## ANNUAL REPORT 2006–2007

##### Ministry of Defence

###### Government of India


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## CONTENTS

1. The Security Environment 1

2. Organisation and Functions of the Ministry of Defence 11

3. Indian Army 17

4. Indian Navy 27

5. Indian Air Force 35

6. Coast Guard 41

7. Defence Production 45

8. Defence Research and Development 65

9. Inter-Service Organisations 87

10. Recruitment and training 99

11. Resettlement and welfare of ex-servicemen 117

12. Cooperation between the armed forces and civil authorities 133

13. National Cadet Corps 141

14. Defence Cooperation with Foreign Countries 151

15. Ceremonial and other Activities 157

16. Activities of Vigilance Units 169

17. Empowerment and Welfare of Women 173

**Appendix**

I. Matters Dealt by the Departments of the Ministry of Defence 179

II. Ministers, Chiefs of Staff and Secretaries 183
who were in Position from April 1, 2006 onwards

III. Summary of Latest Comptroller & Auditor General 184
(C&AG) Report on the Working of Ministry of Defence


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###### THE SECURITY ENVIRONMENT

Army soldiers guarding the icy frontiers in Siachen


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###### ndia shares land borders with seven countries - including Bangladesh (4096 kms), China (3439

# I

###### kms), Pakistan (3325 kms) and Myanmar (1643 kms)
 - and maritime borders with five countries.


1.1 India’s national security environment is
determined by a complex interplay of its
geographical attributes, historical legacy, and
socio-economic circumstances as well as regional
and global developments. India is the seventh
largest country in the world with a land area of
3.2 million square kilometres, a land boundary of
15,000 kilometres, peninsular coastline of 7700
kilometres, 600 island territories and an Exclusive
Economic Zone of 2.5 million square kilometres.
Some of the island territories in the east are 1300
kilometres away from the mainland and virtually
adjacent to India’s ASEAN neighbours. India
shares land borders with seven countries including Bangladesh (4096 kms), China (3439
kms), Pakistan (3325 kms) and Myanmar (1643
kms) - and maritime borders with five countries.

1.2 Given the size of the country and its role
in the comity of nations, our security concerns
and interests are not limited to our immediate
neighbourhood. India’s area of security interest
clearly extends beyond the confines of the
conventional geographical definition of South
Asia. Given its size, geographical location, trade
links and the EEZ, India’s security environment
extends from the Persian Gulf to the straits of
Malacca across the Indian Ocean, including the
Central Asian region in the North West, China in
the North East and South East Asia.

1.3 With geo-economics gaining precedence
over geo-politics, the tasking of defence forces
the world over, is undergoing a sea change. Our


Armed Forces are now playing a pivotal role in
creating stable conditions for the nation’s
economic development. With its economy
growing at over 8% per annum last year and set
to rise further, India’s one billion people are
increasingly becoming an engine of regional and
global growth and prosperity. Software,
manufacturing, agriculture, nuclear energy,
space, disaster management, maritime affairs,
entertainment and culture are only some of the
areas in which India’s role is becoming
increasingly vital for the region and the world.
With the steady growth of the Indian economy,
India has now a significant stake in a stable world.

1.4 There are grave challenges facing the
region. While India and some other littoral states
appear to be on a path of sustained economic
progress, high levels of poverty characterise most
of the region. As per rough estimates, it is also
the locus of 70% of the world’s natural disasters.
The presence of a number of nuclear weapon or
nuclear capable states makes the situation even
more critical. In fact India has to operate in a
neighbourhood fraught with chronic political
instability. There is also an apprehension that the
sources of conflict between the states will multiply
in the coming days as there will be an intense
competition among states for water and nonrenewable energy resources like oil. India has to
adopt a forward looking policy of constructive
engagement with all its neighbours to take on
these challenges in future.


-----

1.5 Unlike the other major oceans of the world,
the Indian Ocean is bounded by landmasses.
Flow of shipping into the Indian Ocean is impeded
by many sensitive choke points. Indian Ocean can
be accessed from the West only via the Cape of
Good Hope; from the North via the Straits of
Hormuz and the Persian Gulf; from the East via
the Straits of Malacca, the Sunda and LombokStraits and the Ombai-Wetar-Straits. It is well
known that oil is a critical factor in influencing the
geo-political strategies of a nation, and any
disturbance in its supply could have serious
security ramifications. Considering the fact that
India, China and Japan are relying on oil
shipments to push forward their economies, it is
natural that these countries are sensitive to the
security of the sea-lanes of communication
(SLOCs) and choke points of the region. Major
energy lifelines of the world, carrying 66% of the
total world oil trade, pass in close proximity to
India, thereby placing a prime responsibility


towards safety of this key energy flow. This can
only be achieved by having visible and potent
defence forces that can effectively deter attempts
by any state or non-state actors to destabilize the
trade routes. India is a major maritime country in
Asia, with blue water – capable Navy,
commensurate with its responsibilities and
commitments. Apart from the geo-strategic
importance of the straits, the increased incidences
of maritime crime are prompting several regional
and extra-regional countries to discuss and move
towards maritime security cooperation.

1.6 It is a fact of life that the end of the Cold
War has not made the world any safer.
Proliferation of weapons of mass destruction and
missiles and their related technologies continue
to threaten regional and international security.
India is deeply concerned at the nuclear test
conducted by DPRK in violation of its international
commitments. The test confirms vividly the true


Infantry soldiers crossing a riverine obstacle in the North East


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extent and depth of clandestine transfers that
have taken place to DPRK. India has all along
expressed its concern regarding such
proliferation. At the global level there is a wider
recognition of India as a responsible power and
a growing desire to work with India to eliminate
such threats. India has expressed its readiness
to be part of any constructive effort at the
international level to ensure regional and global
security.

1.7 At a time when the international scenario
is surcharged with violence, insecurity and
tension, it is comforting to see in
our immediate neighbourhood that **_At the global level_**
the political violence and social **_there is a wider_**
turmoil in Nepal have tapered out,
with political space opening up for **_a responsible power_**
popular democracy. It is
encouraging to see the **_to work with India to_**
reconciliation process between the **_eliminate nuclear_**
Seven Party Alliance and Maoists **_threats. India has_**
moving ahead. However, the **_expressed its_**
overall security environment in our
immediate and extended
neighbourhood has continued to **_at the international_**
deteriorate over the years and **_level to ensure_**
there is a need to continuously **_regional and global_**
monitor and analyze developments **_security._**
impinging upon our security. The
menace of international and cross-border
terrorism is growing rapidly in all parts of the world,
both in magnitude and in sophistication. Similarly,
employment of subversive tactics for resolution
of inter-state disputes is continuing. All these
factors pose new challenges to international
peace and security and need to be taken into
account for determining the role to be played by
India in the future.

1.8 The global ascendancy in violence directly
impacts on India’s internal security scenario. The
violence level in the North East has shown a
marginal increase in 2006, mainly in Assam and


Nagaland . Terrorist violence was also witnessed
during the year in Varanasi, Mumbai, Malegaon
and other parts of India, in which the role of
externally supported terrorist groups was strongly
evident. Naxal violence is also an area of concern.
While the number of naxal violent incidents has
shown a marginal decrease in 2006, casualties
of civilians and security personnel have remained
at the same level as in 2005.

1.9 On the Jammu & Kashmir issue, India is
ready to look at options, short of redrawing the
boundaries. On 24 March 2006 and again on 20
December 2006 at Amritsar, the
Prime Minister declared India’s
readiness to find a pragmatic
solution to resolve the J&K issue. He
also envisaged a situation where the
two parts of Jammu & Kashmir can,
with active encouragement of the
governments of India and Pakistan,
work out cooperative, consultative
mechanisms so as to maximize the
gains of cooperation in solving
problems of social and economic
development of the region.

1.10 India is continuing to have
security concerns with Pakistan on
cross-border terrorism. Terrorist
groups continue to operate freely in
Pakistan. They also find shelter, support and
training for operations across the border/LOC
from elements in Pakistan. Recent incidents of
terrorism and suicide bombings in some countries
have demonstrated the ever-increasing reach of
Pakistan-based terrorist organisations, such as
the homegrown Lashkar-e-Taiba. India is
committed to peace, friendship and good
neighbourly relations with the people and the
government of Pakistan. In pursuance of this goal,
Government of India has taken a number of policy
initiatives. It has proposed several confidencebuilding measures aimed at enlarging the areas


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of convergence and building trust. We have
repeatedly reiterated the need for Pakistan to fulfil
its commitment outlined in the joint Press
Statement of 06 January 2004 of not permitting
the use of territory under its control to support
terrorism in any manner. In fact, the whole
dialogue process hinges on building an
atmosphere of trust and confidence, free from
violence and terror. Infiltration has to stop and
Pakistan needs to take decisive action on
dismantling the infrastructures of terrorism. For
an effective end to terrorism, the training camps,
launching pads and communication networks of
terrorist organizations must be eliminated. There
cannot be a segmented approach to terror.

1.11 In the wake of Mumbai blasts, Prime Minister
declared that the terror modules behind the dastardly
attacks in Mumbai on 11 July 2006 are instigated,
inspired and supported by elements across the
border. India has tried to impress upon the
Government of Pakistan that it is extremely difficult
for any Government to carry forward the peace
process unless acts of terrorism are controlled. As


a positive move, India and Pakistan have instituted
a Joint Anti- Terror mechanism in November 2006.
It is India’s hope that demonstrable action will be
taken by Pakistan against terrorism, and make this
mechanism work effectively.

1.12 India-China relations are progressing.
China today is India’s second largest trading
partner with over 20 billion US dollars worth trade
a year. Mr. Hu Jintao’s visit in November 2006 is
the first visit by a Chinese President to India in
ten years. The Joint Declaration issued during the
visit contains a ten-pronged strategy for the
development of the India-China “strategic and
cooperative partnership”. Earlier, Premier Wen
Jiabao’s visit to India in April 2005 had yielded an
important agreement on the political parameters
and guiding principles for the settlement of the
boundary question. The Memorandum of
Understanding (MoU) signed on the 29 May 2006
during the visit of Defence Minister to China
envisages regular and institutional contacts
between the armed forces and defence officials
and experts of the two countries. This MOU is


T-90 Tank exercising in desert terrain


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expected to serve as an instrument for a regular
and sustained dialogue on defence issues
between the two countries. Peace and tranquillity
continued along the long India-China border as
did differences in perception with regard to the
boundary issue.

1.13 China’s military modernisation, with
sustained double-digit growth in its defence
budget for over a decade and continued
upgradation of its nuclear and missile assets,
development of infrastructure in the India-China
border areas and its growing defence links with
some of India’s neighbours continue to be
monitored closely. The Chinese assistance to
Pakistan’s nuclear and missile programme has
been a matter of concern as it has adversely
impacted on India’s national security environment.
We have also taken note of the recent destruction
by China of one of its own satellites in polar orbit
through direct ascent anti-satellite test.

1.14 India is committed to developing close,
friendly and mutually beneficial relations with
Bangladesh. Although India appreciates the


commitment and assurance given by the
Government of Bangladesh that its territory will
not be allowed to be used for activities inimical to
India, we are yet to see the commitment being
translated into concrete and visible action. The
rise of fundamentalism in Bangladesh is a threat
not just to Bangladesh but also to the entire region
including India. India is seriously concerned about
the recent involvement of certain Bangladesh
outfits or nationals in terrorist activities within India.
India wishes to see a strong, stable and
prosperous Bangladesh. India will be happy to
extend all assistance and cooperation to help
Bangladesh achieve that goal.

1.15 India has very strong and traditional
people – to – people ties with Nepal, which also
extends to their armed forces. A unique feature
of this relationship is that we have open borders
and a large number of Nepalese citizens serve in
the Indian armed forces. We also play a key role
in training the Nepalese forces.

1.16 Momentous developments have taken
place in Nepal in the recent past. The people of


Patrolling along the fence at LOC in J&K


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Nepal have demonstrated their disenchantment
with monarchy and have asserted their rights to
adopt a more liberal form of democratic
government. As a result of this popular movement,
spearheaded by the Maoists of Nepal, a new
Seven Party Alliance government has been
formed.  We respect the wishes of the Nepalese
people in whatever future political arrangements
they choose. We wish to see a peaceful, stable,
and prosperous Nepal. The most important issue


confronting Nepal at the moment is the
rehabilitation of its economic, social and political
fabric and rapid economic and social
development. India is willing to provide necessary
assistance within its means, in Nepal’s effort to
move forward.

1.17 India – Afghanistan bilateral relations are
fast moving towards a partnership, which is very
special to us. A sovereign, stable, democratic
and prosperous Afghanistan is not
only in India’s best interest but also
essential for peace and stability in the
region. India has been closely
associated in Afghanistan’s
reconstruction. While India will not get
militarily involved in Afghanistan
without a UN mandate, it has been
fully involved in rebuilding
Afghanistan’s civil society, in the fields
of transportation, health, education
and industry, with a commitment of
over US$ 600 million in assistance in
these fields. We need to closely watch
the changing scenario in Afghanistan
since it has ramifications on the
security environment of the region.
We wish to see a strong Afghanistan
capable of protecting its frontiers and
citizens and becoming a democratic
and self-reliant member of the
international community.


1.18 India is concerned over the
escalation of violence in the recent
months in some parts of Afghanistan.
Indulgence in violence by remnant
elements of Taliban, Al-Qaeda and
Hizb-e-Islami continue to be the
primary source of insecurity. India is
particularly concerned about the antiIndia rhetoric being used by some of
Troops slithering down Army aviation helicopter these terrorist groups.


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1.19 Traditionally, India has
enjoyed friendly relations with its

**_associated in_**

southern neighbour Sri Lanka. In

**_Afghanistan’s_**

recent times, the relationship has
acquired a strong economic

**_India will not get_**

dimension. India has an abiding
interest in the security of Sri Lanka
and is committed to its unity,

**_UN mandate, it has_**

sovereignty and territorial integrity.
As regards the ethnic issue, India

**_rebuilding_**

favours a negotiated, political

**_Afghanistan’s civil_**

settlement that is acceptable to all
communities in Sri Lanka and which
respects democracy, pluralism and

**_education and_**

human rights.

**_industry, with a_**

1.20 With Bhutan, our ties are
historic and our relationship is **_US$ 600 million in_**
extremely close. These relations are **_assistance in these_**
conducted in a spirit of complete **_fields._**
mutual understanding and respect,
and rest on solid foundations.

1.21 Myanmar has considerable significance
for our strategic interests. Myanmar borders our


north-eastern states affected by
insurgency. In the past the
Myanmar army has conducted
operations against Indian insurgent
groups operating from Myanmar.
There have been regular
exchanges of high level visits and
a bilateral interaction mechanism in
defence cooperation is in place.

1.22 India – Maldives relations
are close and cordial. Both the
countries remain engaged in
developing infrastructure and
capacity building in the Maldives
through economic and technical
assistance programmes, besides
providing training facilities to
Maldivian nationals in various fields.

1.23 The security scenario in
the extended neighbourhood of India in
Southeast, East, West and Central Asia has been
closely watched, as it evolved during the year.
The conflicts in Iraq, the Israel – Palestine


Combat Manoeuvres by IN Ships during Defence of Gujarat Exercise 2006


-----

confabulations, West’s growing confrontations
with Iran and North Korea have impacted India’s
economic and energy security concerns
adversely. These developments are also a matter
of concern to us, as we share close cultural and
civilizational affinities with some of these troubled
states.

1.24 To sum up, India’s relationship with all
her neighbours is cordial and wide-ranging. There
are however, a few areas of increasing concern:

(a) Promotion of terrorism by fundamentalist
groups in the neighbourhood.

(b) Large scale human migration **_India hopes that its_**
into India across our borders, **_rapidly expanding_**
by people seeking a better
economic and stable life. **_and ties with all_**

(c) Proliferation of Weapons of **_friendly countries_**
Mass Destruction (WMD) and **_including its main_**
missiles, especially the
development of mobile and **_as France, Israel,_**
increasingly accurate solid
fuel missiles by Pakistan.

(d) Continuation of political

**_the security_**

instability in India’s neighbour
**_environment in the_**

hood.

**_region, but also the_**

1.25 An unprecedented **_global security_**
proliferation of narcotics and small **_scenario._**
arms trafficking in the region
threatens the stability of states and societies in
the region. India is located in the middle of the
world’s major narcotics producing and exporting
regions, viz., North West Pakistan and
Afghanistan on the one side and Myanmar on the
other. The involvement of insurgent and criminal
groups in the global drug trade is also a major
cause for concern. Militant training camps in
Taliban-controlled areas in Afghanistan are a
major source of international terrorist activities.

1.26 In the coming years, India hopes that its
rapidly expanding defence cooperation and ties


with all friendly countries including its main
defence partners such as France, Israel, Russia,
United States, and United Kingdom will enhance
not just the security environment in the region,
but also the global security scenario. India is
making every effort to enhance its defence ties
with its extended neighbourhood in Southeast
Asia, Northeast Asia, Central Asia, the Gulf and
Middle East regions. Within her means and
resources, India seeks to extend its ties with the
countries in other parts of the world including
Africa, Europe and Latin America by sharing with
them our growing expertise in
defence matters.

1.27 As India’s economy is
growing, it has an interest in a safe,
secure and stable neighbourhood.
India is ready to join any endeavour
at the regional or international level
to bring peace, prosperity and
stability to the region and the world.
India has a unique ability to evolve
as a peaceful, multi-cultural society,
a functioning democracy and a
vibrant economy. There is an
understanding gaining strength in
India that prosperity for only the
privileged is unsustainable. India is
prepared to share its experience with others in
the region and has invited its neighbours to
participate in its economy and to reap the benefits
of its growing market.

1.28 At the same time, we understand that a
strong defence is a necessary prerequisite for
growth and stability. In fact, India is fully alive to
issues concerning its defence and security and
is committed to raising the levels of its defence
preparedness to deter any potential threat
emerging from outside. In fashioning its nuclear
doctrine of credible minimum deterrence, India


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has demonstrated a defensive posture, restraint
and responsibility. India has a declared policy of
no-first-use of nuclear weapons and a firm
commitment to avoidance of nuclear weapons
against non-nuclear weapon states, except in the
event of major WMD attack. India is willing to
strengthen the commitment on no-first-use by
undertaking bilateral agreements as well as
engaging in discussions on a global no-first-use


agreement. India believes that a global no-firstuse agreement would be the first step towards
the delegitimisation of nuclear weapons. India’s
commitment to global, non-discriminatory nuclear
disarmament, which would enhance its security
and that of all states, remains unaltered. With
reference to recent developments, India has made
clear that it does not support the emergence of
new nuclear weapon states.


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###### ORGANISATION AND FUNCTIONS OF THE MINISTRY OF DEFENCE

Beating Retreat


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###### he principal task of the Ministry is to obtain policy directions of the Government on all defence and security related

# T

###### matters and communicate them for implementation to the Services Headquarters, Inter-Service Organisations, Production Establishments and Research & Development Organisations.


###### ORGANISATIONAL SET-UP AND FUNCTIONS

2.1 After independence Ministry of Defence
was created under the charge of a Cabinet
Minister, and, each Service was placed under its
own Commander-in-Chief. In 1955, the
Commanders-in-Chief were renamed as the Chief
of the Army Staff, the Chief of the Naval Staff and
the Chief of the Air Staff. In November 1962, a
Department of Defence Production was set up to
deal with research, development and production
of defence equipment. In November 1965, the
Department of Defence Supplies was created for
planning and execution of schemes for import
substitution of defence requirements. These two
Departments were later merged to form the
Department of Defence Production and Supplies.
In 2004, the name of Department of Defence
Production and Supplies was changed to
Department of Defence Production. In 1980, the
Department of Defence Research and
Development was created. In 2004, the
Department of Ex-Servicemen Welfare was
created.

2.2 The Defence Secretary functions as head
of the Department of Defence and is additionally
responsible for co-ordinating the activities of the
four Departments in the Ministry.

###### DEPARTMENTS

2.3 The principal task of the Ministry is to
frame policy directions  on defence and security


related matters and communicate them for
implementation to the Services Headquarters,
Inter-Service Organisations, Production
Establishments and Research & Development
Organisations. It is required to ensure effective
implementation of the Government’s policy
directions and the execution of approved
programmes within the allocated resources.

2.4   The principal functions of the Departments
are as follows:

(i) The Department of Defence deals with the
Integrated Defence Staff (IDS) and three
Services and various Inter-Service
Organisations. It is responsible for the
Defence Budget, establishment matters,
defence policy, matters relating to
Parliament, defence co-operation with
foreign countries and co-ordination of all
defence related activities.

(ii) The Department of Defence Production is
headed by a Secretary and deals with
matters pertaining to defence production,
indigenisation of imported stores,
equipment and spares, planning and control
of departmental production units of the
Ordnance Factory Board and Defence
Public Sector Undertakings (DPSUs).

(iii) The Department of Defence Research and
Development is headed by a Secretary, who
is the Scientific Adviser to the Raksha
Mantri. Its function is to advise the
Government on scientific aspects of military


-----

equipment and logistics and the formulation
of research, design and development plans
for equipment required by the Services.

(iv) The Department of Ex-Servicemen Welfare
is headed by a Special Secretary and deals
with all resettlement, welfare and
pensionary matters of Ex-Servicemen.

2.5 A list of subjects dealt with by various
Departments and Finance Division of the
Ministry of Defence is given in Appendix-I to this
report.

2.6 The three Services Headquarters, viz., the
Army Headquarters, the Naval Headquarters and
the Air Headquarters function
under the Chief of the Army Staff **_To ensure_**
(COAS), the Chief of the Naval **_transparency in_**
Staff (CNS) and the Chief of the Air
Staff (CAS) respectively. They are **_Procurement_**
assisted by their Principal Staff

**_acquisition and_**

Officers (PSOs). The Inter-Service
Organisations, under the

**_Manual for revenue_**

Department of Defence are

**_procurements, have_**

responsible for carrying out tasks
related to common needs of the
three Services such as medical
care, public relations and personnel management
of civilian staff in the Defence Headquarters.

2.7 A number of Committees dealing with
defence related activities assist the Raksha
Mantri. The Chiefs of Staff Committee is a forum
for the Service Chiefs to discuss matters having
a bearing on the activities of the Services and
also to advise the Ministry. The position of
Chairman of the Chiefs of Staff Committee
devolves on the longest serving Chief of Staff,
and consequently rotates amongst the three
Services. To facilitate the work of the Chiefs of
Staff Committee, a number of sub-committees
have been established.


2.8 Information regarding the Ministers in the
Ministry of Defence, the Chiefs of Staff, the
Secretaries in the Departments of the Ministry and
the Secretary (Defence Finance)/ Financial
Advisor (Defence Services) who held positions
from April 1, 2006 onwards is given in AppendixII to this report.

###### DEFENCE (FINANCE)

2.9  Finance Division in the Ministry of Defence,
deals with all matters having a financial
implication. This Division is headed by Secretary
(Defence Finance) and is fully integrated with the
Ministry of Defence and performs an advisory role.

2.10 To facilitate greater
efficiency in administration and
quicker disposal of cases Ministry of
Defence enjoys enhanced
delegated financial powers in
consultation with the Finance
Division. With a view to ensuring
transparency in exercise of these
powers and compliance with the laid
down policy guidelines, Defence
Procurement Procedure and
Defence Procurement Manual were
brought out in 2005. While the
Defence Procurement Procedure deals with
capital acquisitions, the Defence Procurement
Manual deals with revenue procurements. The
Defence Procurement Procedure and Defence
Procurement Manual were revised in 2006 to
incorporate experiences gained since 2005.

2.11 Some of the important features of the
Defence Procurement Procedure 2006 are:

(a) All decisions to be taken simultaneously
for reducing the timeframe for acquisitions;

(b) Enhanced transparency by placing the
generic requirements on Ministry of
Defence website and generating vendor
registration through internet;


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(c) Increased

**_One of the important_**

transparency in the

**_functions of the_**

conduct of field

**_Finance Division is_**

trials;

**_preparation and_**
**_monitoring of the_** (d) ‘Integrity
**_Defence Services_** Pact’ made
**_Estimates, Civil_** compulsory for all
**_Estimates of the_** contracts above Rs
**_Ministry of Defence_** 100 crores; and
**_and the Estimates in_**

(e) ‘ O f f s e t ’

**_respect of Defence_**

obligation for all

**_Pensions._**

contracts above Rs
300 crores.

2.12 The Defence Procurement Procedure2006 contains Fast Track Procedure 2006 as also
the Defence Procurement Procedure for the
‘Make’ category.

2.13 Major highlights of the Defence
Procurement Manual 2006 are as follows:

(a) Incorporation of GFR – 2005 provisions
relating to Limited Tender Enquiry, Cash
purchase limit, purchase through
Proprietary Article Certificate, price variation
clause and limits for advance payment;

(b) Apportioning quantity to L2 and L3 when
L1 does not have capacity to supply as per
RFP requirement, at L1’s rate, in line with
CVC’s guidelines;

(c) Re-floating tenders, when the Tender
Evaluation Committee shortlists only one
vendor, after reformulating Services
Qualitative Requirement to ensure
competitive bidding.

(d) Providing level playing field to indigenous
vendors vis-à-vis foreign vendors by
comparing CIF price with indigenous
vendors’ offer without Excise Duty, Sales
Tax and local levies.

(e) Rate contract for common user items up to
three years to ensure economy of scale


while providing safeguard provisions like fall
clause and short closure in the event of fall
in prices.

(f) Reduction in repeat order quantity to 50%,
with such orders to be placed within six
months by certifying no downward trend in
prices.

2.14 Financial powers are further delegated to
various echelons in the Services. These powers
are also generally exercised by the designated
competent financial authority in consultation with
and with the concurrence of the designated
integrated financial advisors. In July 2006 more
financial powers were delegated to all the three
Services. This includes powers for capital
schemes up to Rs 10 crores.

2.15 Finance Division prepares and monitors the
Defence Services Estimates, Civil Estimates of
the Ministry of Defence and the Estimates in
respect of Defence Pensions. Break-up of the
actual expenditure for the years 2004-05 and
2005-06, as also the Revised Estimates for 200607 and Budget Estimates for 2007-08 are given
in the Tables and charts at the end of this Section.

2.16 Summary of the latest report of the
Comptroller & Auditor General on the working of
the Ministry of Defence is given in Appendix III to
this Annual Report.


2.17 A three-day
seminar was
organized at
Vigyan Bhawan
from November 13
to 15, 2006 on
d e f e n c e
e c o n o m i c s .
Seventy two
delegates from 26
countries, apart
from more than 300
delegates and


**_Finance Division_**
**_organised a three day_**
**_International Seminar_**
**_in Delhi to promote the_**
**_discipline in defence_**
**_economics in which 72_**
**_delegates from 26_**
**_countries and more_**
**_than 300 delegates and_**
**_invitees from India_**
**_participated._**


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invitees from India, participated in the seminar,
which also had representation from the lead Think
Tanks and oversight agencies of the world. The


seminar was inaugurated by Mr Pranab
Mukherjee and Sh. A.K.Antony gave the
valedictory address.


**_Table 2.1_**

**_Service/ Department-wise Break-up of Defence Expenditure_**

|Col1|Col2|Col3|Col4|Col5|(Rs. in crore)|
|---|---|---|---|---|---|
|Service/ Deptt.||2004-2005|2005-2006|RE 2006-2007|BE 2007-2008|
|Army||35252.40|39458.03|41730.28|45316.54|
|Navy||13529.29|13966.99|15794.37|17529.44|
|Air Force||23035.91|21703.91|22874.01|27021.74|
|DDP|DGOF|-69.24|-208.35|-238.10|-202.41|
||DGQA|392.29|345.04|382.07|447.47|
||Total|323.05|136.69|143.97|245.06|
|DR&D||3715.27|5283.36|5457.37|5887.22|
|Total||75855.92|80548.98|86000.00|96000.00|


-----

-----

###### INDIAN ARMY

GRAD Ballistic Missile 21 Multi Barrel Rocket Launcher


-----

###### he Indian Army is equipped with requisite modern technology and equipment to meet all

# T

###### challenges.


3.1 The contours of India’s security
challenges are numerous and varied. To the
military complexities arising out of the problems
of unsettled borders, the challenges of the proxy
war in Jammu and Kashmir, the insurgency in the
North East and the growing naxal menace in
Central India, we can now add the ever enlarging
spectre of terrorism and numerous non-military
threats to our security. The Armed Forces are
constantly reviewing preparedness to meet these
challenges.


###### MODERNISATION OF ARMY

3.2 Modernization and upgradation of the
Armed Forces is a continuous process. The Indian
Army is equipped with requisite modern
technology and equipment to enhance its combat
capabilities. The focus of modernization has been
on Capability for Network Centre Warfare, NBC
Protection, Increased mobility, Improvement in fire
power, Enhanced surveillance capability and
Night fighting capabilities.


BMP-II in action


-----

3.3 **_Mechanized Forces: Mechanized_**
Forces’ ability to operate by night is being
addressed on priority, by procurement of a range
of Night Vision Devices. The mobility and
navigational capabilities of T-72 tank are being
enhanced by upgradation of its power pack and
Global Positioning System (GPS) and Advanced
Land Navigation System (ALNS).

3.4 **_Artillery: Main focus for Artillery has been_**
acquisition and engagement of long
range targets by means of Gun fire/ **_The role of the_**
Rockets, missiles and its mobility. The
modernization plan for the Artillery **_relieve the Regular_**
includes acquisition of long range **_Army of their static_**
guns and missiles along with all
weather surveillance devices. **_civil authorities in_**

3.5 **_Army Air Defence: Army_**

**_calamities and_**

Air Defence is acquiring new guns

**_maintenance of_**

(Static/ Self Propelled) as well as

**_essential services._**

upgrading their existing weapon
system. An important aspect is early fructification
of an automated Control and Reporting System.
The Army Air Defence equipment at present in
service are RADAR Flay catcher, STRELA 10M.
ISPTA Lakshya, ZU-23MM-2B Gun, IGLA 1M
Missile and KVADRAT Missile System.


3.6 **_Aviation: The capabilities of Army_**
Aviation are being strengthened by replacing
existing utility helicopters with higher capacity
helicopters and induction of armed helicopter for
special operations as well as Tactical Battle
Support Helicopters.

3.7 **_Engineers: Procurement of state-of-the-_**
art Mine Mark-II has enhanced the deterring
power of our minefields. The Army
has also achieved the capability of
detecting and assessing levels of
radiological, chemical and
biological contamination so as to
provide adequate safeguard to the
troops.

3.8 **_Signals: For effective_**
communication, the following
nationwide communication
networks have been
commissioned to strengthen the
communication at strategic, operational and
tactical level:
(a) Army wide Area Network (AWAN)

(b) Mobile Satellite Station (MSS) Hub


Cheetah Helicopters ready for operations in high altitude conditions


-----

(c) Large Very Small Aperture Terminal
(LVSAT) Phase I

(d) Army Static Switch Communication Network
(ASCON) Phase-III

3.9 **_Infantry: The modernized Infantry_**
Battalion of the Indian Army is provided with the
state-of-the-art weapon systems of great lethality,
range and precision, thermal imaging devices,
bullet and mine-proof vehicles and secure radio
sets enhancing its combat potential, surveillance
and counter-insurgency capabilities.

3.10 **_Containerization of Ammunition and_**
**_Explosives: For safe and secured transportation_**
of ammunition and explosives through containers,
a contract has been concluded with M/S Container
Corporation of India Ltd (CONCOR). The
ammunition, explosives and other
sensitive stores are now being
transported in sealed containers **_and enthusiastic_**
with enhanced security measures. **_participation of the_**
Armoured escorts with “Live-in” **_people in the local_**
Containers with all essential
facilities accompany the containers.
Initially, M/s CONCOR has **_the desire of the_**
established four serving terminals
for providing containers. **_peace._**

###### TERRITORIAL ARMY

3.11 The Territorial Army (TA) is a voluntary,
part time Army consisting of otherwise gainfully
employed Indian citizens, eager to perform their
role in the country’s defence in the event of a
national emergency by relieving the Regular
Army of their static duties and to aid the civil
authorities in dealing with natural calamities and
maintenance of essential services. It also
provides units for the Regular Army, when
required. There are a total of 66 TA Units of all
types including 42 non-departmental Infantry
Battalions/ units and 24 Departmental Battalions.
There are four types of Departmental TA units
namely, Eco Battalions, Railway Engineer


Regiment, General Hospitals and Oil Sector
Units.

3.12 **_Home and Hearth Battalions_** **_(TA):_**
Seven Home and Hearth Battalions (nondepartmental) have also been raised under TA
for the purpose of generating gainful employment
for local youth in border states.

###### Counter Insurgency Operation

3.13 Army assists the Civil Authority in handling
internal security situation as and when called for
and directed by the Government.

3.14 **_Jammu & Kashmir: The current phase_**
of the proxy war in Jammu and Kashmir has
shown a marked improvement as compared to
the previous years. A combination of factors –
both external and internal –
provides the opportunity to move
decisively towards conflict
resolution in the State.

3.15 The ceasefire on the
borders is holding out with a few
minor aberrations. Local level flag
meetings are encouraged to
resolve differences and diffuse
tensions along the border ensuring
that the Indo-Pak peace process
does not get vitiated due to inadvertent or
malicious acts by mischievous elements.
However, there are no signs of the terrorist
infrastructure across the borders being
dismantled.

3.16 There has been a marginal rise in
infiltration since last year. Government is taking
measures to arrest the upward trend. It is
noteworthy that there is a sharp rise in the
terrorists violence. While the surgical and
professional operations based on hard
intelligence continue, the focus is also on inducing
surrenders amongst local terrorists, while
encouraging them to join the mainstream.


-----

3.17 In conduct of operations all precautions
are taken to see that minimum inconvenience is
caused to the local populace. The Army remains
particularly sensitive to allegations of Human
Rights Violations. Any complaint received in this
regard is investigated in a fair and transparent
manner.

3.18 The other notable trends are that overall
violence levels have dropped,
notwithstanding the occasional
incident related spurt. Terrorists are
increasingly on the defensive, the
most visible manifestations being

**_by providing_**

the fact that they are avoiding
contact with Security Forces and

**_and education and_**

resorting to strikes at police
organizations, soft targets, grenade

**_rescue operations_**

lobbing in urban areas and the like.

**_during natural_**

3.19 The surge in tourism and **_calamities._**
enthusiastic participation of the
people in the local civic bodies elections are a
manifestation of the desire of the common
Kashmiri for peace. The recent targeting of


tourists in the Kashmir valley has led to protests
against such attacks.  Also, there has been no
decrease in the number of tourists and pilgrims
visiting Jammu or Ladakh. The Amarnath Yatra
saw pilgrim traffic surging to 2.7 lakh. People are
opposing recruitment efforts by various terrorist
tanzeems. Intelligence inputs by the local people
on terrorist activities have helped in the launch of
successful operations, elimination
of top terrorist leaders and recovery
of arms and ammunition. The
opening of the Punch- Rawalakot
Bus Link and other Confidence
Building Measures undertaken by
the Government have been well
received.

3.20 **_Assam: The ‘Suspension_**
of Operations’ agreements with the
National Democratic Front of
Bodoland (NDFB), and United
Peoples Democratic Solidarity
(UPDS) have ushered in relative peace and
stability in most parts of Assam. Conduct of
peaceful and incident free elections in the State


Tactical Battle Support Helicopter in action


-----

has been a noteworthy achievement. The
Security Forces were able to positively shape the
security environment  for the Government to take
a decision for “Cessation of Offensive Operations”
against the United Liberation Front of Asom
(ULFA). However, ULFA’s failure to seize the
opportunity and negotiate directly with the
Government forced the latter to once again
commence offensive operations against ULFA
after six weeks. The influence of ULFA however,
is on the decline. It is active only in a few districts
of Assam which have been its traditional
stronghold. Instances of common
people resisting extortion demands
and protesting against violence by
ULFA are on the rise, which is a

**_Lebanon displayed_**

welcome sign.

**_exemplary_**

3.21 **_Nagaland: In general peace_**
prevailing in the State, the security
environment is however being
vitiated due to violence by both the

**_and 73 individual_**

NSCN factions involved in a turf war
against each other.  Firm and deft

**_in recognition of its_**

handling of the situation by the Army

**_efforts by the_**

and Assam Rifles has ensured that

**_International_**

the “Peace Process” remains on

**_Community._**

track. The resolve of the people to
seek peace has been a significant
development. Many times, people have
intervened to stop clashes and drive out the
factions from towns and villages.

3.22 **_Manipur: In Manipur, the initiative to sign_**
a ‘Suspension of Operations’ agreement with
sixteen groups has been a major achievement.
More groups are being encouraged to join the
national mainstream. Consequent to the launch
of successful operations in the southern districts
of Manipur, normalcy in the area is getting
restored gradually. Measures are now being taken
to consolidate the gains with a view to denying
operational space to the terrorists.


3.23 **_Tripura: The overall situation in the State_**
continues to remain peaceful. Due to sustained
operational pressure of the Security Forces on
the terrorists, 79 cadres of National Liberation
Front of Tripura (Bishen Mohan) [NLFT (B)] and
30 cadres of All Tripura Tiger Force (ATTF)
surrendered till December 31, 2006.

3.24 **_Other States: The situation in the states_**
of Arunachal Pradesh, Meghalaya and Mizoram
is by and large peaceful. In Mizoram the decade
old unrest over the Bru refugees is likely to be
resolved finally. The Bru Liberation Front of
Mizoram (BLFM) which was based
in Tripura and waging an armed
struggle against the Mizoram
Government finally surrendered on
October 26, 2006. The surrender
will facilitate the peaceful return of
Bru refugees from Tripura to
Mizoram.

3.25 **_Surrender_** **_and_**
**_Rehabilitation:_** Sustained
operational pressure on most of the
terrorist groups in the North Eastern
States has resulted in increasing
surrenders by the militants. Till
October 31, 2006 a total of 1357
militants of different groups
surrendered to various Government agencies in
the region.

3.26 **_Naxal Violence: The revival of Naxal_**
Violence poses an additional challenge to national
security. The Army is engaged in capacity
building through rendering training to police forces
and Central Para Military Forces in Counter Naxal
Operations, Counter IED Operations and Training
of Trainers. 16 Companies and 4800 ExServicemen have already been trained while an
additional 92 Companies and 5000 ExServicemen will be trained by May 2007. The
experiment of providing officers on deputation for


-----

setting up a Counter Terrorism and Jungle
Warfare College at Kanker, as also offering exservicemen expertise has worked well.

###### RASHTRIYA RIFLES

3.27  The sanctioned strength of the Rashtriya
Rifles is 63 battalions and they are deployed in the
Northern Command. Due to sustained pressure
of Rashtriya Rifles, terrorist organizations have lost
their cohesion resulting in in-fighting amongst
various groups. The Rashtriya Rifles have also
played a role in winning the heart and minds of
people by providing assistance in health and
education and carrying out relief and rescue
operations during natural calamities.

###### PARTICIPATION IN UNITED NATIONS PEACEKEEPING MISSIONS

3.28 Since 1950 when Indian troops were sent
to Korea, the Indian Armed Forces have
participated in the United Nations peacekeeping
operations. The ongoing Peace Missions are
UNIFIL – Lebanon, UNMEE- Ethiopia –Eritrea,


MONUC - Congo, UNMIS- Sudan, UNDOFGolan Heights, Israel. Indian Army has made
significant contribution in maintaining peace and
stability in conflict areas under the aegis of the
United Nations.

3.29 India has so far, provided 12 Force
Commanders in various UN Missions. Towards
the fulfillment of India’s commitment to the UN
and peace, 122 Indian soldiers have, so far, made
the supreme sacrifice. In recognition of their
gallant and distinguished service while serving the
noble cause of world peace, Indian Army
personnel have been honoured with 1 Param Vir
Chakra, 5 Maha Vir Chakras, 1 Kirti Chakra, 19
Vir Chakras, 3 Shaurya Chakras, 4 Yudh Seva
medals, 10 Sena Medals and 2 Vishishth Seva
Medals.

3.30 Recently the 4 SIKH Battalion deployed
in Lebanon displayed exemplary commitment
during the 34 Day Israel-Hezbollah war.  The
Battalion was awarded a Unit Citation and 73
individual citations for gallantry in recognition of
the efforts by the International Community.


Distinguished service of our UN peacekeeping forces while serving for world peace


-----

3.31 The Centre for UN Peacekeeping
(CUNPK) has been set up as a joint venture of
Ministry of External Affairs, Ministry of Defence
and the Service Headquarters to impart training
and conduct familiarization programme for the
troops of Indian Armed Forces deployed for
various peacekeeping missions.  The Centre
conducts a wide range of national/ bilateral/
international training events/ seminars/ exercises
on peacekeeping aspects for officers and PBORs
as well as advanced courses for civilian police
officers. The details of programmes conducted
and number of personnel trained by CUNPK in
the last two years is as under:
**_Year_** **_Programmes_** **_No._**
**_of participants._**

2005-06 6 558

2006-07 10 958

###### ARMY ADVENTURE AND SPORTS

3.32 Life in the Army demands that its soldiers
be able to adapt themselves easily to hazardous


conditions to be able to prevail upon adversaries
in wide ranging situations. Adventure activities like
mountaineering develop determination, courage,
inner resolve and comradeship in abundant
measure along with self-discipline, dependability,
humility, physical and mental resilience, initiative
and ability to take decision under the ever present
threat of personal safety. Some of the adventure
activities organized during the year are given in
the succeeding paragraphs.

3.33 **_Army Expedition to Mount Cho Oyu_**
**_(8201M) Tibet, China: The expedition comprising_**
19 members successfully scaled the peak in two
groups on May 24 and 26, 2006.

3.34 **_8[th] Maruti Suzuki Raid De Himalaya Car_**
**_Rally 2006: The Army, fielding six teams, won the_**
overall Team Championship Trophy at the 8[th]

Maruti Suzuki Raid De Himalaya Car Rally
conducted by Himalayan Motor Sports Association
from September 28 to October 7, 2006 from Shimla
to Leh and back passing through Narkanda-Jalori
Pass-Manali-Rohtang La-Patsio-Pang-LehLukung-Leh and back to Manali.

|Year|Programmes|No. of participants.|
|---|---|---|
|2005-06 2006-07|6 10|558 958|


T-90 in action


-----

3.35 **_3_** **_[rd]_** **_Open_** **_National_** **_Rafting_**
**_Championship: Four Army teams selected from_**
the best Army rafters in Army Adventure
Challenge Cup 2006, participated in the 3[rd] Open
National Rafting Championship conducted near
Rishikesh, Uttarakhand from November 13 to 19,
2006 by the Indian Rafting Foundation (IRF).
Army teams won first 3 positions.

###### MISSION OLYMPICS

3.36 The Mission Olympic Wing (MOW) was
established under the aegis of Military Training
Directorate in 2001 to raise the overall standard
of sports especially at the Olympic Games. Ten
sporting disciplines were identified.

###### MAJOR SPORTING PERFORMANCES

3.37 Major noteworthy sporting performances
under ‘Mission Olympics’ in the year 2006 are as
under:

(a) **_Shooting:_**

(i) **_Commonwealth Games, Australia March_**
**_2006:  The Army shooters won Four Gold_**
medals and Two Silver medals.

(ii) **_ISSF World Cup, Cairo May 2006:_**
Lieutenant Colonel RVS Rathore, AVSM
won the Gold Medal in Double Trap and
secured a berth for Beijing Olympics 2008.

(iii) **_SAF Games, Colombo, August 2006: The_**
Army shooters won nine gold medals, seven
silver medals and three bronze medals,
making a total tally of 19 medals.

(iv) **_ISSF World Shooting Championship,_**
**_Zagreb, Croatia, August 2006: Havildar_**
Bapu Vanjare of Army Shooting Node,
Mhow won a Bronze Medal in the 10 m Air
Pistol event in ISSF World Shooting
Championship.


Glacier training in Siachen


-----

(v) **_Asian_** **_Clay_** **_Pigeon_** **_Shooting_**
**_Championship, September 2006:_**
Lieutenant Colonel RVS Rathore, AVSM
won the Gold Medal in Individual as well as
the Team events.

(vi) **_ISSF World Cup Final, Spain October_**
**_2006:  Lieutenant Colonel RVS Rathore,_**
AVSM won the Bronze Medal in Double
Trap.

(b) **_Archery - SAF Games, Colombo,_**
**_August 2006:   Naib Subedar Tarundeep Rai,_**
VSM won the Individual Silver medal in the
Championship and was part of the Team winning
Gold medal.

(c) **_Boxing:_**

(i) **_Commonwealth Games, Australia in_**
**_March 2006:  Havildar V Johnson won the_**
Bronze medal in Super Heavy weight
category.

(ii) **_SAF Games, Colombo, August 2006. The_**
ASI, Pune boxers won one Silver medal and
one Bronze medal.

(d) **_Weight Lifting - Commonwealth_**
**_Games, Australia in March 2006: Havildar Mohd_**


A Zakir of ASI, Pune won the Silver medal in the
77 Kg category.

(e) **_Athletics:_**

(i) **_Singapore Half Marathon, 2006: The_**
Indian Army Half Marathon team registered
a commendable performance in the
Singapore Half Marathon held on August
26, 2006 by coming first amongst 13 teams
in the foreign Military category.

(ii) **_Vernier Annual Ultra Half Marathon,_**
**_Switzerland: Dfr Binning L won the Vernier_**
Annual Ultra Half Marathon, Switzerland
held on July 15, 2006.

(iii) **_SAF Games, Colombo, August, 2006:_**
The Army athletes won three Gold medals,
one Silver medal and one Bronze medal.

(f) **_Equestrian: Asia Pacific Challenge Cup,_**
**_September 2006: Major Rajesh Pattu,_**
SJRP, VSM won the Individual Gold medal
and **_Asia Pacific Challenge Trophy._**
Lieutenant Colonel Deep Ahlawat, VSM
won the Individual Bronze medal. The
Indian Team also won the Team Gold
medal.


-----

###### INDIAN NAVY

The Indian Navy - A Multi Dimensional Force


-----

###### t has been the objective of the Navy to prepare for all manner of contingencies through meticulously planned operations

# I

###### that hone the skills of personnel; exhaustively evaluated induction of the most appropriate equipment;  and focussed training to get the best from the personnel.


4.1 The Indian Navy has grown in stature as
a self confident, highly professional and
responsible force for stability and support in the
region. The Indian Navy, today, is a complete
reflection of the nation’s growing economic,
technological and diplomatic eminence. Strength
of Indian Navy lies not only in high technology
ships, submarines and aircraft but also in the
cadre of highly disciplined,
professionally competent personnel

**_The year saw the_**

who man these machines.

4.2 **_New Construction Ships:_** **_technologies in the_**
The Indian Navy’s continued
emphasis on self reliance is in
accordance with the Maritime **_Early Warning_**
Capability Perspective Plan. These **_systems, both_**
include destroyers, stealth Frigates **_indigenous and_**
and the Scorpene submarine project
at Mazagaon Docks Limited (MDL), **_the Fleet a highly_**
Mumbai; Offshore Patrol Vessels at **_potent capability._**
Goa Shipyard Limited (GSL), Goa;
the Landing Ship Tank (Large), Anti-Submarine
Warfare (ASW) corvettes and Fast Attack Craft
at Garden Reach Ship Engineers Ltd, (GRSE);
and, the Indigenous Aircraft Carrier at Cochin
Shipyard Limited (CSL), Kochi. The first of the
follow-on Project 15 class ships, was launched
on March 30, 2006 at Mumbai and the third
Landing Ship Tank (Large), Yard 3016 (Airavat)
was launched on March 27, 2006 at Kolkata. A
landmark event was the signing of the contract
for three follow-on ‘Talwar’ class stealth frigates
with Russia. These ships would be equipped with
the indigenous ASW and Communications suite


and equipped with the Indo-Russian BrahMos
Cruise Missile. Another important milestone is the
transfer of the USS Trenton to the Indian Navy in
January 2007.

4.3 **_New Technology Inductions:  The year_**
saw the induction of sunrise technologies in the
Navy for the first time. Highly sophisticated Early
Warning systems, both indigenous
and imported, have given the Fleet
a highly potent capability. Network
centric operations, are being given
adequate impetus in order to
integrate all our shore facilities with
our sea going assets which include
ships, submarines and aircraft. To
achieve this, a Naval
Communication Satellite is being
developed by ISRO. A joint
development project between the
DRDO, Israel and the Indian Navy
to develop a highly sophisticated
Long Range Surface to Air Missile system is in
progress.

4.4 **_Information_** **_Technology_** **_(IT):_**
Networking and e-enabled solutions are two key
thrust areas the Navy has identified in the field of
IT. A large number of IT applications were initiated
in the current year. These initiatives are aimed
at enhancing efficiency in the fields of
maintenance, health care management, human
resource and material management, which have
a direct bearing on resource planning and war
fighting capability.


-----

4.5 **_Decommissioning of Ships: During the_**
year, Indian Navy Ships SDB T-54, Amba, SDB
T-57 and Malpe were decommissioned after
several decades of glorious service to the Navy.

###### MAJOR EVENTS

4.6 Prime Minister’s Day at Sea: The Prime
Minister sailed with the Indian Naval Fleet off the
western coast in May 2006 to witness combat
manoeuvres being undertaken by the Fleet. This
included a demonstration of the Barak Surface to
Air Missile fired by INS Ganga, accurately
shooting down a low flying surface to surface
missile.

4.7 **_Commissioning of INS Shardul: The_**
Raksha Mantri had commissioned INS Shardul,
a Landing Ship Large (Tank) [LST (L)], on January
4, 2007. The ship is based at Karwar and would
be the first LST (L) to be based on the western
seaboard. INS Shardul is the first of three LST
(L)s, constructed at Garden Reach Ship
Engineers Ltd., to be commissioned in to the IN.


4.8 The Raksha Mantri also embarked
Western Fleet and witnessed naval operations to
get a first hand view of the same. During the ‘Day
at Sea’ with the Fleet, the Raksha Mantri,
witnessed fleet manoeuvres, aircraft and
helicopter operations at sea, naval weapon firing
including that of Barak shooting down a surface
to surface anti ship missile.

