Manoj Kumar Katiyar DGMO
9 Lt Gen CP Cariappa MGS
10 Lt Gen Vineet Gaur DG CD
11 Lt Gen C Bansi Ponnappa Adjutant General
12 Lt Gen AJ Fernandez DG SD
13 Lt Gen Rajinder Dewan QMG
14 Maj Gen k Narayanan JS (Army & TA)
15 Maj Gen R Putarjunam ADG AE 7 HoS (AEC)
16 Maj Gen CS Mann ADG ADB
17 Maj Gen Abhinaya Rai ADG SP
18 Maj Gen Bikramdeep Singh ADG FP
NATIONAL CADET CORPS (NCC)
1 Ms. Rasika Chaube FA(DS)
2 Ms. Nivedita Shukla Verma Spl. Secretary
3 Ms. Dipti Mohil Chawla Additional Secretary/DoD
4 Lt Gen. Gurbirpal Singh DGNCC

5 Sh. Rajesh Sharma Addl. FA (RS) & JS

101
6 Ms. Nishtha Upadhyay Joint Secretary

SAINIK SCHOOL
1 Ms. Rasika Chaube FA(DS)
2 Ms. Nivedita Shukla Verma Special Secretary
3 Ms. Dipti Mohil Chawla Additional Secretary/DoD
4 Sh. Rajesh Sharma Addl. FA (RS) & JS
5 Shri Rakesh Mittal JS (Lands / SS)

AIR FORCE
1 Gen Anil Chauhan CDS & Secretary/DMA
2 Ms. Rasika Chaube FA(DS)
3 Air Mshl AP Singh VCAS
4 Air Mshl N Tiwari DCAS
5 AVM H Bains JS(Air)
6 Sh. Rajesh Sharma Addl. FA (RS) & JS
7 AVM M Mehra ACAS Fin(P)
8 AVM G Thomas ACAS (Plans)
9 AVM T Chaudhry ACAS (Proj)
DEFENCE RESEARCH & DEVELOPMENT ORGANISATION (DRDO)
1 Dr. Samir Venkatpati Kamat Secretary
2 Ms. Rasika Chaube FA(DS)
3 Shri KS Varaprasad DS & DG (HR)
4 Shri Hari Babu Srivastava OS&DG
5 Ms Suma Varughese OS&DG(MED&CoS)
6 Dr. UK Singh OS&DG(LS)
7 Shri Purusottam Bej. OS&DG(R&M)
8 Shri AD Rane OS&DG(BrahMos)
9 Dr (Ms) Chandrika Kaushik OS&DG(PC&SI)
10 Sh. Rajesh Sharma Addl. FA (RS) & JS
11 Shri Vedveer Arya Addl FA&JS
12 Dr. Ravindra Singh Director(DPA)
Director (Planning and
13
Dr. Sumit Goswami Cooperation)

DIRECTORATE OF ORDNANCE – NEW DPSUs

1 Ms. Nivedita Shukla Verma Special Secretary

2 Ms. Rasika Chaube FA(DS)
3 Sh. Rajesh Sharma Addl. FA (RS) & JS

102
 4 Shri Surendra Prasad Yadav JS (LS)
5 Shri Rajeev Prakash JS (NS)
6 Shri Jayant Kumar JS (Aero)
7 Shri Shalabh Tyagi JS (P&C)
8 Shri Anurag Bajpai JS (DIP)
9 Shri Sanjeev Kishore DGO (C&S)
10 Shri N I Laskar DDG (Budget)
11 Shri Umesh Singh DDG (NDCD)
12 Shri Birendra Pratap Director (NDCD)
13 Shri Ravi Kant CMD (MIL)
14 Shri Rajesh Choudhary CMD (AWEIL)
15 Shri S.K. Sinha CMD (TCL)
16 Shri Rajeev Puri CMD(YIL)
17 Shri Sanjiv Kumar CMD (IOL)
18 Shri V.K Tiwari CMD (GIL)
19 Shri Sanjay Dwivedi Director/AVANI
20 Maj Gen Pankaj Malhotra ADG MO (B)
21 Maj Gen Mohit Wadhwa ADG EM

2. As the Chairperson of the Committee was not able to attend the Sitting, Lt. Gen Dr.
D P Vats (Retd.) was chosen as the Acting Chairperson for the Sitting by the Members of
the Committee present during the Sitting under the Rule 258(3) of the Rules of Procedure
and Conduct of Business in Lok Sabha.

