Deliver within a year or face foreclosure: Defence Secy to firms
The Indian defence industry has been plagued by delays in order deliveries, affecting the country’s military preparedness and modernization plans. In a strong message to the industry, Defence Secretary Rajesh Kumar Singh has warned companies that they must deliver orders within a year or face foreclosure. This tough stance is aimed at streamlining the procurement process and ensuring that the armed forces receive the equipment and platforms they need in a timely manner.
Singh’s comments come in the wake of a pattern of delayed orders by companies, both domestic and foreign. The Defence Secretary stated that in the current round of purchases, the government has taken a tough stand on this issue. “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.
The issue of delays is not limited to domestic companies, but also extends to foreign vendors. Singh noted that delays are not only domestic but also from abroad, highlighting the need for a more efficient and reliable procurement process. The Defence Secretary’s warning is a clear indication that the government will no longer tolerate delays and will take strict action against companies that fail to meet their delivery schedules.
The Indian defence industry has been growing rapidly in recent years, with the government investing heavily in modernizing the armed forces. However, the sector has been plagued by issues such as bureaucratic red tape, corruption, and delays in order deliveries. The government has been working to address these issues, with initiatives such as the “Make in India” program and the Defence Procurement Procedure (DPP) aimed at promoting indigenous manufacturing and streamlining the procurement process.
Despite these efforts, delays continue to be a major problem. The Comptroller and Auditor General (CAG) has repeatedly highlighted the issue of delays in its reports, noting that many defence projects have been delayed by several years, resulting in significant cost overruns. The CAG has also pointed out that the delays have affected the military’s operational preparedness and have compromised national security.
The Defence Secretary’s warning to companies is a welcome move, as it sends a strong signal that the government will no longer tolerate delays. The move is also expected to promote a culture of accountability and efficiency in the defence industry. Companies will now be under pressure to deliver orders on time, and those that fail to do so will face foreclosure.
The government’s tough stance on delays is also expected to benefit the armed forces, which will receive the equipment and platforms they need in a timely manner. This will enhance the military’s operational preparedness and enable it to respond effectively to emerging security challenges.
In conclusion, the Defence Secretary’s warning to companies to deliver orders within a year or face foreclosure is a significant development in the Indian defence industry. The move is aimed at streamlining the procurement process and promoting a culture of efficiency and accountability in the sector. As the Indian defence industry continues to grow and evolve, it is essential that companies deliver orders on time to meet the needs of the armed forces. The government’s tough stance on delays is a welcome move, and it is expected to have a positive impact on the sector.
News Source: https://www.ndtvprofit.com/amp/business/defence-secretary-warns-industry-deliver-in-a-year-or-face-foreclosure
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