4.9 **_RRM Day at Sea:_** Raksha Rajya
Mantri’s day at sea was held off Visakhapatanam
on September 12, 2006 in which IN Ships
Baratang and Karmuk demonstrated combat
manoeuvres including weapon firings.

###### MAJOR OPERATIONS AND EXERCISES

4.10 **_TROPEX-06A: The Joint Fleet exercise_**
‘TROPEX-06A’ was conducted off the western
seaboard from April 5 to 21, 2006. This included
a ‘Joint Work-Up Phase’ with both Fleets
operating together from April 5 to 11, 2006 and
followed by a ‘Deployment and Tactical Phase’
from April 12 to 21, 2006.


Indian Navy Warships dressed up ceremonially for the President’s Fleet Review off Visakhapatnam


-----

|Col1|Col2|Table 4.1|
|---|---|---|
|Ships|Region|Remarks|
|Submarine Sindhughosh|Atlantic Ocean and Mediterranean sea|During return passage on completion of refit in Russia in January 2006.|
|Survey ship Sarvekshak|South Indian Ocean|From January 4, 2006 to March 4, 2006 for survey tasks off the island of Agalega and Port Louis harbour and until April 10, 2006 for survey tasks at Seychelles. The completed charts of Seychelles were formally handed over to the Vice President of Seychelles on April 9, 2006. The ship also transported ten stranded Indian crew of ‘MV Al Manara’ to Kochi.|
|Mumbai|Persian Gulf and East Coast of Africa|Off Oman from March 3 to 7, 2006 and re-deployed off the Somalia Coast from March 13 to 16, 2006 in connection with the hijacking of Indian Dhow ‘Bhakti Sagar’.|
|Darshak|South Indian Ocean|The ship was tasked to tow ex-INFAC Tillanchang to Maldives for handing over, by the Raksha Mantri, to the Maldives Coast Guard on April 16, 2006.|
|Suvarna, an Offshore Patrol Vessel|South Indian Ocean|INS Suvarna towed Mauritius Coast Guard Ship ‘Guardian’ from Mumbai to Port Louis on completion of her refit at Naval Dockyard(Mumbai) and thereafter transported personnel and logistics supplies from Port Louis to Agalega Island (Mauritius).|
|Tir, Krishna and Tarangini|Red Sea|Ships of 1st Training Squadron were deployed off Bahrain and Oman in April 2006 and visited Manama (Bahrain) and Salalah (Oman) along with IN Sail Training Ship ‘Tarangini’. Tarangini embarked one junior officer each from the Oman, Qatar, Bangladesh and Sri Lanka navies whilst on passage from Salalah to Kochi as observers.|
|Rana, Rajput, Jyoti, Kirpan and Kulish|South China Sea|The Eastern Fleet under the Command of the Flag Officer Commanding Eastern Fleet, was deployed to the South China Sea in June 2006. Bilateral naval exercises were carried out with several navies.|
|Tabar|South Indian Ocean and Pacific Ocean|The ship called at Perth, Sydney, Auckland, Nuku’alofa(Tonga), Suva (Fiji), Port Moresby(Papua New Guinea) and Singapore during its deployment in July 2006.|


-----

|Ships|Region|Remarks|
|---|---|---|
|Mumbai, Brahmaputra, Betwa and Shakti|Mediterranean Sea|The Western Fleet, under the command of the Flag Officer Commanding Western Fleet was deployed to the Mediterranean Sea in June 2006. The ships called at Israel, Egypt, Greece, Turkey and Libya and carried out bilateral exercises with various navies.|
|Mumbai|South Indian Ocean and off Cape of Good Hope|Deployed off Mozambique, South Africa and Kenya from September 2, 2006 to October 18, 2006 including participation in the ‘Africa Aerospace and Defence Exhibition’ at Cape Town, South Africa. The ship conducted an exercise with South African Navy Ship Isandlwana.|
|Ranvijay, Karmuk and Guldar|Andaman Sea|IN Ships Ranvijay, Karmuk and Guldar visited Yangon from November 13 to 16, 2006. IN ships Ranvijay and Karmuk also visited Mergui on November 17, 2006.|
|Tir and Sujata|Off Sri Lanka and South East Asia|Ships of the Ist Training Squadron, were deployed off Singapore, Belawan and Colombo from October 14 to November 4, 2006. At Colombo 72 cadets, eight Midshipmen and 13 Sub Lieutenants were embarked onboard for a sea sortie.|


4.11 **_Defence of Gujarat Exercise:   Defence_**
of Gujarat exercise (DGX 06) was conducted on
the Western Seaboard, off the Gujarat coast, from
September 12 to 23, 2006. The aim of the exercise
was to develop and validate plans for the
protection of off-shore assets, including the
protection of ports in the Gulf of Kutch and
shipping in the Deep Water Channel leading to
these ports.

###### OVERSEAS OPERATIONS

4.12 **_Operational Turn Around (OTR):  Ships_**
and aircraft undertook OTR at various ports for
replenishment of fuel, rations and stores in the
course of their deployments and exercises with
own ships and those of friendly foreign countries.
Eighteen ships availed operational turn around
facilities in 9 ports and 16 IN aircraft, on
surveillance and reconnaissance missions in the


Indian Ocean Region (IOR), availed operational
turn around facilities in 9 airports during the year.

4.13 **_Operational Deployments:  The Naval_**
Fleet saw several overseas deployments in
furtherance of the maritime interests of the nation and
to meet specified diplomatic objectives. A summary
of these deployments is shown in Table 4.1.

###### EXERCISES WITH FOREIGN NAVIES

4.14 **_Building_** **_Confidence_** **_through_**
**_Interoperability: Navies from many countries are_**
keenly desirous of exercising with the Indian Navy.
These exercises are at the bilateral level and
provide a firm foundation to develop professional
skills, establish interoperability regimes and
procedures, and above all are an excellent
confidence building mechanism. Over the years
the exercises have increased in scope and


-----

content while enhancing interoperability. Conduct
of bilateral exercises have been institutionalized
with USA, Russia, France, UK, Oman, Sri Lanka
and Singapore and joint patrols continue with
Indonesia and Thailand.

4.15 **_Bilateral Exercises: During this year,_**
extensive exercises with the Singapore Navy,
French Navy, US Navy and Royal Navy were
conducted. Many firsts were established which
included two carrier joint exercise,
dissimilar air combat training with **_Fast Attack Crafts_**
French and US Navy aircraft, and
basic level tactical “war at sea” **_Malv and Baratang;_**
exercises. **_and INS Shardul, a_**

**_Landing Ship Tank_**

4.16 **_MILAN 06: ‘MILAN’ is an_**
institutionalised biennial event to

**_the year._**

engage navies of the Bay of Bengal
and Andaman Sea area in mutual
cooperation at sea and in harbour. MILAN 06 was
held at Port Blair from January 9 to 14, 2006. A
total of eight countries participated in the exercise
namely Sri Lanka, Bangladesh, Myanmar,
Indonesia, Singapore, Thailand, Australia
(delegation only) & Malaysia.


###### DISASTER MANAGEMENT AND HUMANITARIAN RELIEF

4.17 **_Operation Rahat -2: Operation ‘Rahat-2’_**
was executed on May 28, 2006. INS Rajput,
deployed to the South China Sea, was diverted
to Jakarta with seven tons of relief material and a
medical team to provide humanitarian assistance
to the Indonesian people affected by the
earthquake in central Indonesia.
The ship was the first foreign ship
to reach Jakarta.

4.18 **_Operation Sukoon:_** IN
ships, Mumbai, Brahamaputra,
Betwa and Shakti, returning from
deployment to the Mediterranean
Sea were tasked for evacuation of
Indian nationals from Beirut during
the Israel-Lebanon conflict. After evacuating
2280 Indian, Nepalese and Sri Lankan nationals
from Beirut to Larnaca and transporting 65 tons
of relief supplies from Larnaca to Beirut the
ships returned to their home port in August
2006.


Marine Commandos demonstrating beach assaulting during an exercise


-----

###### INDUCTIONS AND DE-INDUCTIONS

4.19 **_New Commissions: Fast Attack Crafts_**
(FACs) IN FACs Bangaram, Bitra, Batti Malv and
Baratang, and INS Shardul, a Landing Ship Tank,
built at Garden Reach Shipbuilders
and Engineers (GRSE), Kolkata
were inducted during the year. **_emphasis on issues_**

###### TRAINING

4.20 **_Training_** **_of_** **_Foreign_**
**_Personnel/ Foreign Training_**

**_system, better_**

**_Delegations: During the year, 23_**
countries were allotted vacancies

**_changes in transfer_**

for training with the Indian Navy. A

**_policies and_**

total of 413 officers and 217 sailors
from friendly countries underwent
various training courses in India.

**_facilities for naval_**

4.21 **_Deputation_** **_of_** **_IN_** **_children,_**
**_Personnel for Courses Abroad:_** **_improvements in_**
35 personnel availed training **_quality of uniforms,_**
courses with foreign navies. **_opportunities for_**

**_training in foreign_**

4.22 **_Civilian Personnel: The_**
Indian Navy continued to focus on

**_post retirement_**

the training and development of its

**_opportunities._**

civilian personnel. This is
particularly relevant, as civilians
comprise approximately 50% of the naval strength
and are involved in Operations, Maintenance and
Logistic support functions.

###### MISCELLANEOUS

4.23 **_Indian Antarctic Expedition: One officer_**
and two sailors took part in the XXV Indian
Antarctica Expedition. In addition, one officer and
one sailor took part in the pioneering expedition
to the Larsemann Hills, the site for the new Indian
Base Station in Antarctica.

4.24 **_INHS Patanjali: An ultra modern Naval_**
Hospital (INHS Patanjali) catering for 141 beds
in Phase I (to be upgraded to 400 beds in Phase


II) has been commissioned on December 26,
2006 in Karwar, Karnataka.

4.25 **_Year of the Sailor: The Chief of the Naval_**
Staff declared 2006 as the “Year of the Sailor
(YOTS)”. The year therefore saw, an
added emphasis on issues relating
to welfare of sailors. New initiatives
include review of the performance
appraisal system, better promotion
prospects, changes in transfer
policies and accommodation rules,
increase in education facilities for
naval children, improvements in
quality of uniforms, opportunities for
training in foreign languages and
assist post retirement opportunities
through establishment of an Indian
Navy Placement Agency.

4.26 **_Western Pacific Naval_**
**_Symposium:_** The Western Naval
Pacific Symposium (WPNS) is a
grouping of navies of the western
pacific region comprising 18 member
and four Observer countries. India is
an Observer to the WPNS. The
WPNS Seminar on “Multilateral Naval
Cooperation – Retrospect and
Prospects,” focussing on Interoperability and human
resource training for the future, was the first ever
WPNS event hosted by the Indian Navy. The
seminar was conducted from December 3 to 6,
2006. Forty-seven participants from 20 countries
attended in the seminar.

###### ADVENTURE AND SPORTS

4.27 **_Sky Diving:  Five naval personnel have_**
been trained in Sky Diving Instructor Course in
Australia. The team thereafter conducted a joint
Army Navy Sky Diving course at Deolali.

4.28 **_Ski Traverse to South Pole: The Indian_**
Navy has despatched a team to ski traverse to


-----

the geographical South Pole in December 2006
– January 2007. This expedition was flagged off
by CNS on November 16, 2006. This is the first
ever all Navy ski expedition, in the world, to the
South Pole.

4.29 **_World Military Sailing Championships:_**
The Indian Navy hosted the 40[th] World Military
Sailing Championships at Mumbai in September
2006 under the aegis of the Council of
International Military Sports. Seventy participants
from 15 nations attended and the Indian Team
was the overall winner at the event.

4.30 **_Achievements of Naval Sportsmen:_**
Achievements of Naval Sportsmen are
given in Table 4.2.

###### CONSERVATION AND ENVIRONMENT

4.31 **_Conservation_** **_Efforts:_** Energy
conservation has been given an added thrust with
a shift to solar lighting on roads and streets and


CFL lighting in residential areas. Rainwater
harvesting is being implemented in several
establishments of Navy and two Waste Water
Recycling Plants have been commissioned in
Mumbai.

4.32 **_Coastal Cleanup: September 16, 2006_**
was observed as the International Coastal
Cleanup Day to spread awareness on effects of
coastal pollution on the flora, fauna and ecology
of seas/lakes. Personnel were educated on the
negative impact of polythene bags on the
environment and to ensure that coastal areas
become a ‘Polythene Free Zone’.

4.33 **_Environment:  The World Environment_**
Day was celebrated in June 2006 by organising
a workshop at Naval Dockyard, Mumbai. The
Naval Commands have also initiated actions to
conserve electricity by changing over to energy
efficient lamps at jetties and main roads. Also, an
anti plastic drive by the Navy has now ensured
that all Naval bases are polythene free zones.


**_Table 4.2_**


-----

###### INDIAN AIR FORCE


-----

###### he Indian Air Force  is looking into increased interoperability with sister services and

# T

###### constantly making changes in the organization to evolve efficient methods of packaging forces, use of cost effective weapons systems, quality training and methods of rapid deployment.


5.1 The IAF has come a long way since its
inception on October 8, 1932. Over the years the
IAF has grown from a tactical force to one with
transoceanic reach. The strategic reach emerges
from induction of Force Multipliers like Flight
Refuelling Aircraft (FRA), Unmanned Aerial
Vehicle (UAV) and credible strategic lift
capabilities. There is emphasis on acquiring best
of technology through acquisitions or upgradation,
be it aircraft, systems, precision missiles or net
centricity. There is significant advancement
towards integrating Information technology and


net connectivity. As the IAF enters its Platinum
Jubilee Year,  it is on the path to becoming a
formidable force.

###### MAIN INDUCTIONS AND ACQUISITIONS

5.2 **_New Jaguar Twin Seater Aircraft:_**
Jaguar Twin Seater aircraft are in the phase of
Initial Operational Clearance. All aircraft will be
soon upgraded to Final Operational Clearance
standard in a phased manner.


Mirage 2000 in flight


-----

5.3 **_New Single Seater Jaguar Aircraft:_**
New single seater Jaguar aircraft are being
procured from Hindustan Aeronautics Limited
(HAL), Bangalore.

5.4 **_Light Combat Aircraft (LCA): Successful_**
design and development of LCA is a major
achievement, catapulting India into the group of
few nations self reliant in production
of modern fighter class aircraft. The
LCA is scheduled to replace the
ageing MiG-21 fleet in the IAF. The
formation of first squadron of LCA
is planned in 2010.

**_the select group of_**

5.5 **_Intermediate Jet Trainer_**
**_(IJT): The Indian Air Force needs_**
to replace Kiran trainer aircraft
utilized in the Intermediate Stage
Training. HAL has been assigned the task for
Design and Development of this new trainer
aircraft. A contract for the procurement of a few
aircraft in the Limited Series Production (LSP) has
been concluded with HAL. The delivery is
expected from 2008.


5.6 **_Advanced Light Helicopter (ALH): IAF_**
is procuring ALHs from HAL as a replacement to
its Chetak/ Cheetah fleet as a utility helicopter.
Few ALH have already been delivered to the IAF.

5.7 **_Hawk Advance Jet Trainer (AJT): The_**
manufacture of Hawk AJT aircraft for supply to
IAF has commenced in UK and deliveries are
planned from September 2007.
Additionally, the HAL license built
Hawk AJT will be delivered from
2008 to 2010.

5.8 **_Airborne Warning and_**
**_Control System (AWACS):_**
Airborne Warning and Control
System (AWACS) aircraft are being
procured to meet the long felt needs
of the IAF. The IL-76 based AWACS
will significantly enhance the surveillance and
monitoring of Aerial Vehicles/ Aircraft.

###### INDIGENISATION

5.9 Indigenisation of critical spares is being
resorted to in an effort to improve self-reliance.


A5 AWACS with Phalcon Radar


-----

More than 70000 lines of spares have been
successfully indigenised at Base Repair Depots.
The under-mentioned projects have been taken
up for indigenisation: 
(i) **_Indigenous_** **_Blade_**

**_Low Level Light_**

**_Manufacturing Unit: A Blade_**
Manufacturing Unit for aero
engines of helicopters and

**_and deployed for_**

transport aircraft is being set
**_operations._**

up at HAL.

(ii) **_LCA: The first Squadron of Light Combat_**
Aircraft (LCA) is planned to be formed by
2010.

(iii) **_MiG-27 Upgrade: The MiG-27 aircraft is_**
being upgraded with improved avionics,
navigation and targeting systems at
Hindustan Aeronautics Limited.

###### AIR DEFENCE

5.10 **_THD-1955 Radars: During the current_**
year transmitters and receivers of THD radars are
likely to be upgraded to achieve enhanced
reliability and increased life span.


5.11 **_Low Level Light Weight Radar_**
**_(LLLWR):_** Low Level Light Weight Radars
(LLLWR) have recently been inducted and
deployed for operations.

5.12 **_Precision_** **_and_**
**_Surveillance Approach Radar_**
**_Systems: A_** number of
Precision and Surveillance
Approach Radar Systems are being
procured to help guide aircraft for
landing during bad weather/ poor
visibility.

###### TRAINING AND EXERCISES

5.13 **_‘SINDEX-06’: A joint exercise was_**
conducted between Royal Singapore Air Force
and IAF at Kalaikunda in June 2006  providing
an opportunity to project our capabilities.

###### International Co-op Air Exercise SINDEX

5.14 **_IAF-RAF Joint Exercise - INDRA_**
**_DHANUSH 06:  A Joint Exercise between IAF_**


MI-35 Attack Helicopters


-----

and RAF, named INDRA DHANUSH-06, was
conducted from October 2-13, 2006 at Air Force
Stations Gwalior and Agra.

5.15 **_Flying Training on Hawk Advanced Jet_**
**_Trainer (AJT). The_** contract for Hawk
Advanced Jet Trainer (AJT) was signed on March
26, 2004. As per the contract, up to 75 officers
were to undergo interim training on Hawk in UK
over a period of approximately three years. Till
date 39 pilots have completed training and 17
are in UK undergoing training. The last batch of
pilots is scheduled to complete training by January
2008.

###### FLIGHT SAFETY

5.16 The most prominent decline in the
accident rate of the IAF has been during the last
two years.  The Force recorded its lowest ever
accident rate of 0.44 per 10,000 hrs in 2005-06.


The accident rate  during the current financial
year is 0.37 per 10,000 hours (till February 10,
2007). The IAF is continuously striving to reduce
the accident rate.

###### PLATINUM JUBILEE EVENTS

5.17 The Platinum jubilee celebrations of the IAF
commenced with the Air Force Day Parade on
October 8, 2006 at the Air Force Station, Hindon.
A parachute descent by the Chief of Air Staff at
Hindon airfield was followed by a spectacular Air
Display by 66 aircraft which was the highlight of
the Parade cum Investiture ceremony. Multifarious
activities are planned in all the Air Force
Commands throughout the year to commemorate
the occasion culminating on October 8, 2007.

5.18 **_West - East Power Hang Gliding (PHG)_**
**_Expedition: Power Hang Gliding (PHG)_**
expedition concluded in November 2006 at AF


IAF UN Peace Keepers extending Medical Aid in Congo


-----

Station Chabua after covering 21 Air bases
enroute, through a distance of 3700 km. 307 joy
rides were given to school children/ civilians. Flight
data has been forwarded for inclusion in the Limca
Book of Records as the longest PHG crosscountry expedition.

###### IMPORTANT MILESTONES/ ACHIEVEMENTS

5.19 **_President Flies Su-30 MKI:_**
On June 8, 2006, the President of
India Dr. A.P.J. Abdul Kalam
became the first President to fly a

**_commemorate_**

fighter jet as the oldest Indian copilot.

5.20 **_Golden Jubilee of No. 20_** **_on October 8, 2007._**
**_Squadron: No. 20 Squadron, “The_**
Lightenings”, completed 50 years of  service on
May 31, 2006. The squadron, which flew the
“Vampire” aircraft at its inception, now flies the
Su-30 MKI aircraft, the most technically advanced
weapon platform in the world.

5.21 **_Phase Out of MiG-25: The MiG-25_**
aircraft was phased out in June 2006. The phase
out ceremony of this strategic asset was held at
Bareilly in May 2006.

5.22 **_President’s Standards to 37 and 48_**
**_Squadron : In recognition of decades of tireless_**
efforts by the two Squadrons  the President of
India awarded the Presidential Standards to 37
and 48 Squadron on February 15, 2007 at Air
Force Station, Bhuj (Gujarat).


5.23 **_UN Mission: The IAF has deployed two_**
aviation contingents in the Democratic Republic
of Congo, one aviation contingent in Sudan and
one Airfield Services Unit in Democratic Republic
of Congo earning considerable praise from the
international community for their exemplary
contribution in these United Nations Peace
Keeping Operations.

5.24 **_Helicopter_** **_Display_**
**_Team: Advanced Light Helicopter_**
Display Team ‘Sarang’,
showcasing the professionalism of
the IAF and capabilities of the
indigenously manufactured ALH
has been actively performing at
various air shows and events within
the country and abroad. From April
2006 till November 15, 2006 the
team has performed at 11 air shows.

5.25 **_Air Force Museum: A foundation stone_**
was laid on November 30, 2006 for a world class,
state-of-the-art Air Force Museum at Delhi, to
preserve the history of aviation in India. The
museum, when completed, will depict the different
stages of evolution of combat aviation in India and
display the aeronautical equipment of historic
interest and significance becoming major tourist
attraction in the National Capital.

5.27 **_International Congress on Aero Space_**
**_Medicine: An International Congress in the field_**
of Aviation and Aero Space Medicine,was
organised by Institute of Aviation Medicine from
December 10 to 14, 2006 at Bangalore.


-----

###### COAST GUARD

Indian Coast Guard Ship in Exercise with Maldives Forces


-----

###### he Coast Guard is responsible for keeping India’s Exclusive Economic Zone under regular

# T

###### surveillance.


6.1 The Indian Coast Guard was
commissioned as an independent service on
August 19, 1978 under the Coast Guard Act 1978,
although it was in existence as an interim Coast
Guard Organisation under Naval Headquarters
since February 1, 1977. Ever since its inception,
the Coast Guard has been acquiring a wide range
of capabilities, both surface and airborne to
discharge assigned tasks during peace time and
to supplement the efforts of Indian Navy during
war.

###### ORGANISATION

6.2 The command and control of the Coast
Guard lies with the Director General of Indian
Coast Guard, at New Delhi. The Organisation


has three Regional Headquarters i.e. Mumbai,
Chennai and Port Blair. The three Regional
Headquarters command the entire coastline of
India, through 11 Coast Guard Districts .

###### DUTIES AND FUNCTIONS

6.3 The duties of Coast Guard are as follows:
(a) Ensuring the safety and protection of
artificial islands, offshore terminals,
installations and other structures and
devices in maritime zones.

(b) Providing protection to fishermen including
assisting them at sea while in distress.

(c) Taking such measures as are necessary to
preserve and protect the maritime


Coast Guard’s Helicopter monitoring Merchant Vessel Kew Bridge grounding off Ratnagiri


-----

environment and to prevent and control
marine pollution.

(d) Assisting customs and other authorities in
anti-smuggling operations.

(e) Enforcing the provisions of such
enactments as are for the time being in force
in the maritime zones.

(f) Such other matters, including measures for
the safety of life and property at sea and
collection of scientific data, as may be
prescribed.

###### EXISTING FORCE LEVEL


Government of Sri Lanka, two Indian Coast Guard
Ships (Offshore Patrol Vessel Class with Integral
Helicopter) were deployed off Galle Harbour to
mount pollution response operation resulting from
sinking of a merchant vessel in the western limits
of Traffic Separation Scheme off Dondra head.
The Vessels jointly carried out surface and aerial
surveillance around the datum and successfully
neutralized the slick.

6.6 **_Operations Undertaken for Recovery of_**
**_Narcotics: Indian Coast Guard has effected five_**
narcotics hauls in the year 2006 in joint operations
with Narcotics Control Bureau. The details of
apprehensions/ seizure during joint operations are
given in Table 6.1.


6.4 The Indian Coast Guard has a force level

given in Table 6.1.

of 42 ships, 24 boats/craft and 45
aircraft and helicopters in its fleet 6.7 The Indian Coast Guard

**_Four Fast Patrol_**

to carry out regular surveillance of carried out the following exercises

**_Vessels and three_**

the maritime zones of India and the during the year 2006:
**_Coast Guard stations_**

areas of interest.  Four Fast Patrol

**_were commissioned_** (a) **_Search and Rescue_**

Vessels - Aruna Asaf Ali, Subhadra

**_during 2006._** **_Exercise(SAREX) 2006: Search_**

Kumari Chauhan, Savitribai Phule
and Meera Behn were and Rescue Exercise (SAREX commissioned during 2006. Three Coast Guard 2006) was carried out off Mumbai on
stations Kakinada, Beypore and Pondicherry were January 11, 2006. Indian Coast Guard
also commissioned during the year. A total of 20 Ships Sagar, and Kamladevi, Coast
ships and boats are at various stages of Guard Air Station Daman and 842 Sqn
construction in Indian Shipyards. (Coast Guard) participated in the exercise.


###### OPERATONS AND EXERCISES

6.5 **_Pollution Response Operations off Sri_**
**_Lanka: In response to a request from the_**


(b) **_Operation Suraksha: Operation Suraksha_**
was conducted from January 12 to 15,
2006 to provide seaward security to the
pilgrims during the mela at Ganga Sagar.


**_Table-6.1_**

|S. No.|Date|Quantity.|Value(Rs.)|Place of Apprehension/ seizure|
|---|---|---|---|---|
|1.|January 07, 2006|4.34 Kgs Heroin|4.3 Crores|Tuticorin|
|2.|February 19, 2006|17.3 Kgs Brown Sugar|17.3 Crores|Village Pudumadam, Mandapam highway|
|3.|February 20, 2006|6.95 Kgs Heroin|7.0 Crores|Trichendur coast in Gulf of Mannar|
|4.|June 2, 2006|200 Kgs Cocaine|200 Crores|Off Mumbai harbour|
|5.|October 10, 2006|10 Kgs Heroin|10 Crores|Trichendur|


-----

Sucheta Kripalani, H-182 and 700 Sqn
(Coast Guard) participated in the operation.

(c) **_Tropical Exercise (TROPEX) 06: Tropex_**
06 was conducted from April 5 to 26, 2006
in the Western region.

(d) **_Operation Pradushan 01/06: After Indian_**
Naval Ship Prahar sank due to collision with
Motor Vessel Rajeev Gandhi, Operation
Pradushan was conducted off Goa on April
22, 2006 to monitor oil pollution and
neutralize it.

(e) **_Operation SMOG: Operation SMOG was_**
conducted in the Eastern region from
May 9 to 12, 2006 after Dredging
Corporation of India Tug VI sank off Point
Calimere.

(f) **_SAHYOG 06: Indo-Korean joint exercise_**
SAHYOG 06 was conducted off Chennai
during the visit of Korean Coast Guard ship
Taepyungyang from July 3 to 7, 2006.

(g) **_Sahyog-Kaijin 06: Indo-Japan Coast_**
Guard combined exercise on Search and
Rescue, combating piracy and armed
robbery; “SAHYOG-KAIJIN 06” was


conducted off Mumbai on November
24, 2006. Along with Indian Coast Guard
ships and aircraft, Japan Coast
Guard Ship Shikishima, aircraft sea Duck
1/Sea Duck 2 and one Shipping
Corporation of India ship also participated
in the exercise.

6.8 **_International Coastal Cleanup-2006:_**
The Indian Coast Guard is the lead agency in
coordinating International Coastal Cleanup every
year. This year Coast Guard had organised
International Coastal Cleanup - 2006 event in
India on September 18, 2006 to mark the
International Coastal Cleanup day under the aegis
of United Nations Environmental Programme
(UNEP) – South Asia Cooperative Environment
Programme (SACEP) as part of Regional
Environmental programme. A total of 14,738
personnel from Coast Guard and their families,
personnel from Military/Para Military Services,
Police, Schools, Colleges, Educational Institutes,
Central/ State Governments and NGOs took part
all over the West, East and Andaman Nicobar
Island coasts and made the occasion a grand
success by collecting  a total of 54,088 Kgs of
debris from an area of 105.75 kms.


-----

###### DEFENCE PRODUCTION

Surya Kiran Aerobatic Team (SKAT) performing at the AERO India 2007


-----

###### he Department of Defence Production deals with the indigenization, development and production

# T

###### of defence equipment both in the public and private sectors.


7.1 The Department of Defence Production
deals with the indigenization, development and
production of defence equipment both in the public
and private sectors. The Department has 8
Defence Public Sector Undertakings and 39
ordnance factories with a wide-ranging production
infrastructure. The products include aircraft and
helicopters, warships, submarines, heavy
vehicles and earthmovers, missiles, a variety of
electronic devices and components for the
defence sector, and alloys and special purpose
steel and other alloys. Since Independence, the
defence production sector has been developing
steadily, with the objective of achieving selfreliance.

7.2 The following are the major organizations
directly under the Department of Defence
Production :

� Ordnance Factory Board

� Hindustan Aeronautics Limited

� Bharat Electronics Limited

� Bharat Earth Movers Limited

� Mazagon Dock Limited

� Goa Shipyard Limited

� Garden Reach Shipbuilders & Engineers
Ltd

� Bharat Dynamics Limited

� Mishra Dhatu Nigam Limited

� Directorate General of Quality Assurance


� Directorate General of Aeronautical Quality
Assurance

� Directorate of Standardisation

� Defence Exhibition Organisation

7.3 Defence equipment today is very
technology intensive demanding high levels of
quality. The Directorates General of Quality
Assurance and Aeronautical Quality Assurance,
and the Directorate of Standardisation have been
set up to ensure these quality levels.

7.4 With the introduction of the new
Defence Procurement Procedure 2005,
Government has stipulated a 30% offset for
contracts exceeding Rs 300 crore. The
vendors concerned will have to source goods
or services to this extent from Indian defence
industry. This would give the industry a
significant opportunity to improve exports as
well as manufacturing capabilities.

7.5 The Defence Exhibition Organisation has
regularly been organising two major international
events - “Defexpo” and “Aero India” since 1996.
The Defexpo is a biennial event in which a large
number of manufacturers, participating countries
and businessmen take part; its focus is on land
and naval systems. Aero India, on the other hand,
is for the aviation sector and aerospace. Over the
years, both events have secured considerable
international recognition, and have also grown
significantly in terms of the number of participants
and the area occupied.


-----

###### ORDNANCE FACTORIES

7.6 The Ordnance Factories Organization is
the largest and oldest departmentally run
production organization in the country. It is
primarily engaged in the manufacture of Defence
hardware for the Armed forces. The Ordnance
Factories were established with a mandate to
ensure self-reliance in manufacturing of Defence
hardware.

7.7 The Ordnance Factories Organization is
a fine blend of old and state-of-the-art factories.
The first Ordnance Factory was established in
1801 at Cossipore, near Kolkata. There are 39
Ordnance Factories, geographically distributed all
over the country at 24 different locations. The 40[th]

Factory is being set up with the state-of-the-art
technology at Nalanda, Bihar, for production of
Bi-modular changes required for 155mm
Ammunition.

7.8 **_Organisation Structure: The Ordnance_**
Factory Board has a Chairman and 9 functional
Members. Out of these, five Members head
operating divisions and four Members are for Staff
functions. The operating divisions are based on
the main products/or group of products. The five
operating divisions are:

� Ammunition and Explosives (A&E)

� Armoured Vehicles (AV)

� Materials and Components (M&C)

� Ordnance Equipment Group of Factories
(OEF)

� Weapons, Vehicles and Equipment
(WV&E)

###### The staff functions are:

� Personnel

� Finance

� Planning and Material Management


� Projects & Engineering and Technical
Services.

7.9 In addition, the Government has
constituted a Special Board, with representation
from the Ministry of Defence, Army and Defence
Research and Development Organisation and for
providing appropriate inputs on resource planning,
upgrading technology of products & process and
on various other critical issues, necessary for the
efficient functioning of OFB.

7.10 **_Human Resources: Ordnance Factories_**
have a large pool of qualified and experienced
personnel. Total strength of ordnance factories
was 1,16,911, as on April 1, 2006. Ordnance
factories plan to optimize manpower strength
keeping in view the planned perspective
requirements of major indenters. National
Academy of Defence Production (NADP) Nagpur,
a premier training institute, caters to the training
need of Gr. ‘A’ officers, 8 Ordnance Factories
Institutes of Learning (OF, IOL) take care of the
training need of Gr. ‘B’ officers and staff. All the
39 Ordnance Factories have training institutes for
training industrial employees and trade
apprentices.

7.11 **_Product Profile: The product range of_**
Ordnance Factories is as under:

**_Weapon Items - Small Arms (Rifles, Pistols,_**
Carbines, Machine Guns), Tank Guns, Anti-Tank
Guns, Field Howitzers, Artillery Guns, Mortars, Air
Defence Guns and Rocket Launchers.

**_Ammunition Items - Ammunitions for all the_**
above weapon systems, Rockets, Missile
Warheads, Mortar Bombs, Pyro-technique
(Smoke, Illuminating, Signal), Grenades and
Bombs for Air Force, Naval ammunition,
propellant and fuzes.

**_Armoured & Transport Vehicles - Tank T-72_**
‘Ajeya’, Tank T-90 ‘Bhishma’, Infantry Combat
Vehicles, Armoured Ambulance, Bullet Proof &


-----

Mine Proof Vehicles, Special Transport Vehicles
and Variants.

**_Troop Comfort Items - Parachute for Army &_**
Air Force, High Altitude & Combat Clothing, Tents
of Various Types, Uniforms & Clothing Items,
Floats For Light Assault Bridges.

**_Opto Electronics - Optical Instruments and Opto-_**
Electronic Devices/ Fire Control Instruments for
Armoured Vehicles, Infantry And Artillery
Systems.

**_Others - Special Aluminium alloys_**
for aviation and space industry,
Field Cables, Water Bowser etc.

7.12 **_Performance: The issues_**
of Ordnance Factories have grown

**_of Aluminium Alloy_**

steadily over the years and

**_(AA 2014), meeting_**

recorded Rs. 6891.68 crore during

**_stringent Ultrasonic_**

2005-06. In 2006-07, the issues
from Ordnance Factories are

**_Class “A”._**

expected to touch about Rs. 7200
crore.

7.13 **_Diversification into Civil Trade and_**
**_Exports: As a policy, major thrust is being given_**
to achieve optimum capacity utilization not only
by securing additional workload from the Armed
Forces but also by making sustained efforts
through diversification to non-defence customers
and exports.

7.14 Ordnance Factories produce a large
variety of chemicals for industries in the civil
sector. They also manufacture a wide range of
textiles, leather goods and sporting arms and
ammunition for the civil sector. During 2005-2006,
items worth Rs. 1247 crores (18.09% of the total
issues) were sold to non-defence customers.

7.15 Ordnance Factories have made vigorous
marketing efforts to boost exports. Some of the
notable products exported during the year are:
(a) 40 mm L-70 gun and its spares


(b) Brake Parachutes for Sukhoi-30 and Jaguar
Aircraft.

(c) Mine Protected Vehicles.

(d) Bolt Action Rifles and 14.5mm Cartridges

7.16 Highlights: Some of the important
achievements of Ordnance Factories in the
current financial year are:
(i) **_Ordnance Factory, Ambajhari (OFAJ) –_**
OFAJ became the first manufacturing unit
in the country to produce higher size
cast billets of Aluminium Alloy (AA
2014), meeting stringent Ultrasonic
quality to AMS 2630B Class “A”.
OFAJ has planned supply of billets
worth Rs. one crore against orders
already secured.

(ii) **_Ordnance Cable Factory,_**
**_Chandigarh (OCFC) – OCFC has_**
completed an order for supply of 50
Km Anti Microphonic Cable,  for
Centre for Fire and Explosive Safety, Delhi.
OCFC has also developed and issued a
single mode six fiber optic cable to South
Western Command (SIGS), Army HQ, for
the first time.

(iii) **_Ordnance Clothing Factory, Avadi_**
**_(OCFAV) – OCFAV has successfully_**
supplied the first batch of 270 sets of the
New Combat Uniforms with Army logo.
Further, 5000 sets of this Uniform have
been supplied to Army for extensive user
trials.

7.17 **_Quality Management: Implementation of_**
Total Quality Management (TQM) concept has
been given a major thrust in all the Ordnance
Factories. All the 39 Ordnance Factories have
switched over to Quality Management System
conforming to ISO-9001: 2000 standards. All the
52 laboratories in 29 Ordnance Factories are
accredited to National Accreditation Board of


-----

Laboratories (NABL) and conform to ISO/IEC
17025 standards.  The quality audit report shows
that on an average, performance level of the
factories have increased from 51% in 2004-05 to
73.65% in 2006-07.

7.18 The responsibility of vendor development
and inspection of input materials
has been transferred to OFB from

**_All the 39 Ordnance_**

DGQA to make manufacturers

**_Factories have_**

accountable for product quality.

**_switched over to_**

7.19 **_Modernisation: A capital_**
investment of Rs. 1167 crore has
been made during the 10[th] Plan **_ISO-9001: 2000_**
period (upto 2005-06) and **_standards._**
investment of Rs.339 crore has
been planned in 2006-07. For the 11[th] Plan Period,
an investment of about Rs. 4,200 crore, has been
planned for modernization of Ordnance Factories.

###### HINDUSTAN AERONAUTIC LIMITED (HAL)


7.20 Hindustan Aeronautics Limited (HAL) in
its present form as a Public Sector Undertaking
(PSU) under the Ministry of Defence and fully
owned by Government of India, came into
existence on October 1, 1964, when the erstwhile
Aeronautics India Limited and Aircraft
Manufacturing Depot were merged with
Hindustan Aircraft Limited. HAL’s
major supplies/ services are to the
Indian Air Force, the Navy, the
Army, the Coast Guard and the
Border Security Force. As a spinoff, Transport aircraft and
helicopters have been supplied to
Airlines as well as State
Governments.

7.21 HAL, ranked 45[th] amongst world’s top 100
defence companies (Defense News, 2006),
cruised past the Rs 5,000-crore mark  with a
sales turnover of Rs 5,341.50 crore ($1.20 billion)
during the financial year 2005-06. All the


Indigenous Light Combat Aircraft ‘TEJAS’ on its take off path


-----

production divisions of HAL have ISO 9001-2000
accreditation and ten Divisions have ISO-140011996 Environment Management System
Certification.

7.22 **_Significant Achievements:_**

(i) The dividend of  Rs. 228.62 crores
(including dividend tax of Rs.38.89 crores
for year 2005-06 has been paid.

(ii) Around 4000 items were indigenized with
an anticipated FE savings of Rs.25.62 crore
per annum. Indigenisation support was
provided for non-HAL produced aircraft/
helicopters also.

(iii) To realize its aim of achieving self reliance
and to develop the Indian aerospace
industries, the Company outsourced work
packages worth Rs.282 crore to Indian
industries during the year 2005-06.

(iv) Intermediate Jet Trainer and Dhruv
Helicopter were displayed in Farnborough
Air Show.

(v) Exports to the tune of Rs. 136.25 crores
were achieved during the Financial year
2006-07 (upto November, 2006).

(vi) During 2006-07, HAL has planned to obtain
the ISO 9001 – 2000 QMS certification in
one more new division (LCA-LSP).

7.23 HAL received “Raksha Mantri’s Awards for
Excellence for the year 2003-04” on June 9, 2006
in the Institutional awards for Excellence in
Performance, and Best Performance in Exports.
HAL was awarded the “Enterprise Excellence
Award 2004-05” for the financial and operations
strength by Indian Institution of Industrial
Engineering on May 19, 2006.

###### BHARAT ELECTRONICS LIMITED (BEL)

7.24 Bharat Electronics Limited (BEL) is the
leading professional electronics company in the
country engaged in the design, development and


manufacture of sophisticated state-of-the-art
electronics equipment/ components for the use
of defence services, para-military organizations
and other infrastructure providers in the telecom
sector.

7.25 BEL is a “MINI RATNA” category I
company. Based on the MoU performance, the
company has been rated in the “Excellent”
category continuously for the last 8 years by the
Department of Public Enterprises (DPE).

7.26 With its 9 production units and 31
manufacturing divisions spread across 7 states,
the company’s focus on Research and
Development to generate business using the
‘state-of-the-art’ manufacturing and testing
facilities, has been well recognized, manifesting
in the large number of recognitions/ prizes.

7.27 In the area of Quality Assurance, BEL has
adopted the Total Quality Management (TQM)
approach. A Corporate Quality Group – Total
Organizational Quality Enhancement (TORQUE)
has been set up to oversee all activities relating
to enhancement of quality in the company. All
the manufacturing Divisions of the Company have
acquired ISO 9000 certification.

7.28 The company has adopted Six Sigma
Concept – a concept that has been successfully
implemented by global giants like Motorola,
General Electric etc for quality enhancement and
total quality management of its products.

7.29 The company has also adopted the
Business Excellence Model as laid down by the
CII-EXIM Bank Excellence Award criteria. Five
of the Unit/ SBUs have got recognition for their
strong commitment towards the Total Quality
Management principles. The company has set
internal targets for coverage of all the Units and
SBUs under the Excellence Model by 2006-07.

7.30 Satellite Based Systems Solution (eGovernance, Telemedicine, Distance Education,


-----

EDUSAT, POLNET), Smart Card Based Systems operations from January 1965. At present,
(Access Control, MNIC, Security & Regulatory Government of India holds 61.23% of equity
Applications), X-Ray Baggage and Cargo shares of the company and continues to be a
Inspection System, Under Carriage Vehicle majority shareholder. Financial Institutions,
Inspection & Vehicle Authentication System, are employees and Indian public hold the rest of the
some major areas of diversification. equity. BEML is a leading manufacturer of

earthmoving and construction equipment in the

**_Important business achievements of BEL are_**

country. BEML also manufactures ground support

**_as follows: -_**

equipment for the Indian Armed Forces both for

- BEL won a contract against stiff competition movement of men and material. The Company
for supply, integration, annual maintenance manufactures rail coaches and wagons for Indian
and facility management of the state-of-the- Railways and Defence Forces and has recently
art Call Data Record based Convergent diversified its business to metro coach
Billing System for MTNL in Delhi & Mumbai. manufacturing by supplying coaches to Delhi

Metro Rail Corporation (DMRC) under a sub
- Company obtained an order from Army to

contract from M/s Rotem of South Korea. In

set up a test bed for CDMA-based

addition, the Company has ventured

communication network.

into trading of the non-company

**_BEML is a leading_**

- Company bagged a contract products for Indian and overseas

**_manufacturer of_**

to set up a Satellite customers and opened a

**_earthmoving and_**

Communication Network in technology division to provide e
**_construction_**

Nigeria. engineering solutions in specialized

**_equipment in the_**

areas such as automotive,

- EDUSAT Programme has **_country._**

aeronautics, etc.

already been implemented in
Karnataka, Rajasthan, Haryana and is

7.32 BEML has 8 manufacturing units located

under implementation in West Bengal. BEL

at 3 locations viz. Bangalore, Kolar Gold Fields

is in the process of setting up networks in

(KGF) and Mysore. All the manufacturing units are

the states of Madhya Pradesh, Uttarakhand,

accredited with ISO 9001-2000. BEML also has a

West Bengal, Tripura, Nagaland, Mizoram,

subsidiary steel foundry, Vignyan Industries Limited

Arunachal Pradesh and Meghalaya as well

(VIL), located at Tarikere. All the production units

as for the Guru Nanak Dev University.

of BEML are well equipped with state-of-the-art

- Company supplied a large quantity of Solar manufacturing facilities including sophisticated
House Lighting Systems and Solar Street Computer Numerically Controlled (CNC) machines
Lighting Systems to remote and inaccessible and other fabrication and welding facilities. BEML
villages of Tripura, West Bengal and Tamil has a dedicated R&D Centre at its KGF Complex,
Nadu and also supplied 10KW Solar which provides technology support in terms of
based power plants to villages in Rajasthan. product upgradation, design & development of new

products, technology absorption & adaptation and

###### BHARAT EARTH MOVERS LIMITED standardization to meet specific customer (BEML) requirements.

7.31 Bharat Earth Movers Limited (BEML) was 7.33 BEML products are exported to more than
established in May 1964 and commenced 30 countries across the world in the Middle East,


-----

Syria, Tunisia, Jordan, Sri Lanka, Bangladesh,
UK, South Africa, North African and Latin
American countries. During the year, BEML has
enlarged its global reach by securing orders from
Morocco and China.

7.34 **_Significant Achievements:_**

(i) Department of Defence Production, Ministry
of Defence has conferred BEML with
Category-I Mini Ratna status, giving greater
autonomy on financial and other matters.


over by Government of India in May, 1960. Over
the years, it has developed indigenous design
capabilities and expanded its product range to
include destroyers, frigates, missile boats,
corvettes, submarines and patrol vessels for the
defence sector and merchant vessels and
dredgers for the civil sector. It is the only shipyard
in the country to have built submarines, a feat
achieved by very few companies worldwide

7.36 **_Significant achievements:_**

(i) Stealth Frigates and missile destroyers are
under construction at present.


(ii) BEML paid a dividend of 100% for the year

under construction at present.

2005-06. This isthe second consecutive
year that the Company is (ii) On the civil front, the
paying 100% dividend to its construction of Cutter Suction
shareholders. **_MDL was accorded_** Dredger for Dredging Corporation

**_Mini Ratna Category-I_** of India (DCIL) is in progress.

(iii) BEML has achieved

**_Status in September_**

“Excellent” MOU rating for the (iii) Special repairs of

**_2006._**

year 2005-06 after a gap of Submarine (INS SHISHUMAR)
15 years. were completed in March 2006 and

post refit activities of modernization cum

(iv) BEML received Construction World
warranty have also been completed in

NICMAR 2005 Award for ‘The fastest

September 2006.

Growing Company’ registering highest
turnover in equipment category. (iv) MDL was accorded Mini Ratna Category-I

Status inSeptember 2006.

(v) ‘Enterprise Excellence Award” 2004-05
conferred on May 19, 2006 by Indian

###### GOA SHIPYARD LIMITED(GSL)

Institute of Industrial Engineering in
recognition of BEML’s financial and 7.37 Goa Shipyard Limited (GSL) is the largest
operational strength. Public Sector Enterprise in the State of Goa

employing about 1652 people. It is located at

(vi) Awarded “Second Most Popular Company”

Vasco da Gama, midway on the West Coast, on

next only to ONGC by Business and

the mouth of River Zuari, in close proximity to the

Economy magazine in July 2006.

Mormugao Port, Vasco Railway Station and

(vii) BEML successfully supplied 180  state-of
Dabolim Airport.

the-art stainless steel metro coaches to
Delhi Metro Rail Corporation (DMRC) under 7.38 Primarily a Shipbuilding company, GSL
technical collaboration with M/s Rotem of has diversified itself into activities like marketing
South Korea. Stern Gears, design and construction of Damage

Control Simulator (DCS), Survival at Sea Training

###### MAZAGON DOCK LIMITED(MDL)

Facility (SSTF) and GRP boats.  The shipyard

7.35 The leading Warship building yard in the has built and delivered 181 vessels to the Navy,
country, Mazagon Dock Limited (MDL) was taken Coast Guard and other authorities.


-----

7.39 **_Significant Achievements:_**

(i) GSL has bagged the SODEF Golden Award
for Technology Development & Innovation.

(ii) The Yard has delivered all the
5 Fast Patrol Vessels on

**_the 5 Fast Patrol_**

order for Indian Coast Guard,
each 5-6 months ahead of

**_Indian Coast Guard,_**

contractual delivery
schedules. It has
commissioned Fast Patrol

**_schedules._**

Vessel “ICG Subhadra
Kumari Chauhan” and
launched Fast Patrol Vessel “ICG Savitribai
Phule” and Advanced Offshore Patrol
Vessel “ICG Sankalp” all on a single day
on April 28, 2006.

###### GARDEN REACH SHIPBUILDERS AND ENGINEER LTD (GRSE)

7.40 Taken over by the Government of India
on 1.4.1960, GRSE was put on a dynamic path
of growth and diversification.


7.42 **_Significant Achievements:_**

(i) The Company has paid dividend of Rs.
12.38 crore in the financial year 2005-06.

(ii) The Company has orders
for construction of three Landing
Ship Tank (Large) {LST (L)} The
first of which was delivered to the
Indian Navy in November 2006 and
four Anti-Submarine Warfare
(ASW) Corvetts are scheduled for
delivery between 2008-2011. They
have also received orders for
construction of follow-on First Attack Crafts
(FACs).

(iii) Four FACs built for the Indian Navy were
delivered well within the contracted date.

(iv) GRSE was accorded Mini Ratna CategoryI Status in September 2006.

(v) GRSE has acquired the Rajabagan
Dockyard (RBD) from Central Inland
Water Transport Corporation Ltd, a Public
Sector Undertaking under Ministry of
Surface Transport. The RBD has been
transferred to GRSE w.e.f. July 1, 2006.


7.41 GRSE has gradually extended and Surface Transport. The RBD has been
modernized to improve its growing transferred to GRSE w.e.f. July 1, 2006.
maritime needs - particularly those

###### MISHRA DHATU NIGAM

**_GRSE is among the_**

of the Navy and the Coast Guard.

**_few shipyards in the_** **_LIMITED (MIDHANI)_**

GRSE is among the leading

**_world with its own_**

shipyards in the country and the 7.43 Mishra Dhatu Nigam

**_Engineering and_**

premium yard in the East. To meet Limited (MIDHANI) was

**_Engine Manufacturing_**

the emerging needs, GRSE builds incorporated as a Public Sector

**_divisions._**

a wide range of ships - from Undertaking in 1973 to achieve selfsophisticated warships to ultra reliance in areas of Superalloys,
modern commercial vessels, from small Titanium alloys and Special Purpose Steels
Hovercraft to fast and powerful patrol vessels. required for strategic sectors like Aeronautics,
India’s first ever tanker fleet too was born at Space, Armaments, Atomic Energy, Navy,
GRSE. The latest on the list is new generation Special products like Molybdenum wires & plates,
hovercraft. Range alone, of course, does not show Titanium and Stainless Steel tubes, alloys for
GRSE’s versatility. Today, it is among the few electrical and electronic application like Soft
shipyards in the world with its own Engineering Magnetic alloys, Controlled expansion alloys and
and Engine Manufacturing divisions. Resistance alloys.


