Budget constrains Indian Navy’s new warship requirements

Some thirty months after the Indian Navy signed a contract for new warships (the Rs 45,381 crore deal in 2015 with Mazagon Dock Ltd, Mumbai (MDL) and Garden Reach Shipbuilders & Engineers, Kolkata (GRSE) for seven stealth frigates under Project 17A),the Navy is finding it difficult to fund other warship procurements as it has “surrendered Rs 15,041 crore rupees during the last five years from its budgetary allocation for new warships.” With contracts virtually finalised for 23 new warships, the navy is constrained by the lowest budgetary allocation since 2011-12 having this year only Rs 11,023 crore for fleet expansion, compared to Rs 13,617 crore in 2012-13; Rs 11,772 crore in 2013-14; Rs 12,576 crore in 2014-15, Rs 16,050 crore in 2015-16, and Rs 12,467 crore last year. However, most of this year’s Rs 11,023 crore budget is pre-committed towards instalments on earlier contracts and ongoing projects, including the construction of Project 75 Scorpene submarines, Project 15B destroyers, Project 17A frigates, Project 28 corvettes, the indigenous aircraft carrier, INS Vikrant, and others. “The government thought it fit to take back Rs 4,371 crore last year and Rs 5,285 crore the year before. The 23 contracts nearing finalisation are for building in Indian shipyards of five hydrographic survey vessels, two diving support vessels, and 16 anti-submarine warfare shallow water craft (ASWC),” as per a spokesman.