3. The Acting Chairperson welcomed the Members of the Committee and informed
them of the agenda for the Sitting. The Committee then invited the representatives of the
Ministry of Defence. The Chairperson welcomed them to the Sitting of the Standing
Committee on Defence and requested them to brief the Committee on various issues
included in the agenda for the day and drew their attention to Direction 55(1) of the
Directions by the Speaker, Lok Sabha.

4. The Vice Chief of Army Staff commenced the briefing by giving an overview on Army
to the Committee and thereafter, a Power Point presentation was made. This was followed
by detailed deliberations on following issues:

1) Budgetary allocation to Army;

2) Restructuring of training as per current requirements.
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 3) Upgradation of infrastructure, technological prowess and military capabilities
4) Providing humanitarian assistance and speedy relief during calamities
5) Gender neutrality in Indian Army
6) Contribution in sports by Army
7) Emergency procurement powers to the Indian Army with effect from October
2022
8) Need for robust digital infrastructure
9) Preparation for Nuclear, Chemical and Biological War in future
10) Status of Vintage and other category equipment in Indian Army
11) Efforts being made towards indigenisation by Indian Army

5. Thereafter, the Chairperson invited representatives of the National Cadet Corps

(NCC). They made a Power Point presentation before the Committee which was followed
by discussion on following issues:

1) Shortage of Trainers in NCC and Recruitment of Ex-servicemen / Ex-NCC

cadets as instructors in NCC
2) Need for latest equipment for training to NCC Cadets
3) Reservation of NCC cadets in State Government and CAPFs jobs
4) Cyber, Computer, Laser and space expertise training to NCC cadets.
5) Employment opportunities for NCC cadets in private Industries
6) Implementation of Self Financing Scheme(SFS) in schools and colleges.
7) Issues related to low selection rate of NCC cadets as officers in Armed Forces

6. The representatives of the Sainik Schools were invited next by the Chairperson. The
representatives of the Sainik Schools commenced their briefing through a Power Point
presentation which was followed by discussion on following issues:

1) Opening of 100 new schools in partnership with private sector

2) To appoint retired officers/ JCOs NCOs as Principals, Vice-Principals and
Instructors in Sainik schools.
3) Shortage of Funds, inadequate infrastructure and deficiency of quality staff in
Sainik Schools.
4) Compulsory training to teachers of new Sainik schools.
5) Low number of Sainik schools students joining Armed Forces.

7. Subsequent to the briefing by the Vice Chief of the Air Staff regarding overview on
modernization plan of Indian Air Force (IAF), a Power Point presentation was made. This
was followed by detailed deliberations on following issues:

1) Sharp decline in the projected budget for the year 2023-24 as compared to
the financial year 2022-23.
2) Shortage of authorized squadrons strength
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 3) Study to analyze the major reasons for the delay of LCA
4) Modernisation of Fighter Aircraft
5) Shortage of officers in Indian Air Force

8. Then, a Power Point presentation was made by representatives of DRDO on

Defence Research and Development which was followed by discussion on the following
points:

1) Free of cost patents of DRDO to Private Industry

2) Transfer of technology to private industries.
3) Use of Test facilities of DRDO by Private Industry.
4) Issue related to delay of Mission mode projects of DRDO
5) Use of Kaveri engine for unmanned combat aircraft.
6) Indigenisation of products by DRDO
7) Shortage of Scientists in DRDO

9. Thereafter, a Power Point presentation was made by the representatives of the

Directorate of Ordnance on new DPSUs, representatives of each of the new DPSU,
namely Munitions India Limited(MIL), Armoured Vehicles Nigam Limited(AVNL), Advanced
Weapons and Equipment India Limited(AWEIL), Troop Comforts Limited(TCL), Yantra India
Limited(YIL), India Optel Limited(IOL) and Gliders India Limited(GIL) made power point
presentation. Thereafter, the Committee had discussion on the following points:

1) Status of Order Book position of DPSUs

2) Thrust to earn more profits by the DPSUs
3) Installation of new machines for R&D activities in the DPSUs
4) Modernisation activities taken by all the DPSUs
5) Indigenisation programmes of the DPSUs

10. The Chairperson directed the representatives of the Ministry to furnish written
replies/information on the points raised by the Members at the earliest.

