For the first time since Independence, a comprehensive review of the National Security System was carried out. As a result of this review, many important decisions and measures were taken. This resulted in the establishment of Chief of Integrated Defence Staff, Defence Procurement Board, Defence Intelligence Agency, Andaman & Nicobar Command, Strategic Forces Command, and Integration of three Service Headquarters with the Ministry of Defence. The National Security Council was constituted and Defence Minister’s Committee was revived after more than twenty years. The Defence Ministry has also delegated its various financial powers to Army, Navy and Air Force, in areas such as construction, purchase, repair and maintenance and information technology.

During the last four years, the spending on Defence has broken all the records. The Government gave adequate importance for spending more money on the crucial aspects of national security. While the total expenditure on Defence in 1997-98 was Rs 35,277 crore, it now stands at Rs 65,300 crore for 2003-2004. The last four years have seen systematic induction of many new and much needed weapon systems. As a percentage of GDP, defence expenditure had steadily declined from 2.88 in 1990-91 to 2.17 in 1996-97. Whereas, during the last three years, it has gone up and is now about 2.7 per cent.

The Government has decided to acquire 66 British HAWK Advanced Jet Trainers (AJT) for the Indian Air Force. Out of these 66 AJTs, 24 will be procured from M/s British Aerospace Systems of UK in flyaway condition. The remaining 42 AJTs will be produced in India by M/s Hindustan Aeronautics Ltd, which will manufacture the aircraft under Transfer of Technology (ToT)/license from the parent company. The delivery of the aircraft will commence after 35 months from signing of the contract with the British Firm and all the 66 AJTs are expected to be available to the Indian Air Force before the next six years.

A contract was signed with Russia for the supply and indigenous manufacturing of advanced multi-role aircraft Sukhoi 30 MKI. The first squadron of the aircraft has already been inducted and is fully operational. Twelve more Sukhoi – 30 MK1 were inducted in IAF during the year 2003. The induction of Su-30 MKI is being done in a phased manner. The total cost for supply of 40 Su-30 MKI aircraft is USD 1,462 million. In addition, 10 Su-30 K aircraft, acquired in 1999, would also be upgraded to Su-30 MKI standards. The induction and upgradation is expected to be completed by 2004. One hundred forty Su-30 MKI aircraft would also be manufactured by Hindustan Aeronautics Limited under Transfer of Technology arrangement upto 2017. IL-78 air-to-air refueller aircraft were inducted in IAF. These are the first such aircraft to be inducted in IAF. Besides this Unmanned Aerial Vehicles (UAVs) were also inducted in the Air Force.

A major contract was signed with Russia for the procurement of 310 T-90 tanks to strengthen Indian Army. Under the contract 124 tanks will be imported in fully formed condition and 186 tanks in Completely Knocked Down (CKD)/Semi knocked Down (SKD) condition, alongwith Transfer of Technology for indigenous manufacture in India.

A Memorandum of Principles and Order of Cooperation has been signed with Russia and Israel regarding the procurement of Airborne Warning and Control Systems (AWACS). This Memorandum envisages the delivery of the aircraft, complete in all respects, to the Indian Air Force by the prime vendor.

The Government has approved a long-term approach for series production of submarines in the country in order to meet the Naval requirements. This would help in acquisition of national competence in submarine building.

Indigenisation has been at the core of the defence planning process under this Government. Several steps have been taken to make the country self-reliant in defence needs.

Agni-II, with a range of 2,000 km, has been successfully developed and is being inducted. The development of Agni-I, a single stage solid propelled missile having a range of 800 kms is complete and it has been accepted for induction. The range fills the gap between Prithvi and Intermediate Range Ballistic Missile. This missile can be launched from rail/road mobile launchers. The supersonic cruise missile BRAHMOS, which is a joint venture between India and Russia underwent several successful flight trials. The ship-borne version of BRAHMOS has been cleared for induction by the Navy. Production facilities have also been geared up in both the countries to meet the production orders. ‘Dhanush’, the Naval version of Prithvi surface-to-surface missile was successfully launched. The telemetry and tracking network have established that the technology demonstration met its entire mission objectives. The Navy will soon operationalise the system. The development of conventional warheads of 1,000 kg and 500 kg for the PRITHVI Missile has been completed. Advanced version of the missile PII was tested.

The Defence Research and Development Organisation successfully developed Nuclear, Biological and Chemical Protection Gear and SARVATRA bridging systems. Both these items have entered the production phase.

