Army modernisation plans hit by Rs 6,500-cr cut

The list for infantry included 350 hand-held thermal cameras, about 300 short-range radars and over 100 anti-material rifles used largely to destroy bunkers. These were to be procured mostly from Israel. This apart, 1,000 special boots needed for mining and demining operations as well as a deal for new night-vision devices now stand frozen.

Sources say the delay in procuring these equipment — crucial to the Army’s counter-insurgency operations — is going to have a direct impact on the troops committed in Jammu and Kashmir and the North-East. Not only does constant upgradation minimise casualties, sources added, it also beefs up the armoury of tactical options available with the forces in these areas.

If the infantry has immediate problems, the artillery is despairing over the fact that its next lot of new self-propelled guns, to be procured from South Africa, are now stuck. Again the 10 per cent initial amount scheduled for payment this March is not available. The overall deal is for 280 guns with 50 per cent capable to move on tracks while the rest would be wheeled.

Another major acquisition for the artillery, 12 Smerch multi-barrel rocket launchers, too, could not go through due to a last-minute revision in previous year’s defence budget.

It is understood that usually an initial 10 per cent amount is paid on every arms deal. This ensures forward movement on the contract and the first batch of the equipment arrives normally within 18-24 months of this payment. With a budget of about Rs 3,500 cr allocated for modernisation projects, sources said, the withdrawal of Rs 6,500 cr meant a deduction of over Rs. 2,000 cr from this category. After paying up the several defence-related public sector units for procuring existing equipment, there was nothing left in the cash boxes.

The picture for next year also appears gloomy for the Army with two instalments of dearness allowance also to be paid to all personnel. It is understood that the modernisation component of the Army’s budget could drop to somewhere in the vicinity of Rs 1,000 cr to Rs 1,500 cr. According to experts, such a sharp fall will have a devastating impact on long-term modernisation plans. These schedules of procurement are worked out well in advance.