The witnesses then withdrew

The Committee then adjourned.

11. A copy of verbatim proceedings has been kept on record.

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 STANDING COMMITTEE ON DEFENCE (2022-23)

MINUTES OF THE SIXTH SITTING OF THE STANDING COMMITTEE ON

DEFENCE (2022-23)

The Committee sat on Friday, the 24 February, 2023 from 1100 hrs. to 1600 hrs. in
Committee Room No. ‘C’, Parliament House Annexe, New Delhi.

PRESENT

LT. GEN. DR. D. P. VATS (RETD.) – ACTING CHAIRPERSON

MEMBERS

LOK SABHA

2. Shri Rattan Lal Kataria

3. Kunwar Danish Ali
4. Shri Nallakonda Gari Reddeppa
5. Shri Brijendra Singh
6. Shri Mahabali Singh

RAJYA SABHA

7. Dr. Ashok Bajpai

8. Shri Prem Chand Gupta
9. Shri Sushil Kumar Gupta
10. Dr. Sudhanshu Trivedi
11. Smt. P. T. Usha
12. Shri G.K Vasan

SECRETARIAT

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1. Smt. Suman Arora - Joint Secretary
2. Dr. Sanjeev Sharma - Director
3. Shri Rahul Singh - Deputy Secretary

LIST OF WITNESSES

S. No. Name of Officers Designation

Procurement Policy & Defence Planning

1. Shri Giridhar Aramane Defence Secretary

2. Gen Anil Chauhan CDS & Secretary/DMA
3. Vice Admiral SN Ghormade VCNS
4. Air Mshl BR Krishna CISC
5. Ms. Rasika Chaube FA(DS)
6. Ms. Nivedita Shukla Verma Special Secretary
7. Lt. Gen Anil Puri AS/DMA
8. Sh. Pankaj Agarwal DG(Acq)
9. Ms. Dipti Mohil Chawla Additional Secretary/DoD
10. Shri T Natarajan Additional Secretary (DP)
11. Air Mshl N Tiwari DCAS
12. Lt Gen MV Suchindra Kumar DCOAS (Strat)
13. Lt Gen Rashim Bali DG SP
14. Lt Gen Vineet Gaur DG CD
15. Lt Gen Manjinder Singh DCIDS (PP &FD)
16. ADG Rakesh Pal ADG CG & Addl Charge DG ICG
17. Shri Dinesh Kumar JS & AM(MS)
18. Shri Dharmendra Kumar Singh JS&AM (Air)
19. Dr. Ajay Kumar JS & AM(LS)
20 Shri Jayant Kumar JS(Aero)
21. Sh. Rajesh Sharma Addl. FA (RS) & JS
22. AVM Rajiva Ranjan ACIDS (PP & FS)
23. Maj Gen Ashok Singh ADG PS
24. AVM G Thomas ACAS (Plans)
25. RAdm P.A.A.R Sadiq Acquisition Tech (M&S)
26. Maj Gen Abhay Dayal ADG Acq
27. AVM M Mehra ACAS Fin(P)
28. Maj Gen k Narayanan JS (Army & TA)
29. RAdm CR Praveen Nair ACNS
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30. Maj Gen Abhinaya Rai ADG SP
31. Maj Gen Bikramdeep Singh ADG FP
32. Maj Gen NKV Patil ADG Proc (B)
33. Sh. Ambarish Barman Director (Budget)
34. Sh. Subhash Kumar OSD (Budget)
Welfare of Ex-Servicemen
1. Shri Vijoy Kumar Singh Secretary ESW
2. Ms. Rasika Chaube FA(DS)
3. Lt. Gen PS Shekhawat DG (DC&W)
4. Lt Gen C Bansi Ponnappa Adjutant General
5. VAdm Suraj Berry Controller Personnel Services
6. Air Mshl RK Anand DG (Admn)
7. Dr Pudi Hari Prasad Joint Secretary (ESW)
8. Maj Gen Sharad Kapoor DG (Resettlement)
9. Sh. Rajesh Sharma Addl. FA (RS) & JS
10. Maj Gen Ashok Singh ADG PS
11. AVM Ashok Saini ACAS
12. RAdm Manish Chadha ACOP
13. Commodore HP Singh Secretary KSB
14. Sh. Ambarish Barman Director (Budget)
15. Sh. Subhash Kumar OSD (Budget)
16. Dr. PP Sharma OSD
Ministry of Defence (Pension)
1. Shri Vijoy Kumar Singh Secretary ESW
2. Shri Praveen Kumar, IDAS Addl. CGDA
3. Dr Pudi Hari Prasad Joint Secretary (ESW)
4. Sh. Rajesh Sharma Addl. FA (RS) & JS
5. Ms. Sarika Aggarwal Synrem IDAS, Jt. CGDA
6. Dr. Jayaraj Naik IDAS, Jt. CGDA
7. Sh. Ambarish Barman Director (Budget)
8. Sh. Subhash Kumar OSD (Budget)
Ex-Servicemen Contributory Health Scheme
1. Shri Vijoy Kumar Singh Secretary ESW
2. Dr Pudi Hari Prasad Joint Secretary (ESW)
3. Sh. Rajesh Sharma Addl. FA (RS) & JS
4. Maj Gen N R Indurkar MD ECHS
5. Col PK Mishra Director, ECHS
6. Sh. Ambarish Barman Director (Budget)
7. Sh. Subhash Kumar OSD (Budget)