TEJAS, the light combat aircraft (LCA) Technology Demonstrator I & II, have successfully completed several test flights. In the year 2003, the aircraft crossed the sound barrier. Digital-fly-by-wire control system of the production versions has been successfully tested. KAVERI, the indigenously developed engine for LCA, has completed ground testing in India and high altitude testing in Russia. Development trials of the modified versions of the engine with better structural integrity, surge margin, improved combustion pressure loss and reduced weight, have also been successful.

The development of Advanced Light Helicopter (ALH) got a major thrust when the Hindustan Aeronautics Limited indigenously developed the ALH. The first lot of seven ALH has been delivered to the Armed Forces. ALH is designed to cater to the diverse operational requirements of the armed forces

The multi-barrel rocket system PINAKA, is ready for induction after successful user trials by the Army. PINAKA has the capability of firing in a single salvo, 12 rockets in less than 40 seconds, with a range of 38 kms. The anti-tank missile Nag has successfully completed user trials and is ready for induction.

The Pilotless Target Aircraft ‘LAKSHYA’ was inducted into the Navy and Air Force. Phase 1 and Phase 2 deliveries to the army have also been completed. With this the country has reached self-reliance in this class of Unmanned Aerial Vehicles.

The system development of NISHANT, an unmanned aerial vehicle for aerial surveillance and reconnaissance, is complete. After four successful flights of the system incorporating user suggested modifications, maintainability evaluation of the system has been completed. Limited series production is likely to commence shortly.

The quick reaction Air Defence missile AKASH has undergone several consecutive successful flight trials in guide mode.

The INS ‘Prabal’, an indigenously built missile vessel, has been commissioned. The ship is equipped with a 76 mm combined surface and anti-aircraft gun as well as surface missiles.

Delhi class destroyer INS Mumbai was commissioned into Indian Navy. Two Krivak class stealth frigate from Russia and two fast attack crafts were also inducted in the Navy. Keil for first indigenously manufactured stealth frigate INS SHIVALIK was laid.

The country’s first indigenously designed and developed aircraft carrier, known as air defence ship, is being built at Cochin Shipyard Ltd at an estimated cost of Rs 1,700 crore. This would take about seven years.

The 160 km long Tamu-Kalewa-Kaylemyo road on the Indo Myanmar border, constructed by the Border Roads Organisation, was inaugurated. This marked the beginning of a new era of cooperation and friendship between the two countries.

Electronic Warfare Systems SANGRAH and TEMPEST have been inducted into Navy and the Air Force. The Defence Research and Development Organisation has successfully developed FIN Stabilised Armour Piercing Discarding Sobot (FSAPDS) Softcore ammunition for use on T-72 Tanks.

The Indo-US Defence Policy Group (DPG) met form time to time to continue talks on specific areas of Defence Cooperation. Both sides reviewed the defence cooperation and established the linkage between the two countries from military standpoint. The DPG also explored the prospects of sharing defence technology. As a follow up of these meetings, several joint exercises between the forces of the two countries have been conducted. The Executive Steering Group of the three Services of the two countries have met to plan and review military to military cooperation and oversee implementation of the visits, exercises and training programmes. The training programme will include training for combined humanitarian airlift, combined special operations training, small unit ground/air exercises and naval personnel exchange and familiarisation and combined training exercises between US Marines and the corresponding Indian Forces.

As a measure to introduce transparency in defence deals, Defence Minister asked the Central Vigilance Commission to investigate into all major defence purchases since 1989 and the CVC’s report has since been submitted.

The Defence Industry sector is now open for private sector participation upto 100 per cent equity, with Foreign Direct Investment component being permissible upto 26 per cent subject to licensing. This was considered necessary in order to achieve self-reliance in defence production sector. The private sector has demonstrated its capabilities in various defence related fields and hence their technical and managerial resources will be harnessed. Opening of this sector to private participation is expected to reduce existing dependence on defence related imports by the infusion of capital and technology.

The Government has decided to lift the ban on employment of agents in defence purchases. A Regulatory mechanism, which would govern the conditions of employment and operations of such agents, will be formulated soon.

INS ‘Kursura’, a foxtrot class submarine was decommissioned and inaugurated as a museum in Vishakahapatnam. The Submarine Museum is the first of its kind in Asia and is expected to give a boost to the tourism industry.

For the first time in the country, a war memorial museum will be set up in memory of our martyrs. The museum will be set up in Delhi. A decision has also been taken to establish National Defence University.

The Red Fort in Delhi was vacated by the Army and was handed over to Archaeological Survey of India for conservation.

The Army Navy and the Air Force played a prominent role in the rescue and relief operations in the wake of the earthquake that hit Gujarat in January, 2001.

