Defence procurement from foreign sources reducing, shows govt data

The expenditure on defence procurement from foreign sources has reduced from 46% of the overall expenditure in 2018-19 to 36.7% as per data till December last, according to government data

The expenditure on defence procurement from foreign sources has reduced from 46 per cent of the overall expenditure in 2018-19 to 36.7 per cent as per data till December last, according to government data.

Minister of State for Defence Ajay Bhatt, replying to a question in Rajya Sabha on Monday, listed 155mm Artillery Gun system 'Dhanush'', Light Combat Aircraft Tejas, surface-to air missile system 'Akash', main battle tank 'Arjun', T-90 tank, T-72 tank and Cheetah helicopter as indigenous key defence projects.

"The expenditure on defence procurement from foreign sources has reduced from 46 per cent of overall expenditure in 2018-19 to 36.7 per cent as per data till December, 2022," he said on Monday.

Last month, Bhatt said Kalashnikov AK-203 rifles for Indian armed forces were under manufacturing and testing stage at an Indo-Russian joint venture at Korwa in Uttar Pradesh.

Bhatt said the Indo-Russian Rifles Private Ltd (IRRPL) has established all facilities to commence production of indigenised assault rifles.

"Indo-Russian Rifles Private Limited (IRRPL) is a joint venture company established for indigenous production of AK-203 Rifles. IRRPL has established all facilities to commence production of indigenized assault rifles at Korwa, Uttar Pradesh," Bhatt said.

"The Rifles are currently under manufacturing and testing stage," he said.

To a separate question, he said India regularly interacts with friendly foreign countries (FFCs) to enhance defence industrial cooperation.

"The defence industrial cooperation with FFCs aims at development of new technologies, Research and Development, co-development and co-production, promotion of defence exports, establishment of joint-ventures, integration of Indian MSMEs and startups in global supply chain," Bhatt said.

To a separate question, Bhatt said there are 15 offset agreements in defence deals signed during the last five years.

The total contracted offset amount from the year 2017 to 2022 in 15 offset agreements with nine foreign vendors is USD 1.86 billion.

"Further details being sensitive and strategic in nature, cannot be disclosed," he said.

"Out of the 15 offset agreements, the cumulative percentage of claims fulfilled are 175.48 per cent. However, the specific liability in some of these offset agreements still pending is INR 89.08 crore," he said.