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IAF for new defence procurement policy

Last Updated: Monday, April 15, 2013 - 21:42

New Delhi: Notwithstanding opposition from BJP for having `life cycle cost` clause in tenders for military hardware, IAF today advocated for the new defence procurement policy saying it will help the country in getting full value for its money.

Recently, BJP leader Yashwant Sinha had questioned the policy in tenders including in one for the 126 Multi-Role Medium Combat Aircraft (MMRCA) expressing fears that it could be misused for corruption.

The clause about the LCC or the Total Cost of Acquisition (TCA) is the best way to move forward in terms of military acquisitions as it gives full value of money to the country, IAF officials said here.

They said there were seven heads under which the LCC was calculated and gives a clear picture about the cost of ownership of military hardware over the period of 30-40 years, they said.

The officials said the policy allows the forces to buy system which can be costly in terms of procurement but are cheaper to operate in the long run.

IAF compared LCC process with the demand for diesel cars, which are more expensive than petrol cars but are cheaper to operate due to low price of the fuel on which they run.

IAF said LCC was also the part of the Defence Procurement Procedure (DPP) and was being applied in all the tenders for aircraft and helicopters being procured by the force.
The BJP leader had written to Antony, raising a number of questions over the "conceptual shift" in the defence procurement policy.
He had expressed apprehensions about misuse of the new clause close on the heels of a major scam that unfolded in the Defence Ministry`s VVIP helicopter deal with Anglo-Italian company AgustaWestland.


First Published: Monday, April 15, 2013 - 21:42

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