Mr Fernandes asked the Commanders to ensure that defence expenditure is cost-effective and delays are avoided. He explained the measures that have been taken in the last two years to streamline the procurement procedures and to arrive at quicker decisions. The Defence Minister also talked about the system of mandatory and time-bound scrutiny and an audit of all major past and future procurements to ensure an utmost transparency and probity in defence procurements and work contracts. He hoped that the system would put to rest numerous allegations of irregularities in different defence deals that have been made in the past. He highlighted the fact that every extra rupee spent on defence was at the expense of allocation for priority sectors of the nation's economic development.

Drawing the attention of the Commanders to the measures being taken to review the national security system since the Kargil conflict, the Minister referred to the importance of the report of the Subrahmanyam Committee on Kargil and the establishment of the Group of Ministers (GoMs) to review the national security system in its entirety. He also indicated that the task forces set up by the GoMs in the areas of intelligence apparatus, internal security, border management and defence management had submitted their reports and that the GoMs was actively engaged in the expeditious consideration of the recommenda-tions of the task forces.

The Defence Minister pointed out that the world was now poised for another revolution in military affairs with information technology and advanced military systems set to transform the very nature of war. He also stated in this context that there was now a growing recognition of the role that India could play in ensuring regional and global peace and security in the emerging polycentric world. The Defence Minister stated that a militarily strong and confident India backed by a vibrant economy was the need of the hour.

Mr Fernandes noted that the security environment in India's immediate and extended neighbourhood has continued to deteriorate over the years. He drew attention to the menace of international and cross-border terrorism which was growing rapidly in all parts of the world, both in magnitude and in sophistication. Mr Fernandes called for a continuous effort to monitor and analyse developments in this area in a more detailed and focussed manner.

Mr Fernandes referred to the geo-strategic importance of the Central Asian Republics and countries in the sub-Saharan African region, particularly the Indian Ocean Rim states. He also said that the ASEAN countries which lay in our extended neighbourhood were important to India in security terms. The Minister expressed satisfaction that India's efforts to bring these countries closer through diplomatic initiatives, economic relations, mutual exchanges and visits by Service Chiefs and goodwill visits by Indian Navy ships were bearing fruits.

At the outset, the Defence Minister congratulated the Armed Forces for the magnificent victory in Kargil and the professionalism, courage and competence of the Indian contingent in the UN Peace Keeping Force in Sierra Leone. He noted that India has emerged from the Kargil conflict as a clear victor both in military and diplomatic terms and now it has a new standing among the nations of the world and the major powers are now ready to open new vistas of cooperation. He also spoke highly of the tremendous contribution of the Armed Forces in disaster relief operations, particularly during the recent floods in various parts of the country.

In his concluding remarks, Mr Fernandes exhorted the Commanders to evolve ways and means of overcoming various problems that confronted the Armed Forces and national security. He expressed full confidence that the Armed Forces would, as in the past, continue to meet any challenge to the national security.