NEW DELHI (Sputnik) — Cabinet Committee on Security headed by Prime Minister Narendra Modi has increased the financial powers of Defense Minister Manohar Parrikar from $ 75.15 million $ 300 million. The decision will fast track the defense deals which is necessary to speed up the process of modernization of armed forces.
Now India's Defense Minister will have the power to clear the defense deals worth $ 300 million at his discretion without taking clearance from the Cabinet Committee of Security.
Defence Budget 2017-18: Beyond the Numbers by Amit Cowshishhttps://t.co/EY7sditLeY#budget #india pic.twitter.com/yBlZkgEVgJ
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After the decision, almost 50 percent of the defense deals would be cleared at the Defense Minister level.
"It has been increased to two thousand crores [$ 300 million] so it will take care of smaller projects. It is good but the only thing is that problem is not so much with the smaller projects but the problem is with the bigger projects as these are not within the Defense Minister's power. The issue of bigger platforms will continue to be where it is," Amit Cowshish, former Financial Advisor [Acquisition], Ministry of Defense and presently Distinguished Fellow with the Indian Institute for Defense Studies told Sputnik.
Amit Cowshish is optimistic about the decision but clarifies that it will not be of great help in armed forces modernization process.
"If you buy little things it will not add up to the overall modernization of the armed forces. Across the board you need weapons and platforms and most of which costs more than the said amount. So while some smaller project may go through more easily but the bigger projects such as procurement of aircrafts, submarines, guns etc that is not going to be covered by these powers. It's a good thing, there is no question about it, but it should not be treated as a panacea for all the problems which are besetting modernization," Amit Cowshish added.
But the decision will definitely boost the development of equipment and weapons system in India, he added.
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"It will be more helpful under the ‘Make Procedure' which is for the indigenous design and development of equipment and weapons system in India. This will help in launching more ‘Make Projects' in which the cost of development is funded by the government and cost of development is generally not more that Rs 2000 crores ($ 300 million)," Amit Cowshish, former Financial Advisor (Acquisition), Ministry of Defense told Sputnik.
