The Defence Minister, Mr George Fernandes said that government attached top priority to the country’s security and shortage of funds would not be allowed to come in its way. Addressing the meeting of the Parliamentary Consultative Committee attached to Defence Ministry, the Minister said that the necessary allocations were being made in the defence budget for all essential acquisitions by the three forces.

Mr Fernandes said that as a percentage of GDP, defence expenditure had steadily declined from 2.88 in 1990-91 to 2.17 in 1996-97. However, during the last three years it has gone up and at present it is 2.7 per cent. Substantial increase has been provided under the capital head in budget estimates for 2000-2001 to cater to the requirements of modernisation programmes. These include T-90 tanks, helicopters and UAVs for the Army, SU-30, Mirage-2000, UAVs and Mi-17 helicopters for Air Force and submarines, electronic systems, UAVs and air defence ship for the Navy.

Commending the scientists and engineers of Defence Research and Development Organisation (DRDO), Hindustan Aeronautics Limited and Aeronautical Development Agency for the successful test flight of Light Combat Aircraft (LCA), the Defence Minister refuted the criticism of the LCA programme. Mr Fernandes felt that a systematic campaign was being launched inside and outside the country to bring down the morale of our scientists. The Defence Minister cautioned the members against such sinister campaign and said that by middle of the next year, five prototypes of LCA would be ready for flights. He also informed the members that several countries like Indonesia, Vietnam, Malaysia and Algeria had expressed interest in the products of Defence Public Sector Undertakings and ordnance factories. The Defence Minister said that the government proposed to take a decision very soon on opening up the defence sector to private participation and on entering into joint ventures and equity participation in foreign companies by Defence Public Sector Undertakings and ordnance factories. This, he said, would make India a major player in defence production and exports.

The Defence Minister informed the members that a policy to provide medical facilities to the retired and ex-servicemen had been worked out and a final decision would be taken soon.