Expectation from the Budget for the Defence Sector
Author(s): City Air NewsMr.R.D.VAKIL, Director (Marketing), Solar Industries India Limited: " Last year the budget was Rs.2.58 Lakh crores of which Rs.88,000 crores was for Capital expenditure. In the last four years Rs.35,000 crores capital...
Mr.R.D.VAKIL, Director (Marketing), Solar Industries India Limited: " Last year the budget was Rs.2.58 Lakh crores of which Rs.88,000 crores was for Capital expenditure. In the last four years Rs.35,000 crores capital expenditure has not been utilized and there is a 10% lapse every year. The procurement system must be streamlined to ensure that the budget lapse is not more than 2 – 3%.
Government has strongly made a pitch for ‘Make in India’ program and those companies which ventured into defence production should be encouraged by way of
(a) A moratorium on principal payment of loans to 2 – 3 years.
(b) IT exemption for similar periods as defence procurement the gestation period is very large due to various testing and validation processes.
(c) Country has acute shortage of ammunition. Hence we expect the budget to increase by 10% as defence preparedness is on top priority with the Government."