'Deliver In A Year Or Face Foreclosure': Defence Secretary Issues Tough New Procurement Warning

Amid a pattern of delayed orders in the defence industry, Defence Secretary Rajesh Kumar Singh said that in the current round of purchases if any delivery is not completed within one year, then the contract will be foreclosed. He expects this to help bring some accountability in these delivery milestones.

Speaking on Integrated Theatre Commands of the Indian Armed Forces, at ANI's National Security Summit, he said, "In the current round of purchases we have taken a tough stand that in any case where delivery is not done within one year, will all be foreclosed and I am intend to ensure it is done."

He also added that in order to bring some change the department needs to tag down much more and apply the LD clauses in case of a delay. This according to him will be regardless of the country or company delivering the order.

Discussing the issue further Singh said, "The delays are not only by domestic manufacturers. You've seen the S-400s getting delayed due to conflicts. Israel's orders are also delayed due to the conflicts it is facing; there are supply chain issues with the general electric engines."

He noted that there is a general tendency of 'overpromising' and then 'underdelivering'.

While he was asked about India's indigenous jet engine project, he said that the process of finalising the program with a leading international engine house to co-develop a 120KN jet engine and produce it domestically is ongoing. He further said, "The decision on Kaveri (engine project), the DRDO has made since they have not been able to reach the required thrust to weight ratio, they will use it for their U-CAV program..."