India's capabilities in land, naval and security systems are being showcased at the Defexpo 14 which began here Thursday with Defence Minister A.K. Antony laying stress on indigenisation and expressing concern over the accidents suffered by some Indian Navy vessels in the past few months.
Antony, who inaugurated the biennial show at the Pragati Maidan here, later interacted with the media and made it clear that the contract for the purchase of the medium multi-role combat aircraft (MMRCA) will be concluded by the new government which will assume office after Lok Sabha elections expected April-May.
He said that the Central Bureau of Investigation probe into the alleged kickbacks in the deal to acquire 12 VVIP helicopters from AgustaWestland was in "advanced stage" and noted that action on complaints of corruption had helped streamline the defence procurement process.
Antony said that modernisation of forces was the top priority of the government.
"We are living in volatile surroundings. The security situation is not very pleasant. The armed forces have to be ready 24X7," he said.
Antony said taking action on malpractices and complaints of corruption might have created some delays in procurement "but overall it has helped us".
Answering a query about action against former IAF chief, Air Chief Marshal S.P. Tyagi, who is among the people being probed by the Central Bureau of Investigation in the VVIP chopper deal, Antony said that punishment was not decided by the probe agency.
"The (CBI) inquiry is going on smoothly. It is in an advanced stage," he said.
He said another investigation was being done in the deal in Italy.
The defence ministry has cancelled bookings of AgustaWestland and its parent company Finmeccanica from defence exhibiton as the two companies were "under investigation" in the now-cancelled Rs.3,600 crore deal to supply choppers for VVIP use.
Antony faced a volley of questions on the accidents suffered by suffered by some Indian Navy vessels over the past few months and said this was a "matter of concern".
The minister said he cannot provide "100 percent satisfaction certificate" although standard operating procedures were being largely followed.
Every accident, he added, needed to be probed for corrective action.
Antony said that the Indian Navy had substantially changed over the last 10 years and "become (one of the) most advanced navies in the world."
"That is why countries want close cooperation (with us). Almost all want joint exercises," he said.
The navy, the minister said, was seriously studying all the accidents.
"I am told (they are) in the process of taking corrective action. More than you and me, the navy itself is keen to take corrective action and see (that) such accidents (are) minimsed."
Answering questions on the multi-billion dollar MMRCA deal, Antony said negotiations to calculate the life-cycle cost were not settled yet but hoped the contract will materialize in the coming fiscal.
He denied there was inordinate delay in the negotiation process.
French firm Dassault Aviation bagged in 2012 the $20 billion deal for purchase of 126 Rafale medium multi-role combat aircraft (MMRCA), with the number likely to go up to 200.
Antony said the ministry has already spent 92 percent of its capital budget for 2013-14 fiscal and there was no money this year for new projects.
"Major procurements are humanly possible only in next financial year," Antony said.
Answering a query, he said there has been substantial reduction in ceasefire violations by Pakistan along the Line of Control after the DGMO-level talks between the two countries but the real test will come only in summer.
He said thee government had taken several steps to boost indigenisation and in five-ten years a substantial part of defence requirements will met from within the country.
Foreign and Indian companies have displayed an array of their latest weapon systems for the army and navy and also for internal security at the exhibition.
Officials said that 624 companies from 30 countries are taking part in the event that will conclude Feb 9.
Organised by the Department of Defence Production, the exhibition has been billed as the largest defence exposition in Asia.
In its eighth edition, Defexpo was conceptualised in 1998 and the first exhibition was held in 1999.