-----

7.44 **_Significant achievements:_**

(i) The Company has received award for
Development of Technology and Innovation from
Society of Defence Technologists
for significant contribution in the
area of extensive development of
Titanium and its alloys for **_of Technology and_**
Aerospace in general and **_Innovation from_**
development of niobium based **_Society of Defence_**
alloy (NIOBHAT-101) for satellite **_Technologists for_**
applications.

(ii) Company has successfully

**_development of_**

developed trial heats of Supercast
247A (directionally solidified

**_for Aerospace in_**

Super alloy) required for Kaveri

**_general and_**

Aero Engine Blade/ vane

**_development of_**

application (characterization in
progress)

**_(NIOBHAT-101) for_**

- Beta alloy (TItan -42) required
for future replacement of
Titan-31 used by VSSC and supplied, for
the first time, in form of forged slabs has
also been developed.

- MDN-155 grade Barrel required by Field
Gun Factory, Kanpur, meeting all
specificational requirements also
developed.

- Superni-718 Rotor forgings required by
LPSC for critical applications and supplies
effected for the first time meeting all
specification requirements has been
developed.

- Ti-600 (equivalent to IMI-831) Titanium alloy
was developed for the first time meeting all
specificational requirements during type
testing.

� MIDHANI received prestigious orders worth
Rs.51.35 crore from Department of Space,
Rs.20.56 crore from Hindustan Aeronautics
Limited, Rs.19.20 crore from Ordinance


Factories, which includes order for supply
of 94 sets of “Kanchan Armour”.

� Company supplied its products worth Rs.
47 crore to Department of Space,
Rs.15.36 crore to ATVP, Rs.11.19
crore to Department of Atomic
Energy respectively.

7.45 MIDHANI was awarded
“SCOPE (Standing Committee of
Public Enterprises) Award for
Excellence and Outstanding
contributions to the Public Sector
Management” for the year 2004-05
under Special Institutional Category
(Turnaround) in recognition of the
contribution made by it in the areas
of Business Performance,
Customer Satisfaction
Management, Quality
Management, New Product
Development, Systems and
Strategies etc.

7.46 Orders worth 4.41 crore of Titan 31 grade
bars and rings were executed for Vikram Sarabhai
Space Centre (VSSC). Superni 80A rings worth
2.19 crore were supplied to BHEL, Hardwar for
power generation applications.

7.47 MIDHANI in the month of November 2006,
received a single order of record amount worth
Rs. 156 Crore from ATVP for supply of low alloy
steel and stainless steel welding electrodes for
supply during next 5 years.

7.48 **_Up-gradation & Modernization: The_**
Company was able to inject fresh funds for
upgrading and modernizing its plant and
equipment, with the active cooperation,
assistance from major customers of MIDHANI like
Department of Space, Defence Ordnance
Factories (OFs), Hindustan Aeronautics Ltd.,
(HAL) etc.


-----

7.49 Department of Space had extended its
active support by funding to the extent of Rs.30
crore in establishing facilities at MIDHANI, for
dedicated use in their specific space programmes
and a further sum of Rs.35 crore for
establishing new equipment and **_BDL successfully_**
facilities towards up-gradation
programme. The execution of these **_Launcher for_**
projects is at an advanced stage.

###### Bharat Dynamics Limited vehicles. Internal (BDL)

**_out successfully._**

7. 50 Bharat Dynamics Limited
was set up in 1970 for manufacture
of Guided Missiles. It is amongst a few strategic
industries in the world and possesses the
capability to produce advanced Guided Missile
systems. The Company has two units. BDL’s
products are single shot weapons, which call for
very high degree of reliability ensuring greater kill
probability. Hence quality is accorded top most
priority. Missiles Design & Engineering (D&E),
Electronics and Information technology divisions
have ISO 9001:2000 certifications.

7.51 **_Significant achievements:_**

(i) **_3 UBK – 20 (INVAR): Proof firing of 910_**
CKD Kits received from M/s
Rosobronexport after repairs at their
manufacturing unit has been successful
and efforts are underway to ensure delivery
to the user before end of the current
financial year.

(ii) **_Life Extension of Missiles: Work on Life_**
extension of Anti Tank Guided Missiles is
underway.

(iii) **_Drill & Practice Torpedoes: Drill and_**
Practice Torpedoes against Navy orders
have been produced and delivered.

(iv) **_TAL (Advanced Light Weight Torpedo):_**
Qualification Tests have been completed


and RFP for fresh requirement of 25 sets is
awaited.

(v) **_Varunastra (Heavy Weight Torpedo):_**
Naval Science and Technological
Laboratory (NSTL), Vishakapatnam
is developing an Indigenous High
Speed Heavy Weight Torpedo and
desires to productionise this
Torpedo under c o n c u r r e n t
engineering mode in association
with Bharat Dynamics Limited. An
MOU has been signed with NSTL
for Development & Production
under concurrent engineering
mode as envisaged by NSTL.

(vi) **_Counter Measures Dispensing System_**
**_(CMDS): BDL was awarded The Golden_**
Peacock award for the design and
development of CMDS by Design &
Engineering division of Kanchanbagh unit.
The system was successfully flight-tested
for the Jaguar platform at ASTE, Bangalore
in June 2006. Development work of CMDS
with regard to other platform like LCA, ALH
and AEW&C is under progress.

(vii) **_3 Km Anti Tank Guided Missile (ATGM):_**
Existing range of Milan missile is only 2 Km.
BDL has now developed a missile to cover
a distance of 3 Km. It was successfully test
fired against the target kept at a distance of
3 Km in Shamirpet field firing range.

(viii) Twin Missile Launcher: BDL successfully
developed Twin Missile Launcher for
deployment on BMP II and ABHAY infantry
vehicles. Internal evaluation was carried out
successfully.

7.52 **_Sales of Ordnance Factories and_**
**_Defence PSUs: The total value of sales/ issues_**
by Ordnance Factories and Defence Public Sector
Undertakings during the last threes years, is as
follows:

-----

(Rupees in crore)

**_Year_** **_Ordnance_** **_Public Sector_** **_Grand_**
**_Factories_** **_Undertakings_** **_Total_**
**_Total Sales_** **_Total Sales_**

2004-05 6186.65 11248.59 17435.24

2005-06 6891.68 13025.07 19916.75

2006-07 3574.26 6232.73 9806.99

(upto Nov.06)

7.53 Defence Public Sector Undertakings and
Ordnance Factories have exported items worth
Rs 256.88 crore during the year 2006-07 (upto
November, 2006).


7.54 Dr. Vijay Kelkar Committee set up to
examine and recommend changes in the
acquisition process, which submitted its report in
two parts has made 40 recommendations in
Part-I. These recommendations essentially
address issues related to promotion of private
sector industry in defence production, so that all
available recources are fully exploited for further
enhancing Defence preparedness. Out of 40
recommendations, 26 have been accepted fully,
8 with certain modifications and rest are pending
further deliberations. 23 recommendations have
been implemented, one recommendation has

|Year|Ordnance Factories Total Sales|Public Sector Undertakings Total Sales|Grand Total|
|---|---|---|---|
|2004-05|6186.65|11248.59|17435.24|
|2005-06|6891.68|13025.07|19916.75|
|2006-07 (upto Nov.06)|3574.26|6232.73|9806.99|


Advance Light Helicopters Aerobatic Team ‘SARANG’ displaying their skills


-----

been dropped. Part-II of the Report is under
examination.

7.55 **_Private Sector Participation in Defence_**
**_Production: In May, 2001, the Defence Industry_**
sector, which was hitherto reserved for the public
sector, was opened up 100% for Indian private
sector participation, with Foreign Direct
Investment (FDI) upto 26%, both subject to
licensing. Department of Industrial Policy and
Promotion (DIPP) notified detailed guidelines for
licensing production of arms and ammunition  in
January 2002.

7.56 A Standing Committee has been
constituted in the Department of Defence
Production under the chairmanship of Joint
Secretary (Supplies) to consider all applications,
for grant of Industrial Licence for the manufacture
of arms and armaments, received from DIPP and
to communicate the recommendation of the
Ministry of Defence to that Department. The
Committee also considers all matters relating to
Private Production of Defence equipment viz.
applications for self-certification, permission for
export of products manufactured under licence
as well as cases for cancellation of licence due to
breach of licensing conditions or security
provisions etc. DIPP has, so far, issued 37 Letters
of Intents (LOIs)/Industrial Licences (ILs) to
private sector companies for manufacture of a
wide range of defence equipment on the
recommendation of the Ministry of Defence.

7.57 **_Raksha Udyog Ratnas: A Selection_**
Committee for selection of Raksha Udyog Ratnas
has been constituted under the chairmanship of
Shri Prabir Sengupta, Director, Indian Institute of
Foreign Trade. Government purposes to identify
tier-I industries of proven excellence, which are
capable of contributing in Defence Production,
depending upon their technical, managerial and
financial strength. Such firms will be accredited
as “Raksha Udyog Ratnas” (“RURs”) and
systematically encouraged to contribute in


Defence Production in order to assume the role
of system integrators of large weapon systems
and producers of platforms required by the
Defence Forces. There are independent
technical, management and financial experts in
the Committee, and Engineers India Limited (EIL)
has been tasked to provide technical support to
the Committee. The “RURs” would be treated at
par with Defence PSUs, for receiving technology
and undertaking licensed production with Transfer
of Technology (TOT) from overseas sources.

7.58 Detailed guidelines were notified on May
9, 2005 for selection of Industry “RURs” which
are also displayed on the Ministry’s website. The
Selection Committee will make its
recommendations by March 31, 2007. The
recommendations of the Selection Committee will
be placed before Defence Acquisition Council
(DAC) for acceptance. Once approved for
selection as “RUR”, the Company will enjoy the
status of “RUR” for a period of 5 years, which can
be renewed further. “RURs” will have to follow
the Code of Best Practices and sign an agreement
in this regard with the Ministry of Defence.

###### OTHER ORGANISATIONS IN DEPARTMENT OF DEFENCE PRODUCTION

**_DIRECTORATE GENERAL AERONAUTICAL_**
**_QUALITY ASSURANCE (DGAQA)_**

7.59 Directorate General Aeronautical Quality
Assurance (DGAQA) is entrusted with the
Regulatory functions of Aeronautical Quality
Assurance in Military Aviation. The Directorate
has 34 establishments at various places in India.
DGAQA provides QA coverage in three distinct
areas namely Aeronautics, Air Armament and
Missiles. The coverage is rendered during
Design/ Development, Production/ Manufacturing
and Repair/ Overhaul stages of military products
and equipment. DGAQA has expertise in


-----

supervising QA activities of complex aeronautical
industries, and it ensures adherence to aero
standards.

7.60 DGAQA is also providing QA coverage
as nodal agency for Missile System Quality
Assurance (MSQAA). During the year (upto
November, 2006), DGAQA has inspected
Aeronautical Stores of the value of Rs. 2150
crores.

###### DIRECTORATE GENERAL OF QUALITY ASSURANCE (DGQA)


technologies. The third tier comprises Quality
Assurance Establishments/ Wings numbering 79,
located all over the country. These basic field units
are located alongwith assigned Ordnance
Factories, Defence Public Sector Units (DPSUs)
and all five metros for dealing with civil industry
supported by 45 Test Laboratories and 2 Proof
Test Ranges besides Small Arms Ranges.

###### ACHIEVEMENTS OF DGQA

7.63 The value of stores quality assured during
the last three years is given below: 
**_Year_** **_Value of Stores_**
**_Quality Assured (in Rs. crore)_**

2004-2005 16,906.70

2005-2006 16,397.14

2006-2007 7732.56

(till 30 Nov 2006)

7.64 Regular interaction with Users at
command level and Field Units is undertaken to
obtain first hand feedback and rendering technical
advice.


**_Year_** **_Value of Stores_**

7.61 Directorate General of Quality Assurance

**_Quality Assured (in Rs. crore)_**

(DGQA) is an inter service organisation handling
all aspects of Quality Assurance management of 2004-2005 16,906.70
equipment from conceptual stages till their 2005-2006 16,397.14
discard. It provides consultancy to the Armed

2006-2007 7732.56

Forces (Users) for the complete range of

(till 30 Nov 2006)

equipment for the Army, for Marine Engineering,
Weapons, sensors and support systems for the 7.64 Regular interaction with Users at
Navy and common user items for the Air Force. command level and Field Units is undertaken to
DGQA interacts with users throughout equipment obtain first hand feedback and rendering technical
exploitation. It undertakes defect investigations advice.
and incorporates modifications in

7.65 DGQA awards Self

consultation with design and **_DGQA handles all_**

Certification status to Quality

manufacturing agencies. **_aspects of Quality_**

Conscious Firms/ Manufacturers

**_Assurance_**

7.62 **_Organisational Structure:_** who have well established Quality

**_management of_**

DGQA Organisation comprises both Management Systems and have

**_equipment from_**

demonstrated consistent product

of Civilian and Service Personnel on

**_conceptual stages till_**

quality during the execution of

a three tier pattern viz., Technical

**_they are discarded_**

successive Defence Supply Orders.

Directorates, Controllerates of

**_from service._**

Five Manufactures were awarded

Quality Assurance and Quality

Self-Certification during the year

Assurance Establishments/ Wings. There are ten

bringing cumulative total to 57 manufactures.

Technical Directorates each of which is
responsible for a distinct range of equipment.

###### DIRECTORATE OF

Controllerates of Quality Assurance 29 in number

###### STANDARDISATION

and also known as Authority Holding Sealed
Particulars (AHSP) constitute second tier in the 7.66 Directorate of Standardisation was
structure. They are repositories of technical constituted in 1962 with the objective to control
known-how and specifications, drawings and item proliferation within Defence Services. It has
other details of all stores in their specific fields of nine Standardisation Cells and six Detachments.

|Year|Value of Stores Quality Assured (in Rs. crore)|
|---|---|
|2004-2005|16,906.70|
|2005-2006|16,397.14|
|2006-2007 (till 30 Nov 2006)|7732.56|


-----

The primary

**_The primary objective_**

objective of the

**_of the Directorate of_**

Directorate of

**_Standardisation is to_**

Standardisation is

**_establish commonality_**

to establish

**_in equipment and_**

commonality in

**_components among_**

equipment and

**_the three Services so_**

c o m p o n e n t s

**_that the overall_**

among the three

**_inventory of the_**

Services so that the

**_Defence Services is_**

overall inventory of

**_reduced to the_**

the Defence

**_minimum._**

Services is
reduced to the minimum. The objective is sought
to be achieved through: 
(a) Preparation of Standardisation documents
such as, Joint Service Specifications,
Joint Service Preferred Ranges, Joint
Service Rationalised Lists, Joint Service
Guides, Joint Service Policy Statements
and Joint Service Qualitative Requirements;

(b) Codification and Cataloguing of Defence
Inventory; and

(c) Entry Control

7.67 Standardisation activities are done
through 13 Sub-Committees, Panel/ Working
Groups under these Sub Committees and several
Specialists Technical Panels (STP) and Defence
Equipment Codification Committee (DECC).

7.68 **_Significant achievements:_**

(a) Five Year Roll-on-Plan (2006-11) was put
in place.

(b) Total number of items codified till March
2006 is 2,27,408. Target for the year 200607 is 17, 610 against which 11,642 items
have been codified till November 30, 2006
thereby making the total number of items
codified till date to be 2,40,511.

(c) Target for the year 2006-07 is preparation
of 685 standard Documents against which


460 standard documents have been
prepared till November 2006.

7.69 **_Entry Control_**

(i) 210 statement of cases for introduction,
scaling and declaring the items obsolescent
have been cleared upto November 30,
2006.

(ii) 267 Departmental Specifications were
uploaded on the website making a total of
2814 Departmental specifications uploaded
till November, 2006.

(iii) Two Inter Service Equipment Policy
Committee (ISPEC) Meetings and Fourteen
Inter Services Working Group (ISWG) have
been held till November 30, 2006. Eight
JSQRs have been finalised till November
2006 in the year 2006-07.

###### DIRECTORATE OF PLANNING & CO- ORDINATION

7.70 T h e

**_Directorate of Planning_**

Directorate of

**_& Coordination is the_**

Planning and

**_nodal point for_**

Coordination set

**_activities related to_**

up in 1964 with the

**_Defence Acquisitions_**

primary objective of

**_Council, international_**

preparing overall

**_cooperation in defence_**

plans for the

**_production, major_**

production of

**_programmes and_**

defence equipment

**_projects related to_**

in the country.  It

**_development and_**

functions as an

**_production of_**

attached office to

**_armoured vehicles and_**

the Department of

**_armaments in the_**

D e f e n c e

**_Ordnance Factory_**

Production and

**_Board, important_**

provides technical

**_communication and_**

support to various

**_ship building projects_**

wings of the

**_and offsets in defence_**

department. It is

**_procurement._**

the nodal point for


-----

activities related to Defence

**_The Directorate of_**

Acquisitions Council, international

**_Planning &_**

cooperation in defence production,

**_Coordination is_**

major programmes and projects

**_responsible for_**

related to development and

**_monitoring and_**

production of armoured vehicles

**_implementation of_**

and armaments in the Ordnance
Factory Board, important
communication and ship building

**_like the Main Battle_**

projects and offsets in defence
procurement.

**_improvement of_**

7.71 The Directorate coordinates
within the Department of Defence
Production, the interaction with the
Integrated Defence Staff
Headquarters, regarding

**_of tanks._**

categorization of the capital
acquisition plans of the three
services, Defence Procurement Board and


Defence R&D Board. The
Directorate serves as the
secretariat for the Defence
Production Board, which is incharge of the function of monitoring
progress emanating out of all
“MAKE” decisions taken by the
Defence Acquisitions Council
(DAC).

7.72 The Directorate is
responsible for monitoring and
implementation of major projects of
the Ordnance Factories like the
Main Battle Tank Arjun and T-90
(BHISHMA), product improvement
of various artillery guns and
armoured vehicles and
augmentation of overhauling
capacity of tanks. Major Research & Development


Raksha Mantri at the Inaugural Day Press Conference at AERO India 2007


-----

and indigenization programmes of armaments are
other key activities of the Directorate. The
Directorate also monitors various strategic and
tactical communication projects and other critical
projects of BEL for three Services and shipbuilding
projects of the three defence shipyards.

7.73 The Directorate is the nodal point in the
Department of Defence Production for
International Cooperation in defence production
and defence exports. The Directorate supports
the Export wing of the Department
during deliberations with various **_DEO is primarily_**
bilateral Defence Policy Groups and **_responsible for_**
Joint Working Groups with other **_organising and_**
countries. The Directorate also
functions as the secretariat for the
Defence Offsets Facilitation Agency **_abroad, as part of_**
(DOFA).

**_defence-oriented_**

###### Defence Exhibition Organisation (DEO) developed and

7.74 The Defence Exhibition

**_Indian Defence_**

Organisation (DEO), an inter
**_Industry._**

Service Organisation, was raised in
1981. It is primarily responsible for
organising and coordinating Defence exhibitions
in India and abroad, as part of promoting export
for defence-oriented products and services,
developed and manufactured by the Indian
Defence Industry.

7.75 **_Standing Defence Exhibition: For the_**
benefit of distinguished visitors, foreign
dignitaries, delegates and purchase missions,
DEO maintains throughout the year, Standing
Defence Exhibition at Defence Pavilion, Pragati
Maidan, New Delhi, which gives them a glimpse
of the range of products and services being
offered by the Indian Defence Public Sector
Undertakings (DPSUs) and the Ordnance Factory
Board (OFB). For the first time Defence Research
and Development Organisation (DRDO),
Directorate General of Quality Assurance (DGQA)


and Directorate General of Aeronautical Quality
Assurance (DGAQA) have also put permanent
display at Defence Pavilion during the current
financial year.

7.76 **_Participation in India International_**
**_Trade Fair (IITF): Defence Pavilion participates_**
at IITF held every year from November 14-27.
Products manufactured/ developed by the
DPSUs, the OFB and the DRDO are displayed at
the pavilion during IITF. Defence exhibition is a
major attraction during IITF. The
Defence Pavilion has been
awarded 8 Gold, 3 Silver, 3 Bronze
and one special appreciation during
the last 25 years, perhaps highest
for any Central or State Pavilion.
For this years’ edition of IITF
(November 14-27,2006), the
Pavilion was awarded ‘Silver Medal’
in the Central Government
Category for excellence in display.

7.77 The sixth edition of Aero
India was held at Air Force Station,
Yelahanka (AFSY) from February
7-11, 2007. The salient features of Aero India
2007 included an exclusive business chalet area,
expansion of scope to include civil aviation sector,
international aviation seminar and Aero India Golf
tournament in addition to increase in the number
of participating countries, Indian and foreign
companies and enhanced display of aircraft. The
2007 edition of Aero India was co-organized with
Federation of Indian Chambers of Commerce and
Industry (FICCI) and Farnborough International
Limited (FIL) as the Event Manager.

7.78 **_Defexpo India: Defexpo India was_**
launched in 1999. The fourthedition of Defexpo
India was organised at Pragati Maidan, New Delhi
from January 31 to February 3, 2006 in
association with Confederation of Indian Industry
(CII). With an unprecedented participation of 410
companies from 30 countries including 198 Indian


-----

companies, the Exhibition was the biggest ever;
not only in terms of the number of exhibitors but
also in terms of area with net exhibition space of
16400 Sqm which was 25% more than the last
edition. All the DPSUs, the OFB and DRDO
participated in the exhibition. Special emphasis
was laid to encourage participation by the Indian
industry in Small Scale Industries (SSI) category.
42 high level delegations from 36 countries visited
the exhibition.

7.79 **_International Exhibitions Abroad: To_**
provide a fillip to the export efforts, DEO organises
“India Pavilion” in defence exhibitions abroad to


develop a potential market for defence products
being manufactured by the DPSUs/ OFB. This is
part of the attempt to promote ‘Made in India’
brand in the field of defence products. India now
participates in a total of three such events abroad
each year.

7.80 For the year 2006-07, India Pavilions were
set up at the  Defence Service Asia (DSA) 2006
at Kuala Lumpur, Malaysia from May 17-20, 2006,
Africa Aerospace & Defence (AAD) 2006 at Cape
Town, South Africa from September 20-24, 2006
and Indo Defence 2006 Expo and Forum at
Jakarta, Indonesia from November 22-25, 2006.


**_INVESTMENT_**


(Rs. in Crore)

|Name of PSUs|2003-04|Col3|2004-05|Col5|2005-06|Col7|
|---|---|---|---|---|---|---|
||Equity|Govt. loans|Equity|Govt. loans|Equity|Govt. loans|
|HAL|120.50|-|120.50|-|120.50|-|
|BEL|80.00|-|80.00|-|80.00|-|
|BEML|36.87|-|36.87|-|36.87|-|
|MDL|199.20|-|199.20|-|199.20|-|
|GRSE|123.84|-|123.84|-|123.84|-|
|GSL|19.40|-|19.40|-|29.10|-|
|BDL|115.00|-|115.00|-|115.00|-|
|MIDHANI|137.34|-|137.34|-|137.34|-|
|TOTAL|832.15|-|832.15|-|841.85|-|


-----

**_WORKING RESULTS OF DPSUs_**
**_VALUE OF PRODUCTION AND SALES_**

**_2004-2005_**
**_Value of_** **_Value of_** **_Value of_**
**_Sales_** **_Production_** **_Sales_**

3799.78 4984.55 4533.80

2798.59 3234.97 3212.09

1765.75 1885.95 1856.01

191.00 540.63 99.54

390.76 470.28 881.41

296.92 141.83 83.49

524.80 465.79 450.98

125.13 141.67 131.27

**_9892.73_** **_11865.67_** **_11248.59_**

**_Profit After Tax_**


(Rs in Crore)

**_Value of_**
**_Sales_**

5341.50

3535.99

2205.84

164.29

985.99

106.96

531.53

152.97

**_13025.07_**

(Rs. in crore)

|Name of the PSUs|2003-2004|Col3|2004-2005|Col5|2005-06|Col7|
|---|---|---|---|---|---|---|
||Value of Production|Value of Sales|Value of Production|Value of Sales|Value of Production|Value of Sales|
|HAL|3756.14|3799.78|4984.55|4533.80|5916.62|5341.50|
|BEL|2807.83|2798.59|3234.97|3212.09|3449.74|3535.99|
|BEML|1691.86|1765.75|1885.95|1856.01|2179.57|2205.84|
|MDL|495.77|191.00|540.63|99.54|518.37|164.29|
|GRSE|486.90|390.76|470.28|881.41|662.18|985.99|
|GSL|200.83|296.92|141.83|83.49|249.78|106.96|
|BDL|522.47|524.80|465.79|450.98|534.28|531.53|
|MIDHANI|116.42|125.13|141.67|131.27|177.60|152.97|
|TOTAL|10078.22|9892.73|11865.67|11248.59|13688.14|13025.07|

|Name of the PSUs|2004-05|2005-06|
|---|---|---|
|HAL|501.06|771.14|
|BEL|446.32|582.01|
|BEML|175.28|186.93|
|MDL|69.14|60.10|
|GRSE|27.53|65.53|
|GSL|9.92|11.50|
|BDL|27.43|73.49|
|MIDHANI|6.85|12.03|
|TOTAL|1263.53|1762.73|


-----

**_WORKING RESULTS OF OFB_**

**_VALUE OF PRODUCTION AND SALES_**

(Rs in Crore)

|2003-2004|Col2|2004-2005|Col4|2005-2006|Col6|
|---|---|---|---|---|---|
|Value of Production|Value of Sales|Value of Production|Value of Sales|Value of Production|Value of Sales|
|8259.68|6523.87|8332.00|6186.65|8811.59|6891.68|


-----

###### DEFENCE RESEARCH AND DEVELOPMENT

Amphibious Floating Bridge developed by DRDO


-----

###### he DRDO has emerged as one of the premier scientific and technological organisations in the country with a mission

# T

###### to design, develop and lead to production of state-of-the-art weapon systems, platforms and allied equipment and also to provide combat support for meeting the current requirements of the Armed Forces.


8.1 Defence Research and Development
Organisation (DRDO) sprang from a humble
beginning in 1958 with an objective to provide
in-house capability for Ministry of Defence (MoD)
to manage and integrate science and technology
across the whole spectrum of its activities and
also to build up science and technology based
capability to improve performance of the existing
weapon systems and other imported equipment
and to avoid obsolescence. Later on, in 1970s, it
was involved in development of armaments and
ammunitions. During 1980s, thrust was given to
major programmes like development of guided
missiles, electronic warfare systems, aircraft,
communication systems, radars, sonars, etc. The
Department of Defence Research and
Development came into existence in 1980. Over
the years, it has grown up multi-directionally.
Now, the DRDO has emerged as one of the
premier scientific and technological organisations
in the country with a mission to design, develop
and produce state-of-the-art weapon systems,
platforms and allied equipment and also to provide
combat support for meeting the current
requirements of the Armed Forces. DRDO plays
significant roles, like providing scientific and
technological advice to the MoD in support of
defence policy; as evaluator of defence equipment
for the military operational requirements; and
generating new technological knowledge to be
transferred for development of state-of-the-art
weapon systems by the defence industries. The
Organisation also advises the Government to
make technical assessments of international


security threats and the military capabilities of both
current and potential adversaries.

###### ORGANISATIONAL STRUCTURE

8.2 DRDO has a mission-mode structure,
headed by the Scientific Adviser to Raksha Mantri
(SA to RM), who is also the Secretary, Department
of Defence Research & Development (R&D) and
Director General, Research and Development.
The SA to RM is assisted by the Chief Controllers
Naval Systems and Armaments & Combat
Engineering; Missiles & Strategic Systems;
Aeronautics & Materials Science; Services
Interactions; Life Sciences & Human Resources;
Electronics & Computer Sciences; and Resources
& Management. The Organisation has two tier
system, viz. the Technical and Corporate Hqrs at
New Delhi; and laboratories/ establishments,
regional centers, field stations, etc. located at
different stations all over the country.

8.3 **_DRDO Headquarters: DRDO Hqrs,_**
under the Department of Defence Research &
Development, is organized in two different types
of Hqrs Directorates. Technical Directorates
include Directorates of Aeronautics; Armaments;
Naval Systems; Combat Vehicles and
Engineering; Electronics and Computer Sciences;
Materials; Interaction with Services for Business;
International Cooperation; Technology
Acquisition; Missiles; Naval Research and
Development; Life Sciences; Civil Works and
Estates; and Technical Examination Cell. These
Directorates act as ‘single window’ to facilitate


-----

laboratories and establishments, functioning laboratories in improvement of their infrastructure,
under them, in obtaining approvals of new projects creation of new facilities, induction of manpower,
from the Government, facilitate in monitoring and answering Parliament Questions, coordinating
review of ongoing projects and also to co-ordinate with other ministries/departments, etc. and also
with other laboratories and directorates. Besides in getting Government approvals for taking up
these, Scientific Advisers to Chief of the Army projects in their respective areas. Recruitment and
Staff (COAS), Chief of the Air Staff (CAS), Chief Assessment Centre (RAC) and Personnel

Assessment Centre (PEACE)

of the Naval Staff (CNS) and Deputy
Chief of Integrated Defence Staff **_DRDO executes_** undertake fresh recruitments and
also act as Technical Directors to **_various programmes/_** assessment on periodic basis for

the promotion of scientists and

render services to their respective **_projects through a_**

technical staff for all laboratories &

Chiefs. Corporate Directorates, like **_network of fifty_**

Hqrs of DRDO under Defence

Directorates of Personnel; Human **_laboratories/_**

Research Development Service

Resource Development; Materials **_establishments, field_**

(DRDS) and Defence Research

Management; Planning & **_stations, regional_**

Technical Cadre (DRTC),

Coordination; Management **_centres of military_**

respectively.

Services; Rajbhasha and **_airworthiness, etc._**
Organisation & Methods; Budget, **_located all over the_** 8.4 **_DRDO_** **_Laboratories/_**
Finance & Accounts; Security & **_country._** **_Establishments: DRDO executes_**
Vigilance; Extramural Research & various programmes/ projects
Intellectual Property Rights; and a Centre for through a network of fifty laboratories/
Technology Extension & Cooperation assist establishments, field stations, regional centres of

BrahMos Supersonic Cruise Missile jointly developed by India and Russia


-----

military airworthiness, etc. located all over the
country. These are engaged in R&D activities in
the field of aeronautics, armaments, missiles,
combat vehicles, advanced computing &
networking, electronic warfare, life sciences,
advanced materials, composites and underwater
sensors/ weapons and warship
technology. DRDO has two

**_Rationalisation of_**

societies, namely, Aeronautical

**_cadre structure,_**

Development Agency (ADA) and

**_incentive schemes,_**

Society for Integrated Technology

**_training policies,_**

Applications & Research (SITAR).
ADA was set up in 1983 at

**_opportunities, exit_**

Bangalore to undertake design and
development of advanced

**_the mechanisms_**

technology aircraft. SITAR designs

**_through which the_**

digital components and devices

**_organisation has_**

required for various projects
including high performance
computing. Defence Institute of
Advanced Technology (DIAT),

**_from attracting and_**

earlier an establishment of DRDO,
attained status of Deemed
University in 2005. The Institute
organizes courses on wide range of
technologies including regular long and short term
courses for newly recruited scientists and Post
Graduate Programmes to meet defence
requirements in general and weapon systems in
particular. These are also administered and
funded by the DRDO. Gallium Arsenide Enabling
Technology Centre (GAETEC) at Hyderabad is a
foundry, set up for design, development and
fabrication of critical microwave components for
various programmes undertaken by DRDO and
Department of Space.

###### HUMAN RESOURCE DEVELOPMENT (HRD)

8.5 DRDO has adopted a policy of dynamic
and systematic human resource development. A
Human Resource Consultative Body has been
constituted to take an integrated approach for


development of HRD related policies and
strategies for implementation in organisational
system. A Manpower Planning Board manages
the scientific, technical, administrative and allied
cadres. Manpower requirement in all categories
for various projects is reviewed periodically.
Rationalisation of cadre structure,
incentive schemes, training
policies, enhanced promotional
opportunities, exit interviews are
some of the mechanisms through
which the organisation has
endeavoured to ensure optimum
utilization of human resource, apart
from attracting and retaining best
available talents in the country. The
organisation has various schemes
for awarding scientists, engineers,
technical and administrative staff for
their path-breaking research and
excellence in performances.

8.6 Every year, scientists are
recruited through an annual
competitive examination at national
level called Scientist Entry Test (SET). In addition
to this, talents are also searched through campus
interview, scholarship schemes through
Aeronautic Research and Development Board
(ARDB) and Ph D scholars under Registration of
Student with Scholastic Aptitude (ROSSA).

8.7 Manpower Strength: DRDO is a project
based Organisation and follows a very dynamic
system of manpower planning. Authorised
Regular Establishment (RE) is reviewed after
every two years to meet the contingent
requirements on account of workload and new
projects undertaken by the laboratories. At
present, the total manpower strength is about
29,000, which includes about 7,500 engineers
and scientists, 11,500 scientific and technical
staff and 10,000 supporting staff from various
cadres. About 700 fresh engineers and


-----

scientists are being inducted every
year.

**_165 courses were_**

8.8 **_Knowledge and Skills_**
**_Upgradation: DRDO carries out_**
Research and Development
(R&D) activities in

**_various categories._**

multidisciplinary areas. Keeping
changing scenario at the global

**_Training scheme, a_**

level in view, various training
programmes are organized all
over the country. Under the

**_to undergo M.E./_**

continuing education programme,

**_M.Tech courses in_**

165 courses were organized by
DRDO labs/ establishments in

**_IIT, IISc and other_**

different disciplines. Under

**_engineering_**

Research and Training scheme,
a total of 88 personnel have been
sponsored to undergo M.E./
M.Tech courses in various disciplines at IIT,


IISc and other engineering
institutions of repute. Defence
Institute of Advance Technology
(DIAT), Pune caters to advanced
technology training needs in the
area of armaments; Institute of
Technology Management (ITM),
Mussoorie provides advanced
managerial training to the
scientists, technologists,
managerial staff and Service
personnel. Another centre at
Jodhpur imparts training to
administrative and allied cadres.
HRD Cells have also been set up
in each laboratory and
establishment to provide inhouse training to the scientific
and technical staff on various
specialized subjects.


Bridge Layer Tank on MBT Arjun


-----

###### PROJECTS MONITORING AND REVIEW MECHANISM

8.9 DRDO undertakes mission mode projects
involving deliverables for the Services, technology
development projects to develop technology
demonstrators, science and technology projects
for emerging technologies and infrastructure
projects for setting up infrastructure facilities. To
execute these projects, DRDO interacts with
Defence Public Sector Undertakings, R&D
laboratories, private entrepreneurs, etc for
availing the best talent and expertise in the
country. To complete the projects, “concurrent
engineering” approach has been adopted in
technology intensive projects to minimize time lag
between development and productionisation of
the systems.

8.10 DRDO has instituted several review
mechanisms to
m o n i t o r

**_There is an in-house_**

programmes and

**_apex level body called_**

projects regularly.

**_“DRDO Research_**

There is an in
**_Council” (DRC),_**

house apex level

**_chaired by the_**

body called “DRDO

**_Scientific Adviser to_**

Research Council”

**_Raksha Mantri, to_**

(DRC), chaired by

**_review the progress of_**

the Scientific

**_major ongoing projects_**

Adviser to Raksha

**_in all the labs/ estts._**

Mantri, to review

**_For all major_**

the progress of

**_programmes/ projects,_**

major ongoing

**_there are multi-tier_**

projects in all the

**_“Programme_**

labs/ estts. In

**_Management Boards”,_**

addition, Corporate

**_having representation_**

Reviews covering

**_from the Services,_**

techno-managerial

**_DRDO laboratories and_**

aspects are also

**_in some cases from_**

carried out by a

**_academic institutions_**

high level

**_and other national_**

committee for the

**_research laboratories._** improvement of


health of labs/

**_DRDO has made great_**

establishments.

**_strides towards_**

Staff projects for

**_making the country_**

Army are reviewed

**_self-reliant_** **_in the_**

by the Vice Chief of

**_areas of military_**

Army Staff, twice a

**_technology. Over the_**

year. For all major

**_past few decades, it_**

p r o g r a m m e s /

**_has enabled our Armed_**

projects, there are

**_Forces to_**

m u l t i - t i e r

**_progressively enhance_**

“ P r o g r a m m e

**_their combat_**

M a n a g e m e n t

**_effectiveness through_**

Boards”, having

**_development of the_**

representati on

**_state-of-the-art weapon_**

from the Services,

**_systems and_**

DRDO laboratories

**_technologies._**

and in some cases
from academic
institutions and other national research
laboratories. These Boards periodically monitor
and review the programmes and help in early
detection of bottlenecks and suggest mid-course
corrections.

###### PROGRAMMES AND PROJECTS

8.11 DRDO had made great strides towards
making the country self-reliant in the areas of
military technology. A number of systems and
equipment have been developed, productionised
and inducted into the Services in the past
categorized broadly into major disciplines, like
missiles, aero-systems, electronic systems,
combat vehicles, armaments, naval systems,
advanced materials, and life sciences. Progress
of some of the leading programmes and projects
during the current financial year is given in
succeeding paragraphs.

(A) **_Missile Programmes: Integrated Guided_**
Missile Development Programme (IGMDP)
was sanctioned in 1983 for design,
development and productionisation of
different types of state-of-the-art missiles to


-----

provide self-reliance in this

**_Integrated Guided_**

high technology field.
Technological goal of this
Programme was to ensure
that the systems will be

**_and development of_**

contemporary at the time of

**_missile systems,_**

their induction into the
Services. The Programme
envisaged the design and

**_development of_**

development of missile

**_Dhanush, Agni,_**

systems, Prithvi, Trishul,

**_BrahMos and Astra_**

Akash and Nag. In addition,
development of Dhanush,

**_also been taken up._**

Agni, BrahMos and Astra
series of missiles have also
been taken up. The status of various
missiles is as under:

(a) **_Prithvi Missile: Prithvi, a tactical battlefield_**
Surface-to-surface missile, has two


versions of ranges 150 km & 250
km with about 1 tonne and 500 kg
payloads, respectively. Army
version of Prithvi has already been
inducted into the Indian Army. Air
Force version of Prithvi missile is
under induction. Design and
development of composite
warheads for Prithvi missile
consisting of pre-fragmented
incendiary, blast cum earth shock
submunition have been completed.
Production order for these
warheads has been placed on
Directorate General of Ordnance
Factories (DGOF).

(b) **_Agni-I Missile: With a range of 700 km,_**
surface-to-surface Agni-I missile has single
stage solid rocket motor and can carry one


Pinaka Multi-Barrel Rocket Launcher


-----

tonne warhead. It can be configured to fire
from road/ mobile launcher. With the
development of Agni-I, the range gap
between Prithvi-II & Agni-II has been
bridged. Agni–I has been inducted into
Services.

(c) **_Agni-II Missile: The range for Agni-II is_**
more than 2000 km. The salient features of
the test firings are mobile launch capability,
multi-staging, state-of-the-art control and
guidance, re-entry technology and
sophisticated on-board packages including
advanced communication. Agni–II has also
been inducted into Services.

(d) **_Dhanush Missile: It is a Naval version of_**
Prithvi missile with a range of 250 km
and a payload of about 500 kg. It can carry
both conventional as well as nonconventional warheads. Indian Navy has
accepted to have Dhanush on its off shore
Patrol Vessel (OPV). The process of
weaponisation of INS Suvarna with the
Dhanush missile is now
complete.

**_BrahMos (a Joint_**

(e) **_Akash Missile: Medium_**
range (25 km), surface-to-air
missile, Akash has multiple
target handling capacity with **_system has been_**
digitally coded command **_accepted by Indian_**
guidance system. Electronic
Warfare trials evaluation
have been completed.

**_version was_**

Battery Level Radar – III on

**_successfully flight_**

T-72 chassis are under

**_tested on November_**

various stages of fabrication.
Development of Akash

**_2006._**

weapon system is now
complete. The technology transfer
documents with quality norms are also
ready and the weapon system can be
productionised after Users’ trials and
induction phase.


(f) **_Trishul Missile: It is a low level quick_**
reaction surface-to-air missile for the Indian
Army, Air Force and Navy. So far, 82
successful developmental flight trials have
been conducted, including 3 trials during the
current year providing warhead
performance, repeated guidance
performance capability and salvo firing
capability. With the completion of above
flight trials, the design and development of
the Trishul Missile is complete.

(g) **_Nag Missile: Nag is a third generation anti-_**
tank missile with “top-attack” and “fire and
forget” capability. So far, 62 developmental
flight trials have been carried out including
5 flight trials during 2006. The last four User
assisted flight trials were undertaken from
Pokharan range to show the missile
capability at 4 km and 2 km range in day
and night on actual target (Derelict Vijayanta
Tank).

(h) **_BrahMos Supersonic Cruise Missile:_**
BrahMos (a Joint Venture with
Russia) is the best in the family of
cruise missiles. It has supersonic
speed with a range of 290 km and
high level of performance. Starting
from 2001, several flight trials have
been carried out to test the missile
system from land mobile complex
and from naval warship against sea
and land targets. There have been
11 flight trials and all the flight trials
have been successful. The missile
armed with a live warhead,
impacted on the target ship
accurately, destroying it completely.
The flight also demonstrated the
indigenously developed Fire Control
System. The system has been accepted by
Indian Navy for induction in their ships. The
Army version was successfully flight tested


-----

on November 30, 2005 and

**_A multi-role fighter_**

May 31, 2006.

(i) **_Astra Missile: Astra is a_** **_designed and_**
beyond visual range, air-to- **_developed by_**
air missile being indigenously **_Aeronautical_**
designed and developed to
engage and destroy highly **_(ADA), Bangalore._**
manoeuvering supersonic
aerial targets. It has a range **_category of aircraft_**
of about 80 km and **_with all-up weight_**
designated to be a missile for **_(AUW) of 12,000 kg_**
LCA and other Indian Air
Force fighter aircraft. Five

**_on board._**

seekers have been tested for
performance.

(j) **_Long Range Surface-to-Air Missile_**
**_(LRSAM): It is joint development_**
programme of DRDO, Indian Navy and IAI,


Israel. It has a range of 70 km using
dual pulse rocket motor and active
radar seeker in terminal phase and
inertial/ mid-course update for
guidance.

(B) **_Aeronautical Systems:_**

(a) **_Light Combat Aircraft_**
**_(LCA), Tejas: A multi-role fighter_**
aircraft, Tejas, is being designed
and developed by Aeronautical
Development Agency (ADA),
Bangalore. LCA belongs to light
category of aircraft with all-up weight
(AUW) of 12,000 kg with modern
weapons and avionics system on
board. It incorporates advanced
technologies such as unstable
aerodynamics to provide higher agility,


BrahMos Supersonic Cruise Missile


-----

digital fly-by-wire flight control system,
advanced avionics, multimode radar and
composite materials in order to meet the
long term operational requirements
specified by Indian Air Force (IAF). IAF has
placed an order on Hindustan Aeronautics
Limited (HAL), worth Rs. 3,000 crore, for
procuring 20 LCA to form one Squadron of
their fighting force.

(b) **_Light Combat Aircraft (LCA) for Navy:_**
Development of LCA, Tejas gave a spin-off
for similar type of aircraft, with modification,
for Indian Navy. The project to develop LCA
for Navy was sanctioned in the year 2003
which is to be completed in March 2010.
The project cost is Rs. 948.90
crore in which DRDO’s share

**_This has been_**

is Rs. 561.67 crore and share
of Navy is Rs. 387.23 crore.
LCA Naval version will have
modified version of landing

**_time engagement of_**

gears and nose droping down
to an angle of 4 degrees.

(c) **_Kaveri Engine for LCA: The_** **_limited electronic_**
scope of the project is to
design, develop, test and **_worth Rs 280 crore_**
type certify the Kaveri engine **_has been placed on_**
to meet the specific needs of **_DRDO, which in_**
the LCA. Design of the
engine, sub-systems, and **_will produce the_**
components has been **_Vehicles._**
completed and sixteen Kaveri
engines and equivalent sets have been
fabricated. Kabini (Kaveri Core Engine) has
also been tested on the high altitude test
bed in Russia where it was established that
the thrust and fuel consumption
performances were close to the design
intent. As on date, a total of about 1500
hours of testing has been carried out on
these prototype engines. Jet Fuel Starter
(JFS) system for starting Kaveri engine has


been indigenously developed by HAL, with
assistance from Gas Turbine Research
Establishment (GTRE), Bangalore and is
being integrated with Kaveri engine at
GTRE, Bangalore.

(d) **_Kaveri Engine for Naval Ship: Kaveri_**
Marine Gas Turbine (KMGT) was tested at
the Naval Facilities at Vizag and engine
performed satisfactorily in the desired
environment. Presently, turbine blade and
engine volute are being modified to achieve
the desired output of 19.5 MW.

(e) **_Arrester Barrier: DRDO developed 20 Ton_**
arrester barriers have been installed at
various Air Force bases. Presently, an order
of 40 ton class arrester barrier has
been placed by IAF on Aerial
Delivery Research & Development
Establishment (ADRDE), Agra.
These arrester barriers will be
installed at 6 IAF bases, which will
be operating sophisticated aircraftSU 30 MKI.

(f) **_Combat Free Fall (CFF)_**
**_Parachute: These have been_**
developed for deployment of Army
troops in enemy area for meeting
any contingencies during war and
peace time. System consists of
protective clothing and parachute
which can withstand the conditions
upto a height of 30,000 feet. User
trials have been completed for induction of
the system in Indian Army.

(g) **_Remotely Piloted Vehicle (RPV), Nishant:_**
This has been developed primarily to carry
out surveillance, reconnaissance, real-time
engagement of target by artillery fire, laser
designators and limited electronic
intelligence. The project has been
completed successfully on the Qualitative


-----

Requirements (QRs) specified by the Indian
Army. An order worth Rs 280 crore has
been placed on DRDO for production of the
Vehicles in association with HAL.

(h) **_Early Warning Suite for Fighter Aircraft_**
**_(EWSFA): It consists of an integrated_**
warning system and a jammer to be
integrated and mounted inside the aircraft.
The basic purpose of the system is to warn
pilot, during flight, for any threat either from
ground or from air and to provide jamming
of the identified threat. This system is being
integrated in MIG 27 upgrade and LCA
aircraft. Major activity relating to MIG 27
aircraft has been completed, which includes
laying of looms in production aircraft.

(i) **_Upgrade of MIG 27 Aircraft: DRDO_**
undertook the task of upgradation of
avionics of MIG 27 aircraft with HAL and


successfully completed the integration in
two flight test aircraft during the year. Line
Replaceable Units (LRUs) like Core
Avionics Computer (CAC) and Backup Core
Avionics Computer (BCAC), Laser
Designation Pod (LDP), Photo Recee Pod,
Multi Functional Displays (MFDs), etc have
been integrated with required upgrade in
software.

(j) **_Airborne Early Warning & Control_**
**_(AWE&C) System: The programme was_**
sanctioned by Government on October 6,
2004 at an estimated cost of Rs. 1800 crore
with a time frame of 78 months for
commencement of user trials. Development
of 1 prototype and 2 operational executive
jet based AEW&C systems is envisaged.

(k) **_Hypersonic Technology Demonstration_**
**_Vehicle (HSTDV): HSTDV is a first_**


BrahMos - Universal Vertical Launching System on top of Ship mock-up model


-----

technology demonstration project in the
Hypersonic area undertaken by DRDO.
Overall HSTDV system design review has
been completed. Aerodynamic
configuration has been evolved. Scramjet
engine test facility has been established and
the structural design of the airframe has also
been completed.

(C) **_Electronic Systems:_**

(a) **_Integrated_** **_Electronic_** **_Warfare_**
**_Programme, Samyukta: It is a joint_**
programme of DRDO and Indian Army. This
programme is software and integration
intensive and meant for indigenous
development of an integrated EW system
covering 1.5 MHz – 40 GHz. It has
communication (Com) and Noncommunication (Non-com) segments. The
system comprises vehicles having the
capabilities for surveillance, interception,
monitoring, analysis and jamming of all
communication and radar signals.

**_Com  Segment: Core system has been_**
successfully demonstrated to the Indian
Army who placed order on Bharat Electronics
Limited for production of three Com Control
Center (CC) blocks at a total cost of Rs 425
crore. Two Comunication Control Center
blocks had been productionised and
delivered to the users after successful
demonstration and user trials.

**_Non-com Segment: Core system_**
demonstration consisting of Control Center
(Non-com) Electronic Support Measures,
Electronic Counter Measures-low and high
frequency entities have been successfully
demonstrated to the Indian Army. As a
result, the Army has placed an order on
Bharat Electronics Limited for production of
two Non-com Control Center blocks at a
cost of Rs. 430 crore.


(b) **_Electronic Warfare (EW) Programme,_**
**_Sangraha: It is an integrated EW system_**
for Indian Navy consisting of five EW
systems for the different platforms - Kite for
Kamov and Chetak helicopters, Eagle for
Dornier aircraft and Advance Light
Helicopter (ALH), Homi for TU -142 aircraft,
Porpoise for EKM submarines, and Ellora
for frigates.

(c) **_Sujav: It is a compact communication_**
electronic warfare suit. The system has got
direction finding, search and monitoring
capabilities covering 30-1000 MHz and
jamming in 30-500 MHz frequency range.
The system was deployed in J&K by Army
and Rajasthan sectors achieving
satisfactory performance. Indian Navy has
also placed order for the production of 8
such system (called Drishti) for off shore
and on shore applications. Indian Army has
placed order for 7 Sujav clusters consisting
of three Electronic Support Measure (ESM)
and one Electronic Counter Measure (ECM)
station. One Sujav clusters system has
been successfully evaluated in North East
and Jammu region.

(d) **_Low Level Light Weight Radar, Bharani:_**
This is a battery powered compact radar
which provides 2D surveillance solution for
Army Air Defence weapon systems, mainly
in mountainous terrain against hostile aerial
targets, like Unmanned Aerial Vehicles
(UAVs), Remotely Piloted Vehicles (RPVs),
helicopters and fixed wing aircraft flying at
low and medium altitudes. The radar can
be transported by vehicles, mules or group
of men. It acts as an early warning system
to air defence weapon system. The system
is undergoing user evaluation.

