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This is an archive article published on March 29, 2012
Procurement stuck,Army had to return Rs 3,000 cr
Plagued by delays and shortages,the Army suffered another blow this year in the form of budget cuts.
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Procurement stuck,Army had to return Rs 3,000 cr
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Plagued by delays and shortages,the Army suffered another blow this year in the form of budget cuts. Even as Army Chief V K Singh brought to the notice of the Defence Ministry deficiencies in its armoury that had to be addressed urgently,the Army was told to surrender over Rs 3,000 crore from its capital budget in 2011-12 by the Finance Ministry.
In one of his letters to the Defence Ministry,Singh has reportedly protested this reduction in the Armys share of the ministrys Rs 69,199 crore budget. The money had to be returned as several procurement projects were stuck. Three major purchases got stuck at critical stages this year,due to which Rs 3,000 crore had to be returned.
Light Observation Helicopters: The process of replacing the Cheetah/Chetak choppers has been hanging fire since 2005. Despite the Army completing field trials and evaluation reports by mid 2011,procurement is stuck due to a series of anonymous complaints.
Ultra Light Howitzers: The deal for 150 light guns from the US is stuck. Despite completion of field trials,procurement is stuck as the Defence Ministry is seeking legal opinions after blacklisted firm Singapore Technologies approached the courts.
Self Propelled Howitzers: After a decade,the Army had zeroed in on two manufacturers Rheinmetall and Konstructa. With Rheinmetall under the scanner,procurement process got delayed.
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