In Parliament

India and China have agreed to seek a fair, reasonable and mutually acceptable settlement of the boundary question through a peaceful and friendly dialogue.

Both the countries signed an agreement on the maintenance of peace and tranquility along the Line of Actual Control (LAC) in the India-China border areas in 1993 and a second agreement on confidence-building measures in the military field along the LAC in 1996. These two agreements provide an institutional framework for the maintenance of peace and tranquility in the border areas. Both sides have also agreed to expedite the process of LAC clarifications within the existing mechanism.

This information was given by Defence Minister, Mr George Fernandes in a written reply to Mr KP Singh Deo in Lok Sabha.

The Air Force has an adequate airspace surveillance capability along the frontiers. The resources of Indian Air Force and Civil Aviation are being optimally combined for effective airspace surveillance. Methods for improving the surveillance capability are further being addressed keeping in view the fact that the radar surveillance of the entire airspace of the country requires immense resources.

To improve the security of air-space, the Government has constituted a Government Com-mittee on Airspace Management (GCAM) to look into all aspects of airspace surveillance and management. This committee would also assess the needs to integrate civil and military radars and the requirements for additional surveillance equipment.

This information was given by Defence Minister, Mr George Fernandes in a written reply to M/S Ramsheth Thakur, Ashok N Mohol, A Venkatesh Naik and Ramjee Manjhi in Lok Sabha.

The Ordnance Factories have developed 5.56 mm INSAS rifles which are superior to A K series weapon, both in respect of accuracy and lethality. The proposal for import of
A K 47 rifle was initiated in 1993 prior to commencement of regular supply of 5.56 mm INSAS by the Ordnance Factories. The import fructified in 1995. Subsequent procurement of 3600 under-barrel grenade launcher system was done with compatible A K 47 rifles. No separate global tenders for procurement of A K 47 rifles have been floated since 1995. Ordnance Factories are supplying 5.56 mm INSAS rifles to the services and para-military forces as per their requirement.

This information was given by Defence Minister, Mr George Fernandes in a written reply to Mrs Preneet Kaur in Lok Sabha.

The 130 mm gun system upgunned to 155 mm calibre will be produced at Gun Carriage Factory (GCF), Jabalpur on the basis of a technology taken from Israel. Initially, GCF will assemble 180 such gun systems with the kits imported from Israel. Subsequently 300 gun systems will be manufactured indigenously. Production with imported kits has already begun at GCF.

This information was given by Defence Minister, Mr George Fernandes in a written reply to Mrs Jayashree Banerjee in Lok Sabha.

There are three shipyards, namely, Mazagon Dock Ltd in Mumbai, Garden Reach Shipbuilders & Engineers Ltd in Kolkata and Goa Shipyard Ltd at Goa under the Ministry of Defence. These shipyards, being companies registered under the Companies Act, raise their own resources for modernisation/upgradation. During the IXth Plan period, these shipyards invested approximately Rs 60 crore in modernisation.

Modernisation and upgradation of shipbuilding and ship-repair facilities of the Defence shipyards is an on-going process and is done on a need- based basis for production of warships and to absorb higher technologies as per requirements. Modernisation has taken place in civil works, machine capacities, information technology, computer aided design and machining capabilities, welding technology, managerial and technical skills, etc. Further, adoption of modular techniques for pre-outfitting acquisition of modern and higher capacity material handling equipment, development and renovation of slip-ways etc are also planned and are being executed in a phased manner.

This information was given by Defence Minister, Mr George Fernandes in a written reply to Mr Ananta Nayak in Lok Sabha.

During the current financial year, upto October2001 the percentage expenditure of the budgeted estimates under the capital head is 18 per cent for the Army, 38 per cent for the Navy and 32 per cent for the Air Force and under the revenue heads, 37 per cent is for the Army, 41 per cent for the Navy and 36 per cent for the Air Force. Procurement is a continuous process. Several procurement proposals are in progress and are likely to materialise in due course.

This information was given by Defence Minister, Mr George Fernandes in a written reply to Mr Dipankar Mukherjee and Mrs Chandra Kala Pandey in Rajya Sabha.

A committee has been formed on January 19, 2000 with representatives from Indian Air Force (IAF), Hindustan Aeronautics Limited, Defence Research and Development Organisation, Defence public sector units and inspection and certification agencies such as Centre for Military Airworthiness Certification (CEMILAC) and Director General Aeronautics Quality & Assurance (DGAQA) to look into the requirement of spares for IAF and feasibility of their indigenous development. The Government is facing problems in getting spares from abroad due to closure of production units.

Spares are being procured from Russia, Bulgaria, Ukraine and other countries for those contracted items/spares for which the production units have been closed. In-house expertise of technical personnel has been availed for production and maintenance of the imported equipment.

This information was given by Defence Minister, Mr George Fernandes in a written reply to Mr C P Thirunavukkarasu in Rajya Sabha.

The inter-Governmental agreement (IGA) signed on October 4, 2000, inter-alia, provides for the acquisition of Admiral Gorshkov, an aircraft carrier from Russia and its refit and modernisation. The committee constituted to examine the detailed project document (DPD) received from Russia has, recently, submitted its report. Investment decision on the acquisition of Admiral Gorshkov has not yet been taken.

This information was given by Defence Minister, Mr George Fernandes in a written reply to Mr K Rama Mohana Rao, Mr Rama Muni Reddy Sirigireddy and Prof M Sankaralingam in Rajya Sabha.

Repair/overhaul facility of helicopter aero-engines is set up where the fleet strength makes it economically viable. The facilities for overhaul of TV3 engines of Mi-17 helicopters, inducted into the Indian Air Force in 1985-1986, were initially scheduled for completion by 1993-94. However, due to the break-up of the erstwhile Soviet Union, negotiations could be completed only between 1996 and 1999 for setting up the facilities. Thereafter, the facilities have been commissioned and engine overhaul started in January 2001.

Repair/overhaul facilities for engines of Chetak and Cheetah helicopters were established in the early sixties and these are fully operational.

This information was given by Defence Minister, Mr George Fernandes in a written reply to Mr Khagen Das in Rajya Sabha.

In order to bring greater transparency to the whole procurement process and realising that the presence of an authorised representative/agent would improve the delivery of services and follow-up of post-contractual obligations, the Ministry of Defence has on November 2, 2001 issued supplementary instructions on the appointment of Indian authorised representatives/agents of foreign suppliers. The authorised representatives would make available information on latest technologies, assist during trials and help in post-contractual servicing.

The salient features are (a) all foreign suppliers who wish to appoint Indian authorised representatives/agent would register them with the Ministry of Defence, (b) the authorised representative/agent could be an individual, a partnership, a limited company, private or public, (c) the agent must be an income tax payee, (d) the foreign supplier appointing an agent must furnish copies detailing agreement/terms of appointment of authorised representative/agent, (e) the obligations of an agent will flow from the contract entered with the Ministry of Defence, (f) the foreign supplier will have to declare the payments made to the authorised representative/agent, (g) particulars relating to agency commission would be reported to the Enforcement Directorate of Central Board of Direct Taxes by the MoD, (h) the agent will be appointed with the approval of the Secretary of the Department, and (i) these instructions will be applicable for future contracts only.

Adequate safeguards have been provided in the guidelines. In case an original equipment manufacturer or his authorised representative/agent is guilty of infringement of the terms of his contract or accreditation, suitable penalties have been provided for in the contract and in the guidelines.

This information was given by Defence Minister, Mr George Fernandes in a written reply to Mr Prabodh Panda and Mr Putta Swamy Gowda in Lok Sabha.

- PIB (DW)