(e) **_Weapon Locating Radar (WLR): Weapon_**
Locating Radar is developed based on the
proven Rajendra radar technology. Its


-----

primary roles are location of enemy guns,
mortars and rocket launchers and own fire
direction. The system is developed as a joint
collaboration between DRDO and Bharat
Electronics Limited. Its sub-systems have
been fabricated by BEL based on the design
of DRDO and delivered for integration to
DRDO. The system is undergoing user
assisted trials.

(f) **_Three- D Surveillance Radar System,_**
**_Revathi: It is medium range 3D-_**
surveillance radar to be fitted in ASW
Corvette class of ships to detect air and sea
surface targets. The radar is based on
proven 3 Dimensional-Central Acquisition
Radar (3D-CAR) technologies. Basic
objective is to realise a production ready 3dimensional radar meeting Naval
requirements. The system is realized
through tri-partite agreement involving
Bharat Electronics Limited as the production


agency, Larsen & Toubro for antenna
stabilisation and other mechanical subsystems and DRDO as designer and
system integrator.

(g) **_Multifunction Phased Array Radar,_**
**_Rajendra: It has been developed to provide_**
detection and tracking of multiple aircraft
targets, tracks and provides command
guidance of Akash missiles. Three versions
of the radars have been developed.
Rajendra-I is mounted on modified BMP
vehicle with fixed antenna, Rajendra-II on
the modified BMP vehicle with slewable
antenna while Rajendra-III on T-72 vehicle.

(h) **_Combat Net Radio for Armoured_**
**_Fighting Vehicle (AFV): Army had placed_**
order for 500 radios and these have been
delivered by Bharat Electronics in May/
June 2006 at an approximate cost of Rs.
34.0 crore.


Bridge Layer Tank and Amphibious Floating Bridge & Ferry System


-----

(i) **_Command Information Decision Support_** an integrated day sight also. All the variants
**_System (CIDSS), Samvahak: It is a Corps_** are completely non-lethal and produce
to Battalion level decision support system randomly flickering green laser output to
to collect, collate, process and disseminate cause a temporary dazzling effect and have
information between commanders of an inbuilt safety interlock to prevent misuse.
various formations. The project has been

(l) **_MEMS-based Pressure Sensors and_**

successfully completed on December 31,

**_Accelerometer: Micro Electro Mechanical_**

2006.Technology has been transferred to

System (MEMS) based pressure sensors

Bharat Electronics Limited which is porting

for pressures of 10 and 30 bars

the system on the designated

have been developed, packaged

Army Formations. **_This is the first time in_**

and qualified for missile

**_the country that MEMS_**

(j) **_Samrat: It is a technology_** applications. Similarly MEMS based

**_pressure sensors and_**

development project for the accelerometers for acceleration

**_accelerometers have_**

design and development of level of 10 and 30 g have been

**_been developed for_**

indigenous communication fabricated and performance

**_missile applications._**

EW receivers for search, demonstrated. This is the first time
monitoring, direction finding in the country that MEMS pressure
(single and multi-channel), analysis and sensors and accelerometers have been
decoding in the High Frequency, Very High developed for missile applications. MEMSFrequency and Ultra High Frequency ranges based Rate Gyro of grade 10 degree/hr
along with associated system control and FLI would be produced by mid-2007.
GENERIC software. Technology has been

(m) **_Ring Laser Gyroscope (RLG): Design and_**

developed for compact low noise, high

development facility for Ring Laser

dynamic range HF (0.5-30 MHz) and V/UHF

Gyroscope has been established and

(20-3000 MHz) search-cum-monitoring

prototype has been fabricated and qualified.

receivers for COMINT. State-of-the-art

(n) **_Electronic Hydro Servo Valve (EHSV):_**

Narrow Band Signal Classifier, Demodulator

Servo valve manufacturing facility for

and Decoder Sub-system have been

fabrication of servo valves for Prithvi, GSLV

successfully developed.

and LCA has been established.

(k) **_Portable_** **_Non_** **_Lethal_**

**_Production of state-of-_** These valves are banned items from

**_Dazzlers (PNLD): Two_**

**_the-art MBT Arjun has_** USA and Europe.

versions of PNLDs are

**_been streamlined._**

(o) **_Fiber Optic Gyroscope_**

suitable for counter

**_Heavy Vehicles_**

insurgency operations. **_(FOG): Gyroscope of 10 degree/_**

**_Factory of (Ordinance_**

These two versions have hour has been developed and

**_Factory Board) OFB is_**

maximum operation ranges qualified. This has been

**_fully geared up to_**

from 50m for hand held and successfully tested in MBT Arjun.

**_manufacture all 124_**

500m for weapon mounted

**_tanks against the_** (D) **_Combat Vehicles and_**

systems. Both the variants

**_present Army indent_** **_Engineering:_**

have an integrated low power

**_under technology_**

red laser beam for aiming in (a) **_Main Battle Tank (MBT),_**

**_transfer mode from_**

twilight and dark conditions. **_Arjun: Production of state-of-the-_**

**_DRDO._**

Weapon mounted variant has art MBT Arjun has been


-----

streamlined. Heavy Vehicles Factory of
OFB (Ordinance Factory Board) is fully
geared up to manufacture all 124 tanks
against the present Army indent under
technology transfer mode from DRDO.
After successful User
validation trials during
summer 2006, five tanks **_all weather engineer_**
have been handed over to **_reconnaissance_**
Army in June 2006. Unit **_platform capable of_**
Maintenance Vehicle (UMV) **_acquiring accurate_**
and Unit Repair Vehicle **_data for a variety of_**
(URV), developed by DRDO, **_combat engineering_**
as a support vehicle for MBT
Arjun, have been cleared for **_breaching and track_**
induction into Army.

**_for sixteen vehicles_**

(b) **_Combat Improved Ajeya_**
**_(CIA): Transfer of technology_**

**_Indian Army._**

of CIA to Heavy Vehicle
Factory (HVF), Avadi has
matured. So far, 268 CIA tanks have been
manufactured. These tanks are fitted with
Explosive Reactive Armour (ERA) for
enhanced protection, accurate Global
Positioning System (GPS) for navigation of
the tank and reconfigured Smoke Grenade
Discharger (SGD).

(c) **_Armoured Ambulance: After the_**
development of ambulance, Indian Army
had placed an indent for manufacture of 50
numbers on Ordnance Factory, Medak and
these are under production.

(d) **_Bridge Layer Tank (BLT) T-72: Production_**
of 12 BLT T-72 is under progress at HVF,
Avadi.  Four tanks have been handed over
to Army and the balance is likely to be
completed by mid-2007.

(e) **_Carrier Mortar Tracked (CMT) Vehicle:_**
The CMT Vehicle has been designed to
mount and fire 81 mm Mortar from within
the vehicle. An indent for 198 numbers was
placed by the Indian Army on Ordnance


Factory, Medak at a cost of Rs. 284.54
crore. All the vehicles have been
manufactured and issued to Indian Army.

(f) **_Infantry Combat Vehicle (ICV), Abhay:_**
The prototype of Abhay, realized
under a multi disciplinary, multi-lab
technology demonstration
programme, has been put through
extensive mobility and firing trials to
prove its automotive and armament
sub-systems. The successful
development programme has
imparted a boost to the self-reliance
in defence technology. The
technologies developed, such as
fire control system, composite
armour, hydro-pneumatic
suspension and host of other
automotive and armament subsystems can be adopted for
futuristic ICV and light tracked vehicle
projects.

(g) **_Armoured Engineering Reconnaissance_**
**_Vehicle (AERV): AERV is an all terrain, all_**
weather engineer reconnaissance platform
capable of acquiring accurate data for a
variety of combat engineering tasks such
as bridging, breaching and track
construction. The vehicle is equipped with
state-of-the-art instrument systems that
enable terrestrial and under water survey
in hatch down condition. An order for
sixteen vehicles has been placed by the
Indian Army. Ordnance Factory (OF),
Medak and BEL are the prime production
agencies. Six AERVs have been supplied
so far and complete delivery is planned by
mid-2007.

(h) **_Armoured Amphibious Dozer (AAD): It_**
has been designed to carry out earth
moving tasks under combat environment to
enhance mobility of the forces. An order


-----

for six vehicles has been placed by the
Army. Pilot vehicle is under manufacture
at OF, Medak.

(i) **_NBC Recce Vehicle: The NBC Recce_**
vehicle, based on BMP-II, has been
developed for conducting survey of
radiological and chemical contaminated
areas. The equipment has been approved
for induction into Services. Army has placed
an order for eight vehicles.

(j) **_Propelled Mine Burrier: The project was_**
taken up to develop a Self Propelled Burrier
on high mobility carrier vehicle for laying/
burying indigenous influence mine Adrushy
Mk-I, Adrushy Mk-II, NDMK-I & HPD F2 anti
tank mines. Engineered prototype of the
system has been realized which can lay four
types of anti tank mines.

(k) **_Automated_** **_Mobile_** **_Platform_** **_for_**
**_Multipurpose Payload: The project entails_**
development of a remote control vehicle
capable of being driven over a range of
500m line-of-sight both in cross-country and
urban environment. Developing Remotely
Operated Vehicle (ROV) with stair climbing
capability, six degree of freedom
manipulator arms actuated by slewing ring
bearing and remote operation of payloads
integrated on ROV has been completed
successfully. Two prototypes have been
realized. Project has been successfully
completed after technical trials.

(l) **_Modular Bridge, Sakav: This project_**
envisages development of a mechanically
launched single span modular bridging
system based on TATRA vehicle for
deployment in all terrains. The span of the
Bridge ranges from 14m to 46m. 20m
system has been realized and design
verification trials conducted. 46m Bridge
superstructure has also been realized and


testing under simulated load condition
completed.

(m) **_Counter Mine Flail on T-72 Tank: This_**
project envisages to develop flail system on
T-72 Tank Chassis to breach a mine field
and create a vehicle safe lane of 4m width.
First system on Tank based simulator has
been realized and technical trials have been
completed successfully.

(n) **_Mountain Weather Forecast: A network_**
of meteorological observatories and
Automatic Weather Stations (AWS) has
been established in various sectors of
Jammu & Kashmir, Siachen and Himachal
Pradesh in order to capture the weather
systems spatially and on real-time basis.
Based on the data provided by
meteorological observation network, three
days weather forecast is issued for the
entire western Himalaya including Siachen.
A seven-day forecast is given to Army for
Kashmir Valley region. Two mountain
meteorology centers have been set up at
Srinagar (Kashmir) and Sasoma (Siachen)
to analyze the weather locally and for
dissemination of the forecast to the endusers.

(o) **_Automatic Pit Profiling: The snow cover_**
distribution is inherently non-homogeneous
due to local climatic and topographic
difference. The knowledge of spatial
variability of the snow cover and underlying
weakness is essential for the understanding
of avalanche formation mechanism. Snow
and Avalanche Study Establishment
(SASE) has developed software
‘SNOWPACK PRO’ for obtaining the
information regarding internal snow-pack
structure and its spatial and temporal
variability from the output of high resolution
SnowMicroPen.


-----

(E) **_Armaments:_**

(a) **_Multi Barrel Rocket System (MBRS),_**
**_Pinaka: The system comprises launcher,_**
loader-cum-replenishment vehicle and
command post with fire control computer
mounted on Kolos Tatra 8 X 8 (high mobility
vehicle). The system is
characterized by “Shoot and

**_Army has a plan to_**

Scoot” capability with high
rate of fire. It can fire a salvo

**_system initially for 2_**

of 12 rockets in 40 second. It

**_regiments having a_**

is an area saturation weapon

**_production value of_**

with a maximum range of
37.5 km and it is much

**_crore. Orders for_**

superior to comparable

**_vehicles/launchers_**

systems available in the
world. General Staff

**_the trade._**

evaluation has been
completed. Users have
recommended the system for induction into
Services. Army has a plan to induct Pinaka
weapon system initially for 2 regiments
having a production value of approximately
Rs. 1300 crore.

(b) **_Under Barrel Grenade Launcher (UBGL):_**
DRDO has developed a UBGL compatible
with 5.56 mm INSAS and AK-47 rifles. User
trials have been completed and Troop trials
at three terrains have also been conducted
successfully during this year. The last one
was in desert terrain.

(c) **_Influence Mine Mk II: State-of-the-art_**
Influence Mine Mk-I to provide a full width
attack to immobilize a present day battle
tank was already developed by the DRDO.
The intelligent anti tank mine incorporating
active Influence Fuze Mk II is India’s answer
to ever-increasing threat posed by the
adversary’s battle tanks. The design and
development of Mk II version of this mine
with higher intelligence has been
completed. All Transfer of Technology (ToT)


documents have been completed. An indent
for 20,000 mines at a cost of Rs. 96.76 crore
has been placed by the Army.

(d) **_Modern Sub Machine Carbine (MSMC):_**
Development of MSMC, which is a part of
Indian Small Arms System (INSAS) family,
was taken up by DRDO. Various
aspects like, functioning, accuracy,
penetration, etc. were demonstrated
to the users. User trials were
conducted successfully in June
2006.

(e) **_High Pressure Closed_**
**_Vessel System for Evaluation of_**
**_Gun Propellants: A system_**
comprising closed vessel and
instrumentation has been designed
and developed successfully for
recording of pressure up to 800 Mpa.
Closed Vessel (CV) firings up to a loading
density of 0.45 g/ml were carried out
successfully.

(f) **_Multimode Hand Grenade: Hand grenade_**
has been developed which uses preformed
cylindrical mild steel fragments to achieve
uniform distribution. Success rate of >95%
was achieved as required by users. Troops
trials have been successfully conducted.

(g) **_Bund Blasting Device (BBD): With a view_**
to hastening the process of forward
movement of Army, DRDO has successfully
developed a man portable device called
BBD. Army has placed an indent for supply
of 240 sets (1440 units).

(h) **_Pitch-based_** **_Activated_** **_Carbon_**
**_Spheroids: Pitch Based Activated Carbon_**
Spheroids has been developed for
adsorption of toxic warfare gases. Activated
Carbon Spheroids is a strategic adsorbent
material and essential for the protection of
armed forces in the event of a chemical war.


-----

(F) **_Naval Systems:_**

(a) **_System Simulation using Distributed_**
**_Computing, Darpan:_** System level
simulation capability has been established
for the sonar system and its environment
on a distributed computing environment
under Project Darpan. Simulation models
developed can be run either as sequential
or as parallel programmes. Ported models
are collected as library of components and
made available for System level simulation.

(b) **_Fire Control System: It replaces the_**
Russian System of the ship with the stateof-the-art modular system capable of firing
6000 rockets and torpedoes of the platform.
The indigenous system costs Rs. 4 crore
as against Rs. 30 crore for the foreign
system. Helicopter Fire Control System
(HFCS) has also been developed and
delivered to HAL to incorporate in the Naval
Light Helicopter. The approximate cost of
indigenous HFCS system is Rs. 40 lakh as
against Rs. 300 lakh for an imported
system.

(c) **_Light Weight Mine: Design and_**
development of Light Weight Mine has been
taken up for shallow (coastal) waters
applications. The development of all the
sub-systems of Light Weight Mine has been
completed. System integration is being
done for evaluation in Harbour and Sea
trials.

(d) **_Acoustic Silencer: An acoustic enclosure_**
for 500 kw Diesel Alternator has been
designed, fabricated and installed on board
INS RANA. Naval HQs evaluated and
recommended for implementation on future
ships under design. Acoustic Silencers for
engine room blowers have been designed,
fabricated and fitted on board INS RANA
for noise attenuation. Navy has accepted


the items and recommended for
consideration in all ships.

(G) **_Advanced Materials:_**

(a) **_Polymeric Rubbing Fenders: These_**
fenders have been developed as a better
substitute of teak wood to protect hull
structures from impact. The material is a
combination of polymers and has both
rigidity and resilience. Indian Navy has
inducted the item.

(b) **_Thixotropic Pigmented Paint: The paint_**
when applied under immersed condition
dries within 3 hours and subsequent coat
can be applied after 4 hours. A portable
hand held applicator device for application
of the paint has been developed.

(c) **_Dynamic Seals and Rubber Holders:_**
Twelve types of dynamic seals have been
developed for Kaveri engine nozzle
hydraulic assembly, which have performed
satisfactorily in rig trials tests for 10,000
cycles.

(d) βββββ Titanium Alloy for Orthopedic Implant
**_Application: A titanium alloy (containing_**
Niobium, Tantalum and Zirconium) has
been melted successfully with high strength
and low modulus. It is expected to have
biocompatibility for implant applications
much better than alloy Ti6Al4V.

(e) **_Active Metal Brazing Alloy: Bonding_**
ceramic to metal is an important
requirement in a number of defence and
other strategic applications. The bonding is
achieved by using an ‘active’ metal brazing
alloy containing Titanium. DRDO has
successfully developed one such alloy
containing Silver, Copper & Titanium. Foils
of 0.1mm thickness have been produced
through a combination of hot and cold
rolling.


-----

(f) **_Electromagnetic Absorber Coatings and_**
**_Panels: The DRDO has developed_**
absorber coatings of 3-3.5 mm thickness
which have reflection loss minimum 20 dB
in 8-18 GHz and 10dB in 6.5–8.0 GHz
frequency regions and the absorber panels
of 12.5 mm thickness have reflection loss
minimum 15dB in 8-18 GHz frequency
region. In panels of 25 mm thickness, the
reflection loss of minimum 20 dB in 7-18
GHz and 10 dB in 2–7 GHz frequency
region has been achieved.

(g) **_Nickel Coated Glass Fiber Chaff for 94_**
**_GHz Radar: A low cost indigenous method_**
has been developed for coating the glass
fibers with Nickel having electrical
resistance of less than 20 ohm/cm. Such
metal-coated fine glass fibers are the most
advance chaff material available
internationally. At present, Air Force and
Navy are importing the material.

(h) **_Rapid Repair of Runways:_**
The user’s trials for Rapid
Repair of Runways were
conducted successfully at AF

**_affected by HAPO_**

Station, Lohegaon, Pune. It

**_operating at high_**

aimed at evaluation of

**_altitudes, DRDO has_**

Pavement Classification

**_developed a HAPO_**

Number (PCN – Air Force

**_bag. An upgraded_**

specification) of the repaired
trial slab and testing of
standard cubes and beams

**_at HAMRC, Leh and_**

casted at trial site to check the

**_Kardungla._**

feasibility of Fast Setting &
High Strength Resin System, for Rapid
Repair of Runways & ALGs under ambient
temperature conditions.

(i) **_Two Dimensional (2-D) Imaging Thermal_**
**_Target: Two dimensional imaging Thermal_**
Target in actual size (1:1) of T-72 tank has
been developed for the first time in India. It
represents thermal profile of an actual tank.


Four such targets were supplied and
successfully demonstrated during field trials
of 3 [rd] generation heat seeking NAG
Missiles.

(j) **_Synthetic Life Jacket Mk-1: A production_**
order of the Indian Army for 15,000 numbers
of Synthetic Life Jackets, Mk-1 has been
executed.

(k) **_Nuclear Defence Systems: Order for_**
Limited Series Production (LSP) of 8 NBC
Recce Vehicles costing Rs. 47.44 crore and
16306 Radiac meter Personal Locket
Dosimeters and 135 Reader for Radiac
meter Personal Locket Dosimeters costing
Rs. 7.63 lakh have been received from the
users and are at different stages of
execution.

(H)  Life Sciences Systems/Products:

(a) **_High Altitude Pulmonary Oedema_**
**_(HAPO) Bag: HAPO is a hazard associated_**
with rapid ascent to altitude higher
than 2700m. To provide emergency
treatment to soldiers affected by
HAPO operating at high altitudes,
DRDO has developed a HAPO bag.
The upgraded version of the same
has been recently successfully tried
at HAMRC, Leh and Kardungla.

(b) **_Combat_** **_Free_** **_Fall_**
**_Oxygen System and Protective_**
**_Clothing: It has been developed for_**
paratroopers consists of prebreather console, portable bailout
oxygen system, demand oxygen regulator
and oxygen mask, helmet, jumpsuit, gloves,
boots, goggles, jack-knife. The system has
undergone successful user trials and shall
go for production.

(c) **_Water Testing Kit: Field kit has been_**
developed for analysis of water sample for
drinking purposes. The kit is provided with


-----

Reagents for 100 tests. The tests are semiquantitative and on accept/ reject basis. It
provides tests for PH, turbidity, total
hardness, chloride, iron, fluoride, nitrate,
residual chlorine and coliform bacteria. The
kits are cheap, convenient to carry on hilltop and tests can be performed by semiskilled persons.

(d) **_Air Crew Survival Jacket: It is worn as the_**
outermost garment over normal flying
overall that houses personal Rescue
Beacon (PRB) which is activated
automatically/ manually by the pilot in the
event of an emergency ejection and aids to
quickly trace the geographical location of
the ejected pilot. The user trials of Aircrew
Survival Jacket for Mirage 2000, Jaguar,
Kiran Mk I & II, Kiran Mk IIA and HPT-32
have been completed. The item has been
accepted for induction into service.

(e) **_Ration Scales of Armed Forces: Existing_**
ration scales in all the 3 wings of the defence
forces were reviewed for (i) Army: Part I –
at plains, high altitude (9000-15000 ft),
extreme altitude (>15000 ft) Part II – under
desert Conditions and Part-III – During basic
military training  (ii) Navy:
sailors, submarines, marine
commandoes & divers and
(iii) Air Force.

(f) Induction of Standardized **_technologies._**
**_Yoga Package in Defence_** **_Continuing the_**
**_Forces:_** Yoga package for **_tradition of_**
Navy developed to promote
performance was inducted in **_technologies_**
the Western and Eastern
Naval Command. Around **_the industry for_**
100 personnel at each **_commercial_**
formation have been trained **_exploitation, several_**
as Yoga instructors. **_technologies have_**

**_been transferred_**

(g) **_Automatic Chapati Making_**

**_during the year._**

**_Machine: Five automatic_**


chapatti making machines and dough
kneader were installed at different units and
users were trained in operation and
maintenance of the same. The machines
were installed at RR Hospital, New Delhi,
Tpt Coy ASC, New Delhi, HQrs 9 Corps,
Jyole, HP, DRDL, Hyderabad and DFRL,
Mysore.

###### INTERACTION WITH SERVICES

8.12 To interact with Services and business
development, a position of Chief Controller
Research & Development has been created in
DRDO HQrs. The objective is to bring in more
focus the interaction between DRDO, the three
Services including HQrs Integrated Defence Staff
(HQIDS) and the set up of DG (Acquisition) in
MOD to align the various projects and
programmes of DRDO with those of Long Term
Prospective Plans and immediate needs of the
Services.

###### INTERACTION WITH INDUSTRIES AND TECHNOLOGY TRANSFER

8.13 Continuing the tradition of transferring dual
use technologies developed by DRDO to the
industry for commercial exploitation,
several technologies have been
transferred during the year. Some
of the important ones are : Aloe Vera
Cream (ALOCAL), Multipurpose Dry
Chemical ABC Powder, Report
Pouch Processing Technology,
NBC Filter-FAS RV 220M,
Polymeric Rubbing Strakes & Poly
List Dock Blocks, Polyoxy
Propylene Triol & Triacthylene
Glycol Dimethacrylate,
Polyurethane Sealant, Acoustic
Rubber Tiles, Field Water Testing
Kit, Palladium Impregnated Carbon
& Impregnated Carbon, Depa
Technical and Depa Spray.


-----

###### PARTICIPATION IN NATIONAL AND INTERNATIONAL EXHIBITIONS

8.14 DRDO has been regularly participating in
important exhibitions at the national and
international levels. During the year, DRDO
participated in DEFEXPO India 2006, besides
other events such as Aerodrome India, IITF 2006,
etc. Major International exhibitions in which DRDO
products were exhibited during 2006 are the Asian
Aerospace and Defence Exhibition at Singapore,
Defence Service Asia 2006 at Kualalumpur and
Africa Aerospace and Defence Exhibition at Cape
Town, South Africa.

###### FOREIGN COLLABORATION

8.15 At present, DRDO has MOU/ Agreements
with 33 countries for collaboration in the field of
defence technologies. The major foreign partners
with DRDO are Russia, USA, France, Israel,
Germany, UK, Singapore, Kazakhstan and
Kyrgyzstan. The areas of collaboration are:
missile technologies, avionics and aircraft
technologies, microwaves, laser systems, new
materials, nano-materials, stealth, hypersonic and
naval systems. While all collaborations with
foreign countries are made under the overall
supervision of the Ministry of Defence, DRDO has
Joint Working Groups for collaboration with its
major foreign partners. The annual meetings of
three such groups, viz., Indo-US Joint Technology
Group, Indo-Russian R&D Sub-Group and IndoIsrael Managing Committee, are being organized
regularly.

###### BASIC RESEARCH

8.16 Four Research Boards are functioning in
DRDO to provide thrust to basic research in areas
of strategic importance. These are: Aeronautical
Research & Development Board (AR&DB);
Armament Research Board (ARMREB); Naval
Research Board (NRB); and Life Sciences
Research Board (LSRB).


8.17 **_Aeronautical Research & Development_**
**_Board (AR&DB): The AR&DB was established_**
in February 1971. The board is currently funding
95 projects with a ceiling of Rs 5 crore per year in
upstream area of Aeronautics R&D at 21
academic & research institutions in the country.
Funding distribution is about 27% to Indian
Institutes of Technology (IITs), 38% to National
Aeronautical Laboratories (NAL), 10% to Indian
Institute of Science (IISc), and 25% to other
institutions. Three Centres of Excellence have
been set up at IIT-Mumbai, NAL and IIScBangalore in the areas of systems, design and
engineering, composite structure technology and
computational fluid dynamics with linkages at
other organizations.

8.18 **_Armament Research Board (ARMREB):_**
Under the ARMREB, 70 projects have been
sanctioned to various academic institutions and
other R&D organizations covering fields of high
energy materials, sensors, ballistics, combustion
& detonics, modeling/ simulation and other fields
related to armaments. Out of these, 30 projects
have been completed and remaining are being
pursued.

8.19 **_Naval Research Board (NRB): The NRB_**
continued to support the basic research applicable
to naval/ marine technologies. Since its inception
in 1996, 51 projects at a total cost of Rs 11.03
crore have been given to the academic/ research
institutions. During the year 17 more new projects
have been sanctioned for a sum of Rs 4 crore.

8.20 **_Life Sciences Research Board (LSRB):_**
The LSRB has been sponsoring research and
development projects to various research
institutes in the country for expanding and
deepening the knowledge base of life sciences.
So far, a total of 19 projects have been
recommended for funding during the year. Three
patents have been filed and one is under process.
Some of the projects supported by LSRB are


-----

pertaining to evaluation of natural products for
anti-hypoglycemic activity, flight simulation task
performance, food bio-preservatives, molecular
identification, multi drug resistance in cancer,
gene expression in drug resistance, etc.

8.21 **_Centres of Excellence: DRDO obtained_**
the Government approval in 2005 to establish
Centres of Excellence (CE) at various academic
institutions/ universities for creating a strong
DRDO – academia link, which is considered
crucial for driving innovative technological
solutions for defence applications. These Centers
would assist DRDO in the highly specialized areas
of science. The genesis of establishing Centre of
Excellence is to get benefit from the vast
resources of an academic institute in terms of
knowledge base of faculty, research
infrastructure, and young and enthusiastic
scientific manpower.

8.22 **_The following Centres have been set_**
**_up:_**

(i) Science and Synthesis of High Energy
Materials for use as Explosives and
Propellants, at University of Hyderabad,
Hyderabad.

(ii) DRDO-BU CE in Life Sciences at Bharathiar
University (BU), Coimbatore.

(iii) Centre for Millimeter Wave and
Semiconductor Devices and Systems at
University of Calcutta, Kolkata

8.23 **_Contract for Acquisition of Research_**
**_Services (CARS): DRDO has introduced an_**
instrument known as Contract for Acquisition of
Research Services (CARS) for the procurement
of research services from academic institutions.
Using this instrument a laboratory can seek the
expertise and access the facilities of academic
institutions. Under this scheme a laboratory is
authorized to award a project worth Rs. 10 lakh


to an individual or institution. DRDO laboratories
are spending nearly Rs. 8 crores per year under
CARS.

###### EXTRAMURAL RESEARCH/ INTELLECTUAL PROPERTY RIGHTS (ER/ IPR)

8.24 **_Extramural Research (ER): DRDO is_**
actively involved in exploiting knowledge/
expertise available with academia for short/ long
term programme of DRDO. Under its ER scheme,
the enhanced funding coupled with intellectual
resources available in academic institutions
catalyse the generation and growth of new ideas
leading to innovative technologies.

8.25 The ER Scheme has enlarged its
academic reach and due care has been taken for
availability of intellectual and infrastructural
resources. So far, during the current year, 45
new projects with an aggregate value of Rs. 18
crore have been sanctioned. The projects are
spread over 28 academic/ research institutions
of repute in the country. 85 national and
international conferences organized by academic
institutions and R&D centers on a variety of topics
of interest to DRDO have been supported by it,
involving funds amounting to Rs. 89 lakhs.

8.26 **_Intellectual Property Right (IPR): To_**
accord selective protective legal cover to
intellectual property generated through research
activities of DRDO, 79 IPR applications (including
13 in foreign countries) were filed on products/
processes in the field of materials, electronics,
bio-medical sciences and food technology. During
the year, 55 patents were granted and 50 patents
were accepted for grant. In addition, 3 copyrights
and 3 designs were registered in India. To
promote IPR awareness, 6 awareness
programmes/ workshops/ patent-clinics were held
in different laboratories.


-----

###### INTER-SERVICE ORGANISATIONS

Victory through jointness


-----

###### nter-Service Organisations are responsible for developing and maintaining resources and services

# I

###### which are common to the three services in order to economise on costs and cater better services.


9.1 The following inter-Service organisations
function directly under Ministry of Defence:
(i) Military Engineer Services

(ii) Armed Forces Medical Services

(iii) Directorate General Defence
Estates

(iv) Office of the Chief
Administrative Officer

(v) Directorate of Public **_is the adviser to the_**
Relations **_Ministry of Defence_**

(vi) Army Purchase Organisation

**_on construction_**

(vii) Services Sports Control

**_engineering._**

Board

(viii) Armed Forces Films and Photo Division

(ix) National Defence College

(x) School of Foreign Languages

(xi) History Division

(xii) College of Defence Management

(xiii) Defence Services Staff College

(xiv) Ministry of Defence Library

###### MILITARY ENGINEER SERVICES

9.2 The Military Engineer Service (MES) is the
largest Government construction agency in the
country with a current annual workload worth
more than Rs. 6,500 crore. It is the premier
engineering arm of the Defence Services which
provides works services to the Army, Navy, Air
Force, Coast Guard, Defence Research and


Development Organisation, Directorate General
of Quality Assurance, Ordnance Factories,
Kendriya Vidyalaya Sangathan and other Central
and State Government Undertakings.

9.3 MES functions under the overall control
of an Engineer-in-Chief, who is the
adviser to the Ministry of Defence
and the three Services on
construction engineering. It is
structured to design works which
are executed under the
management of Directorate
General of Works. It has expertise
in a wide spectrum of civil works,
ranging from conventional buildings
and factories to sophisticated
complex laboratories, marine works, jetties,
dockyards, wharves, workshops, slipways, air
fields, roads, blast pens, etc.

9.4 Major works taken up by the MES during
the year are given below:
(a) **_Paramvir: Construction of a state-of-the-_**
art Officers Mess at Delhi with a Convention
centre, two auditoria, exhibition area and
basement parking facilities for official
functions, conferences, exhibitions, media
briefings; is at present under progress.

(b) **_World Military Games: Work is in progress_**
for creation of infrastructure for the
proposed 4[th] Military World Games to be
held at Hyderabad and Mumbai from
October 14–21, 2007.


-----

9.5 **_Married Accommodation Project_**
**_(MAP):  At present Phase 1 of the project, under_**
which 58,391 dwelling units, at an estimated cost
of Rs. 5,329.30 lakh are being constructed for
defence services personnel.

9.6 **_Conservation of Energy: This is now_**
statutory requirement as per the Energy
Conservation Act 2001. Accordingly, based on a
careful cost-benefit analysis, MES has focused
initially on Hospitals, Shopping Complexes and
Water Supply Installations. This is
being achieved by conducting
energy audit by an accredited
agency of the Bureau of Energy
Efficiency. The first case of Army R **_the rank of select_**
and R Hospital has yielded an **_grade Colonel has_**
annual savings in electricity tariff to
the tune of approximately Rs. 70
lakh.  Solar energy based heating **_November 2006._**
and external lighting devices are
now being incorporated in all new projects.

9.7 **_Rain Water Harvesting: In the wake of_**
depleting ground water resources and directions
of the Central Ground Water Authority (CGWA),
it has been made mandatory to incorporate
rainwater-harvesting schemes in all projects in
consultation with the local CGWA. Some of the
stations where such works are already being
executed are in Jamnagar, Belgaum, Chennai
and Pathankot.

9. 8 **_Recycling Waste Water: In an effort to_**
conserve water,  wastewater subjected to certain
minimum treatment is now proposed to be utilised
for flushing and gardening requirements. A pilot
project has been executed in Taliamura and
based on the experience gained, planning is
underway for similar projects at Aurangabad,
Jamnagar, Agra and some other stations.

9.9 **_Wind Energy: In coastal areas, wherever_**
high wind speeds are available, wind energy can
be harnessed using windmills. MES intends to


harness this alternative source of energy and is
planning to install a wind power generator upto
10 KW capacity as a pilot project.

###### ARMED FORCES MEDICAL SERVICES (AFMS)

9.10 The Armed Forces Medical Services
(AFMS) consist of the Medical Services of the
Army, Navy and Air Force and a Director General,
Armed Forces Medical Services.
Each Medical Service is under a
Director General Medical Service
(DGMS) in the rank of Lt. Gen or
equivalent. The Director General,
Armed Forces Medical Services is
the medical advisor to the Ministry
of Defence and is also the chairman
of the Medical Services Advisory
Committee. The personnel of the
Armed Forces Medical Services
(AFMS) include officers of the Army Medical
Corps, Army Medical Corps (Non-tech), the Army
Dental Corps and the Military Nursing Service.
AFMS provide comprehensive health care to the
serving Armed Forces personnel, their families
and dependents. In addition, personnel of para
military organisations, while posted in the field and
other Central Police/ Intelligence forces operating
in the disturbed areas of the country, are provided
treatment by the AFMS. The Armed Force Medical
Services are also providing medical care to the
ex-servicemen and their dependents to the extent
possible.

9.11 Important policy decisions taken during
the year:
(a) The age of retirement of Army Medical
Corps (Non-Tech) officers of the rank of
select grade Col has been enhanced from
56 years to 57 years in November 2006.

(b) Orders for appointment of ex-Armed Forces
Doctors of eminence as Honorary


-----

Consultants to the Armed Forces Medical
Services were issued in June 2006.

9.12 **_HIV/AIDS Prevention and Conrol_**
**_Programme in Armed Forces:_**

Armed Forces have a very comprehensive and
vibrant HIV/AIDS prevention and control
programme because of which the incidence of HIV
in Armed Forces has been stemmed over the last
3-4 years. To consolidate the programme,
following activities/ achievements have taken
place during the year:

conversions detected in them, after
institution of this measure.

(d) Armed Forces initiated a programme for
establishment of Immuno Deficiency
Centres (IDC) in 10 selected military
hospitals. These centres provide
investigation, treatment and follow up of all
HIV positive persons in the Armed Forces.
The centres are equipped with state-of-theart medical equipment and facilities for
detection and treatment of HIV/AIDS cases.

9.13 **_Post Retirement Rehabilitation: To_**
provide assistance in post retirement rehabilitation
of AFMS officers and PBORs, a Placement Cell
has been established in the office of DGAFMS.

###### DIRECTORATE GENERAL DEFENCE ESTATES (DGDE)


(a) **_Health education activities :_** The

provide assistance in post retirement rehabilitation

backbone of the programme was intensive

of AFMS officers and PBORs, a Placement Cell

information, education & communication

has been established in the office of DGAFMS.

(IEC) activity, which aimed at raising the
awareness level of Armed Forces **_DIRECTORATE GENERAL DEFENCE_**
community regarding the threat of this **_ESTATES (DGDE)_**
disease and modes of its

9.14 The Directorate General

prevention. These IEC nodes

**_About 17 Lakh acres of_**

Defence Estates, New Delhi,

organised lectures, group

**_total Defence land is_**

performs an advisory role to the

discussions, peer training

**_spread across the_**

Ministry of Defence on all matters

workshops, exhibitions and

**_country._**

of lands (acquisition, hiring &

quiz competitions for school

management) and Cantonments.

children to create awareness
regarding HIV/AIDS.

9.15 While the DGDE supervises the activities

(b) **_Blood Banks: An important component of_** of various Cantonment Boards through Principal
this programme has been the enhancement Directors, Command and Cantonment Executive
of blood banking services in the Armed Officers, the management of defence land which
Forces Hospitals. All the blood samples includes custody of all defence land records,
collected from the voluntary donors in the procurement of immovable property and the
Armed Forces are screened for HIV, payment of compensation, dealing with litigation
Hepatitis B&C, Syphillis and Malaria as per matters is carried out through the Principal
national guidelines on the subject. Directorates and Defence Estates Officers.

About 17 Lakh acres of total Defence land is

(c) All medical, para medical personnel and

spread across the country. Directorate General

supportive staff in medical establishment

and its subordinate offices maintain record thereof

of Armed Forces, who are exposed to

as per the classification and use. Out of this, 0.68

blood and blood products from a HIV

lakh acre of land is directly under the management

positive person while carrying out their

of the Directorate General.

duty, are provided anti retro viral
treatment for one month and followed up. 9.16  An amount of Rs.111.22 crore has been
There have been no serological allotted for acquisition of land for the year 2006

-----

07. Apart from paying the amount of
compensation that landlords are entitled to
statutorily, the Government has also decided to
take steps for rehabilitation of persons, large
areas of whose land are acquired for defence
purposes.

9.17 Directorate General Defence Estates is
also responsible to control, monitor and supervise
the Cantonment Administration. There are 62
Cantonments in India located in 19 States and
the National Capital Territory of Delhi. The
Cantonment Boards are “Body Corporate”
functioning under the Cantonments Act, 2006
which has been given effect to from December
18, 2006. Apart from providing parity  between
elected and non-elected members, the Act also
provides reservation of seats for SC/ST and
Women in the Boards.  All the 62 Cantonments
are varied at present as on December, 2006.

9.18 The resources of the Cantonment Boards
are meagre as the bulk of the immovable property
in the Cantonment is Government
owned, on which no property tax

**_Towards_**

can be levied. Boards, however,

**_‘computerization of_**

receive Service charges in respect
of Central Government properties.

**_a milestone was_**

Due to restrictions on building
activities, neither industries can

**_2006 when Raksha_**

come up nor can trade and
business achieve any significant
growth in cantonment areas. The

**_Software” under a_**

Central Government provides

**_project jointly_**

financial assistance by way of
grant-in-aid to a certain extent to

**_and NIC._**

supplement the revenues of the
deficit Boards. During the financial
year 2005-06, Rs. 30.9825 crore have been
allocated on this account to various financially
deficit Cantonment Boards.

9.19 Most of the Cantonment Boards are
maintaining hospitals or dispensaries catering to
the needs of civil population of the Cantonment


as well as the adjoining areas. The total number
of hospitals/ dispensaries maintained is 69.

9.20 Towards ‘computerization of Defence
Land Records’ a milestone was achieved in
November, 2006 when Raksha Rajya Mantri
released the “Raksha Bhoomi Software” in the
DGDE under a project jointly undertaken by
DGDE and NIC. The project is under
implementation in 62 Cantonment Boards and is
proposed to be taken up in all Defence Estates
Circles. Once Data Base is created, it will provide
access to voluminous and up-dated Defence Land
Records throughout the country for optimum
utilization of land.

###### OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER

9.21 The office of Chief Administrative Officer
(CAO) is responsible for providing civilian manpower
and infrastructural support to the Services
Headquarters and the Headquarter offices of InterServices Organisations (ISOs) under
the Ministry of Defence. Joint
Secretary (Training) also discharges
the functions of the Chief
Administrative Officer (CAO) and
Director (Security).

9.22 **_The CAO’s Office has_**
**_the following six Divisions:-_**

(i) Administration Division

(ii) Personnel Division

(iii) Manpower Planning and
Recruitment Division

(iv) Training, Coordination and Welfare Division

(v) Finance and Materials Division

(vi) Estates and Works Division

9.23 The Administrative Division provides
administrative cover to about 10,000 civilian
employees employed in Army Headquarters and


-----

26 Inter-Services Organisations. A Grievances
Cell is functioning within the Administration
Division to examine the grievances of serving/
retired Armed Forces HQs civilian employees and
to ensure their speedy settlement.

9.24 The Personnel Division provides civilian
manpower to the Service Headquarters and InterService Organisations and deals with the
management of their manpower.

9.25 Manpower Planning and Recruitment
Division is responsible for framing policy on
recruitment rules in consultation with DOP&T and
effecting direct recruitment against all vacant
civilian posts in the Service Headquarters and
ISOs through prescribed channels.

9.26 Finance and Materials
Division provides material support
to ISOs which includes procuring **_providing civilian_**
and provisioning of office **_manpower and_**
equipment, stores, furniture and
stationery. These responsibilities **_to the Services_**
in respect of Army Headquarters
have been transferred from CAO’s
Office to ADG (Adm & Coord), Army **_Inter-Services_**
HQ w.e.f. July 1, 2006 in order to **_Organisations._**
ensure better administration and
greater user satisfaction.

9.27 The Defence HQ Training Institute
functioning under the Chief Administrative Officer
caters to the training needs of the civilian
personnel posted in Service Headquarters and
in Inter-Services Organisations. During the year,
1,079 civilian employees have been imparted
training in diverse areas to upgrade their skill and
efficiency. To some extent, the Institute has also
fulfilled the need of training of service officers in
areas which are relevant to functioning in
Headquarters.

9.28 Estates & Works Division performs the
Estate functions in respect of residential


accommodation of Service Officers posted at
Armed Forces HQs.

9.29 The Office of the Chief Security Officer,
Ministry of Defence functions under the
supervision of JS (T) & CAO. It is primarily
responsible for physical security, access control
and prevention of breaches of security and fire
within Defence Headquarters Security Zone.
Keeping in view the present threat perception a
number of security measures have been taken to
prevent any untoward mishap/ incident, fire
hazard in the DHQ Security Zone. Efforts are
being made to procure and install latest and
modern security equipment.

###### DIRECTORATE OF PUBLIC RELATIONS (DPR)

9.31 The Directorate of Public
Relations is the nodal agency for the
dissemination of information to the
media and the public about the
important events, achievements and
major policy decisions of the
Ministry, Armed Forces and Inter
Services Organisations under the
Ministry of Defence. The
Directorate with its headquarters in
New Delhi and 25 regional offices across the
country is responsible for providing media support
and services so as to ensure adequate publicity
in the print as well as the electronic media. It
also facilitates media interaction with the
leadership and senior officials of the Ministry of
Defence and Armed Forces by conducting regular
interviews, press conferences and press tours.

9.32 The Directorate conducted a five week
Defence Correspondents’ Course for the media
persons to enhance their knowledge about
defence matters. Thirty three journalists from print
and electronic media from all over the country
attended the course.


-----

9.33 The Directorate brings out

**_The Directorate of_**

a fortnightly journal, viz, Sainik
Samachar for the Armed Forces in
13 languages (Assamese, Bengali,

**_dissemination of_**

English, Gorkhali, Hindi, Kannada,

**_information to the_**

Malayalam, Marathi, Oriya, Punjabi,
Tamil, Telegu and Urdu). The

**_about the important_**

journal brought out special issues
on Army Medical Corps,

**_and major policy_**

International Seminar on Defence

**_decisions of the_**

Finance and Economics, Army
Day, Republic Day, Independence

**_and Inter Services_**

Day, Air Force Day and Navy Day.

**_Organisations._**

9.34 The Broadcasting section of
the Directorate coordinates ‘Sainikon Ke Liye’, a
40 minute programme  broadcast daily on All
India Radio for the Armed Forces personnel. The
Directorate’s Photo Section provides photographs
of each and every defence related event to the
print media.


evacuate stranded Indian citizens
from the war torn Lebanon were
also given wide publicity.

9.36 Other important calendar
events such as Republic Day
Celebrations, Independence Day
celebrations at Red Fort,
Combined Commanders’
Conference and NCC Rally
addressed by the Prime Minister
and Defence Investiture
Ceremonies at Rashrapati
Bhawan were also publicized
adequately

###### ARMY PURCHASE ORGANIZATION


9.37 Army Purchase Organization (APO) in the

Directorate’s Photo Section provides photographs

Ministry of Defence is entrusted with the

of each and every defence related event to the

responsibility of the procurement and timely

print media.

supply of dry food rations for the consumption of

9.35 The Directorate accorded wide publicity Defence Forces. APO procures rice and wheat
to important events such as the successful test through the Food Corporation of India and sugar
of Missile Defence System, Joint and is allotted by the Directorate of Sugar out of levy
International Defence Exhibition Def Expo 2006. quota.  Other items like pulses, animal ration,
Commissioning of INS Shardul, handing over of edible oils and vanaspati, tea and milk products
Fast Attack Craft to Maldives, Day at Sea of Prime are procured from the Central and State Public
Minister and Defence Minister, Sector Undertakings and national/
colour presentation to Eastern state level cooperative consumer/

**_Army Purchase_**

Fleet, Inauguration of Army Wide marketing federations by way of

**_Organization is_**

Area Network by the President, invitation of tenders and placing

**_entrusted with the_**

commissioning of first UAV contracts. Whole milk powder,

**_responsibility of the_**

Squadron of Indian Navy, butter tinned and desi ghee are

**_procurement and_**

International Seminar on Defence procured from members of the

**_timely supply of dry_**

Finance and Economics, test flights National Cooperative Dairy

**_food rations for the_**

of BrahMos, Trishul, Prithvi and Federation of India through

**_consumption of_**

Lakshya missiles etc., Defence negotiated contracts. Tinned items

**_Defence Forces._**

Minister’s historic visits to Germany, like vegetables, fruits, jams, milk,
France, China, Japan and meat and fish, coffee, egg powder,
Maldives, rescue and relief operations by the etc are procured from registered suppliers
Armed Forces during flood and heavy rains in the including private parties through open tender. The
States of Maharashtra, Andhra Pradesh, indented quantities are procured specially during
Chattisgarh and Operation Sukoon launched to the flush season when availability is high and


-----

prices are low. During the year, Rs. 1011.66 crore
was provided to the Army HQrs for procurement
of above items.

###### SERVICES SPORTS CONTROL BOARD

9.38 **_Services Championships: Services_**
Sports Control Board (SSCB) conducts and coordinates various sports activities in the three
Services. A total of four teams (Army Red, Army
Green, Indian Navy and Air Force) participate in
19 Services Championships conducted under the
aegis of SSCB. During the period from April 1,
2006 to December 31, 2006, 16 Inter Services
Championships out of a total 19 disciplines have
been conducted.


83 Services athletes/ officials were part of
the Indian contingent and won 2 Gold, 4
Silver and 9 Bronze medals.

9.41 **_Best Services Sportsman: On the basis_**
of performance in Services, National and
International championships of the preceding
years, one best sportsman is selected from the
three Services. Nb Sub V Johanson of MEG
Bangalore and member of Services Boxing team
was adjudged “Best Services Sportsman” for the
year 2005-06 and the trophy was presented on
October 18, 2006 during the Combined
Commanders’ Conference.

9.42 **_Arjuna Award: Nb Sub Tarundeep Rai_**
of ASI Pune was conferred with Arjuna Award
for the year 2005-06 in Archery.


9.39 **_National Championships: SSCB is_** for the year 2005-06 in Archery.
affiliated to 28 National Sports Federations and

9.43 **_Dronacharya Awardees: Two Services_**

participates in 38 National championships

coaches MWO Balwan Singh of 412 AF Stn and

including 10 in junior sections. During the year,

Sub Ismail Baig of CME Pune were conferred with

our teams won overall

“Dronacharya Award” for the year

championship in Basketball, Weight

**_The Services topped_** 2005-06 for their contribution in

Lifting, Kayaking & Canoeing and

**_thew medals tally in_** coaching in the field of Kabaddi and

Taikwando and were Runners-up

**_the 33[rd] National_** Rowing respectively.

in Athletics, Handball, Squash,

**_Games at Guwahati_**

Water Polo and Diving and third in

**_winning a total of 142_** **_ARMED FORCES FILM &_**

Cycling and Swimming events.

**_medals._**

###### PHOTO DIVISION (AFFPD)

9.39.1 National Games: The
services participated in the 33[rd] National Games 9.44 The Armed Forces Film & Photo Division
at Guwahati in February 2007 as the only (AFFPD) is an Inter-Service Organisation of the
Institutional team and topped the medals tally with Ministry of Defence, primarily responsible to meet
a total of 142 medals (59 Gold, 46 Silver and 37 the requirements of Services HQrs and other
Bronze). Defence Organisations with regard to production,

procurement and distribution of training films,

9.40 **_International Championships:_**

production of photographs, art work etc to meet

(i) SAF Games – 10[th] South Asian Games the needs of training, weapon trials, security,
were held at Colombo, Sri Lanka from defence research, intelligence and records. It is
August 18-27, 2006.  58 Sportsmen and 4 also responsible for photo and video coverage of
officials from Services were selected to ceremonial functions and other important activities
represent India in the said Games. of the Ministry of Defence.

(ii) Asian Games – 15[th] Asian Games were held 9.45 The AFFPD has a very rich collection of
at Doha, Qatar from December 1-15, 2006. rare films and historical photographs. This material


-----

inherited from British is of great historical value and
is maintained and preserved in the Central Defence
Film Library of this Division. Photographs depict
the Indian forces in action in various theatres of
Second World War, Parades, Ceremonies,
Festivals, Personalities and training activities etc.
Some important films titled Battle of Britain, Battle
of Russia, Battle of China, Desert Victory,
Japanese Surrender, Nazis Strikes, Burma
Champaign etc are also preserved alongwith many
other important films.

