The Indian MoD is considering spending $233 billion over the next 11 years on new equipment, including warships, fighter jets, submarines, aircraft carrers and about 500 helicopters
The amount is projected as part of financial requirements for the long term integrated perspective plan (LTIPP) for the period 2012 to 2027, Tribune newspaper reported Tuesday.
Also, the MoD seeks an annual 8 per cent hike in existing capital spending that allocated in each year’s budget.
Under this new plan, the MoD has set a target for inducting 170 fighter jets for the IAF, 12 more submarines, 500 various types of helicopters, artillery guns and tanks for the Indian Army and indigenous sea-borne aircraft carrier meant for the Army, Navy and the Indian Air Force (IAF).
The capital spending for the present fiscal ending March 31, 2017 is approximately $12.69 billion. The entire planned hike for the next 11 years will average out to an annual spend of $20.27 billion.
The move comes after Defence Minister Manohar Parrikar has informed the Ministry to layout the financial cost of the military equipment acquisition planned and bring it ‘within sync’ of the existing average hikes possible in the Union Budget.
“An annual hike of 8 per cent for capital spending is within sync of the anticipated hikes that for now vary on a year-to-year basis,” Parrikar added.
The LTIPP lists out the required equipment but it lacks the detailed cost of each one. LTIPP already has a Technology Perspective Capability Road Map (TPCRM) to enable the Defence Research and Development Organisation (DRDO), the Defence Public Sector Unit and the private industry to plan their research and development.
The LTIPP has also laid down the expected provisions of the services and their outcome. Further, It enlists capabilites and expected time frames and weather these options can be achieved by indigenous development or by procurement from abroad. However, if targets form copters, submarines, fighter jets, warships and aircraft carrier, the plan is ‘Make in India’. Various joint ventures are being encouraged with foreign manufacturers.
The MoD has also laid a plan to cut unnecessary expenditure by combining together procurement of three services to prevent duplication of efforts and wasteful expenses.