Army concludes 70 schemes under EP-4 worth ₹11,000 crore

Source: The post is based on the article “Army concludes 70 schemes under EP-4 worth ₹11,000 crore” published in “The Hindu” on 9th October 2023

What is the News?

The Indian Army and Air Force have completed the fourth phase of Emergency Procurements (EP) with the Army finalizing over 70 schemes worth nearly ₹11,000 crore and the Indian Air Force concluding 64 contracts worth around ₹8,137 crore.

What are Indian Armed Forces Emergency Procurement Powers?

Emergency Procurement Powers were granted to the Armed Forces by the Defence Ministry for the first time after the 2016 Uri terror attack, followed by the 2019 Balakot air strikes and the 2020 standoff with China in Eastern Ladakh. 

Under this, the armed forces could procure weapons systems up to ₹300 crore on an urgent basis without any further clearance to cut short the procurement cycle.

These emergency procurements have to be completed within 12 months as per the Defence Ministry’s stipulations. 

The armed forces are currently executing the fourth phase of the Emergency Procurements (EP).

What is the significance of these Emergency Procurements by these armed forces?

Emergency Procurements(EP) have not only ensured swift procurement but also led to cost savings primarily through procurement from the domestic defense industry.

Notably, about 50% of contracts in the first three tranches were awarded to domestic vendors, highlighting the increasing capability of the domestic defense industry

The major upgrades facilitated through the EP mechanism include various defense equipment, surveillance systems, UAVs, communication systems and more contributing to bolstering India’s defense capabilities.