9.46 The Central Defence Film Library (CDFL)
of this Division is responsible for distribution of
training films to various units/ formations/ training
establishments/ commands, to meet their specific
training requirements. The Library holds 578 titles
in 35 mm sizes, 165 in 16 mm sizes and 260 in
video formats. During the year, 2200 CDs have
been distributed to various Army Establishments.
Till date, approx 15250 negatives have been
exposed and approximately 10,000 photographs
have been prepared.

9.47 At present, the AFFPD have 36 film on its
production schedule, out of which 12 films
have been completed. 10 films of English version
will be completed shortly with similar number of
Hindi version.


format to Defence establishments on loan basis
and Central Defence Film Library (CDFL) has also
issued 205 films on 35 mm format, 155 films on
16mm format, 800 films on VHS format and 400
films on CD format to various Defence
establishments.

###### NATIONAL DEFENCE COLLEGE (NDC)

9.50 National Defence College (NDC) was
inaugurated on April 27, 1960 by the then Prime
Minister, Pandit Jawaharlal Nehru. Located in the
heart of Delhi, the College has established a
name for itself as a centre of excellence on
matters relating to national security and strategic
studies. The institution endeavours to provide an
academic and professional setting conducive to
higher learning.

9.51 The NDC runs a 47-week course every
year for selected senior Defence and Civil
Services officers from India and Defence officers
from friendly foreign countries.   The Course is
structured to cover socio-politics of India,
economy, science, technology, international
security environment, global issues, India’s
strategic/ immediate neighbourhood and military
dimensions of national security.


9.48 This year, a five series film
titled ‘Combat First Aid Series’ of HQ
AMC Centre & School has been
made bilingually. Released at HQrs
AMC Centre & School, Lucknow the
series has  been appreciated for
its usefulness in saving precious
lives of soldiers.


###### SCHOOL OF FOREIGN LANGUAGES (SFL)


titled ‘Combat First Aid Series’ of HQ **_NDC runs a 47-week_** **_LANGUAGES (SFL)_**
AMC Centre & School has been **_course every year for_**

9.52 The School of Foreign

made bilingually. Released at HQrs **_selected senior_**

Languages has been the pioneer in

AMC Centre & School, Lucknow the **_Defence and Civil_**

foreign language teaching in India,

series has  been appreciated for **_Services officers from_**

since 1948. At present, the School

its usefulness in saving precious **_India and Defence_**

is engaged in imparting training in

lives of soldiers. **_officers from friendly_**

18 foreign languages to personnel

**_foreign countries._**

9.49 The Mobile Cinema Unit of of the three Services. It also caters
this Division also procures/ to the needs of other Ministries and
distributes Documentary films/ News Magazines Departments of the Government of India.
to the troops in the forward areas. During the Besides, civilian students are also admitted for
year, MCU has issued 48 films on 35 mm format, Certificate of Proficiency, Advanced Diploma and
77 films on VHS format and 1145 films on CD Interpretership Courses.


-----

9.53 The languages taught on regular basis at
the SFL are Arabic, Bahasa Indonesia, Burmese,
Chinese, French, German, Persian, Pushto,
Russian, Spanish, Sinhala,
Japanese, Thai, Malay, Hebrew,

**_SFL is engaged in_**

Vietnamese.

9.54 The School of Foreign

**_foreign languages_**

Languages is the controlling
organisation for other Defence

**_the three Services._**

Institutions where foreign languages
are taught namely National Defence Academy,
Khadakwasla and Army Education Corps Training
Centre and College, Pachmarhi. It conducts
examinations and issues diplomas to the
successful candidates. For the Indian Foreign
Service (IFS) probationers, it is obligatory to
qualify the Advanced Diploma (IFS) examinations
conducted by the Institute. The School of Foreign
Languages also conducts examination in
regimental language, Nepali, at various Service
units all over the country.

9.55 In addition, technically intensive courses in
Russian, French and German languages have been
successfully conducted by the School for Naval
personnel at their establishments in Mumbai, Goa,
Jamnagar, Lonawala, Delhi, Visakhapatnam, Kochi
and Port Blair.

###### HISTORY DIVISION

9.56 The History Division established in 1963,
functions as the record and reference office of the
Ministry of Defence and the Indian Armed Forces.
During the current year, about 3500 operational
records were received from the Service
Headquarters and various Formations/ Units. More
than 350 service officers and scholars visited the
Division to consult records in connection with their
research assignments pertaining to military history.
The Division provided information relating to
military history in respect of over 260 queries
received from various Formations, Units and
scholars from India and abroad.


9.57 The Division provides  two Research
fellowships under the Research Fellowship
Scheme of the Ministry of Defence to encourage
research in military history. So far
seventeen research fellows have
benefited under the scheme.

###### COLLEGE OF DEFENCE MANAGEMENT (CDM)

9.58 The College of Defence
Management is a tri-service category “A” training
establishment in existence for over three decades
now. It is entrusted with the responsibility of
instilling contemporary management thoughts,
concepts and practices in the senior leadership
of the Armed Forces. It is possibly the only
institution, which imparts exclusive and quality
training in defence management in the developing
nations.

9.59 Osmania University recognises the core
course of CDM, namely the Higher Defence
Management Course for the award of the Master
of Management Studies (MMS) degree.

9.60 The following courses are conducted by
CDM, Secunderabad:
(a) **_Higher Defence Management Course_**
**_(HDMC): This is a 44 week duration course_**

College of Defence Management, Secunderabad


-----

and is attended by 90 officers of the rank of
Colonel/ Lieutenant Colonel and equivalent.

(b) **_Senior_** **_Defence_**
**_Management_** **_Course_**
**_(SDMC): This is a six week_**
duration course and is
attended by 33 officers of the
rank of Brigadier/ Colonel and
equivalent. **_in the senior_**

**_leadership of the_**

(c) **_Defence_** **_Management_**

**_Armed Forces._**

**_Seminar (DMS): This is of_**
two week duration and is
attended by 20 officers of the rank of Major
General and equivalent.

(d) **_Assignment Oriented Management_**
**_Training (AOMT): CDM conducts four_**
AOMT workshops of one week duration on
Project Management, Financial
Management, Operational
Research and Systems **_The Staff Course at_**
Analysis and a workshop on **_DSSC aims at_**
Quantitative Aids to Decision
Making of two week duration
for middle level officers.

**_Service as well as_**

###### DEFENCE SERVICES Joint Service STAFF COLLEGE (DSSC) environment.

9.61 The Defence Services Staff College
(DSSC) is one of the oldest military institutions in


India. It was established in 1905 in Deolali and
has been functioning at Wellington since 1950.
The DSSC imparts training to
middle level officers of the three
Services besides a few civilian
officers and officers from friendly
foreign countries. The college
conducts a 45-week training
programme from June to April every
year. The Staff Course at DSSC
aims at imparting training in
operational and staff functions in an
Inter-Service as well as Joint
Service environment.

###### MINISTRY OF DEFENCE LIBRARY

9.62 The Ministry of Defence Library provides
literature on subjects relevant to planning and
policy formulation in the Ministry of Defence, three
Services Headquarters, InterService Organizations and other
allied Defence Establishments
located in Delhi. It specialises in
Defence and related subjects,
besides catering to the needs of
general readers. The reading
material for the library is selected
by a Book Selection Committee.
During the year, the library added
2205 books and subscribed to 127 journals/
periodicals and 23 newspapers.


-----

-----

###### RECRUITMENT AND TRAINING

Forging Ahead in Unison


-----

###### ecruitment to the Armed Forces is voluntary irrespective of caste, class, religion and

# R

###### community provided the laid down physical, medical and educational criteria are met with.


###### RECRUITMENT IN THE ARMED FORCES

10.1 The Armed Forces epitomize the ideals
of service, sacrifice, patriotism and composite
culture of the country. Recruitment to the Armed
Forces is voluntary and open to all citizens of India
irrespective of caste, class, religion and
community provided the laid down physical,
medical and educational criteria are met.

10.2 **_Recruitment of Commissioned Officers_**
**_in the Armed Forces through UPSC:_**
Commissioned Officers in the Armed Forces are
recruited mainly through the UPSC which
conducts the following two All India Competitive
Examinations: 

**_(ii)_** **_Combined_** **_Defence_** **_Services_**
**_Examination (CDSE): CDSE is conducted_**
by the UPSC twice a year. University
graduates are eligible to appear in the
examination. Successful candidates join the
Indian Military Academy/Air Force Academy
and Naval Academy for Regular and
Officers Training Academy (OTA) for Short
Service Commission.

###### ARMY

10.3 Apart from the UPSC entries, the
commissioned officers are recruited in the army
through the following manner:

**_(a)_** **_University Entry Scheme (UES):_** Final/

Examinations: 
pre-final year students in the notified

**_(i)_** **_National Defence Academy_** engineering disciplines are eligible
**_(NDA) and Naval Academy_** **_The Short Service_** to apply for Permanent Commission
**_(NA):_** The UPSC holds **_Commission_** in the Technical Arms of the Army
entrance examination twice a **_(Technical) Entry_** as Commissioned Officers under
year for entry into the NDA **_Scheme provides_** the UES. Eligible candidates are
and NA. Candidates on **_avenue for recruitment_** selected through a campus
completion of 10+2 **_to eligible technical_** interview by the Screening Teams
examination or while in the **_graduates/ post_** deputed by the Army Headquarters.
12[th] standard, are eligible to **_graduates into_** These candidates are required to
compete. Successful **_Technical Arms._** appear before SSB and Medical
candidates join the NDA or Board. Successful candidates
NA as per their option exercised at the time undergo one year pre-commission training
of applying. On completion of the course, at the Indian Military Academy (IMA),
they are sent to the respective Service Dehradun. Cadets through this entry are
academies for their pre-commission also entitled to two years’ ante-date
training. seniority on commissioning.


-----

**_(b)_** **_Technical Graduates Course (TGC):_**
Engineering graduates/ post graduates
from notified disciplines of engineering are
eligible to apply for Permanent Commission
through this entry. After the SSB and the
Medical Board, the selected candidates are
required to undergo one year precommission training at the IMA, Dehradun
before being commissioned. Cadets
through this entry are also entitled to two
years ante-date seniority on commissioning.

**_(c)_** **_Short Service Commission (Technical)_**
**_Entry:_** The Short Service Commission
(Technical) Entry Scheme provides avenue
for recruitment to eligible technical
graduates/ post graduates into Technical
Arms. After SSB and Medical Board, the
selected candidates are required to undergo
approximately 11 months pre-commission
training at OTA, Chennai. On completion of


training, they are inducted as Short Service
Commissioned Officers. Cadets through
this entry are also entitled to two years’
ante-date seniority on commissioning.

**_(d)_** **_10+2 Technical Entry Scheme (TES):_**
Candidates who have qualified 10+2 CBSE/
ICSE/ State Board Examination with
minimum aggregate of 70% marks in
Physics, Chemistry and Mathematics are
eligible to apply for commission under the
10+2 (TES). On being successful in the SSB
and being declared fit by the medical board,
they undergo one year basic military training
at IMA, Dehradun and thereafter undergo
three years engineering degree course in
respective streams before getting
Permanent Commission. On being
commissioned they are further put through
one year of specialised training for the Arm/
Service into which they are commissioned.


The more you sweat in peace, the less you bleed in war


-----

**_(e)_** **_Women’s Special Entry Scheme Officers_**
**_(WSES-O): Eligible women candidates are_**
recruited in the Army as Short Service
Commissioned Officers through the
(WSES-O). Commission is granted in Corps
of Electronics and Mechanical Engineers,
Engineers, Signals, Army Education Corps,
Army Ordnance Corps, Army Supply Corps,
Military Intelligence Corps, Judge Advocate
General’s Branch and Army Air Defence.
Women are offered Short Service
Commission in three streams viz. Non
Technical, Technical and Specialist for a
period of ten years, extendable by additional
four years purely on voluntary basis. The
widows of Service personnel who meet the


laid down eligibility criteria are eligible for
relaxation of age by four years and 5% seats
are reserved for them. However, this entry
is being terminated and is being termed as
Short Service Commission (Women
Technical/Non Technical) with revised
terms and conditions, and increased
duration of training of approximately 11
months in order to bring them at par with
the Short Service Commission male
officers. The first batch will be inducted in
April 2008. The applicants for Non Technical
and Specialist streams would be required
to apply through UPSC and after written
examination would come up for SSB
interview as is being done for Short Service

|Col1|Col2|Table No. 10.1|Col4|
|---|---|---|---|
|(1)|NDA|Army|422|
|||Air Force|128|
|||Navy|74|
|||Total|624|
|(2)|IMA|IMA(Direct Entry)|479|
|||ACC|122|
|||SCO|24|
|||PC(SL)|60|
|||Total|685|
|(3)|OTA|WSES(O)|151|
|||SSC(NT)|240|
|||NCC|94|
|||JAG|8|
|||Total|493|
|(4)|Tech. Entries|UES|83|
|||SSC(Tech)|49|
|||10+2 TES|177|
|||TGC|98|
|||Total|407|


-----

Commission male officers. However,
widows of Service personnel are exempted
from written examinations and would need
to apply directly to Additional Directorate
General of Recruiting/Integrated
Headquarters of Ministry of
Defence (Army).

**_(f)_** **_NCC (Special) Entry Scheme: University_**
graduates possessing NCC ‘C’ Certificate
with minimum ‘B’ grade and 50% marks in
graduation examination are eligible to apply
for Short Service Commission
through this entry. Such

**_Under Special_**

cadets are exempted from

**_Commissioned_**

written examination
conducted by the UPSC and
are directly put through the
SSB interview followed by a

**_years, with a Senior_**

medical board. Candidates
meeting the qualitative
requirements have to apply

**_qualification, are_**

through NCC Directorates at

**_eligible for_**

the State level. After

**_commission after_**

screening, the concerned
Directorate General of NCC

**_medical board._**

forward the applications of’
deserving cadets to the
Recruiting Directorate of Integrated
Headquarters of Ministry of Defence (Army).

10.4 **_Service Entries: Recruitment of PBOR_**
into officer cadre is done through SSB in the
following entries: 
**_(a)_** **_Commission Through Army Cadet_**
**_College (ACC) Entry:_** The eligible Other
Ranks (ORs) from the three Services,
having 10+2 pass qualification, can apply
for regular commission. After qualifying in
written examination conducted by the
Integrated HQs of Ministry of
Defence (Army), the aspirants are screened
by SSB and the medical board. Successful
candidates are trained at ACC, Dehradun,


for three years, at the end of which they get
a graduation degree. This is followed by one
year pre commission training at IMA,
Dehradun. Permanent Commission is
granted in all Arms/ Services.

**_(b)_** **_Induction Under Special Commissioned_**
**_Officers (SCO) Scheme: Under this entry,_**
JCOs/ NCOs/ ORs in the age group of 3035 years, with a Senior School Certificate
Pass (Class 10+2 Pattern) qualification, are
eligible for commission after screening by
SSB and medical board. They have
to undergo pre-commission training
of one year duration at IMA,
Dehradun. The officers so
commissioned can earn promotion
upto the rank of Colonel. The rules
for substantive promotion and
acting promotion are the same as
for regular officers. These officers
are employed in units as sub unit
commanders/ Quarter Masters and
on various Extra Regimental
Employment appointments upto the
rank of Major. They retire at the age
of 57 years after service of about
20-25 years as officer. The scheme
not only improves the career prospects of
the existing JCOs/ NCOs/ ORs but also
helps in making up the deficiency of officers
in the Army to a certain extent.

**_(c)_** **_Induction_** **_Through_** **_Permanent_**
**_Commission (Special List) [PC(SL)]_**
**_Cadre:The eligible PBOR are granted PC_**
(SL) after selection by the SSB and
successful completion of four weeks
orientation training at the IMA.

10.5 **_Intake: During the year, intake of_**
candidates for pre commission training as officers
is given in table 10.1.

10.6 **_Recruitment of PBOR : Recruitment of_**
PBOR in the Army is carried out through open


-----

rallies. After the preliminary screening of aspiring
candidates at rally site followed by document
checking and physical fitness test their medical
examination is conducted by Recruiting Medical
Officers at the rally site. This is followed by a
written examination for the medically fit
candidates. Successful candidates are sent to
respective training Centres for training.

10.7 There are eleven Zonal Recruiting Offices,
two Gorkha Recruiting Depots and One
Independent Recruiting Office in addition to 47
Regimental Centres which carry out recruitment
through rallies in their respective areas of
jurisdiction. Efforts are made so that
each district of the country is

**_Women are being_**

covered by recruitment rallies at
least once in a recruitment year.

**_as Short Service_**

During the recruiting year 2005-06,
the recruiting organisation has
enrolled 27911 recruits for the
Army.

**_and the Education_**

10.8 Some of the important

**_Branch._**

decisions taken in the recent past/
major developments in the area of recruitment of
PBOR in the Army are given in the following paras:

**_(a)_** **_Recruitment of Clerical Categories on All_**
**_India Basis: Clerical categories are being_**
recruited based on All India Merit List. A
revised procedure is being followed as a
trial measure for the year April 1, 2006 to
March 31, 2007. Based on the experience
gained, continuation of the system will be
reviewed.

**_(b)_** **_Revised_** **_Educational_** **_Qualitative_**
**_Requirement for the Soldier (General_**
**_Duty) Category: The education standards_**
for Soldier (General Duty) category has
been revised to 45% marks in aggregate
with a minimum of 32% marks in each
subject in 10 [th] class. Relaxation in


education standards wherever applicable at
present will continue to apply.

###### INDIAN NAVY

10.9 **_Recruitment of Officers: Apart from_**
UPSC Entries, Commissioned officers are
recruited through Non UPSC entries for both
Permanent Commission (PC) and Short Service
Commission (SSC) cadres. For such entries, the
applications are invited and short listed at
Integrated Headquarters of the Ministry of
Defence (Navy). The short listed candidates are
then sent for SSB interviews. Thereafter, a merit
list, comprising qualified candidates, is prepared
as per the availability of vacancies.
Recruitment for the Non-UPSC
entries is made for the following
Branches/ Cadres of the Navy:
**_(i)_** **_Executive: Short Service_**
Commission for Air Traffic Control/
Law/ Logistic/ Naval Armament
Inspectorate (NAI)/ Hydro cadres
and also Permanent Commission
for Law/ NAI Cadres.

**_(ii)_** **_Engineering_** **_(Including_** **_Naval_**
**_Architects): Short Service Commission_**
through University Entry Scheme (UES),
Special Naval Architects Entry Scheme
(SNAES) & SSC (E) Schemes. Permanent
Commission through 10+2 (Tech) Scheme.

**_(iii)_** **_Electrical Engineering:  SSC entry_**
through UES and SSC(L) Schemes.
Permanent Commission is through 10+2
(Tech) Scheme.

**_(iv)_** **_Education_** **_Branch:_** Permanent
Commission and Short Service
Commission schemes exist for this branch.

**_(v)_** **_10+2 (Tech) Scheme: The Scheme is a_**
Permanent Commission entry for
commission in the Engineering and
Electrical branches of the Indian Navy.


-----

Under the scheme, candidates with 10 +2
(PCM) pass qualification, after selection
through the Services Selection Board, are
sent to the Naval Academy for the Naval
Orientation Course. Thereafter, they
undergo a four-year Engineering course at
INS Shivaji/ Valsura. On successful
completion of the course they are granted
Permanent Commission in the Electrical
and Engineering branches of the Navy.


and are selected through the SSB interview
only. They join the Naval Academy for
Naval Orientation Course (NOC) along with
the CDSE cadets.


**_(ix)_** **_Special Naval Architecture Entry Scheme:_**

undergo a four-year Engineering course at

Government has recently approved the

INS Shivaji/ Valsura. On successful

induction of 45 Naval Architect officers into

completion of the course they are granted

the Naval Architecture Cadre of the

Permanent Commission in the Electrical

Engineering Branch of the Indian Navy, as

and Engineering branches of the Navy.

Short Service Commission Officers, under

**_(vi)_** **_University Entry Scheme (UES):  The_**

a Special scheme of ‘Special Naval

UES has been re-launched w.e.f. August

Architects Entry Scheme’ (SNAES). An

2005 course, as a Short Service

empowered Naval team visits IIT

Commission Scheme. Final and Pre-Final

Kharagpur, IIT Chennai, Cochin University

year Engineering students are eligible for

of Science and Technology (CUSAT) and

induction into the technical Branches/

Andhra University, where B Tech (Naval

Cadres of the Navy. Naval selection teams

Architecture) course is conducted, to select

visit AICTE approved

the candidates through campus

engineering colleges, across
the country, to shortlist the **_Recruitment of sailors_** interviews. The selected candidates
candidates. The short listed **_in the Navy is also_** undergo medical examination at the
candidates, based on All India **_carried out after a_** nearest Military Hospital and, if

**_process of a written_**

merit, are called for interview found fit, are sent for training.

**_examination, physical_**

at the Services Selection

10.10 **_Recruitment of Sailors:_**

**_fitness test and_**

Board. The successful

Recruitment of sailors in the Navy

**_medical examination._**

candidates, thereafter, are put

is also carried out through a

through the medical tests.

process of a written examination, physical fitness

Final selection is based on all India merit

test and medical examination.

on the basis of marks obtained in the SSB
interviews. 10.11 Types of Entries: The various entries, for

**_(vii) Women Officers: Women are being_** recruitment of sailors, are as follows:inducted into the Navy, as Short Service

(i) Artificer Apprentices (AAs) – 10+2 (PCM).

Commission (SSC) officers in the Executive
(ATC, Law & Logistic Cadres) and the (ii) Direct Entry (Diploma Holders) [DE (DH)] –
Education Branch. Diploma in Mechanical/ Electrical/

Electronics/ Production/ Aeronautical/

**_(viii) Recruitment through NCC: University_**

Metallurgy/ Shipbuilding.

graduates possessing NCC ‘C’ certificate,
with minimum ‘B’ grading and 50% marks (iii) Matric Entry Recruits – Matriculation.
in the graduation degree examination, are

(iv) Non-Matric Entry Recruits – Below Matric.

inducted into the Navy as regular
commissioned officers. These graduates (v) Direct Entry Petty Officer (Outstanding
are exempted from appearing in the CDSE Sportsmen).


-----

###### INDIAN AIR FORCE

10.12 Officers’ Selection in Indian Air Force:
UPSC Entries for Indian Air Force is confined to
Flying Branch only. For Technical and NonTechnical branches recruitment is carried out
through various direct entries by Air
Headquarters. The details of such entries/
schemes are given in the following paras.

10.13 Aspiring Engineering Graduates, both
Men and Women, undergo
Engineering Knowledge Test (EKT)

**_UPSC Entries for_**

held at different Air Force Stations

**_Indian Air Force is_**

followed by selection tests at Air

**_confined to Flying_**

Force Selection Boards. **_Branch only. For_**
Candidates selected for

**_Technical and Non-_**

Aeronautical Engineering Branches

**_Technical branches,_**

undergo basic training at Air Force
Academy (AFA) followed by **_out through various_**
specialised training at Air Force

**_direct entries by Air_**

Technical College (AFTC),

**_Headquarters._**

Bangalore. On successful
completion of 74 weeks training, they are inducted
in Electronics and Mechanical streams. Final/ prefinal year students in the specified Engineering
disciplines are eligible for induction through
University Entry Scheme (UES).


(SNCO ) Commissioning Entry were merged to
Service Entry Commission (SEC) for both
Technical and Non-Technical Branches to provide
an opportunity for deserving adequately
experienced Airmen to become commissioned
officers. Under this entry, serving Airmen with
minimum 10 years of service (five years in the case
of Education Instructors) of technical and nontechnical trades of the rank of Sergeant and above,
upto the age of 42 years and with minimum
educational qualification of 10+2, are
eligible to apply for commissioning.
All those who qualify in Common
Screening Test (CST) held twice a
year undergo selection tests at Air
Force Selection Boards.  Finally
selected candidates undergo 74
weeks/ 52 weeks of training to be
commissioned in Aeronautical
Engineering Branches/ NonTechnical Branches.


10.16 **_Selection of Airmen: The_**

completion of 74 weeks training, they are inducted

selection of suitable candidates for enrolment as

in Electronics and Mechanical streams. Final/ pre
Airmen is carried out through a centralized

final year students in the specified Engineering

selection system on All India basis by Central

disciplines are eligible for induction through

Airmen Selection Board, located at New Delhi with

University Entry Scheme (UES).

the help of fourteen Selection Centres spread all

10.14 Post Graduate and Graduate candidates, over the country. Besides, the scheduled
both Men and Women, aspiring to join Non- Selection Tests are held periodically on all India
Technical Branches viz., Administration, Logistics, basis, Recruitment Rallies are also conducted in
Accounts, Education and Meteorology undergo different parts of the country to provide an
a Common Entrance Test (CET) opportunity to even remote and low
held twice a year at various Air response areas.

**_The recruitment of_**

Force Stations followed by

**_officers into the Coast_**

selection tests at Air Force **_COAST GUARD_**

**_Guard is in two main_**

Selection Boards. Selected

**_streams i.e. General_**

10.17 **_Recruitment of Officers:_**

candidates undergo 52 weeks of

**_Duty and Technical._**

The recruitment of officers into the

training.

**_General Duty has two_**

Coast Guard is in two main streams

**_sub branches i.e._**

10.15 **_Service_** **_Entry_** i.e. General Duty and Technical.

**_General Service and_**

**_Commission (SEC):_** Erstwhile General Duty has two sub branches

**_General Duty (Pilot_**

Branch Commissioning Entry and i.e. General Service and General

**_Navigator)._**

Senior Non-Commissioned Officer Duty (Pilot Navigator).


-----

10.18 The selection of officers is made through
a Selection Board.  Candidates responding to a
vacancy advertisement are short-listed in a
prescribed ratio for a preliminary screening test
and a screening interview by a Preliminary
Selection Board. The candidates short-listed by
Preliminary Selection Board are then subjected
to tests, personal interview, psychological and
group tasks by Final Selection Board at NOIDA
in Uttar Pradesh.  The successful candidates
opting for General Duty (Pilot/ Navigator) are
further subjected to Pilot Aptitude Battery Test at
the Air Force Selection Board.

10.19 Recruitment of Personnel
**_Below Officers Rank: The Coast_** **_The objectives of_**
Guard has the following types of
entries for personnel below officers
rank :- **_school education_**

(a) Direct Entry Diploma Holder

**_common man, all_**

(3 years diploma)

(b) Navik(General Duty)12 [th] **_a child’s personality_**

(Science stream pass entry)

**_imbalance in the_**

(c) Navik(Domestic Branch)(10[th]

pass)

**_Armed Forces._**

10.20 The recruitment is made
through various centers spread all over India. The
candidates are selected for the available
vacancies on the basis of written, medical and
physical fitness test. Relaxation of age and
qualification is admissible for Scheduled Caste/
Scheduled Tribes and Other Backward Classes
as per existing Government orders.

10.21 Recruitment of Women: Women are
recruited only as officers.  The selection process
for women candidates is similar to that for the male
candidates. Women officers are posted in nonsea going posts and are also being inducted as
pilots.

10.22 Training of Coast Guard Personnel:
The basic training for Coast Guard is undertaken


at naval institutions. For specialised training on
subjects which are specific to Coast Guard like
Search and Rescue/Pollution Control, Maritime
Law Enforcement etc., a permanent Coast Guard
Training Centre is being planned during the XI
Plan.  At present Coast Guard mandated training
is being conducted at Coast Guard Training
Centre, Kochi as an interim arrangement.

###### TRAINING FOR DEFENCE SERVICES

10.23  A large number of training institutions in
the Defence Sector work in coordination with one
another. The important ones are described in the
following paragraphs:

###### SAINIK SCHOOLS

10.24 Sainik Schools were
established as joint venture of the
Central and State Governments.
These are under the overall
governance of Sainik Schools
Society. At present there are 20
Sainik Schools located at Nagrota
(Jammu & Kashmir), Sujanpur Tira
(Himachal Pradesh), Kapurthala
(Punjab), Kunjpura (Haryana),
Chittorgarh (Rajasthan), Ghorakhal
(Uttarakhand), Rewa (Madhya Pradesh),
Gopalganj & Nalanda (Bihar), Tilaiya (Jharkhand),
Goalpara (Assam), Purulia (West Bengal),
Bhubaneswar (Orissa), Balachadi (Gujarat),
Satara (Maharashtra), Korukonda (Andhra
Pradesh), Imphal (Manipur), Bijapur (Karnataka),
Amravatinagar (Tamil Nadu) and Kazhakootam
(Kerala). Sainik School Punglwa in Nagaland,  the
21[st] member of the Sainik School family, is all
set to start functioning from the academic session
commencing from April 2007.

10.25 The objectives of Sainik Schools include
bringing quality public school education within the
reach of the common man, all round development
of a child’s personality and to remove regional


-----

imbalance in the officers’ cadre of the Armed
Forces. The Sainik Schools prepare boys
academically, physically and mentally to join
Armed Forces through the National Defence
Academy (NDA).

10.26 Sainik Schools admit boys in classes VI
and IX. Their age should be 10-11 years for class
VI and 13-14 years for class IX as on 1[st] July of
the year in which admission is sought.
Admissions are made strictly in the order of merit
on the basis of an All India Entrance Examination
held in January each year.

10.27 The entrance examination includes a
written examination and an interview. Admission
is further subject to the candidates being found
medically fit according to medical standards
prescribed for entry to National Defence Academy.

10.28 Admission to class XI on the basis of class
X Board examination results was introduced in
Sainik Schools from the academic session 200607 in order to achieve optimum utilization of
available infrastructure and to provide a more
competitive environment to the aspiring cadets.

10.29 Sainik Schools are wholly residential
schools run on public school lines. All the Sainik
Schools are also members of the All India Public
Schools Conference. They offer a common
curriculum and are affiliated to the Central Board
of Secondary Education, New Delhi and follow
the 10+2 pattern of education.

10.30 The schools impart instructions in English
medium although knowledge of English is not a
pre-requisite for admission. The schools offer only
science stream at the plus-two level, enabling
candidates to appear for the NDA entrance
examination.

###### MILITARY SCHOOLS

10.31 The Five Military Schools affiliated to
CBSE are functioning at Ajmer, Bangalore,


Belgaum, Dholpur and Chail.  The Military
Schools admit boys in class VI, based on the
results of an all India Entrance Examination.
While 67% seats are reserved for the wards of
JCOs/ ORs called ‘entitled category’, of the 33%
non-entitled category seats, 20% are reserved for
wards of service officers.

###### NATIONAL DEFENCE ACADEMY (NDA)

10.32 The National Defence Academy (NDA) is
the country’s premier inter-service training institution.
It has the unique distinction of being one of the first
institutions in the world to impart combined training
to officer cadets of the Armed Forces.

10.33 The three years course at the NDA is
covered in six semesters during which a bond of
friendship and respect for each other’s service
develops. On conclusion of this training, the
cadets proceed to their respective Service
Academies for further training before being
commissioned as officers in the Armed Forces.

###### RASHTRIYA INDIAN MILITARY COLLEGE (RIMC)

10.34 The Rashtriya Indian Military College
(RIMC) was founded on March 13, 1922, with the
objective of providing the necessary preliminary
training for boys of Indian birth or domicile, wishing
to become officers in the Armed Forces of India.
The institution now serves as a feeder institute to
the National Defence Academy.

10.35 Selection for RIMC is through a written
examination cum viva voce conducted through
the State Governments. Seats for respective
States are reserved based on population. The
intake into the RIMC is biannual, in January and
July. The maximum strength of RIMC is 250. The
intake is at Class VIII for boys in the age groups
11½ to 13 years. The college runs classes in
science stream on 10+2 CBSE pattern.


-----

###### INDIAN MILITARY ACADEMY (IMA), DEHRADUN

10.36 Founded in 1932, Indian Military
Academy, Dehradun aims at the fullest
development of intellectual, moral and physical
qualities of persons joining the Army as officers.

10.37 The various modes of entry into IMA are:
(a) On graduation from NDA.

(b) On graduation from Army Cadet College,
which is a Wing of the IMA itself.

(c) Direct Entry graduate cadets, who qualify the
Union Public Service Commission Exam and
get through the Services Selection Board.

(d) For Technical Graduate’s Course (TGC).

(e) Under University Entry
Scheme (UES) for
engineering college students

**_premier All Arms_**

in Final/ Pre-Final year of

**_Tactical Training_**

studies.

(f) Through 10+2 Technical

**_and performs the_**

Entry Scheme (TES)

10.38 The IMA also imparts **_evaluation of new_**
training to Gentlemen Cadets from **_concepts and_**
friendly countries.

###### OFFICER TRAINING ACADEMY (OTA), CHENNAI

10.39 Established in 1963, the Officers Training
School (OTS) was redesignated as Officers
Training Academy (OTA) from January 1, 1988
on completion of 25 years of its existence. Its
main task, before 1965 was to train Gentlemen
Cadets for grant of Emergency Commission.
From 1965 onwards, the Academy has started
training cadets for Short Service Commission.

10.40 With the entry of women officers in the
Army since September 21, 1992, around 100
lady officers now get commissioned from OTA


every year in  Army Service Corps, Army
Education Corps, Judge Advocate General’s
Department, Corps of Engineers, Signals and
Electrical and Mechanical Engineers.

10.41 The OTA impart pre-commission training
for the following:
(a) Short Service Commission (Non Technical)
for Graduates.

(b) Short Service Commission (Technical) for
Graduates.

(c) Short Service Commission (Woman) for
Graduate/ Post Graduate Lady Cadets.

###### ARMY WAR COLLEGE, MHOW

10.42 Re-designated as the Army War College
from January 15, 2003, the earlier
College of Combat was created out
of Infantry School and established
as an independent institution on
April 1, 1971. A premier all arms
tactical training Institution for
officers, the AWC performs the
important functions of evaluation of
new concepts and doctrines in the
fields of tactics and logistics.

###### Courses:

(a) **_Higher_** **_Command_**
**_Course: The course aims to train officers_**
for higher command, with particular
reference to command of a division and for
holding senior staff appointments. The
course of 40 weeks duration is run only for
Indian officers from the three Services. 55
officers are trained every year.

(b) **_Senior Command Course: The course_**
aims to train selected Major/ Lieutenant
Colonels and equivalent rank officers of all
arms and services in tactical employment
of a Battalion/ Combat Group as part of a


-----

Brigade or Combat command in
cooperation with air and other arms and
services, as also, in the training and
administration of a unit in peace and war.
Each course is of 13 weeks duration.
Approximately 10% vacancies are offered
to friendly foreign countries, Para Military
Forces and Central Police Organizations.
Three such courses are conducted every
year.

(c) **_Junior Command Course: This course_**
aims to train officers of all arms and services
in the tactical employment of a Rifle
Company/ Combat Team as part of
Battalion Group or Combat Group, in
cooperation with air and other arms and
services, as also in training and
administration of a sub unit in peace and
war. A course is of 10 weeks duration and
trains 400 officers. Approximately 10%
vacancies are offered to friendly foreign
countries, Para Military Forces and Central
Police Organizations. Four such courses
are conducted every year.


severe stress and strain and be able to command
and administer their Sub-Units effectively in war
and peace. It trains officers and NCOs of Army,
Para Military Forces, Central Police Organisations
and friendly foreign countries in commando type
of operations and makes them capable of either
forming part of special mission groups or leading
independent missions in all types of terrain and
operational environment.

###### JUNIOR LEADERS ACADEMY (JLA), BAREILLY

10.44 Junior Leaders Academy was set up in
1998 with the aim of imparting institutionalised
training in leadership and related subjects to the
Junior Leaders i.e. JCOs and Sr NCOs of all arms
and services with a view to making them more
effective.

10.45 Courses: The following courses are
conducted for JCOs/ NCOs of all Arms and
Services:
(a) **_Junior Leaders Course (JLC): It is a six_**
week course for newly promoted JCOs and
Senior NCOs (approved for promotion to be
JCOs). Six courses are conducted to train
3,240 students.


(d) **_Formation Commanders Orientation_** Senior NCOs (approved for promotion to be
**_Programme (FCOP):_** The JCOs). Six courses are conducted to train
aim of the programme is to 3,240 students.

**_The aim of the High_**

prepare potential divisional

(b) **_Potential_** **_Subedar_**

**_Altitude Warfare_**

commanders for command of

**_Majors (PSMs) Orientation_**

**_School is to train_**

their formations. The

**_Course:_** It is a four week course

**_selected personnel in_**

programme is run for four

for 108 newly promoted Subedar

**_all aspects of high_**

weeks every year and is

Majors or Senior Subedars

**_altitude mountain_**

meant only for Indian

(approved for promotion to Subedar

**_warfare and develop_**

Officers.

Majors). Six couses are conducted

**_techniques for fighting_**

annually to train 640 students.

###### JUNIOR LEADERS WING in such terrains. (JLW), BELGAUM JUNIOR LEADERS
 ACADEMY (JLA), RAMGARH

10.43 The Junior Leaders Wing at Belgaum is
training junior officers, JCOs and NCOs in Sub- 10.46 Considering the need for more training
Unit level Tactical and Special Mission facilities, it was decided to raise another JLA at
Techniques to enable them to carry out assigned Ramgarh in Bihar in 2001. The JLA Ramgarh has
operational missions in varied terrain under been organized on the same lines as JLA Bareilly.


-----

The institution has been imparting training from
February 2003 to 648 candidates every year.

###### HIGH ALTITUDE WARFARE SCHOOL (HAWS), GULMARG

10.47 The aim of the School is to train selected
personnel in all aspects of high altitude (HA)
mountain warfare and develop techniques for
fighting in such terrains. HAWS conducts two
series of courses, viz, Mountain Warfare (MW)
and Winter Warfare (WW) at Sonamarg and
Gulmarg respectively for officers, JCOs and
NCOs. The training periods broadly run from
January to April (WW Series) and May to October
(MW Series).  Personnel from the school have
scaled some of the important peaks in the world
including Mt. Everest, Mt. Kanchenjunga amd Mt.
Mckinley in the USA.

###### COUNTER INSURGENCY & JUNGLE WARFARE SCHOOL (CIJW), VEIRANGTE

10.48 The CIJW conducts courses for Officers,
JCOs/ NCOs in counter insurgency techniques,
language courses in Assamese, Bodo,
Nagamese, Manipuri/ Tangkhul as also imparts
Pre-induction Training (PIT) for all units prior to
induction into insurgency areas.

###### COUNTER INSURGENCY PRE INDUCTION TRAINING

**_BATTLE SCHOOLS_**

10.49  Since the capacity of CIJW School was
limited and on account of peculiar operational
situation and administrative problems of
movement of units, it was considered necessary
to impart training to units at places closer to their
areas of operation,  more Corps Battle Schools
from within the resources of the Army have been
established at Kheru, Sarol and Bhalra for units
moving into Northern Command and at


Thakurbari for units moving into Assam and
Meghalaya.  Besides training for counter
insurgency, these schools especially in the
Northern Command are training units for their role
along the line of control and high altitude.

###### INFANTRY SCHOOL, MHOW

10.50 The Infantry School is the largest and
oldest military training institution of the Indian
Army. Courses conducted at Infantry schools
are Young Officers Course, Platoon Weapon
Course, Mortar Course, Anti Tank & Guided
Missile Course, Medium Machine Gun &
Automatic Grenade Launcher (J/N) Course,
Section Commanders Course, Automatic Data
Processing Course, Sniper Course and
Support Weapon Course. The institution is
training Officers, JCOs and ORs of not only
infantry but other arms and services also,
besides Para Military Forces and Civil Police
Organisations. The institution is at present
training more than 7,000 Officers, JCOs and
NCOs in a year.

###### COLLEGE OF MATERIALS MANAGEMENT

10.51 The College owes its lineage to Indian
Army Ordnance Corps (IAOC) School of
Instruction established at Kirkee in October, 1925.
The School was later re-designated as IAOC
Training Centre in February, 1939 and shifted to
its present location at Jabalpur. In January, 1950,
The IAOC School became the Army Ordnance
Corps (AOC) School.  The AOC School was
renamed as College of Materials Management
(CMM) and affiliated to the University of Jabalpur
(Rani Durgavati Vishwa Vidhyalaya) in 1987. The
CMM attained an autonomous status in 1990. The
College is also registered as a ‘Government
College’ with the University Grants Commission.
It also has the approval of All India Council of
Technical Education (AICTE).


-----

10.52 The National Assessment and
Accreditation Council (NAAC), an autonomous
body constituted under the UGC Act has awarded
Five Star (Highest) Accreditation to the College.
The college imparts necessary institutional
training to all ranks of AOC and civilians entrusted
with management of Ordnance support in the
Indian Army. It also imparts training in handling
unit administration and material management to
selected Officers, JCOs and Other Ranks of all
arms and services.

###### SCHOOL OF ARTILLERY, DEOLALI

10.53 The School of Artillery, Deolali, the
academic centre for various sub-disciplines of the
science and methodology of artillery warfare
imparts technical training to Officers, JCOs and
NCOs  on artillery weapons and systems
including training of pilots for Air Observation Post
duties. Besides, the review of doctrines, study
and trials of artillery equipment, both Indian and
foreign, is also carried out,

10.54 Apart from a large number of Officers,
JCOs and NCOs of the Indian Army, the school
has also trained several officers and personnel
from friendly foreign countries during the year.

###### ARMY AIR DEFENCE COLLEGE, GOPALPUR

10.55 The Army Air Defence College (AADC)
earlier functioned as a wing of School of Artillery,
Deolali till October, 1989, when it was moved to
Gopalpur before separation of Air Defence
Artillery from the main branch of Artillery. The
college trains personnel of Air Defence Artillery,
other arms and armed forces personnel of friendly
foreign countries in Air Defence related subjects.

10.56 The AADC conducts a number of courses.
Some of the courses are Long Gunnery Staff
Course (Officers), Young Officers Course,
Electronic Warfare Course, Senior Command Air


Defence Course, Long Gunnery Staff Course,
Junior Commissioned Officer/ Non Commissioned
Officer, Technical Instructors Fire Control Course,
Aircraft Recognition Course, Unit Instructors and
Crew Based Training and Automated Data
Processing Course.

###### ARMY SERVICE CORPS (ASC) CENTRE AND COLLEGE, BANGALORE.

10.57 Army Service Corps Centre (South) and
Army School of Mechanical Transport were
merged with ASC Centre at Bangalore to establish
Army Service Corps Centre and College at
Bangalore on May 1, 1999. It is a premier training
institute imparting basic and advanced training in
multifarious disciplines viz logistics management,
transport management, catering, automated data
processing etc to Officers, Junior Commissioned
Officers, Other Ranks and recruits of Army
Service Corps as well as other arms and services.

10.58 Since 1992, the ASC College has been
affiliated to Rohilkhand University, Bareilly for
award of diplomas/ degrees in Logistics and
Resource Management.

###### ARMY EDUCATION CORPS TRAINING COLLEGE AND CENTRE, PACHMARHI

10.59 The AEC Training College & Centre,
Pachmarhi is a Defence Seat of Excellence in
Educational Training in the Armed Forces. Only
one of its kind, it is both a Category ‘A’
establishment and a Cat ‘A’ Regimental Centre.
It is also an Autonomous College affiliated to
Barkatullah University, Bhopal with academic and
administrative powers to design, conduct, test and
award its own courses and degrees.

10.60 The Department of Map Craft runs a ten
week long Map Reading Instructors Course for


-----

AEC Officers and Personnel Below Officer Rank
(PBOR) of all Arms and Services of Indian Army,
Para Military Forces personnel and personnel
from friendly foreign countries.

10.61 The 12-week long Unit Education
Instructors (UEI) Course trains ORs
from all Arms and Services of the

**_With a view to_**

Indian Army to be effective
instructors in their Units.

**_medal winner at_**

10.62 The Foreign Language

**_events, the Army_**

Wing (FLW), which is one of the
three Divisions of the AEC Training
College & Centre, a premier node
of foreign language training, not only

**_Nodes in selected_**

in the Armed Forces but also in the
national academic environment has
two digitized language labs, each
with a capacity of 20 students.

###### MILITARY MUSIC WING, PACHMARHI

10.63 The Military Music Wing (MMW)  raised
in October, 1950 under the patronage of the then
C-in-C Gen (later Field Marshal) KM Cariappa,
OBE as a part of the AEC Training College &
Centre, Pachmarhi  has a rich treasure of more
than 200 musical compositions to its credit and
has also excelled in maintaining the standard of
military music in India through a diverse range of
courses designed to train the recruit bandsmen,
pipers and drummers .

###### REMOUNT AND VETERINARY CORPS CENTRE AND SCHOOL, MEERUT

10.64 The Remount and Veterinary Corps
(RVC) Centre and School, located in Meerut,
aims at training officers and PBORs of all Arms
and Services on animal management and
veterinary aspects. Eleven courses for officers
and six for PBORs are conducted. The total
strength of students being trained is 250.


###### ARMY SPORTS INSTITUTE (ASI), PUNE

10.65 With a view to producing prospective
medal winners at international sporting events,
the Army Sports Institute at Pune has been set
up  alongwith Army Sports Nodes
in selected disciplines at various
places in the country. Appropriate
funds have been earmarked for
state-of-the-art infrastructure and
equipment coupled with food,
habitat, foreign exposure and
training under foreign coaches.

###### ARMY SCHOOL OF PHYSICAL TRAINING, PUNE

10.66 Army School of Physical
Training(ASPT) a premier institution imparting
systematic and comprehensive instruction to
personnel of the Army regarding the conduct of
physical training in units and sub units, also
imparts basic training in Sports and Games with
a view to improving the standard in the Army and
complement physical training through recreation
in games and sports. These courses are attended
by Officers, JCOs and ORs of the Army, Para
Military Forces and service personnel from
friendly foreign countries. In collaboration with
National Institute of Sports ASPT has started six
allied sports in Boxing, Volleyball, Basketball,
Swimming and Life Saving, Judo and Yoga
Courses for PBORs.

###### COMBAT ARMY AVIATOR TRAINING SCHOOL (CAATS), NASIK ROAD

10.67 Combat Army Aviator Training
School(CAATS) raised at Nasik Road in May 2003
aims to train aviators in aviation skills and handling
of aviation units in various operations of war,  to


-----

train aviation instructors to develop Standard
Operating Procedures (SOPs) and also to assist
Army Training Command in development of
Aviation Tactical Doctrine in synergy with ground
troops. The courses identified to be run in the
School are Pre-Basic Pilot Course, Basic Army
Aviation Course, Pre-Qualified Flying Instructor
Course, Aviation Instructor Helicopter Course,
Helicopter Conversion on type, Flight
Commanders Course and New Equipment
Course.

###### COLLEGE OF MILITARY ENGINEERING (CME), PUNE

10.68 The College of Military Engineering at
Pune is a premier technical institution conducting
training for personnel of the Corps of Engineers,
other Arms and Services, Navy, Air Force, Para
Military Forces, Police and Civilians. Besides,
personnel from friendly foreign countries are also
trained. CME is affiliated to Jawaharlal Nehru
University (JNU) for the award of B. Tech and M.
Tech degrees. All India Council for Technical
Education (AICTE) also recognizes the graduate
and post graduate courses run by the CME. The
College trains on an average 1500 officers and
800 PBORs every year.

###### MILITARY COLLEGE OF ELECTRONICS AND MECHANICAL ENGINEERING (MCEME), SECUNDERABAD

10.69 The role of MCEME is to provide technical
education to all ranks of EME, including civilians,
in various disciplines of engineering, weapon
systems and equipment with special reference to
their maintenance, repairs and inspection and to
provide training in management and tactics at
senior, middle and supervisory levels. The
MCEME is designed to train 1760 personnel (all
ranks). It conducts 13 courses for officers and
61 different courses for PBORs.


10.70 As part of the continuous up-gradation of
the existing training infrastructure training bays
have been renovated and tubular models of Sub
Systems/ Sub Assemblies of equipment have
been placed. Certain integrated bays for
equipment with all training aids have also been
established.

10.71 Computer Based Training Packages
(CBTs) and digitised charts have been developed
which contain exhaustive technical information on
the functioning, repair, maintenance, servicing
aspects and the correct usage of the electrical
and electronics portion of equipment being taught
at MCEME.

###### CORPS OF MILITARY POLICE CENTRE AND SCHOOL, BANGALORE

10.72 The role of the School is to train officers
and PBORs on military and police duties in law,
investigation, traffic control etc. Four courses for
officers and fourteen courses for PBORs are
being conducted. The total strength of students
being trained is 910.

###### ARMY AIRBORNE TRAINING SCHOOL (AATS), AGRA

10.73 The Army Airborne Training School
(AATS) was previously designated as Army Air
Transport Support School (AATSS). In response
to the need to concentrate all Airborne Training
under one single agency, the Army Air Transport
Support School was redesignated as Army
Airborne School with effect from January 15,
1992.

###### MILITARY COLLEGE OF TELECOMMUNICATION ENGINEERING (MCTE), MHOW

10.74 MCTE, Mhow trains signal Officers in
Combat Communication, Electronic Warfare,
Communication Engineering, Computer


-----

Technology, Regimental Signal Communications
and Cryptology. Besides the five Training
Faculties and Wings, the College has a
Department of Administration to provide
administrative and logistic support to the staff and
the students, a Conceptual Studies Cell to evolve
communication doctrines and produce training
material, a modern and well-stocked library, and
an in house printing press. Trainees are provided
with an opportunity to study and train in a formal
setting to equip them with the requisite skills,
knowledge and abilities for current as well as
future tasks.

**_The Military_**

###### MILITARY INTELLIGENCE TRAINING SCHOOL AND DEPOT (MINTSD), PUNE

**_responsible for_**

10.75 The Military Intelligence

**_Intelligence_**

Training School and Depot
(MINTSD) is a premier establishment

**_Intelligence and_**

responsible for imparting training on
Intelligence Acquisition, Counter

**_ranks of the Indian_**

Intelligence and Security aspects to
all ranks of the Indian Army, Navy,

**_and Para Military_**

Air Force, and Para Military Forces

**_Forces._**

and  personnel of friendly foreign
countries. Civilian officers of the
Department of Revenue Intelligence are also
trained at this establishment. The School has the
capacity to impart training to 90 officers and 130
Junior Commissioned Officers/ Non
Commissioned Officers of all the arms at a time.
The School trains approximately over 350 Officers
and 1100 Junior Commissioned Officers/ Non
Commissioned Officers every year.