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2. As the Chairperson of the Committee was not able to attend the Sitting, Lt. Gen Dr.
D P Vats (Retd.) was appointed as the Acting Chairperson for the Sitting, by the Members
of the Committee present during the Sitting, citing Rule No. 258(3) of the Rules of
Procedure and Conduct of Business in Lok Sabha on Parliamentary Committees.

3. The Acting Chairperson then welcomed the Members of the Committee and informed
them of the agenda for the Sitting. The Committee then invited the representatives of the
Ministry of Defence. The Chairperson welcomed them to the Sitting of the Standing
Committee on Defence and requested them to brief the Committee on various issues
included in the agenda for the day and drew their attention to Direction 55(1) of the
Directions by the Speaker, Lok Sabha.

4. The representatives of the Ministry of Defence then gave a Power Point Presentation
on Defence Procurement Policy. This was followed by extensive discussion on following
points:

i Emphasis on Atmanirbhar Bharat- Indigenisation of the Defence equipment

and self reliance in Defence;
ii Ease of doing business;
iii Push for Domestic Ecosystem and offsets;
iii Decrease in the procurement of defence equipment from foreign industries
and promotion of domestic industries;
iv Revision of the Defence Acquisition Procedure;and
v. Emphasis on Integrated Defence Capability Plan and Obsolescence
Management

5. Thereafter, the representatives of the Ministry of Defence commenced their briefing

through a Power Point Presentation was made by the representatives of the Department of
Ex-Servicemen Welfare. This was followed by detailed deliberations on following issues:

i. Budgetary grants for the Department of Welfare of Ex-Servicemen;

ii. Details of Agniveer Scheme and their placement;
iii. Placement opportunities and the process of resettlement for Ex-Servicemen;

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 iv. Filling up of vacancies in Group B and Group C Non-Gazetted posts which are
reserved for Ex-Servicemen;
v. Lack of uniformity in the States/UTs regarding ex-gratia monetary
benefits/compensation to the martyrs in the country; and
vi. Role and responsibilities of Kendriya, Rajya and Zilla Sainik Boards.

6. Thereafter, a Power Point Presentation on Ministry of Defence-Pension was made

by representatives of Ministry of Defence. This was followed by extensive discussion on
the following issues:

i. Various components of the Defence Pension;

ii Implementation of SPARSH for defence pensioners;
iii Issues related with One Rank One Pension (OROP);and
v. Details regarding Equalisation of Pension.