The armed forces undertook massive relief and rescue operations for cyclone victims of Orissa, West Bengal and Bihar.

Army and Air Force personnel took active part in various UN Peace keeping missions in Sierra Leone, Congo, Lebanon and Ethiopia-Eritrea. The Indian Air Force carried medical personnel and relief supplies to earthquake affected Iran.

The Committee to evolve a national policy for welfare of jawans and ex-servicemen, has unanimously recommended that compensation to armed forces personnel killed in action after ‘OPERATION VIJAY’ will get the same compensation, which is being given to those, killed during ‘OPERATION VIJAY’. The second meeting of the Committee, which was held under the Chairmanship of Defence Minister in New Delhi on November 15, 1999, also recommended that a corpus of fund should take care of this. This proposal is under active consideration of the Government.

The Government has approved a Rs. 18,000 crore Defence Housing project, the biggest ever since independence, to substantially increase and improve housing facilities for serving soldiers. In order to overcome the shortfall of married accommodation for service personnel, the Government has approved construction of three lakh dwelling units within a period of four years. An ex-servicemen contributory health scheme has been launched for the benefit of over 1.5 million ex-servicemen. The scheme is available in 104 designated military stations all over the country. Enhanced medical facilities will be available in the military stations. The scheme would cater for medicare of all ex-servicemen in receipt of pension including disability pension and family pensioners, as also dependants to include wife/husband, legitimate children and wholly dependent parents. Several measures have been taken for improving the conditions of the troops deployed in Siachen, the highest battlefield in the world. The Siachen allowance has been raised to Rs. 4,667 for Junior Commissioned Officers and other ranks and Rs 7,000 for officers, per month, compared to Rs. 2,000 and Rs. 3,000, respectively, recommended by the Fifty Pay Commission.

Operation Sadbhavna was launched by Indian Army in Jammu & Kashmir to forestall militancy by winning the hearts of the people, especially along the Line of Control and militancy prone areas. The operation was executed in 190 villages of the State covering a population of 1, 09, 541. A total of 1,219 students were covered under Army Goodwill Schools programme in the districts of Leh and Kargil. The army has adopted the district Bal Ashram at Kargil, which houses 47 orphans. Approximately 500 girls are being imparted a composite training package, which includes various skills like tailoring, knitting, carpet weaving, computer training and a comprehensive education package for enhancement of their qualification.

The Indian Army cleared in a scientific and systematic manner almost 70 per cent of the hyacinth affected Harike Lake situated at the confluence of Satluj and Beas Rivers. The lake is one of the largest fresh water riverine and lacustrine wetland that provides refuge to biological diversity, including some endangered species. Army formations also completed successful research on black-necked cranes inhabiting Ladakh region.

The Indian Army raised an Ecological Task Force in October, 2000, to facilitate conservation and regeneration of Delhi Ridge.

The army has launched operation Apricot in Kargil to provide water to save the apricot plantation. The economy of Kargil depends a lot on apricots. There are over three lac apricot trees in the region. Of these 1,66,000 trees in fourteen villages have been covered under Op Apricot.

The President’s colours were presented to the Coast Guard.

The Indian Navy carried out joint exercise with the Navies of Singapore and Japan during last year. It helped to foster closer relations and to enhance mutual understanding and goodwill with the foreign Navies. INS-MYSORE went on a goodwill visit to Europe and USA in July, 2000. It took part in the prestigious International Naval Review at New York conducted by the US Navy.

The Defence Research and Development Organisation has developed a herbal beverage called Multivit for the armed forces personnel posted at high altitudes. Multivit is an energy drink, which does not freeze even at 22 degrees C below zero. The Indian Army bagged the first position in Exercise Airborne Africa held in Botswana in June, 2002. This was an endurance and tactical competition of airborne army units of twelve participating countries including USA and UK.

The Naval Hydrographic Department of the Indian Navy was awarded the First Laureate Prize for protection of marine environment for the year 2001.

Extensive fencing of international border with Pakistan and Bangladesh and LoC in Jammu and Kashmir has been undertaken.

Successful anti-insurgency operations were carried out by the Army in various parts of Jammu and Kashmir and northeast. Many intruders/terrorists were killed in these operations.

The Naval Academy being set up at Ezhimala in Kerala is planned to be commissioned by December, 2004. The training for the first batch will commence in July, 2005.

The Government has taken a major decision of conducting National Defence Academy, Naval Academy and Combined Defence Services Examinations in Hindi also besides English. For the first time in country’s history voting facility for Armed Forces Personnel through proxy was accorded.