###### ELECTRONICS AND MECHANICAL ENGINEERING SCHOOL (EME), VADODARA

10.76 The EME School conducts post graduate
level courses for officers and diploma and
certificate level courses for PBOR. A number of


foreign officers and PBOR from friendly foreign
countries have been attending various courses
conducted at EME School.

###### INSTITUTE OF MILITARY LAW, KAMPTEE

10.77 The Institute of Military Law was
established at Shimla. In 1989, the institute was
shifted to Kamptee. The charter of duties of the
School includes a comprehensive system of legal
education for officers of all arms and services of
the Army. The School undertakes wide ranging
research, development and
dissemination work in the field of
Military and allied laws.

###### ARMOURED CORPS CENTRE AND SCHOOL, AHMEDNAGAR

10.78 In 1948, the Training
Wings, the Recruits Training Centre
and Armoured Corps Depot and
Records were shifted to
Ahmadnagar where the fighting
Vehicles School was already
functioning and they were all
amalgamated to form the Armoured Corps Centre
and School and Armoured Corps Records. It has
six wings namely School of Armoured Warfare,
School of Technical Training, Basic Training
Regiment, Driving and Maintenance Regiment,
Automotive Regiment and Armament and
Electronics Regiment for Specialized training in
these disciplines.

###### FOREIGN TRAINING

10.79 With the interest of foreign armies for
training in Indian Army establishments increasing
considerably, the Army personnel from
neighbouring countries, South East Asia, Central
Asian Republics (CAR), African continent and a
few developed countries are being trained in India.


-----

10.80 Under the Indian Technical and Economic
Cooperation (ITEC) programme of Ministry of
External Affairs, the Government of India provides
assistance to the developing and under developed
nations. Courses are also availed by Nepal and
Bhutan under Special Aid Programme of the
Ministry of Defence. Under this programme,


personnel from developing countries get training
in service institutions either free of cost or at
subsidized rates. Developed western countries
also send their officers for training in these
institutions on reciprocal and self financing basis
by paying cost of training and other related
charges.


-----

###### RESETTLEMENT AND WELFARE OF EX-SERVICEMEN

Raksha Pension Adalat organised at Bhopal


-----

###### he Department of Ex-servicemen Welfare formulates various policies for the welfare and

# T

###### resettlement of ESM in the country.


11.1 The Department of Ex-servicemen (ESM)
Welfare formulates various policies for the welfare
and resettlement of ESM in the country. The
Department has two Divisions, Resettlement and
Pension Division and is assisted by two Inter
Services Organisations, Directorate General of
Resettlement (DGR) and Kendriya Sainik Board
(KSB). While the KSB, which is headed by
Raksha Mantri as an ex-officio President of the
Board, lays down general policies for the welfare
of ESM and their dependents and also for
administration of welfare funds, the office of
Directorate General of Resettlement implements
various policies/ schemes/ programmes of the
Government. The Directorate General of
Resettlement has five Director Resettlement
Zones (DRZs) in five Army Commands.


11.3 The 26[th] meeting of the Kendriya Sainik
Board was held under the Chairmanship of
Raksha Mantri in New Delhi on June 28, 2006.
Besides others, Governors of Goa, Punjab and
Chandigarh (UT), Lt. Governors of Andaman &
Nicobar and Pondicherry, Chief Ministers of
Haryana, Jharkhand and Delhi attended the
meeting. The focus of the meeting was on the
concerted efforts to be made by the Central and
State Governments to provide re-settlement and
welfare facilities to ex-servicemen, widows and
their dependents.

###### RESETTLEMENT


11.4 The primary thrust of the Directorate

Resettlement has five Director Resettlement

General of Resettlement, Kendriya Sainik Board,

Zones (DRZs) in five Army Commands.

Rajya Sainik Boards and Zila sainik Boards is on

11.2 The KSB/ Directorate General of dignified resettlement of ex-servicemen. Efforts
Resettlement are also assisted in their task by are made to explore various avenues for their
various Rajya Sainik employment. To re-settle/ reBoards(RSBs)/ Zila Sainik Boards employ ex-servicemen, the Central

**_The primary thrust of_**

which are under the administrative Government arranges the

**_the Directorate General_**

control of respective State following:
**_of Resettlement,_**

Governments. The Government of

**_Kendriya Sainik Board,_** (a) Training programmes to

India bears 50% of the expenditure

**_Rajya Sainik Boards_** reorient retiring Defence personnel

incurred on the organization of

**_and Zila Sainik Boards_** towards civil employment;

RSBs while the remaining 50%

**_is on dignified_**

expenditure is borne by the (b) Reservation of posts for

**_resettlement of ex-_**

respective State Governments, providing employment opportunities

**_servicemen._**

since the welfare and resettlement in government/ semi-government/
of ESM is the joint responsibility of public sector organisations and
the Central Government as well as the State assistance in employment with corporate
Governments. sector;


-----

(c) Schemes for self-employment; and

(d) Assistance in entrepreneurship and setting
up small scale industries.

###### TRAINING PROGRAMMES

11.5 Training for preparing ex-servicemen and
retiring service personnel for their resettlement
in civil life is one of the major functions entrusted
to the Directorate General of Resettlement. This
year the Directorate General of Resettlement has
introduced some new courses, which will provide
nationally/ internationally accepted certification to
facilitate retired persons to get quick employment
within/ outside the country. The programme
includes courses on information technology,
managerial science, technical skills and agrobased industries.

**_Ex-Servicemen_**

11.6 **_Officers’ Training: The_**

**_Training scheme is_**

Directorate General of

**_primarily meant for_**

Resettlement organizes
employment-oriented training
programmes for officers to enhance
their qualifications and enable them
to seek suitable employment after
retirement. The Resettlement

**_for the ESM and the_**

Training Programmes range from
vocational courses of three months’
duration to degree/ diploma

**_enhanced from Rs._**

courses, via distant learning
programme, of up to one year

**_year 2006-07._**

duration. The courses are
conducted in multifarious fields like
Information Technology, Security Services,
Entrepreneurship Development, Business
Administration, Personnel Management, Hotel
Management, Tourism, Human Resources
Development, Law, Insurance and miscellaneous
topics. Recently, management courses of six
months duration have been introduced at
Management Development Institute, Gurgaon
and Indian Institute of Management, Ahemdabad,
Indore, Bangalore and Kolkata. These courses


have received an overwhelming response from
officers and resulted in good job placements in
the corporate sector. Computer diploma courses
of six months have also been introduced in various
institutions across the country. Besides this,
especially designed twelve week programmes in
Training the Trainers, Disaster Management and
Supply Chain Management have also been
introduced for officers looking to build successful
new careers in the corporate/ self-entrepreneurial
sectors. In order to provide resettlement
opportunities to Senior Officers of the rank of
Brigadier equivalent and above, DGR has also
introduced Independent Directors’ Courses at MDI
Gurgaon and Bombay Chartered Accountants
Society, Mumbai jointly with SP Jain Institute of
Management & Research. A total
of 11 Lt Generals and 12 Maj
Generals attended the Independent
Directors Course at MDI held
recently.

11.7 **_Junior Commissioned_**
**_Officers (JCOs)/ Other Ranks_**
**_(ORs) Equivalent Training:_**
Resettlement Training Programmes
for Junior Commissioned Officers/
Other Ranks and their equivalent
are carried out under two different
heads, viz. Vocational Training and
ITI Training. The training courses
are conducted in diversified fields
for a duration of upto one year in
government, semi-government and private
institutes spread all over the country. The salient
fields covered are Security Services,
Management, Information Technology, Travel &
Tourism including Adventure Tourism,
Entrepreneurship & Small Business Management,
Technical (including medical) trades, nontechnical trades, secretarial support services,
agro-based industry and many other
miscellaneous trades. For the Year 2007-08, 24


-----

week Management courses in renowned
Management Institutes have also been
introduced for Personnel Below Officers Rank
(PBOR) to improve their employment avenues
within/ outside the country. Three day capsules
on Second Career Transition/ Preparation have
also been introduced in all Regimental Centres
across the country for retiring PBOR in order to
arm them with sufficient information for a smooth
transition to a second career in the civil market.
The courses are conducted free of cost to the
PBOR and the institutes are paid directly through
the DGR budget.

11.8 **_Ex-Servicemen (ESM) Training:  Under_**
this scheme, funds are allotted to Rajya Sainik
Boards for conducting vocational training for ESM
in their States. The scheme is primarily meant
for those ESM who could not avail the facility of
resettlement training while in service. The
scheme has also been extended to the widow/
one dependent of an ESM, irrespective of whether


his death is attributable to military service or not.
The list of courses has been increased to include
67 disciplines and virtually covers every field
under which an ESM could find suitable job. The
course is free of cost for the ESM and a stipend
is paid to each trainee, the quantum of which has
been enhanced from Rs. 700/- to Rs. 1000/- from
the year 2006-07.

11.9 The details of personnel imparted training
in various fields during the  last three years are
given in Table No. 11.1: 
**_Table No. 11.1_**

**_SCHEME_** **_2004-05_** **_2005-06_** **_2006-07_**
**_Till Feb._**

**_Officers’ Trg*_** 679 994 1345

**_PBOR Trg*_** 3016 5066 7369

 - Training provided by Directorate General (DGR) to

retiring officials while in service.

|SCHEME|2004-05|2005-06|2006-07 Till Feb.|
|---|---|---|---|
|Officers’ Trg*|679|994|1345|
|PBOR Trg*|3016|5066|7369|


Naval Placement Cell at Visakhapatnam


-----

###### RE-EMPLOYMENT

11.10 The Central and State Governments provide
a number of concessions to ex-servicemen for their
re-employment in

**_With a view to_** Central/ State
**_providing re-_** Government posts.
**_employment to ex-_** These include
**_servicemen, Ministry of_** reservation of posts/
**_Defence has decided_** relaxation in age
**_to observe the year_** and educational
**_2007 as the “Year of_** q u a l i f i c a t i o n s,
**_Placement of Ex-_** exemption from
**_servicemen”._** payment of

a p p l i c a t i o n /
examination fees, and priority in employment to the
disabled ESM and dependants of deceased service
personnel on compassionate grounds.

11.11 With a view to providing re-employment
to ex-servicemen, Ministry of Defence has
decided to observe the year 2007 as the “Year of
Placement of Ex-servicemen”. During the year,
a special drive will be launched by Director
General, Resettlement to provide re-employment
to ex-servicemen. This will include organising
seminars, training courses and close interaction
with the industry and business houses, seeking
their assistance in providing re-employment to exservicemen in private sector.

11.12 Reservation in Government Jobs: The
Central Government has reserved 10% of Group
‘C’ posts and 20% of Group ‘D’ posts for ESM,
while central PSUs and nationalised banks provide
14.5% reservation in Group ‘C’ and 24.5% in Group
‘D’ posts. 10% posts of Assistant Commandants
in paramilitary forces are also reserved for ESM.
In Defence Security Corps, 100% vacancies are
reserved for ESM. In addition, most of the State
Governments provide reservations to ESM in State
Government jobs.

11.13 Security Agencies: The DGR registers/
sponsors private ex-servicemen security agencies


for providing security guards to various PSUs and
industries in the private sector. The scheme offers
good self-employment opportunities to retired
officers and ex-PBORs in a field where they have
sufficient expertise. Besides, some States have
set up ESM Corporations which are also providing
security services. The Department of Public
Enterprises (DPE) has issued instructions to all
PSUs to get security personnel through State Exservicemen Corporations located in the
concerned State or
DGR sponsored

**_The Department of_**

Security Agencies.

**_Public Enterprises had_**

Through this

**_issued instructions to_**

scheme about

**_all PSUs to get security_**

1800 ESM security

**_personnel through_**

agencies have

**_State Ex-servicemen_**

been empanelled

**_Corporations located_**

and approximately

**_in the concerned State_**

over 1,30,000 ESM

**_or DGR sponsored_**

have gained

**_Security Agencies._**

employment.

11.14 Placement of JCOs/ ORs: The Exservicemen, who have been provided
employment through Directorate General
Resettlement and Zila Sainik Welfare Offices in
the States during the last five years are given in
Table No. 11.2.

**_Table 11.2_**

**_2002_** **_2003_** **_2004_** **_2005_** **_2006_**

**_Central Govt_** 6844 5513 5459 4999 2436

**_State Govt_** 2219 3096 2517 2000 607

**_Private Sector_** 3064 3079 2963 2937 1014

**_Security Agencies 8679_** 9543 10939 12,110 14,000

11.15 Officer’s Employment: During the
year 2006, 528 officers have been registered
with the DGR for employment assistance and
2376 officers have been sponsored for

|Col1|2002|2003|2004|2005|2006|
|---|---|---|---|---|---|
|Central Govt|6844|5513|5459|4999|2436|
|State Govt|2219|3096|2517|2000|607|
|Private Sector|3064|3079|2963|2937|1014|
|Security Agencies|8679|9543|10939|12,110|14,000|


-----

various employment opportunities. To spread
awareness about employment potential in
ex-defence personnel, seminars had been
organized in conjunction with the Chambers
of Commerce at New Delhi on August 3, 2006
and at Kolkata on October 3, 2006. To
explore employment avenues for exservicemen in private sector, a seminar was
conducted by the DGR on January 12, 2007
on “Defence – Industry Partnership in
Human Resource Management” The
Seminar was attended by eminent members
of Associated Chambers of Commerce and
Industry of India.

###### SCHEMES FOR SELF-EMPLOYMENT

11.16 As it is not feasible to provide Government
jobs to all ex-servicemen after their retirement
from the Armed Forces, Government has
formulated several schemes for encouraging and
giving financial support by way of loans to exservicemen entrepreneurs intending to set up
small and medium industries. Major selfemployment schemes are SEMFEX-II, SEMFEXIII and National Equity Fund Scheme. Applications
for sanction of loans are submitted by exservicemen directly to concerned Zila Sainik
Boards in the States. These applications are
scrutinised and those which satisfy eligibility
criteria and other terms and conditions are
recommended for sanction of loan through Small
Industries Development Bank of India (SIDBI),
Central Cooperative Banks, State Land
Development Banks and Regional Rural Banks
aided by National Bank for Agriculture and Rural
Development (NABARD) and the State Khadi and
Village Industries Board (KVIB)/ Banks aided by
the Khadi and Village Industries Commission
(KVIC).

11.17 SEMFEX –II Scheme: The Scheme has
been implemented with the assistance of National
Bank for Agriculture and Rural Development


(NABARD). It envisages to set up agriculture and
allied activities including Small Road and Water
Transport Operators and also village, cottage, tiny
and small scale industries in rural areas. There is
no upper limit for loan in respect of projects under
farm sector including agro/ food processing units.
The financial assistance in case of non-farm
sector activities is available upto SSI limit for
setting up industries in rural areas. NABARD
provides interest free soft loan assistance to
banks to meet the margin money requirement.
The primary lending institutions are Commercial
Banks, Regional Rural Banks, State Co-operative
Banks, State Cooperative Agriculture and Rural
Development Banks, etc. This scheme is
operative from the year 1988-89. Since inception,
Rs. 159.08 crore has been sanctioned to 28629
ex-servicemen/ widows up to December, 2006.

11.18 **_SEMFEX –III Scheme: The Scheme is_**
operative in collaboration with the Khadi and
Village Industries Commission (KVIC). The
maximum loan limit for individual entrepreneurs,
cooperative societies/ institutions and trusts is Rs.
25 lakh per project to set up industries/ service
sector activities in rural areas. The financial
assistance is available through the Scheduled
Commercial Banks, Regional Rural Banks, Cooperative Banks, private Commercial Banks and
other Financial Institutions of State and Central
Governments, as approved by the KVIC. The
margin money grant (subsidy) is provided at the
rate of 30% of the project cost for the loan up to a
limit of Rs. 10 lakh and above this amount up to
Rs. 25 lakh to the extent of 10% of the project
cost. The ex-servicemen borrowers are required
to invest only 5% of the project cost as margin
money. The KVIC Central Office has allocated
State/ UT – wise margin money grant to the State
KVIBs and the Regional KVICs to provide subsidy
to the borrowers through the financial banks. This
scheme is operative from the year 1992-93. Since
inception, loan amounting Rs. 13.29 crore has


-----

been sanctioned to 1086 ex-servicemen/ widows
up to December, 2006.

11.19 National Equity Fund Scheme (NEF):
The scheme has been launched in collaboration
with Small Industries Development Bank of India
(SIDBI). The financial assistance is available to
set up projects in tiny/ small scale industrial sector,
service enterprises and also for undertaking
expansion, technology up-gradation,
modernisation and revival of viable sick units in
Small Scale Industry (SSI) Sector. The maximum
loan limit is Rs 50 lakh per project. Soft loan
assistance is available up to 25% of the project
cost subject to a maximum of Rs. 10 lakh per
project. SIDBI provides re-finance to the financing
banks. Loan is available through
scheduled Commercial Banks, **_To encourage the_**
State Cooperative Banks, select
Urban Cooperative Banks, etc. The
projects can be set up irrespective **_up higher technical_**
of location in rural and urban areas. **_and professional_**
Loan up to Rs. 25 lakh is provided **_education, the PM’s_**
under Credit Guarantee Fund
Scheme without colaterals and/ or
third party guarantee to small scale **_of Rs 1250/- p.m. to_**
industrial ventures including those **_boys and Rs. 1500/-_**
engaged in IT/ Software Industry. **_p.m. to girls for a_**
This scheme is operative from the
year 2000-01. Since inception, Rs **_2 to 5 years._**
2.39 crore loan has been
sanctioned to 46 ex-servicemen/ widows up to
December, 2006.

11.20 Herbal Farming Scheme: Growing
herbal plants is more remunerative than growing
certain cereals and horticultural crops. Therefore,
ESM are being educated, motivated and
encouraged to involve themselves in herbal
farming.

11.21 Allotment of Army Surplus Vehicles:
Ex-Servicemen and widows of Defence personnel
who died while in service, are eligible to apply for
allotment of an Army surplus phased out Class


V-B Vehicles. 1867 Army Surplus Vehicle were
allotted to ex-servicemen/ widows during the year
2006.

11.22 Coal Transportation Scheme: DGR
sponsors Ex-Servicemen Coal Transport
Companies for the execution of loading and
transportation of coal in various coal subsidiaries
of Coal India Limited (CIL). The unemployed
retired officers and JCOs registered with DGR,
are selected to form ESM Coal Transport
Companies and are sponsored to respective coal
subsidiaries for five years, extendable by another
four years. Presently, 97 such companies are
operating under the various coal subsidiaries of
CIL. The functioning of these companies is
monitored by DGR.

11.23 **_Coal Tipper Scheme: The_**
widows of Defence personnel, who
died while in service due to causes
attributable to military service, can be
sponsored by DGR for attaching one
tipper truck in their name with an ESM
Coal Transport Company. Eligible
widow/ disabled soldier is required to
make a deposit of Rs.85,000/- with
any of the nominated coal transport
company. The company pays them
Rs. 3000/- per month for a period of
five years, after which the deposited
amount of Rs.85,000/- is paid back
to widow/ disabled soldier. At present 520 widows/
disabled Ex-Servicemen are availing the benefit of
this Scheme.

11.24 Allotment of Oil Product Agencies:
Ministry of Petroleum and Natural Gas has
reserved 8% of the Oil Product Agencies, i.e. LPG
Dealership, Petrol Pumps, Kerosene
Distributorship etc. for widows and dependants
of those who died due to causes attributable to
military service and disabled soldiers with
disability of 20 percent and above attributable to
military service.


-----

11.25 Mother Dairy Milk and Fruit &
**_Vegetables Shops: Junior Commissioned_**
Officers (JCOs)/ Other Ranks (ORs) are allotted
Mother Dairy Milk shops and fruit & vegetable
shops in the National Capital Region. 290 milk
shops, 352 fruit & vegetable shops and 31
combined shops are being operated by ExServicemen (ESM). Dependent sons (where the
Ex-Servicemen are not eligible) are also
considered for allotment of fruit & vegetable shops
in and around Delhi.

11.26 Management of CNG Stations in
**_National Capital Region (NCR): The scheme for_**
management of CNG stations belonging to
Indraprastha Gas Limited was launched as a pilot
project in July 2001 which has been extended to
retired officers also. This scheme is at present
available in Delhi only.

11.27 Reservation in CSD: The Canteen
Stores Department of India (CSDI) has reserved


15% of the 30 selected CSD items and the
Ministry of Defence has reserved 10% of the 262
selected items manufactured by Ex-Servicemen
Entrepreneurs under the Defence Purchase
Programme for which manufacturing units of ExServicemen alone are eligible.

11.28 PM Scholarship Scheme: A new
scholarship scheme, the “Prime Minister’s
Scholarship Scheme” was launched on
November 14, 2006 from the academic year
2006-07 to encourage the wards of widows and
ex-servicemen to take up higher technical and
professional education. The scheme provides a
scholarship of Rs 1250/- p.m. to boys and Rs.
1500/- p.m. to girls pursuing a recognised
professional and technical course for a duration
ranging from 2 to 5 years. A total number of 5000
scholarships would be available to be funded from
National Defence Fund, out of which 4000
scholarships would be for wards of widows/ exservicemen from armed forces and the remaining


Prime Minister giving away scholarship to a recipient


-----

1000 for the wards of central para-military forces
and Railway Protection Force administered by
Ministry of Home Affairs and Ministry of Railways
respectively. Scholarships to 150 selected wards
of ESM were awarded by the Prime Minister on
November 14, 2006.

###### PUBLICITY

11.29 Wide publicity of policies and various
schemes sponsored by DGR is of paramount
importance so as to reach each unit and ExServicemen/ Widows across the length and
breadth of the country through exhibitions/
seminars and ex-servicemen rallies. This is done
by the DGR by means of publications of its
periodical magazine Sainik Punarvas News Fliers,
Brochures, Leaflets, Articles in Sainik Samachar
and Baatcheet.

11.30 The DGR had put up a stall at the
DEFEXPO 2006 at Pragati Maidan, New Delhi


and Aero India 2007 at Bangalore to spread
awareness about schemes concerning ExServicemen. DGR also participated in India
Industrial trade fair held at Kolkata from January
9 to 28, 2007 on the theme of “Access to
excellence in Human Resource”.

###### WELFARE

11.31 Kendriya Sainik Board (KSB): The
Kendriya Sainik Board (KSB) under the
chairmanship of Raksha Mantri is the nodal
agency to look after the welfare of ex-servicemen
and their families in liaison with Rajya Sainik
Boards/ Zila Sainik Boards. The KSB also
administers various welfare activities financed
from interest earnings of the  Armed Forces Flag
Day (AFFD) Fund. The Fund has a corpus of Rs
125.22 crores. Financial assistance is provided
to institutions, such as, paraplegic homes at
Kirkee and Mohali, the Red Cross Society,
Cheshire Homes, Military Hospitals, St. Dustan’s


Meeting of the Kendriya Sainik Board


-----

After Care Organisation and Homes
for taking care of old and physically

**_Board under the_**

handicapped ex-servicemen and

**_chairmanship of_**

their dependents. Financial
assistance is also provided to
individual ex-servicemen and their
families who are in a state of penury
to meet their specific needs. DGR
also funds the running of War
Widows Hostels, scholarships to

**_Zila Sainik Boards._**

ex-servicemen’s orphans and other
such philanthropic activities. The details of the
financial assistance/ welfare measures provided
to various institutions out of the AFFD upto
October 31, 2006 are given in Table No.11.3.

**_Table No.11.3_**

(a) PRC Kirkee Rs. 17,98,223/
(b) PRC Mohali Rs. 4,04,068/
(c) Cheshire Homes Rs. 89,000/
(d) Military Hospitals Rs. 72,000/(Vocational Trg Centre)

(e) St. Dunstan’s After Care Rs. 9,00,000/
(f) All India Gorkha Ex- Rs. 4,00,000/Servicemen Welfare
Association, Dehradun

(g) Serious Diseases Rs. 42,90,000/(No. of beneficiaries 72)

11.32 Paraplegic Rehabilitation Centre(PRC)
Pune, PRC at Mohali and Queen Mary’s Technical
Institute, Pune are providing medical treatment
and rehabilitation training to disabled paraplegic/
tetraplegics war casualties and soldiers with injury
in spine sustained during Military duties.

11.33 **_Assistance from Raksha Mantri’s_**
**_Discretionary Fund: A portion of the earnings_**
of Armed Forces Flag Day Fund is set apart as
Raksha Mantri’s Discretionary Fund, which is
used to provide financial assistance to poor and


needy ex-servicemen for various
purposes, viz, medical treatment,
daughter’s marriage, house repair
and education of children and
monthly financial assistance upto a
period of two years to old and infirm
ex-servicemen and widows of exservicemen living in penury. Out of
an amount of Rs. 1,25,98,246/allocated for Raksha Mantri’s
Discretionary Fund for 2006-07, Rs.
98,41,200/- has been provided upto November
22, 2006 as financial assistance covering 745
cases.

11.34 Concessions and Facilities: Following
concessions and facilities are available to eligible
personnel :
(a) Free educational facilities to children of
Defence personnel killed or disabled in
action, in schools/ colleges recognized by
the Central or State Governments.

(b) 27 seats in the MBBS, one seat in BDS and
one seat in engineering stream are
available through KSB to dependants/
wards of certain categories of defence
personnel through Ministry of Health and
Family Welfare.

(c) 25% seats are reserved for the wards of
serving and ex- servicemen personnel in
Sainik Schools.

(d) States/ UTs have made reservation of seats
in professional colleges/ITIs/ Polytechnics
for wards of serving and retired defence
personnel.

(e) Two educational grants viz (i) Educational
Grant of Rs 900/- per month per child (upto
class XII) is provided to the wards of war
widows/ war disabled and personnel whose
death/ disability is attributable to service;

|(a) PRC Kirkee|Rs. 17,98,223/-|
|---|---|
|(b) PRC Mohali|Rs. 4,04,068/-|
|(c) Cheshire Homes|Rs. 89,000/-|
|(d) Military Hospitals (Vocational Trg Centre)|Rs. 72,000/-|
|(e) St. Dunstan’s After Care|Rs. 9,00,000/-|
|(f) All India Gorkha Ex- Servicemen Welfare Association, Dehradun|Rs. 4,00,000/-|
|(g) Serious Diseases (No. of beneficiaries 72)|Rs. 42,90,000/-|


-----

and (ii) Rs 450/- per month

**_Of the 227 ECHS_**

per child (upto class XII) to the
wards of personnel whose

**_by the Government,_**

death/ disability is non- **_226 have been_**
attributable to service, peace **_operationalised._**
time casualties (died in
harness), housed in 35 War Memorial
Hostels to enable them to pursue their
studies. An amount of Rs. 14,86,800/covering 155 cases and Rs. 2,62,620/covering 51 cases has been provided by
the KSB out of AFFD Fund (upto October
31, 2006).

(f) **_Medical facilities to Ex-servicemen: Ex-_**
Servicemen Contributory Health Scheme
(ECHS) came into effect on April 1, 2003. It
aims to cover approximately 85 lakh
beneficiaries, which includes pensioners
and their dependents, and covers all
diseases.

Of the 227 ECHS Polyclinics approved by
the Government, 226 have been
operationalised. All the polyclinics have
basic facilities available which include ECG,
X-Ray, dental chairs and laboratory for
basic diagnostic tests.

The ECHS has a membership of 13 lakh
including dependents. At present, buildings
for 40 polyclinics have been constructed
and 24 are under construction. In addition,
land at 139 stations has already been
acquired.

607 hospitals/ diagnostic centres have been
empanelled all over the country in addition
to military/ Govt hospitals/ medical colleges
to which the ECHS patients can be referred.

(g) **_Travel Concessions: The following_**
concessions are available to War Widows/
Gallantry Award Winners, which can be
availed on production of identity card issued
by KSB:

(i) **_Rail Travel Concession:_**

(a) 75% concession in rail fare
for travel in second class is
available to widows of personnel
killed in war and action against
terrorist and extremists.

(b) Free Rail travel is available in first Class/
AC 2 tier to the recipients of Param Vir
Chakra, Maha Vir Chakra, Ashok Chakra,
Vir Chakra, Kirti Chakra and Shaurya
Chakra along with companion. Such
passes are issued by the Railway
authorities.

(c) Param Vir Chakra, Maha Vir Chakra and
Vir Chakra awardees are also allowed free
Rail travel in AC II tier/ AC III tier of Rajdhani
and Chair Car of Shatabdi/ Jan Shatabdi
Express trains along with a companion in
the same class. Such passes are issued
by the Railway authorities.

(ii) **_Air Travel Concession:_**

(a) 75% concession is allowed to recipients of
Gallantry Awards of Level I and Level II viz.
Param Vir Chakra, Ashok Chakra, Maha Vir
Chakra and Kirti Chakra, Victoria Cross,
George Cross, Distinguished Service
Cross, Military Cross, Distinguished Flying
Cross and George Medal.

(b) 75% concession is available to permanently
war disabled officers who have been
invalidated of service and the dependent
members of their families.

(c) 75% concession to war widows of PostIndependence  era.

(h) **_Reservation of House Sites/ Houses:_**
Majority of States have made reservations
for serving/ retired Armed Forces personnel
in allotment of house sites/ houses.

(i) **_Sainik Rest House Facilities: Over 252_**
Sainik Rest Houses have been built in the


-----

country, which provide transit facilities to exservicemen and their dependants at
nominal rates. The details of amount
provided so far for constructionof Sainik
Rest Houses during 2006-07 upto October
31, 1996, out of AFFD Fund are given in
Table No. 11.4.

**_Table No. 11.4_**

SRH Bagdogra (West Bengal) Rs. 35,00,000/
SRH Somajiguda (Andhra Pradesh) Rs. 50,00,000/
SRH Rewa (Madhya Pradesh) Rs. 15,00,000/
Total Rs. 1,00,00,000/
(j) **_Cash Award/ Annuity/ Cash, in lieu of_**
**_Land for Gallantry/ Non Gallantry Award_**
**_Winners : The States/ UTs_** p r o v i d e
Cash Award/ Annuity/ Cash in lieu of land
for Gallantry/ Non gallantry Award winners.

###### PENSION TO ARMED FORCES PERSONNEL

11.35 As on April 1, 2006 the number of Defence
pensioners is estimated to be about 21.5 lakh. The
pension is disbursed through all branches of the 27
Public Sector Banks, 4 Private Sector Banks viz.
HDFC Bank, ICICI Bank, UTI Bank
and IDBI Bank, 640 Treasuries, 61 **_To compensate for_**
Defence Pension Disbursing Offices
(DPDOs), 2 Post Offices and 5 Pay **_Armed Forces_**
and Accounts Offices (PAOs) **_personnel are given_**
scattered all over India. For the **_weightage for_**
Armed Forces pensioners residing in **_computing service_**
Nepal, disbursement of pension is
done through 3 Pension Payment
Offices in Nepal. The eligibility
conditions, rates etc. of different types
of pension are detailed in the **_Sepoy, Naik and_**
succeeding paragraphs.

11.36 The annual expenditure on
Defence pensions is given in Table

**_service of 30 years._**

No. 11.5:

**_Table No.11.5_**

**_Year_** **_Pension Disbursed (Rs. Crore)_**

2006-07 (RE) 13806.00

2007-08 (BE) 14649.00

###### RETIRING/ SERVICE PENSION

11.37 For Commissioned officers the retiring/
service pension is calculated at 50% of the
average reckonable emoluments drawn during
the last 10 months. In the case of Personnel
Below Officers Rank (PBOR), it is calculated with
reference to the maximum of the scale of pay of
the rank and group held for 10 months preceding
retirement. Retiring pension is subject to a
minimum of Rs. 1275/- p.m. and maximum of upto
50% of the highest pay applicable to Armed
Forces personnel. For pre 96 pensioners, as per
the formula evolved under the modified parity, with
effect from January 1, 1996, pension shall not be
less than 50% of the minimum pay (maximum in
the case of PBOR) in the revised scale of pay of
the rank held by the pensioners at the time of
retirement.

11.38 Weightage: To compensate for truncated
career, the Armed Forces personnel are given
weightage for computing service
pension. In the case of
Commissioned Officers, the
minimum period of qualifying
service required to earn retiring
pension is 20 years. The officers
are given benefit of weightage
ranging from 3 to 9 years depending
on the rank. The minimum period
of qualifying service for Personnel
Below Officers Rank to earn retiring
pension is 15 years. Earlier they
were given a uniform weightage of
5 years. However, with effect from
January 1,2006, a weightage of 10,
8 and 6 years for the ranks Sepoy,

|Year|Pension Disbursed (Rs. Crore)|
|---|---|
|2006-07 (RE)|13806.00|
|2007-08 (BE)|14649.00|

|Col1|Table No. 11.4|Col3|
|---|---|---|
|SRH Bagdogra|(West Bengal)|Rs. 35,00,000/-|
|SRH Somajiguda|(Andhra Pradesh)|Rs. 50,00,000/-|
|SRH Rewa|(Madhya Pradesh)|Rs. 15,00,000/-|
|Total||Rs. 1,00,00,000/-|


-----

Naik and Havaldar respectively is given subject
to a maximum qualifying service of 30 years.
JCOs continue to get uniform weightage of 5
years. The benefit is given only in respect of
service Pension.

###### COMMUTATION OF PENSION

11.39 Armed Forces personnel are permitted
higher commutation of their pension at the rate of
43% for officers and 45% for PBORs as compared
to 40% for civilians.

###### FAMILY PENSION

11.40 Family pension is admissible to Armed
Forces personnel who die during
service or after retirement with
pension, at a uniform rate of 30% **_Armed Forces_**
of reckonable emoluments last **_personnel in war or_**
drawn subject to a minimum of Rs. **_war like operations,_**
1275/- p.m. with effect from January **_counter insurgency_**
1, 1996. With effect from January **_operations, action_**
1, 1998 ordinary family pension is **_against terrorists,_**
admissible to dependant parents, **_extremists etc. the_**
widowed/ divorced daughters who
fulfill the prescribed eligibility **_Liberalised Family_**
criteria. **_Pension at the rate_**

**_equal to reckonable_**

11.41 With effect from July 27,
2001, family pension admissible

**_by the deceased_**

under the Employees Pension
Scheme, 1995 and the Family

**_of death._**

Pension Scheme, 1971 under the
Employees Provident Fund Act, 1952 have been
allowed in addition to the family pension
admissible under the relevant Pension Regulation
in the case of re-employed ex-servicemen
pensioners.

###### DISABILITY PENSION

11.42 A person who is released or retired from
service on account of a disease or injury, which
is attributable to or aggravated by military service,
is entitled to disability pension if the disability


assessed by the Medical Board is 20% or more.
On invalidment from service on account of causes
attributable to or aggravated by military service,
the extent of disability or functional incapacity is
determined at 50%, if the disability is less than
50%, 75%, if it is between 50 and 75% and 100%
if it is between 76 and 100%.

11.43 Disability pension consists of two
elements viz., the service element and disability
element. Service element is related to the length
of service rendered by the individual at the time
of invalidment and the disability element is paid
in the form of compensation for the disablement
and depends on the degree of disablement. The
rate of disability element of the
disability pension for 100% disability
is Rs. 2600/- p.m. for
Commissioned Officers, Rs. 1900/

      - p.m. for Junior Commissioned
Officers and Rs. 1550/- p.m. for
other ranks. For individuals who are
retained in service despite disability
and retire/ are discharged on
attaining the age of retirement or on
completion of tenure, the same
rates are applicable with effect from
January 1, 1996.

11.44 With effect from August 30,
2006, Emergency Commissioned
Officers, Short Service Regular
Commissioned Officers and Short
Service Commissioned Officers i.e. non–regular
officers have been brought at par with regular
commissioned officers in the matter of grant of
disability pension w.e.f. August 30, 2006.

###### WAR INJURY PENSION

11.45 Considering the supreme sacrifice made
by the Armed Forces personnel during war or
war like situation or action against extremists,
anti-social elements etc, war injury pension is
granted to the personnel who sustain injury or


-----

disability during such operations. Service
element is equal to retiring/ service pension to
which he/ she would have been entitled to on
the basis of his/ her pay on the date of
invalidment but counting service upto the date
on which he/ she would have retired in that rank
in the normal course including weightage as
admissible. War injury element is payable equal
to reckonable emoluments last drawn for 100%
disablement. However, the aggregate of service
element and war injury element does not exceed
last pay drawn.

###### CONSTANT ATTENDANCE ALLOWANCE

11.46 Personnel with 100% disability are paid a
Constant Attendance Allowance at the rate of Rs.
600/- per month on the recommendation of the
Medical Board.


###### SPECIAL FAMILY PENSION

11.47 If the death of a Service personnel has
occurred on account of causes attributable to or
aggravated by military service the family is paid
special family pension at the rate of 60% of
reckonable emoluments drawn by the deceased
subject to a minimum of Rs. 2550/- p.m. Widows
who got remarried on or after January 1, 1996
are also eligible for special family pension subject
to certain conditions.

###### LIBERALISED FAMILY PENSION

11.48 In the event of death of Armed Forces
personnel in war or war like operations, counter
insurgency operations, action against terrorists,
extremists etc. the families are granted Liberalised
Family Pension at the rate equal to reckonable
emoluments last drawn by the deceased


Director General Resettlement with Gorkha Veterans in Nepal


-----

personnel at the time of death. If the personnel
is not survived by widow, but is survived by
children, they are entitled to liberalised family
pension at the rate equal to 60% reckonable
emoluments last drawn by the deceased subject
to fulfilment of prescribed conditions.

###### EX-GRATIA AWARDS IN CASES OF DEATH OF CADETS (DIRECT)

11.49 Ex-gratia awards are payable subject to
certain conditions in the event of death of a cadet
due to causes attributable to or aggravated by
military training at the following rates :

(a) Ex-gratia lump sum of Rs. 2.5 lakh

(b) An ex-gratia of Rs. 1275/- per month in
respect of both married and unmarried
personnel, to Next of Kin (NOK) in  addition
to above.

11.50 The ex-gratia lump sum is admissible in
cases of death of cadets occurring on or after
August 1, 1997. However, the benefit of revised
monthly ex-gratia amount as mentioned at (b)
above, is admissible to pre August 1, 1997 cases
also with financial benefit with effect from August
1, 1997.

###### EX-GRATIA AWARDS IN CASES OF DISABILITY OF CADETS (DIRECT)


100% disability during the period of
disablement. The amount is reduced
proportionately from the ex-gratia disability
award in case the degree of disablement is
less than 100%.

c) Constant Attendance Allowance (CAA) of
Rs. 600/- per month for 100% disability
on the recommendation of Invaliding
Medical Board.

11.52 The ex-gratia disability awards are
applicable with effect from August 1, 1997.
However, the benefit is admissible to pre August
1, 1997 cases also, with financial benefit with
effect from August 1, 1997.

###### STEPS TAKEN FOR REDRESSAL OF GRIEVANCES OF DEFENCE PENSIONERS

11.53 It has been the constant endeavour of
Government to strengthen the mechanism for
prompt and effective redressal of the grievances
of the Defence pensioners. In order to achieve
this end, several steps were initiated in the recent
past. Some of the steps taken in this regard are
as under:

(i) More agencies involved in handling the
pension matters of Defence pensioners
have initiated action to computerize the
records.


11.51 Ex-gratia awards are
payable subject to certain
conditions in the event of
invalidment of cadet (Direct) on
medical grounds due to causes
attributable to or aggravated by
military training at the following
rates:

a) Monthly ex-gratia of Rs. 1275/

   - per month.

b) Ex-gratia disability award @
Rs. 2100/- per month for


**_Regular Defence_**
**_Pension Adalats are_**
**_organised in different_**
**_parts of the country to_**
**_redress the grievances_**
**_of the Armed forces_**
**_pensioners. In_**
**_addition, mini pension_**
**_adalats are held by the_**
**_Defence Pension_**
**_Disbursing Offices._**


(ii) Pension sanctioning at
PCDA(P) is fully computerized.
PCDA(P) Allahabad has placed the
relevant orders and instructions
relating to pension on their web site
(www.pcdapension.nic.in) which
also provides a calculator so that
the pensioner could find out correct
entitlement.

(iii) Regular Defence Pension
Adalats are organised in different


-----

parts of the country to redress the
grievances of the Armed forces pensioners.
In addition, mini pension adalats are held
by the Defence Pension Disbursing Offices.

(iv) A single window system has been
introduced in DPDOs which facilitates
hassle free and prompt release of first
paymentcheques on any working day after
retirement.

(v) Endorsements of family pension on PPO
of retirees prior to 1989, numbering about
2 lakhs were pending. A special drive has
been launched for joint notification of family
pension in the pending cases of pre-1989
retirees.

(vi) Role of Medical Adviser (Pension) has been
dispensed with for adjudicating disability
pension claims. The recommendation of the
Medical Boards, as approved by the
prescribed authorities would be treated
as final.

(vii) In March 2006, orders have been issued to
exempt the NRI pensioners/ family
pensioners settled abroad from personal


appearance at the time of first drawal of
pension/ family pension provided the
Indian Embassy/ Mission abroad issues an
identification certificate to that effect.

11.54 Invalid Pension:

A. **_Eligibility Conditions: Invalid Pension is_**
admissible where an individual is invalided
out of Military service with a disability neither
attributable to nor aggravated by military
service, if the service actually rendered is
10 years or more. Invalid gratuity is paid
when the service rendered is less than 10
years. In case of non-regular officers
released in low medical category Disability
Pension is granted

B. **_Rates:_**

(i) **_Invalid Pension: Amount equal to_**
the service element of disability pension that
would have been admissible in case the
causes were attributable to or aggravated
by military service.

(ii) **_Invalid Gratuity: Half a month’s_**
reckonable emoluments for each six
monthly period of qualifying service.


-----

###### COOPERATION BETWEEN THE ARMED FORCES AND CIVIL AUTHORITIES

Evacuation of personnel from Beirut by Ships of Indian Navy


-----

###### part from the main responsibility of securing the borders of our country, the Armed Forces render

# A

###### timely assistance to civil authority, with requisite alacrity and professionalism for the maintenance of law and order and/ or essential services, as well as in rescue and relief operations during natural calamities.


12.1 Apart from the main responsibility of
securing the borders of our country, the Armed
Forces render timely assistance to civil authorities,
for the maintenance of law and order and/ or
essential services, as well as in rescue and relief
operations during natural calamities. The details
of assistance provided by the Armed Forces
during the period are given in the succeeding
paragraphs.

###### ARMY

12.2 (a) Leh: A total of 15 columns were
deployed at Leh and Kargil to restore
normalcy.

Flood Relief in Surat in August 2006


(b) **_Vadodara: During communal violence in_**
Vadodara in May 2006, four Army columns
from Vadodara and Ahmedabad were
deployed in Mandvi – Fathepura and
Ravpura for maintenance of law and order.

(c) **_Gharsana: At the time of the agitation of_**
the farmers of Gharsana and adjoining
areas against the non-availability of
adequate water for irrigation, two columns
were deployed in October 2006. During
curfew, flag marches were carried out by
the columns.

12.3 **_Maintenance of Essential Services:_**
Due to general strike by Government
medical officers of Maharashtra, team
of 20 doctors was deployed to assist
civil administration of Pune to deal with
serious cases requiring urgent medical
attention.

12.4 **_Assistance to Foreign_**
**_Countries: The following instances_**
of rendition of aid by the Indian Army
to the foreign countries underline the
international dimension of the Indian
Army’s response and relief capacity :
(a) Philippines Mudslide: In the
aftermath of extensive mudslides in
Leyte (East Philippines) in February
2006, approximately 30 tonnes of
disaster relief supplies, including
medicines were dispatched in an IL76 sortie to Philippines.


-----

(b) **_Indonesia Earthquake:_**

**_A total of 77 Army_**

Following extensive

**_columns and 114_**

earthquake in Jakarta

**_engineer task forces_**

(Indonesia) in  May, 2006,
approximately 86 tonnes of

**_affected areas._**

disaster relief supplies,
including medicines were despatched in two
IL-76 sorties and INS TABAR to Indonesia.

(c) **_Lebanon:_** During the crisis in Lebanon,
3200 blankets and 225 tents were sent  in
August 2006.

12.5 **_Flood Relief - 2006: During the monsoon_**
of 2006, rescue and relief aid has been provided
to a number of flood affected areas in
Maharashtra, Gujarat, Madhya Pradesh,
Rajasthan, Chhattisgarh, Uttar Pradesh and
Jammu and Kashmir. A total of 77 columns and
114 engineer task forces were deployed in flood
affected areas.

12.6 **_Village Malwa – Barmer District:_**
Assistance for dewatering operations in village


Malwa, Barmer District was
provided as under :
(a) Fourteen pumping sets for
dewatering;

(b) Ten medical teams for
inoculation of affected villagers; and

(c) 1500 tents as also assistance in tent
pitching.

12.7 **_Trafficability of Roads:  Four JCBs,_**
Two Dozers and Fifteen Tippers ex Border
Roads Task Force (BRTF) were provided to
restore the following roads damaged during the
monsoon:
(a) Barmer – Chautan,

(b) Shiv – Harsani.

(c) Harsani – Myziar.

(d) Gadra – Munaboo Myziar.

(e) Jodhpur – Ramgarh.


A Flood relief operation in progress


-----

12.8 **_Nasik (Maharashtra): Eight Army_**
Aviation Helicopters were pressed into service
over two days for rescuing about 300 marooned
villagers in the affected areas of Nasik.

12.9 **_Jammu and Kashmir:_**

(a) **_Leh: Leh witnessed unprecedented rainfall_**
during the year leaving a trail of destruction.
The Army helped, amongst other things, in
evacuation of more than 650 villagers.

(b) **_Valley: A total of nine columns and twelve_**
engineer task forces alongwith equipment
were deployed from September 3 to 6, 2006
for evacuation of people to safer places,
widening of water channels, and diversion
of flood waters. Approximately 1780
villagers were evacuated, medical aid was


provided to 167 persons and 1600 food/
water packets were distributed.

###### OP SADBHAVANA AND OPERATION GOOD SAMARITAN

12.10 The Army has undertaken a large number
of civic action programmes aimed at winning the
“Hearts and Minds” of the people in Jammu and
Kashmir as well as in the North East as part of a
strategy for conflict prevention.  In Jammu and
Kashmir and North East, these projects are being
implemented under OPERATION SADBHAVNA,
and in the North East also under OPERATION
GOOD SAMARITAN / Military Civic Actions
(MCA).

12.11 Allocation of Funds: Funds allocated for
Operation Sadbhavana and Operation Good


Marooned civilians being rescued by IAF MI-8 helicopter in Rajasthan


-----

|Col1|Col2|Table 12.1|Col4|
|---|---|---|---|
|S. No.|Operation|Jammu and Kashmir|North Eastern States|
|(1)|Op Sadbhavana (by MOD)|51.95 Crore|10.00 Crore|
|(2)|Op Samaritan (by MHA)|-|1.5 Crore|


Samaritan for Jammu and Kashmir and North
Eastern States are given in Table No. 12.1.

12.12 Thrust Areas: The Army approached the
problem of conflict prevention in a very planned
manner by identifying the specific thrust areas,
such as Human resource development,
Infrastructure development initiatives and efforts
in the social sector. The efforts made towards
the goals have had an immense impact on the
psyche of the people who have come forward in
combating terrorism.

###### INFRASTRUCTURE DEVELOPMENT ACTIVITIES

12.13 Jammu and Kashmir: Some of the
infrastructure projects being executed by the Army


during the year are:
(a) Rural electrification of 118 villages.

(b) Construction of 17 foot bridges/ bridges and
culverts.

(c) Construction of bus-stand, public toilets and
community centres/ community halls at the
three regions of Jammu and Kashmir.

(d) Maintenance of green houses for 28 villages
in Ladakh Region.

(e) Renovation of masjid/ monasteries in five
villages.

12.14 PM’s Re-Construction Plan:

(a) **_Micro Hydel Projects (MHP): Under the_**
Prime Minister’s Reconstruction Plan for


A ‘Mumbai Run’ organised by Indian Navy


-----

|Col1|Col2|Col3|Col4|Table No. 12.2|Col6|Col7|Col8|Col9|Col10|
|---|---|---|---|---|---|---|---|---|---|
||Op SADBHAVANA|||BADP|||MNS|||
||Allotted|Completed|Bal|Allotted|Completed|Bal|Allotted|Completed|Bal|
|Ladakh Region|50|50|-|08|02|06|42|03|39|
|Kashmir Region|150|150|-|197|197|-|203|203|-|
|Jammu Region|100|100|-|60|60|-|190|131|59|
|Total|300|300|-|265|259|06|435|337|98|


Jammu and Kashmir, the Army has
undertaken the task of construction of 1000
Micro Hydel Projects (MHP) in Jammu and
Kashmir. Of these, a total of 300 Micro
Hydel Projects are planned under
OPERATION SADBHAVANA. A total of 265
Micro Hydel Projects have been planned
under Border Area Development
Programme (BADP), for which Rs. 5.3 crore
has already been allotted by the Ministry of


Home Affairs. Additional 435 Micro Hydel
Projects are being funded by Ministry of Non
Conventional Energy Sources (MNES) at
an approximate cost of Rs. 8.7 crore. The
funds have been released to the Army and
work on the project is in full swing. The
details of the projects completed are given
in table No. 12.2.

(b) **_Bridge on Jhelum River: A Foot bridge_**
across River Jhelum with a span of 90


Inauguration of a free Medical Camp by Indian Navy


-----

metres has been planned to connect village
Dhulanja with National Highway 1A. Work
on the project which will cost Rs.50 Lakh
has commenced and is likely to be
completed by May 2007.

12.15 Model Villages: Three model villages are
being developed in Jammu and Kashmir at
Tithwal, Churunda and Khari-Karmara. These
villages will be provided with electricity, water
supply, repair and augmentation of Government
school, provision of community development
centre, vocational training centre and medical
facilities. All work in Tithwal model village has
been completed, whereas work in model village
Churunda and Khari-Karmara is in progress. A
model village at Yorub/ Phek at a cost of Rs. 60
lakh and another model village at Thingat are also
being developed.

12.16 Sports Infrastructure: The sports
facilities being developed at Moirang/ Bishenpur
include construction of out door stadium for water


sports, accommodation for sports persons,
gymnasium, refreshment centre and solar
lighting.