7. Subsequently, a Power Point Presentation was made by the representatives of the

Ex-Servicemen Contributory Health Scheme (ECHS) under Ministry of Defence, which was
followed by discussion on following issues:

i. Budgetary grants and the utilization of funds under Ex-Servicemen

Contributory Health Scheme (ECHS);
ii. Vacancies of specialists in Polyclinics;
iii. Denial of services by the private empanelled hospitals to the ECHS
beneficiaries;
iv. Creation of Integrated Complexes;and
v. ECHS/facilities boarded out and/or medically unfit cadets.

8. The Chairperson thanked the Defence Secretary, General Officers and other Officers
for extensive discussion and directed the representatives of the Ministry of Defence and
other organizations to furnish written replies to all the queries at the earliest.

The witnesses then withdrew.

A copy of verbatim record of the proceedings has been kept.

The Committee then adjourned.

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 STANDING COMMITTEE ON DEFENCE (2022-23)

MINUTES OF THE SEVENTH SITTING OF THE STANDING COMMITTEE ON

DEFENCE (2022-23)

The Committee sat on Thursday, the 16 March, 2023 from 1500 hrs. to 1530 hrs. in
Committee Room No. ‘C’, Parliament House Annexe, New Delhi.

PRESENT

SHRI JUAL ORAM – CHAIRPERSON

MEMBERS

LOK SABHA

2. Shri Nitesh Ganga Deb

3. Shri Rahul Gandhi
4. Shri Annasaheb Shankar Jolle
5. Choudhary Mehboob Ali Kaiser
6. Shri Rattan Lal Kataria
7. Prof.(Dr.) Ram Shankar Katheria
8. Kunwar Danish Ali
9. Shri Reddeppa Nallakonda Gari
10. Shri Uttam Kumar Reddy Nalamada
11 Shri Jugal Kishore Sharma
12 Shri Prathap Simha
13. Shri Brijendra Singh

RAJYA SABHA

13. Dr. Ashok Bajpai

14. Shri Sushil Kumar Gupta
15. Shri Venkataramana Rao Mopidevi
16. Shri Kamakhya Prasad Tasa
17. Dr. Sudhanshu Trivedi
18. Smt. P.T. Usha
19. Shri G.K.Vasan
20. Lt. Gen. Dr.D.P.Vats (Retd.)

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 21. Shri K.C. Venugopal

SECRETARIAT

1. Smt. Suman Arora - Joint Secretary

2. Dr. Sanjeev Sharma - Director
3. Shri Rahul Singh - Deputy Secretary

2. At the outset, the Chairperson welcomed the Members of the Committee and
informed them about the agenda for the Sitting. The Committee then took up for
consideration the following draft Reports:-

(i) ‘Action Taken by the Government on the

Observations/Recommendations contained in the Twenty-ninth Report
on Demands for Grants of the Ministry of Defence for the year 2022-23
on ‘Directorate of Ordnance (Coordination and Services)-New DPSUs,
Defence Research and Development Organisation (DRDO), Directorate
General of Quality Assurance (DGQA) and National Cadet Corps (NCC)
(Demand No. 20)’;

(ii) Demands for Grants of the Ministry of Defence for the year 2023-24 on
‘General Defence Budget, Border Roads Organisation, Indian Coast
Guard, Defence Estates Organisation, Defence Public Sector
Undertakings, Welfare of Ex-Servicemen and Defence Pension (Demand
Nos. 19 and 22)’;

(iii) Demands for Grants of the Ministry of Defence for the year 2023-24 on
‘Army, Navy, Air Force, Joint Staff, Ex-Servicemen Contributory Health
Scheme and Sainik Schools (Demand Nos. 20 and 21)’;

(iv) Demands for Grants of the Ministry of Defence for the year 2023-24 on
‘Capital Outlay on Defence Services, Procurement Policy and Defence
Planning (Demand No. 21)’;and

(v) Demands for Grants of the Ministry of Defence for the year 2023-24 on
‘Directorate of Ordnance (Coordination and Services)–New DPSUs,
Defence Research and Development Organisation and National Cadet
Corps (Demand Nos. 20 and 21)’.

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3. After some deliberations, the Committee adopted the above reports without any
modifications.
***Does note pertain to the report***

4. The Committee authorized the Chairperson to finalise the above draft Reports and
present the same to both the Houses of Parliament on a date convenient to him.

The Committee then adjourned.

********

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