Procurement of defence equipment is done from various indigenous as well as foreign sources in accordance with the Annual Acquisition Plan (AAP). This is a continuous process undertaken for modernization of the Armed Forces to keep them in a state of readiness to meet any eventuality.

Defence equipment has been imported from various countries including Russia, USA, Israel, France, United Kingdom, Germany, Poland, Singapore etc. during the last three years. Value of importsduring 2008-09 till 2010-11 is indicated below:

(Rs. in crore)

There are contractual provisions for Pre-Despatch Inspection (PDI) and Joint Receipt Inspection (JRl) before acceptance of any equipment. Contractual provisions also provide for levy of liquidated damages and invoking of Performance bond and Warranty bond if any equipment is found defective.

Several steps are being taken by the Government to promote manufacture of defence equipment within the country. Defence Production Policy has been announced in January, 2011 to encourage indigenous manufacture of defence equipment. 'Buy & Make (Indian)' and 'Make' categories have also been introduced in the Defence Procurement Procedure. For foreign procurement cases, transfer of Technology is sought, wherever required. The "Offset" policy also encourages indigenous production.

This information was given by Minister of Defence Shri A K Antony in a written reply to Shri Ramesh ViswanathKatti and Dr.Mahendrasinh P. Chauhan in Lok Sabha today.

PK/NN