12.17 Infrastructure **_Projects:_** Major
infrastructure projects being undertaken by the
Army in the North Eastern States include
establishment of 9 community development
centers, 28 Vocational Training Centres,
construction/ renovation of four bridges and
culverts, 27 water supply schemes and provision
for the six toilet blocks in selected villages.

###### EFFORTS IN THE SOCIAL SECTOR

12.18 **_Empowerment of Women: Women_**
Empowerment Centres (WEC) have been opened
at various regions providing vocational training
in knitting, tailoring, embroidery, shawl weaving,
gabba making, carpet weaving etc. Computer
education, coaching for the National Open School
examinations and education in health care are
also provided at WECs. WECs exist at 47 villages


IN personnel providing succour to Indians stranded in Beirut


-----

in the three regions of Jammu and

**_Operation Sahayata_**

Kashmir.

**_was launched in_**

12.19 Health Care: Artificial Limb
Centres at 46 locations and Primary
Health Centres are maintained to
provide health care to the local
people in J&K and North East. 102
veterinary camps have also been **_affected by_**
held.

###### INDIAN NAVY

12.20 Initiatives of the Indian Navy towards
promoting Defence-Civil Cooperation are detailed
in the succeeding paragraphs.


people. 1900 food packets were
distributed to people in inaccessible
areas by helicopters which also
transferred medical teams to distant
relief camps. In Rajasthan, three
diving teams recovered 66 bodies in
Barmer district.

12.22 Some other initiatives
include:
(a) Employment of the physically challenged.

(b) Programmes like medical check-ups, nature
walks etc for senior citizens.

(c) HIV awareness workshops.

(d) Running schools for physically challenged
children and providing mid-day meals to
under privileged children.

###### AIR FORCE


12.21 Operation **_Sahayata:_** Operation (d) Running schools for physically challenged
Sahayata was launched in Maharashtra, Gujarat, children and providing mid-day meals to
Andhra Pradesh and Rajasthan to provide under privileged children.
humanitarian relief and rescue to the people

###### AIR FORCE

affected by unprecedented floods.
In Maharashtra, about 600 people 12.23 **_Disaster Relief: During_**

**_834 sorties involving_**

were rescued, medical teams the period June-September 2006,

**_957 hours were flown_**

provided first aid and food packets the helicopter fleet reacted with

**_for flood relief_**

were distributed. In Gujarat, a diving vigour to provide succour to the

**_operations wherein 519_**

team evacuated 130 people from victims in flood affected areas by

**_tons of relief supplies_**

Hazira Gas plant. IN helicopters flying, 957 hrs in 834 sorties

**_were airlifted and 2792_**

flew sorties from Mumbai and airlifting 519 tons of relief supplies

**_persons were_**

Daman for dropping food and water and evacuating 2792 persons  in

**_evacuated._**

packets around Surat. In Andhra Andhra Pradesh, Assam,
Pradesh, two diving teams deployed in Chattisgarh, Gujarat, Jharkhand, Madhya
Bhadrachalam and Konavaram rescued about 180 Pradesh, Maharashtra and Rajasthan.


12.24 During the current year, IAF flew 325
sorties, airlifting 254 seriously injured and sick
citizens in mercy missions. Most notable of these
were evacuation of injured tourists from Srinagar
and bringing in rescue teams for saving the life of
a small child who fell into a ditch in a small village
in Haryana.


‘Shramdan’ on our beaches


-----

###### NATIONAL CADET CORPS

Prime Minister with NCC awardees during PM Rally


-----

###### he NCC strives to provide the youth of the country opportunities for all round development

# T

###### with a sense of commitment, dedication and self- discipline, so that they become good leaders and useful citizens and can take their appropriate place in all walks of life in the service of the nation.


13.1 The National Cadet Corps (NCC) was
established under the NCC Act, 1948. It has
completed 58 years of existence. The NCC strives
to provide the youth of the country opportunities
for all round development with a sense of
commitment, dedication, self-discipline and moral
values, so that they become good leaders and
useful citizens and can take their appropriate place
in all walks of life in the service of the nation.

13.2 The total sanctioned strength of NCC
cadets is 13 lakh. The wing-wise distribution of
the cadet strength is as under: 
(a) Army Wing - 971286

(b) Air Wing - 66350

(c) Naval Wing - 67912

(c) Girls Wing - 189008

The NCC’s presence can be felt in almost all the
districts of the country covering 8410 schools
and 5251 colleges.

###### TRAINING OF CADETS


(a) **_Annual Training Camps (ATC): Annual_**
Training Camps are conducted at State
Directorate level so as to ensure that a
minimum of 50% of enrolled strength of
cadets, numbering approximately 6.5 lakhs,
attend at least one camp per year.
Approximately 900 such camps are
conducted in a training year.

(b) **_National Integration Camps (NIC): A total_**
of 37 NICs were scheduled in the training
year 2006-07. A total of 23,240 cadets from
all States and Union Territories participated
in these NICs in the current training year.
In addition, special NICs have been
scheduled/conducted at the following
places: 
(i) **_Special NIC Leh: A special NIC was_**
conducted at Leh from July 19 to 30, 2006
in which a total of 200 cadets from all parts
of the country participated.


13.3 Training Camp:  Camp
Training is an important part of NCC
curriculum. The camps help in
developing camaraderie, team
spirit, dignity of labour, self
confidence and the most important
aspects of unity and discipline. The
various types of camps conducted
in NCC are as listed below: 

(ii) **_Special NIC Nagrota: A special NIC was_**
conducted at Nagrota (J&K State) from
October 4 to 15, 2006 in which 310 cadets
from all parts of the country

**_Camp Training is an_** participated.
**_important part of NCC_**

(iii) **_Special NIC Chakabama:_**

**_curriculum. The_**

A special NIC in the North East was

**_camps help in_**

conducted at Chakabama

**_developing_**

(Nagaland) from November 28 to

**_camaraderie, team_**

December 9, 2006 with the

**_spirit, dignity of labour,_**

participation of 200 cadets from the

**_self confidence, Unity_**

North East Region and 400 cadets

**_and Discipline._**

from other parts of India.


-----

(iv) **_Special NIC Lakshadweep: Special NIC_**
was conducted from April 13 to 24, 2006
with the participation of 200 cadets from all
over India including 20 cadets from
Lakshadweep islands.

(c) **_Vayu Sainik Camp (VSC): The annual All_**
India Vayu Sainik Camp was conducted at
Air Force Station Jalahalli (Bangalore) from
October 6 to 16, 2006, with the participation
of 420 Senior Division (SD) and 180 Senior
Wing (SW) cadets.

(d) **_Nau Sainik Camp (NSC): The camp was_**
conducted at Visakhapatnam from
November 4 to 15, 2006. One officer and
eight cadets from Singapore also
participated in the camp alongwith 405 SD
cadets and 163 SW cadets from the 17
State NCC Directorates.

(e) **_Thal Sainik Camps (TSC): Two concurrent_**
TSCs are conducted at Republic Day


Parade ground, Delhi Cantt every year i.e.
for SD/JD boys and SW/JW girls. 640 Boy
and 640 Girl cadets take part in these
camps. This year the camps were
conducted from September 15 to 26, 2006.

(f) **_Leadership Camps: These camps are_**
conducted on an all India basis. There are
four Advance Leadership Camps (ALC),
one each for SD, JD, SD Naval Wing boys
and SW girls and three Basic Leadership
Camps, one each for SD boys, SW girls and
JW girls. A series of such camps imparting
training to 3220 boy and girl cadets were
conducted during the year.

(g) **_Rock Climbing Camps: Eight rock_**
climbing camps are held every year to
expose the cadets to the basics of rock
climbing and to inculcate spirit of adventure.
Four of these camps are held at Gwalior in
Madhya Pradesh and another four camps


Cadets at a blood donation camp organised by NCC at Delhi on 31[st] October 2006


-----

at Neyyar Dam near
Trivandrum in Kerala. 1080
boy and girl cadets attended
these camps between May

**_attachment to the_**

and November 2006.

(h) **_Republic Day Camp –2007:_**
The Republic Day Camp-2007 was
conducted from January 1 to 29, 2007 at
Delhi. The Camp was attended by 1850
cadets from all over India, besides cadets
of friendly foreign countries, with whom
NCC has a Youth Exchange Programme.
Inter Directorate competitions connected
with institutional training, cultural
competitions and National Integration
Awareness presentations were conducted
during the camp. The camp was
inaugurated by the Vice-President of India
on January 8, 2007. As a regular feature,
Prime Minister’s Rally was held on January
27, 2007 during the camp. The camp


culminated with an interaction of
selected cadets with the President
at the Rashtrapati Bhawan.

13.4 **_Attachment Training:_**
The NCC cadets derive first hand
experience of immense value by
attachment to the Armed Forces units. During
the year, attachments conducted were as
under:
(a) 440 officers and 20,000 cadets were
attached to the regular Army units. This
includes women officers and 560 SW girl
cadets.

(b) 120 cadets were attached to Indian Military
Academy, Dehradun from December 18 to
29, 2006 and 48 girl cadets were attached
to Officers Training Academy, Chennai from
September 19 to 30, 2006.

(c) 1000 girl cadets were attached to various
Military Hospitals.


NCC Girls mountaineering expedition after summitting JOGIN-III peak (20,180 ft.) in Garhwal Himalayas


-----

(d) 38 SD and 12 SW cadets of Air Wing were
attached to Air Force Academy, Dundigal
on two occasions from June 20 to July 1,
2006 and from October 13 to 25, 2006.

(e) Eight cadets have flown ‘solo’ on microlite/
glider in the last one year.

(f) **_Naval_** **_Attachment–INS_** **_Mandovi:_**
Attachment training camp for 25 Naval Wing
(SD) cadets was conducted at Naval
Academy, INS Mandovi, Goa for a duration
of 12 days during the months of December
and January, 2007.

13.5 **_Gliding and Microlite Flying: Gliding_**
facilities are provided at 38 NCC Air Squadrons.
The NCC Air Squadrons have carried out 14,839
launches during the year. Microlite flying is being
conducted in NCC as an adventure activity with a
view to giving air experience to the Air Wing NCC
cadets (SD). A total of 7,384 hours of microlite
flying was undertaken during the year.


13.6 **_Sea Training: NCC cadets of the Naval_**
wing, during their sea training  and attachment,
are imparted intensive training in Naval subjects
like navigation, communication, gunnery,
seamanship, damage control and ship safety, first
aid, and ship’s husbandry. A total of 295 cadets
were attached to ships of the Eastern and
Western Naval Command and Coast Guard for
sea training during the year.

13.7 **_Foreign Cruise: The following foreign_**
cruises are conducted every year:

(a) **_Coast Guard Cruise: Six Naval SD cadets_**
proceeded to Kenya, Seychelles  and
Mauritius from  May 21 to June 26, 2006.

(b) **_Naval Cruise: Six cadets sailed to Bahrain_**
and Oman from April 3 to 28, 2006 and
ten cadets sailed to Singapore, Phuket and
Colombo from October 6 to  November 8,
2006.


NCC Cadets in Scuba diving


-----

###### ADVENTURE TRAINING

13.8 (a) **_Mountaineering Courses: NCC_**
nominates 300 boy and girl cadets from all
NCC Directorates to attend various courses
at Nehru Institute of Mountaineering,
Uttarkashi, Himalayan Mountaineering
Institute, Darjeeling and Directorate of
Mountaineering and Allied Sports, Manali
every year.

(b) **_Mountaineering Expeditions: NCC has_**
been conducting two Mountaineering
expeditions every year, one for the Senior
Division boy cadets and the other for Senior
Wing girl cadets. Since 1970, the NCC has
conducted 58 mountaineering expeditions,
of which 31 were for boys and 27 for girls.
This year the boys team undertook an
expedition to Swargarohini Peak (6252 m)
in May/June 2006 and the girls team
successfully undertook an expedition to
Jogin Peak III (6116 m) in September/
October 2006.

(c) **_Trekking Expeditions: A total of 10_**
trekking expeditions were conducted during
the year with the participation of 1,000


cadets per trek. The highlight was the trek
called ‘Valley of Flower Trek’ with the
participation of 500 SD cadets.

(d) **_Para Sailing: Para Sailing is conducted at_**
each Group level as a part of adventure
activity for boy and girl cadets of NCC.
During the year, 12,500 cadets have been
trained in this activity.

(e) **_Para Basic Courses: Every year 40 boy_**
and 40 girl cadets undergo the Para Basic
Course for 24 days at Army Aviation
Training School, Agra.

(f) **_Desert Camel Safari: This adventure_**
activity is conducted every year with 20
cadets taking part in it. In addition cadets
from friendly foreign countries also
participate in this event. It is conducted in
the Jaisalmer District of Rajasthan.

(g) **_White Water Rafting: White Water Rafting_**
node has been established at Raiwala
(Haridwar).

(h) **_Sailing Expedition: 584 SD boy and 72 girl_**
cadets participated in various water sailing
expeditions conducted in various parts of
the country.


Cultural Programme by NCC Cadets at Rashtrapati Bhawan


-----

(i) **_Hot Air Ballooning: A Hot Air Ballooning_**
node has been established in Bhopal. A
large number of cadets have participated
in the tethered flight.

###### YOUTH EXCHANGE PROGRAMME (YEP)

13.9 **_Outgoing YEP Visits: The following visits_**
were undertaken during the year as part of YEP:

(a) Visit of one officer and six cadets (Naval
Wing) to Singapore to participate in
International Sea Cadet Exchange
programme from May 29 to June 11, 2006.

(b) Visit of one officer and four cadets (Air Wing)
to Singapore to participate in International
Air Cadet Exchange Programmes from
May 29 to June 11, 2006.

(c) Visit of two officers and twenty cadets to
Singapore from August 10 to 13, 2006.

(d) Visit of two officers and ten cadets to Russia
from September 22 to October 1, 2006.

(e) Visit of one officer and six cadets to Sri
Lanka from October 6 to 14, 2006.


(c) Heads of Departments of eight friendly
countries viz. Bangladesh, Nepal, Bhutan,
Sri Lanka, Singapore, Russia, Vietnam and
Australia were invited to the Republic Day
Camp, 2007.

###### SOCIAL SERVICE AND COMMUNITY DEVELOPMENT

13.11 NCC has adopted community
development activities with the aim of cadets
imbibing values of selfless service to the
community, dignity of labour, the ideals of self
help, environmental protection and upliftment of
the weaker sections of the society in their youth.
NCC cadets participate in the following community
development activities:

(a) **_Tree Plantation: NCC cadets plant_**
saplings and thereafter maintain them in
conjunction with the concerned State
department/ colleges/ schools and villages.


from September 22 to October 1, 2006. (b) **_Blood Donation: NCC cadets have been_**

(e) Visit of one officer and six cadets to Sri donating blood as voluntary service whenever
Lanka from October 6 to 14, 2006. needed by Hospitals/ Red Cross. This year,

as part of NCC Day Celebrations, “Blood

(f) Visit of two officers and

Donation Drive” was launched by all

thirteen cadets to Vietnam

**_Over the years, NCC_** NCC State Directorates in various

from November 28 to

**_cadets have rendered_** towns and villages from October 31

December 7, 2006.

**_outstanding service_** to November 6, 2006. A total of

(g) Visit of two officers and ten

**_during floods,_** 21,357 units of blood was donated in

cadets to Singapore from

**_earthquakes, cyclones,_** one week by cadets, officers and the

December 4 to 13, 2006.

**_train accidents and_** staff of NCC.

13.10 Incoming YEP Visits: The **_provided the healing_**

(c) **_Old Age Homes: Old Age_**

following incoming YEP visits by **_touch in riot affected_**

Homes in the country are

foreign delegations were **_areas._**

patronised and regularly visited by

undertaken during the year:

NCC cadets to provide a helping

(a) One officer and eight cadets from Singapore hand to the aged.
for Nau Sainik Camp at Visakhapatnam

(d) **_Adult Education: NCC cadets visit remote_**

from November 4 to 15, 2006.

areas, villages and underdeveloped areas

(b) Two officers and ten cadets from Singapore to emphasise the need for education and
for Desert Safari at Jaisalmer (Raj) from to assist in conducting Adult Education
November 27 to December 8, 2006. Programme.


-----

(e) **_Community Projects: Cadets of NCC_**
participate in the rural and urban community
projects and other development works like
village track improvement, well-cleaning
and other such activities.

(f) **_Disaster Relief: NCC has always extended_**
its helping hand during natural and other
calamities and accidents. Over the years,
NCC cadets have rendered outstanding
service during floods, earthquakes,
cyclones, train accidents and provided the
healing touch in riot affected areas.

(g) **_Anti Leprosy Drive: NCC cadets have_**
launched anti-leprosy drive throughout the
country and are helping various voluntary
organisations.

(h) **_AIDS Awareness Programme: NCC_**
participates actively in the AIDS/HIV
awareness programme and is working
alongwith UNAIDS and DG AFMS in
carrying out AIDS Awareness Programmes
throughout the country. Recently, NCC has
joined hands with the programme of Youth
Unite for Victory on Aids (YUVA) and


organised a programme to spread
awareness on HIV/AIDS. As a precursor
to “Train the Trainer”, a nucleus has been
created with Directors, selected officers and
Whole Time Lady Officers (WTLOs) from
all State Directorates.

(i) **_Cancer Awareness Programme: NCC_**
cadets actively participate in Cancer
Awareness Programmes organised at
various places. Cancer Care India (CACI),
an NGO and NCC have joined hands to
launch Cancer Awareness Programmes
(CAPS) throughout the country. So far 25
such CAPS have been conducted.

###### ACTIVITIES AT NATIONAL LEVEL

13.12 The NCC cadets also participated in the
following activities conducted at the national level:

(a) **_Jawaharlal_** **_Nehru_** **_Cup_** **_Hockey_**
**_Tournament: Every year four NCC teams_**
(3 boys and 1 girl) participate in the
Jawaharlal Nehru Cup Hockey Tournament
conducted in October/November. This year
following teams participated:


Kayaking by girl cadets of the NCC


-----

(i) Andhra Pradesh and Orissa
Directorate in Junior boys category.

(ii) Punjab, Haryana, Himachal
Pradesh & Chandigarh Directorate in Junior
girls and Sub-junior boys category.

(b) **_Subroto Cup Football Tournament: NCC_**
has been participating in this tournament
for the last 27 years. One NCC team each
from West Bengal & Sikkim Directorate and
North Eastern Region Directorate
participated in this year’s tournament held
from September 14 to October 13, 2006 at
New Delhi.

(c) **_All India GV Mavlankar Shooting_**
**_Championship: This year All India G V_**
Mavalankar Shooting Championship has
been conducted by the National Rifle
Association of India at Asansol (West
Bengal) from November 5 to 14, 2006. This
year the cadets bagged five Gold, four silver
and four bronze medals.

(d) **_National_** **_Shooting_** **_Championship_**
**_Competitions: The 50[th] National Shooting_**
Championship Competition (NSCC) was


conducted at Indore from December 12 to 22,
2006. 16 cadets selected during GV Malvankar
Shooting Championship took part in this
championship and won an unprecedented 11
medals (8 Gold, 1 Silver and 2 Bronze).

###### TRAINING OF STAFF

13.13 NCC has two training Academies one at
Gwalior and the other at Kamptee where instructors
are trained. The following courses were conducted
for training of Associated NCC Officers (ANOs) and
Permanent Instructors (PI) staff during the year:

(a) **_Refresher Course for ANOs: 16 courses_**
are conducted every year at Officer Training
Academy (OTA) Kamptee for 1,135 ANOs.

(b) **_Orientation Courses for PI Staff: 26_**
courses are conducted at OTA Kamptee for
2,810 PI Staff every year.

(c) **_Pre-Commission Courses: Four Pre-_**
commission courses are conducted at OTA
Kamptee for 500 ANOs.

(d) **_Refresher Courses for Lady ANOs: Four_**
courses are conducted at NCC OTA
Gwalior for 110 lady ANOs.


Raksha Mantri presenting awards during NCC Investiture Ceremony


-----

(e) **_Pre-commission Courses for Lady_**
**_ANOs: Two courses for Senior Wing and_**
two courses for Junior Wing are conducted
for ANOs at NCC OTA Gwalior.

(f) **_Refresher Course for Naval_**
**_ANOs: 12 SD and 39 JD_** **_To provide a major_**
ANOs attended a refresher
course at INS Circars **_in the country the_**
Vishakhapatnam.

(g) **_Refresher Course for Naval_**
**_PI Staff: 25 Naval PI Staff_**
attended a refresher course
at Seamanship School,
Kochi.

**_cadets from 1800 to_**

(h) **_Pre-Commission Course_**
**_for Naval ANOs: Naval SD/_**

**_Camp._**

JD ANOs underwent Precommission training at Seamanship School,
Kochi and OTA Kamptee.

(i) **_Orientation Course for Air PI Staff: 40_**
Air PI Staff undergo orientation course of
5 days duration at OTA Kamptee every
year.


(j) **_Civil Defence Management Courses: A_**
total of 30 Officers/ JCOs/ ANOs were
detailed to attend various courses conducted
at National Civil Defence College (NCDC),
Nagpur during the training year.

###### FRESH INITIATIVES

13.14 With a view to providing an
opportunity for more NCC cadets to
participate in the Republic Day
Camp, the authorised strength for
the camp has been increased from
1,800 to 1,850.

13.15 In one of the major
initiatives, the Government of India
has increased its share of funding
for camp training from 50% to 75%.
For Jammu & Kashmir and North
Eastern States, the Government of India would
provide 100% funding for camp and institutional
training. This new funding pattern came into force
with effect from the training year 2006-07 and is
expected to provide a major fillip to NCC activities
in the country.


Raksha Rajya Mantri with NCC Cadets


-----

###### DEFENCE COOPERATION WITH FOREIGN COUNTRIES

Gen. Peter J. Schoomaker, Chief of Staff, US Army with Defence Secretary Shri Shekhar Dutt


-----

###### efence Cooperation has now become an important component in the conduct of a country’s foreign policy

# D

###### and security affairs encompassing all activities undertaken by the Defence Forces to avoid hostilities, build and maintain trust, and make significant contribution towards conflict prevention and resolution.


14.1 ‘Defence Cooperation’ has now become an
important component in the conduct of a country’s
foreign policy and security affairs encompassing
all activities undertaken by the Defence Forces to
avoid hostilities, build and maintain trust, and make
significant contribution towards conflict prevention
and resolution. India is now engaged in a wide
range of activities with other friendly countries,
ranging from Chile and Brazil in the
Far-West to Japan and Korea in the
Far-East.

**_have changed_**

14.2 India has a long history of
defence cooperation with several

**_of exchange of_**

countries. Efforts are being made
to further strengthen its defence and
strategic cooperation with countries

**_of each other’s_**

like Russia, France, United States,
UK, Israel, South Africa, Germany
and countries in India’s
neighbourhood including those in

**_like terrorism,_**

Southeast, Northeast and Central

**_disasters, arms_**

Asia.  India has also growing

**_proliferation, etc._**

friendly ties including in the defence
field, with countries in the Gulf
Region, in Africa, Latin America and Europe.

14.3 Our cooperation with Russia in the
defence field is mutually beneficial and not
restricted to a buyer-seller relationship. It includes
joint research and development, training and
service to service contacts. The year saw
exchange of several high level visits including the
visit by Defence Secretary and the Services
Chiefs to Russia. The sixth meeting of the India

Russia Working Group on Military Technical
Cooperation and the Working Group on
Shipbuilding, Aviation and Land Systems was
held in New Delhi in December 2006. The Minister
level meeting of India-Russia Inter Governmental
Commission on Military Technical Cooperation
was also held on January 24, 2007 in New Delhi
wherein agreements in various
areas of cooperation were signed.
President of Russian Federation
was the Chief Guest for Republic
Day celebrations of India.

14.4 France has been one of
the major European states that
have sought to enhance
cooperation with India in the field
of defence. The French President
along with their Defence Minister
Mrs Michele Alliot Marie visited
India from February 19-21, 2006.
During the visit, both sides decided
to work together in the fields of
defence procurement, eradication
of piracy and terrorism, maritime surveillance, and
joint exercises. An Agreement in the field of
defence cooperation was also signed on February
20, 2006 between the two countries. A defence
delegation led by the Raksha Mantri visited
France from September 3-5, 2006 to discuss
defence and security issues with the French
Defence Minister Mrs Michele Alliot Marie and the
French Chief of Defence Staff, General Henri
Bentageat.


-----

14.5 India’s defence ties with the United States
have changed significantly as a result of exchange
of important visits and greater understanding of
each other’s perceptions and the need for
cooperation in tackling global issues like terrorism,
disasters, arms proliferation, etc. The
understanding reached with the US on India’s
civilian nuclear programme during the landmark
visit of the US President, Mr George Bush to India
in March 2006 has helped move forward our
overall bilateral relations. Director, Defence
Security Cooperation Agency (DSCA) of the U.S
visited New Delhi from March 9-10, 2006 in
connection with 2nd India-US Defence
Procurement and Production Group (DPPG)
meeting, while Under Secretary of Defence for
Policy visited New Delhi to attend the 8th meeting
of the India-US Defence Policy Group from
November 15-16, 2006. The Senior Technology
Security Group (STSG) meeting was held in
Washington, DC during September 6-8, 2006.
These exchanges have resulted in improving
bilateral relations.


14.6 Since India’s independence in 1947,
Britain and India have transformed their
relationship into a mutually beneficial partnership.
We have a structured mechanism for defence
cooperation under which training, joint exercises,
exchanges and equipment sales take place. IndiaUK Defence Consultative Group meeting was held
in New Delhi from November 28-29, 2006.

14.7 India’s relations with the countries of the
African continent have undergone a major
makeover in the last decade and a half. The
bandwidth of our engagement is wider than ever,
contributing positively to our security environment.
India is providing troops for peace keeping in
Ethiopia-Eritrea, Congo, Sierra Leone, Burundi,
Cote d’Ivoire and Sudan. Defence delegations
from various African countries have visited the
Indian Training Establishments to seek assistance
in training of their National Defence Forces.
Another significant milestone during the year was
signing of a Memorandum of Understanding
(MOU) with Mozambique for cooperation in the


Presentation of a hydrographic chart to Vice President of Seychelles


-----

field of defence during the visit of HE Joaquim
Dai, Minister for Defence of Mozambique to India
in March, 2006.

14.8 India’s support for South Africa in its
struggle against apartheid has provided a strong
foundation for durable friendship between the two
countries.  A Defence Cooperation Agreement,
signed in 2000, provides the framework for our
defence relationship. At the fifth India-South
Africa Defence Committee meeting held in July
2006, an MOU for cooperation in defence training
was signed. The Defence Secretary led the Indian
delegation.

14.9 India and Germany consider each other
as important partners on the international scene.
The growth of India’s close relations with Germany
is reflected in the signing of an MoU on defence
cooperation during the visit of Raksha Mantri to
Germany in September 2006.


14.10 India’s ties with Japan in the field of
defence have been evolving over the recent
years. During the visit of Raksha Mantri to  Japan
from May 25-28, 2006 a Joint Statement was
signed stating the objectives of India-Japan
defence and security ties. The Coast Guards of
the two countries conducted their seventh round
of exercise in November 2006 off Mumbai Coast.
A Memorandum of Understanding between the
Coast Guards of the two countries was also
signed in November 2006.

14.11 China is our largest neighbour. IndiaChina relations are progressing in all areas. The
MoU signed on May 29, 2006 during the visit of
India’s Raksha Mantri to China is another step
forward in Sino-Indian relations envisaging
contacts between the armed forces and defence
officials and experts of the two countries. The
Memorandum of Understanding is expected to


Presentation of hydrographic chart to the Prime Minister of Mauritius


-----

serve as an instrument for a regular and sustained
dialogue on defence issues between the two
countries. Our success in maintaining peace and
tranquillity along our long borders is indicative of
the level of mutual understanding that has been
achieved despite some differences in perception
with regard to the boundary issue. The Chinese
President Mr. Hu Jintao visited India in
November 2006 which marked the
high point of India-China Friendship
Year celebrations. Gen Qiao
Qingchen, Commander of PLA Air

**_the visit of Raksha_**

Force, was on a ‘Good-Will Visit’ in

**_Mantri to China is_**

October 2006.

14.12 India maintains cordial
defence relations with Oman.

**_between the armed_**

Raksha Mantri visited Oman in

**_forces and defence_**

March 2006. As per the provisions
of the Defence Cooperation

**_the two countries._**

Agreement between India and UAE,
a Joint Defence Cooperation
Committee [JDCC] has been set up. The first
meeting of JDCC was held in Delhi in April 2006.
As part of improving the defence relations with
Egypt, an Indian team led by Additional Secretary,
Defence visited Cairo in August 2006 and held
defence cooperation talks.

14.13 The year 2006 also saw enhanced
interactions between India and Singapore in the

The National flags of India and China at the SinoIndian frontier for a Border Personnel Meeting


field of Defence. Raksha Mantri visited Singapore
from June 2-4, 2006 to participate in the 5[th]

Shangri La Dialogue. During the visit, Raksha
Mantri had separate bilateral meeting with
Defence Minister of Singapore. Raksha Mantri
also called on Prime Minister of Singapore. The
Indian Navy and the Republic of Singapore Navy
conducted joint exercises in February 2006 off
the coast of Visakhapatnam. The
Indian Army and Singapore Armed
Forces conducted third round of
Joint Artillery and Armoured
exercises in October 2006 in India.
Indian Air Force and the Republic
of Singapore Air Force conducted
joint exercises in January 2006 and
December 2006 at Kalaikunda.

14.14 Defence relations with
Malaysia have been cordial. The
year 2006 witnessed the high level
visit of Deputy Prime Minister and
Defence Minister of Malaysia Dato Sri Mohd Najib
Bin Tun Haji Abdul Razak in June 2006. During
the visit he met Raksha Mantri and other senior
officials of Ministry of Defence. The Defence
Secretary visited Malaysia in September 2006 for
the fifth Malaysia-India Defence Cooperation
Meeting.

14.15 India-Vietnam relations have always been
exceptionally friendly and cordial. Col Gen Le
Van Dung, Vice Minister of Defence & Director
General of the Political Department of the Ministry
of Defence of Vietnam visited India in February
2006. Defence Secretary visited Vietnam in
October 2006 in connection with the second
meeting of India-Vietnam Security Dialogue.

14.16 India has traditionally maintained good
relations with Myanmar. There has been
substantial increase in bilateral defence
cooperation between Indian Army and the
Myanmar Army recently in training and other
fields. Defence Secretary led a delegation during


-----

September 2006 to Myanmar and held high-level
meetings with important functionaries of Myanmar
Government. Maj General Ye Mint, Chief of
Military Security Affairs visited India in October,
2006. Gen Thura Shwe Mann, Chief of General
Staff also visited India in December, 2006.

14.17 India and Australia have enjoyed good
relations as members of the Commonwealth, and
as countries sharing a democratic political set up
and similar legal, financial and public institutions.
The fourth round of Strategic Dialogue and the
associated Defence Joint Working Group was
held in New Delhi in February 2006. The year
2006 also saw the signing of Memorandum of
Understanding on defence cooperation with
Australia during the visit of Prime Minister of
Australia in March 2006.

14.18 India’s relations with Republic of Korea
(RoK) have been marked by friendship and
cordiality. A Memorandum of Understanding
between the two Coast Guards was signed in
March 2006 when Mr.Lee Seung Jae,
Commissioner General, Korea Coast Guard
visited India. Raksha Rajya Mantri accompanied
by a high level delegation visited RoK in April/
May 2006. The second round of joint exercises
between the Indian Coast Guard and the Korea
Coast Guard was held off the coast of Chennai in
July 2006.

14.19 Our bilateral relations with Mongolia have been
most friendly, cordial and trouble-free. India-Mongolia
Joint Working Group on Defence Cooperation held its


first meeting in March/ April 2006 in Mongolia. Raksha
Rajya Mantri visited Mongolia in May 2006 where he
met with the Defence Minister of Mongolia and called
on the President and the Prime Minister of Mongolia.

14.20 Recognising the importance of Central Asian
Region from global security point of view, India is trying
to further mutually beneficial defence cooperation with
these countries.  A joint mountaineering expedition
was conducted in India with Kazakhstan Army
personnel in September-October, 2006. India has
agreed on the need to enhance cooperation in the
field of defence training and technical cooperation with
the Government of Kyrgyztan.

14.21 A Defence delegation headed by Raksha
Utpadan Rajya Mantri visited Chile from January 712, 2007. During the visit, an MOU was signed
between India and Chile on furthering defence
cooperation in the areas of teaching and academic
activities, defence equipment and hardware, sports
and adventure activities, production, co-production,
joint ventures etc.

14.22 To promote defence cooperation with friendly
countries, the Indian Army, Navy and Air Force
undertake a number of activities.  The Indian Military
Training Teams in several countries such as Bhutan,
Laos, Botswana, Zambia, Lesotho, Seychelles etc.
are providing training to the military personnel of these
countries. The Indian defence services are also
participating in a number of joint exercises with the
forces of friendly foreign countries. Joint exercises have
been conducted with the forces of Singapore, Thailand,
USA, UK, etc.


-----

###### CEREMONIAL AND OTHER ACTIVITIES

Independence Day Celebrations, 2006


-----

###### he responsibility for the organising of National Functions like the Republic Day Parade, the

# T

###### Beating Retreat Ceremony, Martyrs’ Day and the Independence Day is entrusted to the Ministry of Defence.


15.1 The Ministry of Defence encourages and
promotes both academic and adventure activities
through autonomous institutions which are
provided regular financial assistance. These
institutions are :
(i) The Institute for Defence Studies and
Analyses, New Delhi;

(ii) Mountaineering Institutes at Darjeeling and
Uttarkashi; and

(iii) The Jawahar Institute of Mountaineering
and Winter Sports (JIM) at Aru, Kashmir


15.2 The important activities of these
institutions during the  current year are given in
the succeeding paragraphs.

###### INSTITUTE FOR DEFENCE STUDIES AND ANALYSES (IDSA)

15.3 Apart from continuing to undertake
research work on policy relevant security and
strategic issues, the IDSA has given increased
attention to non-traditional security issues which
have come to the fore internationally. The Fellows
Seminars are now held twice a week as against


Army’s contingent marches smartly at Red Fort, New Delhi on the Independence Day, 2006


-----

once a week earlier in order to provide greater
opportunities to the IDSA scholars in preparation
of their publication in the Institute’s journalStrategic Analysis.

15.4 IDSA has launched a new
website (www.idsa.in) containing **_new website_**
readily accessible information about **_(www.idsa.in)_**
the Institute’s activities. This also **_containing readily_**
offers the Institute’s scholars an
opportunity to comment on topical **_about the Institute’s_**
themes and issues. **_activities._**

15.5 **_Activities:_** As part of the
efforts to substantially upgrade the neighborhood
study programme, a series of workshops were
undertaken by the IDSA to study  recent
developments in our neighboring countries.
Proposals were also initiated to develop IDSA’s
institutionalized linkages with corresponding think
tanks in neighboring countries with a view to
promote better understanding by security and
strategic studies community and positioning IDSA
to play a more prominent role in track II activities.

15.6 In an effort to sensitize Parliamentarians
on critical security issues the IDSA arranged a


briefing on Indo-US Nuclear Cooperation for a
group of Parliamentarians in July 2006.

15.7 Two seminars were held in September
2006 on ‘Peace Process in Sri
Lanka’ and ‘Peace and
Development in Northeast Region’
at Bangalore and Shillong
respectively. These seminars
helped IDSA in engaging scholars
from outside Delhi and in developing
networking with institutions and
individuals engaged in security and
strategic matters.

15.8 This year IDSA started a new Eminent
Persons Lecture series in collaboration with the
India International Centre. Talks were organized
on ‘Globalisation and Security’ by Dr. Arun Shourie,
on ‘Environment and Security’ by Dr. R.K. Pachauri
and on ‘Human Rights, Terrorism and Security’ by
Shri Soli Sorabjee under the series.

###### MOUNTAINEERING INSTITUTES

15.9 The Ministry of Defence administers jointly
with the concerned State Governments, three


White water rafting by Army personnel


-----

Mountaineering Institutes, namely, Himalayan
Mountaineering Institute (HMI), Darjeeling in West
Bengal, Nehru Institute of Mountaineering (NIM),
Uttarkashi in Uttarakhand and Jawahar Institute
of Mountaineering & Winter Sports (JIM), Aru
(presently located at Pahalgam) in J&K. These
Institutes are run as autonomous Registered
Societies. Raksha Mantri is the President of these
Institutes. The Chief Minister of the respective
State is the Vice-President of the Institute. These
Institutes are governed by separate Executive
Councils consisting of members elected by the
General Bodies, nominees from amongst donors
and/or persons who are likely to promote the cause
of the Institute, and representatives of Central and
State Governments.

15.10 The HMI, Darjeeling was founded in
November 1954 by the then Prime Minister Pandit
Jawaharlal Nehru to commemorate the historical
ascent of Mount Everest by Late Tenzing Norgay


along with Sir Edmund Hillary on May 29, 1953.
Two more institutes viz the NIM, Uttrakashi and
the JIM at Aru in J&K were set up in October
1965 and October 1993 respectively to give
further boost to mountaineering and to inculcate
the spirit of adventure in youth. A decision has
been taken to locate the headquarters of JIM on
permanent basis at Pahalgam and to set up its
two sub-centres at Bhaderwha and Patnitop.

15.11 The broad objectives of the
Mountaineering Institutes are:
(i) to impart theoretical knowledge and
practical training in mountaineering and
rock climbing techniques;

(ii) to awaken interest in and love for mountains
and exploration; and

(iii) to encourage and provide training in Winter
Sports.


Army’s mountaineers celebrate success on summiting a peak in the Himalayas


-----

**_Table No. 15.1_**

|Institute|Basic|Col3|Advanced|Col5|Adventure|MOI|S&R|
|---|---|---|---|---|---|---|---|
|HMI|05||02||02|01|-|
|NIM|05||03||03|01|01|
|JIM|02||01||15|-|-|
|Table No. 15.2||||||||
|Institute (HMI/NIM/JIM)||Basic||Advanced|Adventure|MOI|S&R|
|No. of students||696||180|889|36|30|


15.12 The Institutes conduct Basic and Advanced
Mountaineering courses, Method of Instruction
Course (MOI), Search & Rescue Course (S&R)
and Adventure Course. The syllabi, duration, age
limit of participants and grading system for various
types of courses are almost uniform at all the
Institutes. During the lean period, the Institutes
detail their Instructors to conduct rock-climbing
courses at the request of Mountaineering Clubs/


Organizations around the country. The Instructors

also join various expeditions.

15.13 Trainees to these courses come from all

parts of the country and include Army, Air Force,

Navy, ITBP and BSF Personnel, NCC Cadets and

private students. Foreigners are also now

permitted to join these courses.


Adventure - Bringing out the Free Spirit in Naval Personnel


-----

15.14 The details of courses conducted by the
Institutes from April 2006 to November 30, 2006
are given in Table No. 15.1.

15.15 The number of students trained in these
courses are given in Table No. 15.2.

15.16 HMI, which celebrated Golden Jubilee
from October 14-17, 2006, conducted six special
courses comprising Advanced, Adventure and
Rock Climbing Courses, during which 211 men
and women were trained. NIM also conducted 8
special courses for various organizations in which
366 men and women were trained during the year.

###### CEREMONIALS, HONOURS AND AWARDS

15.17 The responsibility for organizing National
Functions like the Republic Day Parade, the Beating
Retreat Ceremony, Martyrs’ Day and the
Independence Day is entrusted to the Ministry of
Defence. The Ministry also organizes Defence
Investiture Ceremonies for presentation of Gallantry
and Distinguished Service Awards at Rashtrapati
Bhawan in association with the President’s Secretariat.


The Ceremonial functions organized during the year
are detailed in the following paragraphs.

15.18 Investiture Ceremony, 2006: The
Defence Investiture Ceremony, 2006 was held at
Rashtrapati Bhawan on March 22 and 31, 2006
when the Gallantry and Distinguished Service
Awards, mentioned in Table No. 15.3 and 15.4,
announced on the Independence Day, 2005 and
Republic Day, 2006 were presented by the
President to the awardees.

**_Table No. 15.3_**

**_Gallantry Awards_**

Kirti Chakra 04 (3 posthumous)

Shaurya Chakra 43 (17 posthumous)

**_Table No. 15.4_**

**_Distinguished Service Awards_**

|Kirti Chakra|04|(3 posthumous)|
|---|---|---|
|Shaurya Chakra|43|(17 posthumous)|

|Param Vishisht Seva Medal|29|
|---|---|
|Bar to Ati Vishisht Seva Medal|02|
|Ati Vishisht Seva Medal|52|


Prime Minister inspecting a tri-services guard of honour at Red Fort, New Delhi on Independence Day, 2006


-----

15.19 Other awards like Vishisht Seva Medal,
Sena Medal, Nao Sena Medal, Vayu Sena Medal
and Bar to these Medals were presented by the
respective Chiefs of Staff and Senior
Commanders at separate Investiture Ceremonies.

15.20 Independence Day Ceremony 2006:
The Independence Day Celebrations at Red Fort
began with the singing of patriotic songs by
schools children’s choir in different Indian
languages in the early morning of August 15,
2006. Later, the three Services and Delhi Police
presented Guard of Honour to the Prime Minister.
The Prime Minister then unfurled the National Flag
on the ramparts of the Red Fort to the
accompaniment of the National Anthem played
by the Services Band. A 21 Gun Salute was
presented on the occasion. After the Prime
Minister’s Address to the Nation, the ceremony
concluded with the singing of National Anthem
by the children and NCC cadets from Schools of


Delhi and release of balloons. Later, during the
day, the President laid wreath at the Amar Jawan
Jyoti at India Gate paying homage to those who
sacrificed their lives for the freedom of the
motherland.

15.21 The gallantry awards announced on the
Independence Day, 2006 are detailed in Table
No. 15.5:
**_Table No. 15.5_**

|Awards|Total|Posthumous|
|---|---|---|
|Kirti Chakra|02|02|
|Shaurya Chakra|16|10|
|Bar to Sena Medal|02|-|
|Sena Medal|81|15|
|Nao Sena Medal|06|-|
|Vayu Sena Medal|1|-|


Remembering the Martyrs - Vijay Divas, 2006


-----

15.22 Vijay Diwas: Vijay Diwas was celebrated
on December 16, 2006 followed by a cultural
programme and band display at the Major Dhyan
Chand National Stadium, New Delhi.

15.23 Amar Jawan Jyoti Ceremony, 2007: The
Prime Minister laid a wreath at the Amar Jawan
Jyoti of India Gate in the morning of January 26,
2007. Two minutes silence was observed for
paying homage to those who laid down their lives
in safeguarding the integrity of our nation.

15.24 Republic Day Celebrations, 2007: The
unfurling of the National Flag at the Rajpath
marked the beginning of the Republic Day
Parade. The President’s Body Guards presented
the National Salute followed by the National
Anthem played by the Service Bands with a 21
gun salute. The President of the Russian
Federation, Mr. Vladimir V Putin was the Chief
Guest on the occasion.


15.25 Mounted columns of 61 Cavalry,
mechanized columns comprising T-72 Tanks,
Bofors Gun, Pinaka Launcher, TC Reporter Radar,
Mobile Decontamination Vehicle, Transportable
Army Wide Area Network Node, Unmanned Aerial
Vehicle, Indra PC-II Radar, marching contigents
and bands of Services, Para Military Forces, Delhi
Police, Railway Protection Force, NCC and NSS
were part of the Parade. The DRDO equipment
column included Brahmos, Bridge Layer Tank, Nag
on Namica Akash Weapon System and Weapon
Locating Radar. 21 National Bravery Award
winning children seated on elephants also
participated in the Parade. Tableaux of States/
Union Territories, Central Ministries and
Departments and cultural items by school children
were the other attractions of the parade. The
parade ended with a dare-devil motor cycle display
by Army Provost ‘Shwet Ashw’ followed by a Fly
Past by aircrafts of the Indian Air Force.


Martial tunes by the massed band of the Army at Vijay Chowk, New Delhi for Beating Retreat, January 2007


-----

|Table No. 15.6|Col2|Col3|
|---|---|---|
|Award|Total|Posthumous|
|Kirti Chakra|06|05|
|Shaurya Chakra|31|13|
|Bar to Sena Medal/Nao Sena Medal/Vayu Sena Medal (Gallantry)|04|-|
|Sena Medal/ Nao Sena Medal/ Vayu Sena Medal(Gallantry)|74|11|
|Param Vishisht Seva Medal|27|-|
|Bar to Ati Vishisht Seva Medal|01|-|
|Ati Vishisht Seva Medal|52|-|
|Yudh Seva Medal|01|-|
|Bar to Vishisht Seva Medal|04|-|
|Vishisht Seva Medal|123|-|
|Bar to Sena Medal(Gallantry)|02|-|
|Sena Medal/ Nao Sena Medal/ Vayu Sena Medal(Devotion to duty)|68|01|


15.26 The details of gallantry and distinguished
service awards  announced on the Republic Day
are given in Table No. 15.6.

15.27 Beating Retreat Ceremony, 2007: The
‘Beating Retreat’ is a centuries old military


tradition dating back to the days when troops
disengaged from battle at sunset. The Beating
Retreat Ceremony was organized at Vijay Chowk
on January 29, 2007 denoting departure of the
troops assembled at Delhi for participating in the
Republic Day Celebrations. This brought the


With the magnificent North Block as the backdrop, Army’s massed band at Vijay Chowk for Beating Retreat, Jan. 2007


-----

curtain down on the Republic Day
festivities. Bands of the three

**_Ceremony denotes_**

Services participated in this
Ceremony. The conclusion of the
ceremony coincided with

**_participating in the_**

illumination of the Rashtrapati

**_Republic Day_**

Bhawan and India Gate.

**_Celebrations._**

15.28 Martyrs’ Day Ceremony,
**_2007: On January 30, 2007, the President laid a_**
wreath at Mahatma Gandhi’s Samadhi at Rajghat.
Floral tributes were also paid by the Vice
President, the Prime Minister and other
dignitaries. This was followed by observance of
two minutes’ silence at 1100 hours to pay homage
to those who sacrificed their lives in India’s
struggle for freedom.

###### OFFICIAL LANGUAGE DIVISION

15.29 Official Language Division in the Ministry
of Defence implements the official language policy
of the Central Government in the Ministry as well
as its attached and subordinate offices etc., spread
all over the country. Apart from doing translation
(from English to Hindi and vice-versa) of routine
correspondence and the documents, required to
be submitted before various Committees of
Parliament, the Division is also responsible for
conducting meetings of various Hindi Samitis as
also for running incentive schemes to implement
the progressive use of Hindi.

15.30 **_Training:_** Keeping in view the policy of
imparting knowledge of Hindi language, Hindi
stenography and Hindi typing to eligible officers/
employees working in the offices of Central
Government, relevant training was  imparted to
them in the Ministry of Defence. The training in
the offices under the Ministry of Defence, located
at Delhi was monitored through the meetings of
the Official Language Committee of the Ministry
while in respect of other offices it was done
through their quarterly Hindi progress reports and
the official language inspections.


15.31 **_Meetings of high level_**
**_Hindi Committees:_** Meetings
of the two Hindi Salahakar Samities,
i.e. one for the Departments of
Defence, Defence R&D and ExServicemen Welfare and the other
one for the Department of Defence
Production, were organized under
the Chairmanship of Raksha Mantri/ Raksha
Rajya Mantri, besides holding the quarterly
meetings of two departmental Official Language
Implementation Committees. An important
decision of Hindi Salahakar Samiti was also
implemented this year by nominating one nonofficial member from each of the Hindi Salahakar
Samities as observer.

15.32 **_Rajbhasha Sangoshthi (Seminar):_** For
the first time, a ‘Rajbhasha Sangoshthi’ on
‘Increasing the use of Hindi in various organizations
of technical & scientific nature under the Ministry
of Defence’ was organized in the Departments of
Defence, Defence Research & Development and
Ex-Servicemen Welfare on November 9, 2006,
under the Chairmanship of RURM.

15.33 Hindi Workshops/ Hindi Pakhwara:
Four Hindi workshops were organized in the
Ministry. Apart from lectures on the subjects
prescribed by the Department of Official
Language (Ministry of Home Affairs), the
participating officers/ employees  also underwent
practice session on noting and drafting in Hindi.
Likewise, Hindi pakhwara was organized in the
Ministry from September 1-15, 2006. Various
competitions and other activities organized during
the Pakhwara, encouraged one and all in the
Ministry to maximize the use of Hindi in their
official work.

15.34 Incentive Schemes: Apart from
continuing to implement almost all the incentive
schemes formulated by the Department of Official
Language (Ministry of Home Affairs) for
encouraging use of Hindi on official work and


-----

promoting original writing in Hindi, a cash award
scheme for promoting publication of departmental
Hindi magazines and journals brought out by
various subordinate offices of the Ministry and
also a bi-annual cash award scheme for
promoting writing of books on defence related
subjects in Hindi have also been implemented.

15.35 Official Language Inspections: The
official language inspections were carried out for
monitoring closely the activities relating to official
language in all the three Services, various
subordinate offices and Defence Public Sector
Undertakings. For this purpose, 39 offices have
been covered till December 31, 2006. In addition,
inspections of about 25% sections in the Ministry
were also carried out.

15.36 Official Language Inspections of
**_foreign based offices: For the first time, in the_**
series of official language inspections by the


Ministry, two of the offices of defence
undertakings based in Russia were inspected by
a Joint Secretary. During these inspections, the
possibilities of increasing the use of Hindi in the
offices were explored and suitable suggestions
were given.

15.37 Inspections by the Committee of
**_Parliament on Official Language:_** The
Committee carried out a large number of official
language inspections by visiting various defence
organizations located at Chandigarh, Simla,
Kavaratti, Hyderabad, Darjeeling, Siliguri,
Jamnagar, Bangalore, Lucknow, Kanpur and
Allahabad etc.

