Deliver within a year or face foreclosure: Defence Secy to firms
The Indian defence sector has been marred by delays in the delivery of orders, a trend that has been observed not only in domestic companies but also in foreign firms. In a bid to tackle this issue, Defence Secretary Rajesh Kumar Singh has taken a tough stance, warning companies that they must deliver their orders within a year or face foreclosure. This move is aimed at streamlining the defence procurement process and ensuring that the Indian armed forces receive the equipment and supplies they need in a timely manner.
According to Singh, the defence ministry has taken a firm stand in the current round of purchases, making it clear that delays will no longer be tolerated. “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 clear message to companies that they must prioritize their orders and ensure that they are delivered on time.
The issue of delayed deliveries is not a new one in the Indian defence sector. Over the years, there have been numerous instances of companies failing to meet their deadlines, resulting in significant delays in the procurement process. This has not only affected the Indian armed forces but also had a ripple effect on the entire defence ecosystem. The delays have resulted in cost overruns, reduced operational effectiveness, and compromised national security.
The problem is not limited to domestic companies alone. Foreign firms have also been guilty of delayed deliveries, citing a range of reasons from technical issues to logistical problems. However, the Defence Secretary has made it clear that such excuses will no longer be accepted. The ministry is keen to ensure that companies, regardless of their origin, adhere to the timelines agreed upon in the contracts.
The move to foreclose orders that are not delivered within a year is a significant step towards reforming the defence procurement process. It is expected to have a deterrent effect on companies, prompting them to prioritize their orders and ensure that they are delivered on time. The ministry is also working on other initiatives to streamline the procurement process, including the introduction of new policies and procedures aimed at reducing delays and increasing transparency.
The Indian defence sector is one of the largest and most complex in the world, with a vast array of stakeholders involved in the procurement process. The sector is responsible for acquiring equipment and supplies worth billions of dollars every year, and any delays in the delivery of these orders can have significant consequences. The Defence Secretary’s warning to companies is, therefore, a welcome move, as it is expected to bring about much-needed discipline and accountability in the sector.
The Indian government has been working to reform the defence sector, with a focus on increasing indigenization and reducing dependence on foreign suppliers. The government has set a target of achieving 70% indigenization in the defence sector by 2025, and the move to foreclose orders that are not delivered on time is seen as a step towards achieving this goal. By promoting domestic manufacturing and reducing reliance on foreign suppliers, the government hopes to create a more sustainable and self-reliant defence ecosystem.
In conclusion, the Defence Secretary’s warning to companies to deliver their orders within a year or face foreclosure is a significant step towards reforming the defence procurement process. The move is expected to bring about much-needed discipline and accountability in the sector, and is seen as a step towards achieving the government’s goal of increasing indigenization and reducing dependence on foreign suppliers. As the Indian defence sector continues to evolve and grow, it is essential that companies prioritize their orders and ensure that they are delivered on time, lest they face the consequences of foreclosure.
News Source: https://www.ndtvprofit.com/amp/business/defence-secretary-warns-industry-deliver-in-a-year-or-face-foreclosure
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