Next round of Emergency Procurements to be from Indian industry, they have risen to the challenge: Army Chief

Army Chief Gen. Manoj Pande said in the last three to four years indigenous contracts have grown almost three times.

The Army, which has made three tranches of Emergency Procurements (EP) in the last few years, is preparing for a fourth round of EP which will all be from the indigenous industry, Army Chief Gen. Manoj Pande said on October 20. He also said that orders worth ₹7-8 lakh crore will be placed with Indian industry in the next seven to eight years.

“Emergency Procurements are done to address critical operational requirements. Three tranches of EPs were executed under which 68 contracts worth ₹6000 crores were placed. We are now in the 4th EP for indigenous equipment. Our industry has risen to the challenge,” Gen. Pande said speaking on the sidelines of the DefExpo-2022. “We also need to indigenise to modernise. It should not be seen as an impediment, but as an opportunity.”

The Russia-Ukraine war taught us lot of lessons, the Army Chief said on becoming self reliant. Not just maintenance and spares but also in terms of new acquisitions. He said they are working indigenisation of ammunition and looking for alternate sources of spares among others.

The indigenisation effort in defence manufacturing is an ecosystem and there are four foundational pillars, the source which are resource allocation, enabling policies, viable market, and competition. “When all of these come together, we get good products,” he said.

Stating the Army is a facilitator for implementing Government policies, Gen. Pande said the other aspect is creating a viable market and that is where the focus on indigenisation comes in.

Elaborating on efforts in this direction, Gen. Pande said in the last three to four years indigenous contracts have grown almost three times.

Last year, Acceptance of Necessity (AoN) for various contracts to the tune of ₹40,000 crores were issued from domestic industry. “Similarly, last year Army signed contracts with indigenous industry to the tune of ₹47,000 crores. In the next 7-8 years about ₹7-8 lakh crore potential contracts could place with the Indian industry. So in terms of a viable market, there is great potential in the industry….” Gen Pande said.