Deliver within a year or face foreclosure: Defence Secy to firms
In a stern warning to companies, Defence Secretary Rajesh Kumar Singh has stated that any delays in delivering orders will not be tolerated, and firms that fail to meet the one-year deadline will face foreclosure. This warning comes as a response to the persistent pattern of delayed orders by companies, both domestic and international.
Singh’s statement is a clear indication of the government’s intention to crack down on companies that fail to meet their contractual obligations. “In the current round of purchases, we have taken a tough stand…in any case where delivery is not done within one year, [it] will all be foreclosed and I intend to ensure it is done,” he said. This statement sends a strong message to the industry that the government will no longer tolerate delays and will take strict action against defaulters.
The issue of delayed orders is not a new one, and it has been a persistent problem in the defence sector. Companies, both Indian and foreign, have often failed to meet their delivery timelines, causing significant delays in the procurement process. This not only affects the modernization of the armed forces but also puts a strain on the country’s defence preparedness.
The Defence Secretary’s warning is particularly significant, given the fact that India is one of the largest importers of defence equipment in the world. The country has been trying to reduce its dependence on foreign suppliers and promote indigenous production, but the delays in delivery have hindered this effort. The government has been pushing for faster delivery of equipment and systems to the armed forces, but the industry has often failed to meet these expectations.
Singh’s statement is also a reflection of the government’s frustration with the slow pace of defence modernization. The armed forces have been facing significant challenges in terms of equipment and technology, and the delays in delivery have only added to these problems. The government has been trying to address these issues through various initiatives, including the “Make in India” program, which aims to promote indigenous production of defence equipment.
However, the industry has often cited various reasons for the delays, including technical issues, supply chain problems, and bureaucratic hurdles. While these may be valid reasons, the government is no longer willing to accept them as excuses for non-performance. The Defence Secretary’s warning is a clear indication that the government expects the industry to deliver on its promises, and any failure to do so will result in severe consequences.
The warning is not limited to domestic companies alone; foreign firms have also been put on notice. Singh stated that delays are not only domestic but also from abroad, indicating that the government will take a tough stand against all companies, regardless of their nationality. This is significant, given the fact that many foreign companies have been supplying defence equipment to India, and any delays in delivery can have serious implications for the country’s defence preparedness.
The government’s tough stand on delays is also reflected in the new defence procurement policy, which emphasizes the need for timely delivery of equipment and systems. The policy states that companies that fail to meet their delivery timelines will be penalized, and in severe cases, their contracts may be terminated. This policy is designed to ensure that the armed forces receive the equipment and systems they need in a timely manner, and that the industry is held accountable for its performance.
In conclusion, the Defence Secretary’s warning to companies to deliver within a year or face foreclosure is a significant development in the defence sector. It reflects the government’s frustration with the slow pace of defence modernization and its determination to hold the industry accountable for its performance. The warning is a clear indication that the government will no longer tolerate delays and will take strict action against defaulters. As the country continues to modernize its armed forces, it is essential that the industry delivers on its promises, and the government’s tough stand on delays is a step in the right direction.
News Source: https://www.ndtvprofit.com/amp/business/defence-secretary-warns-industry-deliver-in-a-year-or-face-foreclosure
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