###### WELFARE OF PERSONS WITH DISABILITIES

15.38 Reservation of posts for persons with
**_disabilities: The Persons with Disabilities (Equal_**


Homage to the Martyrs - Vijay Divas, 2006


-----

Opportunities, Protection of Rights and Full
Participation) Act, 1995 prescribes that in every
establishment not less than 3% of vacancies shall
be reserved for persons with disabilities of which
1% each shall be reserved for persons suffering
from blindness or low-vision, hearing impairment
and loco-motor disability and cerebral palsy in the
posts identified for each disability.

15.39 The representation of persons with
disabilities in Group ‘A’, ‘B’, ‘C’ and ‘D’ posts in
Department of Defence, Department of Defence
Production and Department of Defence Research
and Development is presented in Table No. 15.7.

15.40 **_Armed Forces: Provisions enshrined_**
under Sections 33 and 47 of the Persons with
Disabilities (Equal Opportunities, Protection of
Rights & Full Participation) Act 1995, lay down


safeguards for persons with disabilities in the
matter of recruitment and retention in the Service.
However, keeping in view the nature of duties
performed by the Armed Forces personnel, all
combatant personnel have been exempted from
the applicability of the Sections ibid by virtue of
special Notifications issued by the Ministry of
Social Justice and Empowerment.

15.41 Ordnance Factory Board (OFB) and
**_Defence Public Sector Undertakings (DPSUs):_**
In Ordnance Factories 1514 employees with
various disabilities are working at various levels
at present. The Defence Public Sector
Undertakings are also committed to follow the
provisions of the Persons with Disabilities (Equal
Opportunities, Protection of Rights and Full
Participation) Act 1995 in order to enable persons
with disabilities to avail the benefits of reservation.


**_Table No. 15.7_**

**_Annual Statement showing the representation of the persons with disabilities in services_**
**_(As on January 1, 2006)_**

|Col1|(As on January 1, 2006)|Col3|Col4|Col5|Col6|
|---|---|---|---|---|---|
|Group|No. of employees|||||
||Total|In identified posts|Visually handicapped|Hearing handicapped|Orthopaedically handicapped|
|1|2|3|4|5|6|
|Group A|15351|3495|1|3|42|
|Group B|36461|2116|8|7|130|
|Group C|220598|7933|200|268|1797|
|Group D|166485|3207|412|486|1093|
|Total|438895|16751|621|764|3062|


-----

###### ACTIVITIES OF VIGILANCE UNITS


-----

###### igilance Division is responsible for regular and surprise inspection of sensitive spots, review

# V

###### and streamlining of procedures and initiating other measures for combating corruption.


16.1. The Vigilance Division in the Ministry of
Defence has been entrusted with the task of
dealing with complaints regarding corrupt
practices, misconduct, irregularities, etc in respect
of employees of Ministry of Defence and various
units under it. It serves as a nodal point for
interaction on behalf of the Ministry of Defence
with the Central Bureau of Investigation (CBI),
Central Vigilance Commission (CVC) and also the
PMO on vigilance related issues and complaints.
The Vigilance Division conducts regular surprise
inspection of sensitive spots, and reviews and
streamlines procedures for
combating corruption. During the
year 2006, 16 Group ‘A’officers
were given major penalty (MES-5, **_were given major_**
Naval HQ-9, Military Farms – 2) and
3 officers of MES were given minor
penalty.  Nine complaints received **_2) and 3 officers of_**
from CVC were investigated and
brought to their logical conclusion. **_penalty.  Nine_**

16.2 Department of Defence

**_from CVC were_**

(including DRDO) and Department

**_investigated and_**

of Defence Production have their
own Chief Vigilance Officers. A

**_conclusion._**

special cell monitors cases referred
to the CBI.

###### DEPARTMENT OF DEFENCE

16.3 In keeping with the highest traditions of
the Services, sensitization against corrupt
practices is carried out right from the ab initio
training stage and also on a regular basis across


the entire stratum of the armed forces. Various
vigilance units proactively monitor all illegal and
corrupt practices of service and civilian personnel.

###### DEPARTMENT OF DEFENCE PRODUCTION

16.4 **_Hindustan Aeronautics Ltd. (HAL): The_**
Vigilance Department has been laying greater
emphasis on preventive vigilance. Preventive
checks and surprise checks help in identifying
areas which are prone to corruption and subject
them to intensive examination with
a view to plugging loopholes in the
system.

16.5 **_Bharat Electronics Ltd._**
**_(BEL): Vigilance function in the_**
company is headed by the Chief
Vigilance Officer. The CVO has
taken initiatives to bring awareness
at all levels and strengthen the
systems and procedures aimed at
ensuring good corporate
governance and preventing
irregularities and improper use of
the company’s resources. The
performance of vigilance unit during
the year has been satisfactory. A large number
of regular/surprise inspections were conducted.
To improve awareness and to strengthen the
vigilance function, executives were put through
Vigilance Awareness programmes and were also
trained about domestic enquiry and principles of
natural justice.


-----

16.6 **_Bharat Earth Movers Ltd. (BEML): The_**
Vigilance Department assists Management in
enhancing transparency and equity in its
operations by having well laid-out system and
procedures covering different aspects of
Vigilance.

16.7 The Vigilance Department scrutinizes
records/ documents selectively to ensure that the
relevant procedures are followed. Complaints are
investigated and reports are submitted to
competent authorities expeditiously. Vigilance
Department conducts surprise checks at identified
sensitive and non-sensitive points on random/
selective basis.

16.8 Apart from the above, the Vigilance
Department also conducts System Audit and
Chief Technical Examiner (CTE) Type Inspection
to ensure optimum compliance of the laid down
instructions/ guidelines/ procedures to ensure
transparency and accountability.


been placed at all offices and common places
advising all outsiders to contact the officers of the
Vigilance Department in case they come across
any instance of corruption.

16.11 Garden **_Reach_** **_Shipbuilders_** **_&_**
**_Engineers Ltd (GRSE): Vigilance activities in_**
GRSE are aimed at maintaining transparency in
all dealings.  A workshop on Vigilance awareness
was held in GRSE on November 8, 2006. Besides
the above, vigilance complaints/ suggestion boxes
have been placed at all conspicuous places in
GRSE.


16.12 Bharat Dynamics Ltd. (BDL): The main

selective basis.

focus of Vigilance Department is on preventive

16.8 Apart from the above, the Vigilance

vigilance and open communication with vigilance

Department also conducts System Audit and

department in the interest of the Company. As

Chief Technical Examiner (CTE) Type Inspection

an outcome of Vigilance inspection, substantial

to ensure optimum compliance of the laid down

savings accrued on account of intensive

instructions/ guidelines/ procedures to ensure

renegotiations made with major suppliers. As a

transparency and accountability.

result of vigilance awareness, the Department
unearthed two cases of bogus adopted sons

16.9 **_Mazagon Dock Limited (MDL): With a_**

included as dependents for deriving

view to increasing transparency in

dependent benefits.

procurement/sale etc. departments **_CVC’s instructions_**
dealing with the tendering process **_regarding posting of_**

16.13 **_Mishra Dhatu Nigam Ltd._**

have commenced hosting tenders **_open tender notices on_**

**_(Midhani): During the year, an_**

on the MDL website. The monthly **_the website of the_**

overall awareness of Vigilance

summary of the tenders above the **_Organization have_**

function has been built up in the

threshold value of Rs. 10 lakh is also **_been fully implemented_**

Company. A team of officers under

being hosted on MDL’s website. **_by all the Ordnance_**

the guidance of Chief Vigilance

**_Factories._**

16.10 Goa Shipyard Ltd. (GSL): Officer has been functioning to
The Vigilance set up in Goa ensure transparency and
Shipyard Ltd is headed by a full-time Chief improvement in the system and procedures.
Vigilance Officer (CVO). He is assisted by one Vigilance Department actively participated in
Senior Vigilance Supervisor, a Senior Assistant bringing out several manuals in the areas of
and two Vigilance Guards.  With a view to purchase; civil works etc., as contribution towards
encouraging people to come forward with system improvement in the Company. Several
information and grievances of a vigilance angle, circulars, guidelines have been issued for the
six Vigilance Complaint Boxes have been installed benefit of the managers at the functional levels,
at various places in the premises of the Company. with a view to implementing and adhering to the
These boxes are opened every Monday. In instructions of Central Vigilance Commission on
addition, printed and framed notice boards have various issues in spirit and perspective.


-----

16.14 Ordnance Factory Board

**_Following the_**

**_(OFB): In Ordnance Factories_**

**_directions of CVC,_**

Organization probity and
transparency in public dealings are
sacrosanct as the organizational
mission. Instructions of CVC,

**_Attached and_**

vigilance awareness and measures
of anti-corruption are being

**_the month of_**

disseminated to employees at all

**_November 2006._**

levels and implementation is being
ensured.

16.15 During the year, about 80 complaints were
processed for further vigilance action and 31
preventive vigilance inspections were conducted.
CVC’s instructions regarding posting of open
tender notices on the website of the Organization
have been fully implemented by all the Ordnance
Factories.

###### DEPARTMENT OF DEFENCE RESEARCH AND DEVELOPMENT

16.16 The main activities of the Vigilance Units
in DRDO during the year were as under :–


� Organising sensitization
programmes and seminars
bringing to fore the importance of
proper, effective and optimum
management of public funds and
public resources.

� Surprise vigilance
inspections of laboratories/
establishments to ensure that
standing instructions and orders
are implemented.

� Conducting confidential enquiries against
malpractices and bringing the errant to
book.

� Processing vigilance cases/inquiries and
preparation of documents for vigilance
charge sheets.

� Ensuring compliance of procedures of
purchase management laid down by
DRDO through periodic vigilance
inspection of laboratories/
establishments.


-----

###### EMPOWERMENT AND WELFARE OF WOMEN

A woman Pilot in Dornier 228


-----

###### he role of women has been increasing steadily in the field of national defence. With the

# T

###### induction of women in various non-combatant branches of the Armed Forces like logistics and law, a larger role is envisaged for them.


17.1 The role of women has been increasing
steadily in the field of national defence. Women
are employed in Defence Production Units,
Defence Research & Development Laboratories,
and as Doctors and Nursing Officers in the Armed
Forces. With the induction of women in various
non-combatant branches of the Armed Forces like
logistics and law, a larger role is envisaged for
them.

###### INDIAN ARMY


weeks, to be at par with male Short Service
Commission Officers.

17.3 Women officers have been serving in the
Armed Forces for about 80 years, first inducted
in the Military Nursing Service in 1927 and then
in the Medical Officers cadre in 1943. In the Armed
Forces Medical Services there are both
permanent and Short Service Commission
Officers.

17.4 In the Regiment of Artillery, Corps of
Signals, Corps of Engineers, Corps of Electrical
and Mechanical Engineers, Army Service Corps
(Food Scientists and Catering Officers), Army
Ordnance Corps, Intelligence Corps, Army
Education Corps, Judge Advocate General’s
Department, and the Army Postal Service, women
officers join as Short Service Commission officers.

###### INDIAN NAVY


17.2 **_Women Officers in the Army: In a_** Signals, Corps of Engineers, Corps of Electrical
significant step which would attract more women and Mechanical Engineers, Army Service Corps
in the Army, the tenure of Women Officers in Short (Food Scientists and Catering Officers), Army
Service Commission has been increased from 10 Ordnance Corps, Intelligence Corps, Army
years to 14 years of service. Besides, their Education Corps, Judge Advocate General’s
promotional avenues have been substantially Department, and the Army Postal Service, women
enhanced. Earlier, they were eligible for only one officers join as Short Service Commission officers.
promotion, viz., to the rank of Major after 5 years
of service. As per a recent decision of the **_INDIAN NAVY_**
Government, Women Short Service Commission

17.5 The Indian Navy first inducted women

Officers in the Army are granted time-scale

officers in 1992. A total of 179 (including 58

substantive promotions to the ranks of Captain,

Medical Officers) women officers are serving

Major, and Lt Colonel rank after 2, 6 and 13 years

across various units in the Navy.

of reckonable service respectively.

These officers are assimilated into

This is at par with the promotions **_Women Officers are_**

the mainstream and their promotion

available to the Permanent **_recruited in various_**

prospects, training as well as career

Commission Officers. In addition, **_branches of the Armed_**

progression, are at par with their

with a view to ensuring gender **_Forces as Short_**

male counterparts.

equality, the training period of **_Service Commissioned_**
women officers in the Army in Short **_officers for ten years_** 17.6 Women are being inducted
Service Commission has been **_initially, extendable by_** into the Navy, as Short Service

**_four more years._**

increased from 24 weeks to 49 Commission (SSC) officers in the


-----

Executive (ATC, Law & Logistic Cadres) and the
Education Branch.

17.7 **_Adult Computer Literacy and Hobby_**
**_Classes: The Naval Wives’ Welfare Association_**
(NWWA) Kendras have been rejuvenated with
special emphasis on computer literacy for women
and the conduct of hobby classes to promote
embroidery, soft toy making, art and micro
management skills. IT complexes have been
opened for ladies and family members for
computer and IT learning.

17.8 On the eve of International Women’s
day, a special workshop, aimed exclusively
at the women employees of the Naval
Dockyard, Visakhapatnam was undertaken.
The Programme titled ‘Live Life Happily’


focused on the importance of education,
marital harmony, regulations at work place
apart from legal and financial topics.

###### INDIAN AIR FORCE

17.9 Induction of women as Short Service
Commission (SSC) officers in flying, technical and
non-technical branches in the IAF commenced
in 1982. As on December 31, 2006, there are 713
women officers (including Medical and Dental
officers) serving in the IAF. As of now Women
officers (except Medical branch) are not being
granted Permanent Commission. However,
Government has approved second extension of
SSC tenure upto 14 years on merit to all these
women officers.


Lady Officers Training to be Indian Naval Fighter Aircraft Controllers


-----

###### COAST GUARD

17.10 Women are  recruited in Officers Cadre.
The selection process for women candidates is
similar to that for the male candidates. The women
officers are posted in non-sea going posts and
are inducted as pilots.

###### SPECIAL FAMILY PENSION SCHEMES

17.11 Ministry of Defence has special pension
schemes for the widows of Service personnel. In
the event of death of Armed Forces personnel in
war or war like operations, counter insurgency
operations, action against terrorists, extremists etc.,
the families are granted Liberalised Family Pension
at a rate equal to reckonable emoluments last drawn
by the deceased personnel at the time of death.

17.12 With effect from January 1, 1996 on
remarriage of widow, full liberalized family pension
would continue to be drawn by her
subject to certain prescribed

**_Ministry of Defence_**

conditions. Liberalised Family

**_has special pension_**

Pension of those widows which was

**_schemes for the_**

stopped on their remarriage before

**_widows of Service_**

January 1, 1996 with a person other
than real brother of the deceased,

**_of death of Armed_**

has been restored w.e.f. June 24,

**_Forces personnel in_**

2005.

**_war or war like_**
**_operations, counter_**

17.13 If the death of a Service
personnel has occurred on account

**_action against_**

of causes attributable to or
aggravated by military service the

**_etc. the families are_**

family is paid special family pension

**_granted Liberalised_**

at the rate of 60% of reckonable
emoluments drawn by the

**_rate equal to_**

deceased subject to a minimum of

**_reckonable_**

Rs. 2550/- p.m. Widows who got
remarried on or after January 1,

**_by the deceased_**

1996 are also eligible for special
family pension subject to certain

**_of death._**

conditions.


###### DEFENCE RESEARCH & DEVELOPMENT ORGANISATION (DRDO)

17.14 DRDO is sensitive to the need for
empowerment and welfare of its women
employees. It is ensured that women employees
get equal opportunities for enhancement of their
skills and knowledge. Fulfilment of their potential,
and advancement of the organizational objectives
is appreciated and duly recognized by the
management. Laboratories and establishments
of DRDO have been instructed to set up Women’s
Cell to look after the welfare of women employees.
A similar Cell has also been set up in DRDO HQrs
for the purpose.

17.15 Similarly, various welfare measures have
also been undertaken for the women employees
in the Organisation. Crèches have also been
opened as welfare measures in various DRDO
laboratories/ establishments  all
over the country.

###### DEPARTMENT OF DEFENCE PRODUCTION (DDP)

17.16 Ordnance Factories
Board: Women, at all levels, are
actively involved in various activities
of the Organization. A number of
women officers are holding senior
positions in the Organization. In
many Ordnance Factories, women
at the shop floor level operate even
sophisticated Computer
Numerically Control (CNC)
machines.

17.17 **_Hindustan Aeronautics_**
**_Limited (HAL): The strength of_**
women employees in HAL as on
September 30, 2006 is 1,697. A


-----

sizeable number of women employees is in
supervisory and executive cadres.

17.18 Bharat Electronics Limited (BEL): BEL
has 2458 women employees in all the Units and
Offices and has been providing a variety of
facilities and benefits to them, such as specially
furnished exclusive Rest Rooms, Creche facilities
etc. Training Classes in Tailoring are conducted
after working hours through the Labour Welfare
Fund. Women employees are nominated to
participate in meets/ conferences organised by
the set up “Women in Public Sector” (WIPS).
Women employees of Non-ESI category also get
the complete maternity benefits including prenatal care. Akshaya–run by the Bharat Electronics
Ladies’ Association (Bangalore) provides
employment opportunities for destitute women.

17.19 Bharat Earth Movers Limited (BEML):
In line with Supreme Court directives, the
Company has

**_A women Cell, headed_** constituted a
**_by the Officer of the_** Women Cell in all
**_rank of General_** the Production
**_Manager and three_** Units, including
**_officers, has been set_** Corporate Office, to
**_up in MDL to deliberate_** redress the
**_on ways and means of_** grievances of the
**_promoting the growth_** women employees.
**_and development of_**

17.20 **_Mazagon_**

**_women employees for_**

**_Dock_** **_Limited_**

**_harnessing their full_**

**_(MDL): A women_**

**_potential._**

Cell, headed by the
Officer of the rank of General Manager and three


officers, has been

**_DRDO has ensured_**

set up to deliberate

**_that women employees_**

on ways and

**_are accorded equal_**

means of

**_opportunities for_**

promoting the

**_enhancement of their_**

growth and

**_skills and knowledge_**

development of

**_for fulfilment of their_**

women employees

**_potential._**

t o w a r d s
harnessing their full
potential. In order to improve the status and
position of women employees a database has
been prepared to collect comprehensive
information on the profile of women employees
to evolve a meaningful policy.

17.21 Garden Reach Shipbuilders and
**_Engineers Limited (GRSE): A total of 138_**
women employees are engaged in GRSE in
different capacities. Various workshops are
organized at regular intervals to make the
employees aware of the company’s commitment
towards gender equality.

7.22 **_Mishra_** **_Dhatu_** **_Nigam_** **_Limited_**
**_(MIDHANI): The facilities guaranteed to women_**
employees under various welfare legislations
applicable to the Company are being extended.
A cordial atmosphere has been created for the
women employees wherein they can accomplish
their job effectively to achieve the organizational
goals. Women employees are nominated for
various in-house and external training
programmes. International Women’s Day is
celebrated in the organization on March 8, every
year.


-----

-----

Appendix-I

###### MATTERS DEALT WITH BY THE DEPARTMENTS OF THE MINISTRY OF DEFENCE


###### A. DEPARTMENT OF DEFENCE

1. Defence of India and every part thereof
including preparation for defence and all
such acts as may be conducive in times of
war to its prosecution and after its
termination to effective demobilization.

2. The Armed Forces of the Union, namely,
the Army, the Navy and the Air Force.

3. Integrated Headquarters of the Ministry of
Defence comprising of Army Headquarters,
Naval Headquarters, Air Headquarters and
Defence Staff Headquarters.

4. The Reserves of the Army, Navy and Air
Force.

5. The Territorial Army.

6. The National Cadet Corps.

7. Works relating to Army, Navy and Air Force.

8. Remounts, Veterinary and Farms
Organisation.

9. Canteen Stores Department (India).

10. Civilian Services paid from Defence
Estimates.

11. Hydrographic Surveys and preparation of
navigational charts.

12. Formation of Cantonments, delimitation/
excision of Cantonment areas, local selfgovernment in such areas, the constitution
and powers within such areas of
Cantonment Boards and authorities and the


regulation of house accommodation
(including the control of rents) in such areas.

13. Acquisition, requisitioning, custody and
relinquishment of land and property for
defence purposes. Eviction of
unauthorized occupants from defence land
and property.

14. Defence Accounts Department.

15. Purchase of foodstuffs for military
requirements and their disposal excluding
those entrusted to Department of Food and
Public Distribution.

16. All matters relating to Coast Guard
Organisation, including 
(a) surveillance of maritime zones against
oil spills;

(b) combating oil spills in various maritime
zones, except in the waters of ports
and within 500 metres of off-shore
exploration and production platforms,
coastal refineries and associated
facilities such as Single Buoy Mooring
(SBM), Crude Oil Terminal (COT) and
pipelines;

(c) Central Coordinating Agency for
Combating of Oil Pollution in the
coastal and marine environment of
various maritime zones;

(d) Implementation of National
Contingency Plan for oil spill disaster;
and


-----

(e) undertaking oil spill prevention and
control, inspection of ships and
offshore platforms in the country,
except within the limits of ports as
empowered by the Merchant Shipping
Act, 1958 (44 of 1958).

17. Matters relating to diving and related
activities in the country.

18. Procurement exclusive to the Defence
Services.

###### B. DEPARTMENT OF DEFENCE PRODUCTION

1. Ordnance Factory Board and Ordnance
Factories.

2. Hindustan Aeronautics Limited.

3. Bharat Electronics Limited.

4. Mazagon Docks Limited.

5. Garden Reach Shipbuilders & Engineers
Limited.

6. Goa Shipyard Limited.

7. Bharat Dynamics Limited.

8. Mishra Dhatu Nigam Limited.

9. Defence Quality Assurance Organizations
including Directorate General of Quality
Assurance and Directorate General of
Aeronautical Quality Assurance.

10. Standardisation of defence equipment and
stores including Directorate of
Standardisation.

11. Bharat Earth Movers Limited.

12. Development of aeronautics industry and
co-ordination among users other than those
concerned with the Ministry of Civil Aviation
and the Department of Space.

13. Indigenisation, development and production
of defence equipment and participation of
the private sector in the manufacture of
defence equipment.


14. Defence exports and international
cooperation in defence production.

###### C. DEPARTMENT OF DEFENCE RESEARCH & DEVELOPMENT

1. Apprising, assessing and advising Raksha
Mantri on the influence on National Security
of emerging developments in Science and
Technology.

2. Rendering advice to Raksha Mantri and to
the three services and inter-service
organizations on all scientific aspects of
weapons; weapon platforms; military
operations; surveillance; support and
logistics in all likely threats of conflict.

3. To function, with the concurrence of the
Ministry of External Affairs, as the nodal coordinating agency of the Ministry of Defence
on all matters relating to Instruments of
Accord with foreign Governments relating
to the acquisition of technologies whose
export to India is the subject of national
security related controls of foreign
Governments.

4. Formulation and execution of programmes
of scientific research and design,
development, test and evaluation, in fields
of relevance to national security.

5. Direction and administration of agencies,
laboratories, establishments, ranges,
facilities, programmes and projects of the
Department.

6. Aeronautical Development Agency.

7. All matters relating to certification of the
design air worthiness of military aircraft,
their equipment and stores.

8. All matters relating to the protection and
transfer of technology generated by the
activities of the Department.

9. Scientific analysis support and participation
in the acquisition and evaluation


-----

proceedings of all weapons systems and
related technologies proposed to be
acquired by the Ministry of Defence.

10. To render advice on the technological and
intellectual property aspects of the import
of technology by production units and
enterprises manufacturing, or proposing to
manufacture, equipment and stores for the
Armed Services.

11. To deal with reference made under section
35 of the Patents Act, 1970 (39 of 1970).

12. Financial and other material assistance to
individuals, institutions and bodies
corporate, for study and for the training of
manpower on aspects of Science and
Technology that bear on national security.

13. In consultation with the Ministry of External
Affairs, international relations in matters
connected with the role of Science and
Technology in national security including 
(i) matters relating to relations with
Research Organizations of other
countries and with Inter-governmental
agencies, particularly those which
concern themselves, inter alia, with the
scientific and technological aspects of
national security.

(ii) arrangements with Universities,
educational and research-oriented
institutions or bodies corporate abroad
to provide for foreign scholarships and
the training of Indian scientists and
technologists under the administrative
control of the Department.

14. Execution of works and purchase of lands
debitable to the budget of the Department.

15. All matters relating to personnel under the
control of the Department.

16. Acquisition of all types of stores, equipment
and services debitable to the budget of the
Department.


17. Financial sanctions relating to the
Department.

18. Any other activity assigned to, and accepted
by, the Department through understandings
or arrangements with any other Ministry,
Department, Agency of the Government of
India whose activities have a bearing on the
scientific and technological aspects of
national security.

###### D. DEPARTMENT OF EX- SERVICEMEN WELFARE

1. Matters relating to Ex-Servicemen including
pensioners.

2. Ex-Servicemen Contributory Health
Scheme.

3. Matters relating to Directorate General of
Resettlement and Kendriya Sainik Board.

4. Administration of :
(a) the Pension Regulations for the Army,
1961 (Parts I and II);

(b) the Pension Regulations for the Air
Force, 1961 (Parts I and II);

(c) the Navy (Pension) Regulations,
1964; and

(d) the Entitlement Rules to Casualty
Pensionary Awards to the Armed
Forces Personnel, 1982.

###### E. DEFENCE (FINANCE) DIVISION

1. To examine all Defence matters having a
financial bearing.

2. To render financial advice to the various
functionaries of Ministry of Defence and the
Service Headquarters.

3. To act as integrated Finance Division of
Ministry of Defence.


-----

4. To assist in the formulation and
implementation of all schemes/proposals
involving expenditure.

5. To assist in the formulation and
implementation of Defence Plans.

6. To prepare Defence budget and other
estimates for the Defence Services and to
monitor the progress of the schemes
against the budget.

7. To exercise post-budget vigilance to ensure
that there are neither considerable shortfalls
in expenditure nor unforeseen excesses.


8. To advise heads of branches of the Armed
Forces Headquarters in the discharge of
their financial responsibility.

9. To function as the accounting authority for
Defence Services.

10. To prepare the Appropriation Accounts for
the Defence Services.

11. To discharge the responsibility for payments
and internal audit of Defence expenditure
through the Controller General of Defence
Accounts.


-----

Appendix-II

###### MINISTERS, CHIEFS OF STAFF AND SECRETARIES WHO WERE IN POSITION FROM APRIL 1, 2006 ONWARDS

 RAKSHA MANTRI

Shri Pranab Mukherjee From May 23, 2004 to October 24, 2006

Shri A. K. Antony From October 24, 2006 onwards

###### RAKSHA UTPADAN RAJYA MANTRI

Rao Inderjit Singh From January 29, 2006 onwards

###### RAKSHA RAJYA MANTRI

Shri M.M. Pallam Raju From January 29, 2006 onwards

**_Defence Secretary_** **_Chief of Army Staff_**
Shri Shekhar Dutt, SM General J.J. Singh,
From August 1, 2005 onwards PVSM, AVSM, VSM, ADC
From February 1, 2005 onwards

**_Secretary, Defence Production_** **_Chief of Naval Staff_**
Shri K.P. Singh Admiral Arun Prakash
From November 2, 2005 onwards PVSM, AVSM, VrC, VSM, ADC
From August 1, 2004 to October 31 (AN), 2006

**_Secretary (DR&D) and Scientific Advisor_** Admiral Sureesh Mehta
**_to Raksha Mantri,_** PVSM, AVSM, ADC
Shri M. Natarajan From October 31 (AN), 2006 onwards
From August 31, 2004 onwards

**_Secretary (Defence Finance) /_** **_Chief of Air Staff_**
**_Financial Advisor (Defence Services)_** Air Chief Marshal S.P. Tyagi,
Shri V.K. Misra PVSM,AVSM,VM,ADC
Financial Advisor (Defence Services) From December 31(AN), 2004 onwards
From November 8, 2005 to September 7, 2006

Shri V.K. Misra
Secretary (Defence Finance) /
Financial Advisor (Defence Services)
From September 7, 2006 onwards


-----

Appendix-III

###### SUMMARY OF LATEST COMPTROLLER & AUDITOR GENERAL (C&AG) REPORT ON THE WORKING OF MINISTRY OF DEFENCE

 Report No. 4 of 2006: Union Government (Defence Services) Army and Ordnance Factories.


###### I. MINISTRY OF DEFENCE

**_Para 2.1_** **_Extra expenditure due to failure in_**
**_making use of option clause in time._**

Army HQ in April 1996 projected
requirement of engineering support
package for the repair of the Radio
sets procured in 1988 by exercising
option clause of a contract for
procurement of Radio sets concluded
in March 1996 with Electronics
Corporation of India Limited (ECIL).
The option clause though valid upto
March 1997 but the same was not
exercised by Ministry within validity
period. Ministry conveyed its decision
to exercise option clause to ECIL in
July 1999 but the same was not
accepted by ECIL. Ministry took more
than three years to reach a decision
on procurement of essential
maintenance spares for radio sets by
which time validity of option clause had
expired and spares had to be procured
at an additional expenditure of Rs.
4.49 crore, through a supply order
placed on ECIL in September 2002
besides, radio sets procured in 1988
remained without maintenance
support for more than a decade.

###### II. ARMY

**_Para 3.2_** **_Avoidable expenditure of Rs. 4.37_**
**_crore in transportation of atta._**


Headquarters, Northern Command
concluded two contracts for wheat
grinding for 2001-03 and 2003-05 with
a flour mill at Jammu at a distance of
320 Km from supply depot at Srinagar.
During 2001 to 2005, 50533.06 MT of
atta was transported from mill at
Jammu to supply depot Srinagar and
an amount of Rs. 4.37 crore was paid
towards transportation charges. Since
procurement rate of wheat ex-Food
Corporation of India was the same at
Srinagar and Jammu, if the contract
for grinding had been concluded at
Srinagar itself, transportation of atta
from Jammu to supply depot at
Srinagar could have been avoided.
Other Para military forces deployed in
the sector were availing of services of
local flour mills at Srinagar.

**_Para 3.4_** **_Infructuous expenditure due to_**
**_poor planning_**

Ministry placed three indents on
Bharat Electronics Ltd between March
1999 and March 2001 for supply of
2500 radio sets at a cost of Rs. 572.11
crore without taking into account the
post up-gradation requirement of
spares resulting in rendition of spares
worth Rs. 3.01 crore originally
procured as surplus.

**_Para 3.6_** **_Extra  expenditure on procurement_**
**_of expensive oil for a tank_**


-----

Army HQ was intimated by original
equipment manufacturer of a tank
(August 2002) that oil ‘A’ should not
be used for their operation in India and
only oil ‘B’ should be used. However,
MGO Branch/ Army HQ failed to
identify in time the correct oil to be
used in tanks resulted in procurement
of oil ‘A’ worth Rs. 80.94 lakh that was
not required. In order to utilize it, 10600
liters were diverted to another tank in
lieu of cheaper oil which was already
in use involving extra cost of Rs. 77.07
lakh.

**_Para 3.7_** **_Extra payment to a vendor due to_**
**_non-provision of specifications of_**
**_carrying box of radio set_**

Director General, Ordnance Services,
Army HQ placed two indents in
November 2001 and September 2002
on Bharat Electronics Ltd (BEL) for
procurement of 1074 and 500 sets of
sophisticated radio equipment without
mentioning specification of carrying
boxes of radio set in indents. BEL
supplied radio sets duly packed in
cheaper cardboard cartoon which
resulted in extra payment of Rs. 65.58
lakh to BEL.

**_Para 3.1_** **_Recoveries effected at the instance_**
**_of Audit_**

Based on audit observations, Army
units and formations recovered or
agreed to recover unauthorized,
excess and over payments amounting
to Rs. 8.49 crore on account of
unjustified booking of transportation of
the CSD stores from Chennai/ Kolkata
to Andaman Nicobar islands, over
payments in respect of release cases,
railway warrants, rent bills, terminal
gratuity, non-availing of high voltage


rebate on energy charges and towards
conservancy charges.

###### III. WORKS AND MILITARY ENGINEER SERVICES

**_Para 4.1_** **_Avoidable expenditure due to_**
**_wrong selection of site_**

Due to failure on the part of the Army
as well as Centre for Fire Environment
Safety to observe basic safety norms
for construction of explosive sheds
concerned, accommodation
constructed at a cost of Rs. 2.13 crore
for storing ammunition could not be
used for the purpose as it was located
near an Air Force Station.

**_Para 4.2_** **_Avoidable payment of surcharge_**
**_due to non-maintenance of the_**
**_stipulated average power factor_**

Due to delay in installation of shunt
capacitors required as per tariff
schedule of Jodhpur Vidyut Vitran
Nigam Limited resulted in avoidable
payment of surcharge of Rs. 1.77
crore.

**_Para 4.3_** **_Injudicious_** **_sanction_** **_for_**
**_upgradation and additional suits to_**
**_MES inspection bungalows_**

Disregarding meager utilization of
existing inspection bungalows at
Faizabad and Lucknow, Head
Quarters, Central Command,
Lucknow accorded two sanctions
(November 2003/ March 2004) for
their upgradation and additional suites
of these inspection bungalows
incurring unjustified expenditure of Rs.
1.59 crore thereof.

**_Para 4.5_** **_Extra expenditure on unauthorized_**
**_specifications in works_**


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Head Quarters, Southern Command
ordered (July 2004) revision of
specification in ongoing works in
single living accommodation, kitchen,
dinning hall and toilets without the
approval from Government which
resulted in extra expenditure of Rs.
99.36 lakh.

###### IV. AIR FORCE & NAVY

**_i._** **_Acquisition of Executive Jets for_**
**_Communication Squadron_**

The Ministry acquired five Executive Jets
at a cost of Rs. 712.51 crore. The poor
usage of the aircraft sought to be replaced
did not justify the acquisition which was
made through a non-competitive process,
entailing acceptance of an exorbitant
amount of Rs. 126.90 crore for five aircraft
towards modification of interiors and in-flight
entertainment. (Para 2.1 of Report No. 5 of
2006) Air Force and Navy)

**_ii._** **_Procurement of Unmanned Aerial_**
**_Vehicles_**

Twelve Unmanned Aerial Vehicles (UAVs)
imported at a cost of Rs. 567 crore in the
wake of the Kargil Review Committee
recommendation could not be utilized due
to injudicious selection of operational sites
and inability of Navy to complete
infrastructure facilities in time for their
operations. (Para 2.2 of Report No. 5 of
2006) Air Force and Navy)

**_iii._** **_Acquisition of Missiles by IAF_**

The tender process adopted in conclusion
of a contract for import of missile at a cost
of Rs. 407.30 crore for Air Force lacked
competitiveness and transparency.
Ineffective negotiations resulted in
contracted missiles already Rs. 50.60 crore
more expensive than the more advanced


version of the same missile available with
the Air Force. (Para 2.3 of Report No. 5 of
2006) Air Force and Navy)

**_iv._** **_Parking of funds with Public Sector_**
**_Undertaking_**

Ministry advanced Rs. 995.70 crore to
Mazagaon Dock Limited between 1996 and
2002 without placing any orders to avoid
surrender of funds. Failure to recover
adequate financial compensation resulted
in a financial loss to the extent of Rs. 156.12
crore till March 2005. (Para 2.6 of Report
No. 5 of 2006) Air Force and Navy)

**_v._** **_Acquisition of Marine Pollution_**
**_Surveillance Capacity_**

Three Dornier aircraft costing Rs. 102 crore
received in March 2001 by the Coast Guard
for marine pollution surveillance were not
provided with vital Operational Role
Equipment due to improper handling by
Government. There was no assurance that
the equipment contracted after much delay
was appropriate. (Para 5.1 of Report No. 5
of 2006) Air Force and Navy)

**_vi._** **_Extra expenditure in purchase of_**
**_Navigation System_**

Ministry’s failure to take advantage of the
prices available under an option clause of
a contract within its validity period and
belated exercise of the option clause at
higher prices without inviting bids from other
vendors led to extra expenditure of Rs.
29.90 crore in import of 95 sets of
Navigational System for the Air Force. (Para
2.4 of Report No. 5 of 2006) Air Force and
Navy)

**_vii._** **_Procurement of one extra fast attack_**
**_craft_**

A vintage Extra Fast Attack Craft was
acquired at a cost of Rs. 33.56 crore citing


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urgent operational requirement of the Navy
through a process, which precluded
competition and lacked transparency.
Failure to negotiate an appropriate
depreciation resulted in loss of Rs. 4.16
crore. (Para 4.1 of Report No. 5 of 2006)
Air Force and Navy)

**_viii._** **_Irregular grant of allowances of DSC_**
**_personnel_**

DSC personnel engaged with the Air Force
formations in the North East were not
entitled to the counter insurgency allowance
and related concessions. Failure of internal
controls led to irregular payment of counter
insurgency allowance aggregating Rs. 3.51
crore. (Para 2.5 of Report No. 5 of 2006)
Air Force and Navy)

**_ix._** **_Import of spares at exorbitant prices_**

Avoiding internal controls at different stages
and taking decision on incorrect premises
by Naval HQ led to acceptance of higher
rate in import of spares. A more judicious
decision to place orders for specific items
on competitive basis would have yielded a
saving to the extent of Rs. 9 crore. (Para
4.3 of Report No. 5 of 2006) Air Force and
Navy)

**_x._** **_Non-commissioning_** **_of_** **_imported_**
**_equipment_**

Poor planning resulted in delay in
completion of works services for phase-I of
Service Support Centre for SU-30 aircraft
leading to non-commissioning of equipment
worth Rs. 53.95 crore since June/ October
2004. (Para 3.3 of Report No. 5 of 2006)
Air Force and Navy)

**_xi._** **_Acquisition of ready built flats for Coast_**
**_Guard_**

Although acquisition of ready built flats for
Coast Guard was simultaneously


processed alongwith Navy, Ministry did not
explore the possibility of waiver of interest
charges, exemption of stamp duty and
registration charges in respect of Coast
Guard as in the case of Navy resulting in
avoidable extra expenditure of Rs. 2.63
crore. (Para 5.2 of Report No. 5 of 2006)
Air Force and Navy)

**_xii._** **_Unauthorized construction of Officers’_**
**_Institute_**

Prime land valuing Rs. 74.24 lakh was
utilized to construct a transit
accommodation by Western Air Command
in IAF unauthorisdely under the
nomenclature of Officers’ Institute involving
irregular expenditure of Rs. 33.18 lakh.
(Para 3.2 of Report No. 5 of 2006) Air Force
and Navy)

**_xiii._** **_Procurement of spares for test rig_**

Delay in taking action in procurement of
spares for test rig by the Air Force at the
appropriate time led to excess expenditure
of about Rs. two crore. (Para 3.1 of Report
No. 5 of 2006) Air Force and Navy)

**_xiv._** **_Unnecessary import of stores under_**
**_special financial powers_**

Special financial powers delegated to Naval
HQ in the wake of Operation Parakram were
invoked for unnecessary purchase of
spares worth Rs. one crore for turbo
alternators for INS Virat even though the
ship was neither identified as front line ship,
nor there was adequate justification for their
procurement. (Para 4.2 of Report No. 5 of
2006) Air Force and Navy)

**_xv._** **_Recoveries at the instance of Audit_**

An aggregated amount of Rs. 4.98 crore
was recovered at the instance of Audit.
(Para 3.4, 4.4 and 5.3 of Report No. 5 of
2006) Air Force and Navy)


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###### V. PERFORMANCE AUDIT REPORT

 Licensed manufacture of an aircraft

IAF procured 50 aircraft ‘A’ from a foreign
country between 1997 and 2004. The
Government approved licensed
manufacture of 140 aircraft ‘A’ by HAL in
2000. The project was expected to be
completed by 2017-18. The order for the
first block of 34 aircraft was placed on HAL
in December 2003.

Specification of vital air borne systems to be
integrated on the aircraft ‘A’ was not frozen
before entering into a contract for its licensed
manufacture. Delivery schedule of the licensed
manufacturing programme had to be
compressed to meet operational requirements
of IAF indicating inadequate planning for the
programme. The contract with the Original
Equipment Manufacturer (OEM) for licensed
manufacture had several infirmities. The entire
license fee for manufacture of 140 aircraft till
2017-18 was paid upfront, in advance, without
any provision for reduction in case a lower
number were finally manufactured. The cost
of indigenous manufacture worked out to be
more than import cost. Besides, there have
been cost escalations, and in the absence of
binding provisions, the cost continues to rise.
Establishment of repair and overhaul facilities
were lagging behind schedule leading to
increased dependence on the OEM for repair.

(Chapter I of Performance Audit Report No. 4
of 2006)

###### Maintenance of an aircraft fleet in IAF

Performance Audit of the maintenance of
an aircraft ‘B’ in the Indian Air Force
revealed that despite executing appropriate
agreements with the OEM, establishment
of adequate repair and maintenance


facilities lagged way behind the induction
of aircraft, resulting in continued
dependence on the OEM for maintenance.

Performance of HAL was not optimal. HAL
was unable to meet the annual full-overhaul
tasks of engines. Even after completion of
facilities, the failure rate of HAL overhauled
engines was very high and the turn around
time taken for overhaul by HAL was higher
compared to engines overhauled by the
OEM. Base Repair Depot also utilized 36.34
percent and 47.73 percent more than the
standard manhours and fixed higher rates
than the one envisaged in the Detailed
Project Report for the overhaul of aircraft.
BRD also did not have a proper cost
accounting system and their cost estimates
were unreliable.

The sub-optimal performance by
maintenance agencies resulted in low
serviceability and aircraft flying efforts at
squadrons; serviceability status fluctuated
between 43 and 62 percent and there was
a shortfall in flying tasks ranging from 87.48
to 42.52 percent between 1997-98 and
2004-05.

The expectation that establishment of
overhaul facilities would bring about savings
in foreign exchange and turn around time
could not be achieved. As against the
assessed cost of overhaul of Rs. 4.15 crore
per engine the actual cost worked out to
Rs. 5.21 crore.

Poor product support from the OEM was a
recurring problem. Consequently, due to
non-availability of spares, HAL sent 1280
lines of aggregates abroad for repair
between 1998-99 and 2004-05. Likewise,
2223 lines of spares against 57 orders were
awaiting supplies at BRD as of July 2005.
This also led to cannibalization at all levels


-----

with adverse implications on flight safety.
There is an urgent need to use the lessons
learnt from the aircraft ‘B’ experience in
respect of ongoing and future induction.

(Chapter II of Performance Audit Report No.
4 of 2006)

###### Project management in Navy

Indian Navy conceived in 1980s three major
project for modernizing its infrastructure to
meet the growing demands of the Navy.
These projects are: a permanent Naval
Academy at Ezhimala, a new Naval Base
at Karwar and modernization of Naval
Hospital Asvini at Mumbai. There was steep
cost escalation for the Academy from Rs.
167 crore to Rs. 500 crore, for the Base from
Rs. 1,295 crore to Rs. 2,459 crore and for
the hospital from Rs. 93 crore to Rs. 137
crore. Poor estimation of costs at the design
stage, repeated revision of specifications
and scope of works, failure to cap variations
and inclusion of unfavorable provisions in
contracts contributed towards cost
escalation. The delay in the Academy and
the Hospital Projects was due to the
engagement of an architect firm as the
Project Consultant. The process followed
in the selection of the consultant was not
as per the standard best practices and the
inexperience of the consultant and their
substandard work only enhanced the
teething troubles.

There were serious delays in decision
making and implementation. Project
Management Bodies were ineffective in
ensuing adherence to the stipulated
schedules and cost. There was little
evidence of any pro-active problem solving
approach. The projects are still at various
stages of construction/ completion. As a
result, resource development activities are


stifled in the inadequate INS Mandovi, the
existing training establishment,
decongestion of Naval Dockyard, Mumbai
continues to be a distant dream, and a large
portion of Naval and other Service
personnel and their families do not yet have
state of the art medical facilities.

Located in coastal areas, the three projects
have significant environmental impact.
While the Project Authorities have provided
an assurance that environmental concerns
have been adequately addressed, the
Navy needs to make continuing efforts
towards protecting the fragile coastal
ecosystems of the area in which these
projects are located.

In the light of the deficiencies noticed in the
implementation of these three major
projects certain recommendations have
been made in the report for strengthening
management of critical and large
construction projects.

(Chapter III of Performance Audit Report
No. 4 of 2006)

###### VI. ACQUISITION WING SECTT

**_Audit Report No.12 of 2006_**

Bharat Earth Movers Limited incurred
liquidated damages of Rs. 1.19 crore due
to avoidable delay in supply of Rope
Shovels to Coal India Limited beyond the
scheduled delivery period of April, 2003.
(Para 8.1.1)

Incorrect estimation of income and
consequential short payment of advance
income tax during 2000-01 to 2003-04 by
Bharat Electronics Limited in avoidable
expenditure of differential interest of Rs.
3.05 crore. (Para 8.2.1)


-----

Due to inordinate delay in indenting,
coordinating and executing and failure to
monitor the job, Garden Reach Shipbuilders
and Engineers Limited suffered and
avoidable loss of Rs.2.61 crore. (Para 8.3.1)

Failure of the internal audit/internal control
system in Hindustan Aeronautics Limited to
detect short billing of material resulted in
loss to the extent of Rs. 64.62 lakh. (Para
8.4.1)

Vingyan Industries Limited incurred an
avoidable loss of Rs. 1.42 crores due to
abnormal rejections of steel castings. (Para
8.5.1)

###### VII. RESEARCH AND DEVELOPMENT ORGANISATION

**_Para 6.1_** **_Unfruitful expenditure of Rs. 65.24_**
**_lakh on augmentation of fire_**
**_fighting system._**

Due to failure in not considering
replacement of 16 year old hydrant
pipelines, the fire fighting system
augmented at a cost of Rs.65.24 lakh
at Proof and Experimental
Establishment Chandipur could not
sustain the required pressure.
Moreover, the sensitive establishment
remained exposed to serious fire
hazard for the last seven years.

###### VIII. ORDNANCE FACTORY ORGANISATION

**_Para 7.2_** **_Infructuous_** **_expenditure_** **_in_**
**_manufacture of mine clearing_**
**_vehicles._**

Bulk manufacture of charge line mine
clearing vehicles by Ordnance Factory
Chanda before resolving design
deficiencies led to infructuous


expenditure of Rs.3.89 crore towards
their manufacture.

**_Para 7.3 Excess consumption of raw_**
**_materials worth Rs. 1.91 crore_**

Ordnance Clothing Factory
Shahjahanpur revised the estimate of
yarn raw material used in manufacture
of vests upward so as to offset excess
consumption of yarn raw material
valued Rs.1.91 crores due to
inefficiency in production process.

**_Para 7.5_** **_Avoidable consumption of_**
**_cartridges._**

Due to failure of Rifle Factory Ishapore
to exercise proper control over
consumption of empty 5.56 mm ball
cartridges during pre-proof functioning
test coupled with their inability to
stabilize production process of a
weapon led to avoidable consumption
of cartridges worth Rs. 3.14 crore.

###### IX. INFORMATION TECHNOLOGY AUDIT

**_Computerized Inventory Control Project_**
**_in Central Ordnance Depot, Delhi._**

The Army Ordnance Corps with the network
of Central Ordnance Depots, field level
depots and ordnance units is responsible
for the inventory management of weapons,
ammunition, vehicles, equipment and stores
of the Army. Computerization of the
management of the huge inventory held by
the Army was a long felt need. The Ministry
accorded sanction in July 1994 for
implementation of the Computerized
Inventory Control Project (CICP) to be
completed by June 1999. The project was
planned to be implemented in a phased
manner with the objectives of bringing about
better asset visibility, assistance in reducing


-----

inventory holding and carrying costs,
provision of Management Information
System to users and management,
reduction of manual intervention and
reduction in manpower and related costs.

An audit scrutiny of the Project revealed that
the CICP, a conceptually good project, had
been very badly delayed and only one
Phase could be implemented. Presently,
the completion date of the entire project was
uncertain as the phase III was yet to be
sanctioned. This led to denial of full benefits
of computerization namely better asset
visibility, restricted wastage, on-line MIS for
efficient management, instance reaction to
operational requirements, better utilization
and down sizing of manpower. In addition,
one per cent saving, estimated at Rs. 500
crore as a consequence of reduction in total
inventory holding (Valuation 2002), could
not be achieved.

Further, not all the modules of the
implemented phase I were fully functional
and the Army was still dependent on manual
functions for important areas like provision
reviews. The database was incomplete to
a large extent. There were few inherent
design deficiencies in the software. Lack
of Business Process Reengineering had
rendered the application to be of limited use
in its present form. The entire application
was running in a security environment that
was far from satisfactory. (Chapter-IV of
Report No.3 of 2006 Army and Ordnance
Factories (Performance Audit)

**_Armoured Vehicle Group of Factories_**

The Armoured Vehicle Group of Factories
comprises of five ordnance factories under
the control of the Ordnance Factory Board,


which meet the requirement of the Army for
armoured vehicles, engines and their
components. Performance Audit of the
activities of the above Group of Factories
relating to the period April 2000 to March
2005 revealed delay of more than five years
in production and issue of Tank ‘X’ affecting
its induction schedule and modernization of
mechanized forces, sanctioning of
indigenous production of Tank ‘Z’ despite
non-freezing of the design resulting in delay
in obtaining components and subassemblies from various vendors and the
process of manufacture and assembly at
the Heavy Vehicle Factory, Avadi (HVF),
poor performance of the HVF in the
overhaul of tank ‘X’ coupled with delayed
release of tanks by the Army causing
backlog of the tanks to be overhauled
affecting operational readiness, annual
shortfall in production target of tank ‘X’ by
the HVF ranged between 20 to 100 percent,
payment of overtime allowance to the tune
of Rs. 58.46 crore by three out of five
factories despite the available man-hours
remaining underutilized, spill over in
production of Tanks, engines and
components valued at Rs. 1521.74 crore
during 2001-02 to 2004-05 resulting in
distorting of the unit value of production of
items manufacture and overstatement of the
value of production and issues to the tune
of Rs.1521.74 crore over the four year
period, failure of HVF in attending to repairs
promptly resulting in accumulation of
repairable arisings work Rs.91 crore of
which items work Rs.7 crore were rendered
beyond economical repair causing loss to
the exchequer. (Chapter-III of Report No. 3
of 2006 Army and Ordnance Factories
(Performance Audit)


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