Annual Report 2016-17 Ministry of Defence Government of India Contents 1. Security Environment 1 2. Organisation and Functions of the Ministry of Defence 7 3. Indian Army 13 4. Indian Navy 25 5. Indian Air Force 35 6. Indian Coast Guard 43 7. Defence Production 51 8. Defence Research and Development 73 9. Inter Service Organisations 93 10. Recruitment and Training 115 11. Resettlement and Welfare of Ex-Servicemen 137 12. Cooperation between the Armed Forces and Civil Authorities 149 13. National Cadet Corps 157 14. Defence Cooperation with Foreign Countries 167 15. Ceremonial and Other Activities 177 16. Activities of Vigilance Units 189 17. Empowerment and Welfare of Women 197 Appendices I Matters dealt with by the Departments of the Ministry of Defence 205 II Ministers, Chiefs of Staff and Secretaries who were in Position from 209 January 1, 2016 onwards III Summary of Important Audit Observations-Ministry of Defence 211 IV Position of Action Taken Notes (ATNs) as on 31.12.2016 in respect of 217 observations made in the C&AG Reports/PAC Reports 1 SECURITY ENVIRONMENT Chapter 1 Security Environment 1.1 Given the prevailing uncertainties and and challenges to norms of international law challenges in the international security scenario, as well as standards of international behaviour. India’s national security imperatives as well as The rise of nationalism, including in key its growing regional and global role necessitate Western nations, and continued challenges to a strong and dynamic engagement in defence democratic structures and processes in several and security cooperation with friendly foreign countries, could limit the efficacy of efforts for countries. dialogue and reconciliation within and among societies. The revolution of rising aspirations 1.2 The past year witnessed significant coupled with weak economic growth as well changes that directly impacted on the global as a variety of environmental and social crises, and regional security scenario. The current place additional burdens on state structures international security environment can be that are often unable to cope. Such instances characterised as one of rapid change, continued of state failure, including in India’s immediate volatility and persistence of vast swathes of neighbourhood, are a distinct feature of the instability, compounded by uncertainty about current scenario, with immediate and often policies and approaches of major powers. serious security implications. India continued efforts to build stronger defence partnerships with a large number of 1.4 The situation in India’s immediate foreign countries with a view to addressing South Asian neighbourhood remains difficult, emerging threats and to enhance regional and with the overall security and political context international peace and stability. in most neighbouring states continuing to remain volatile. The growing recognition of 1.3 The persisting salience of trans-national the need to take a united view against cross- terrorism remains a primary security challenge, border terrorism, leading to the cancellation of exacerbated by the interplay between states the SAARC Summit and calls for holding the and non-state actors often used as proxies meeting in an atmosphere free of terrorism, to spread extremist ideologies and foment was a notable development. Efforts to provide violence. Large parts of West Asia, Afghanistan a fresh impetus to Bay of Bengal Initiative and Africa are afflicted by deep instability and for Multi-Sectoral Technical and Economic violence, posing a rising threat to the stability Cooperation (BIMSTEC), such as through the of wider Asia and Europe. The re-emergence of BRICS-BIMSTEC Outreach Summit and sub- territorial disputes, including in the maritime regional efforts such as BBIN (Bangladesh, domain, has sharpened differences between Bhutan, India, Nepal) could provide alternative states and could lead to militaristic approaches structures to enhance cooperation and promote 2 economic development. India’s continued 1.7 The political situation in Pakistan economic rise, and the ability of some states in continues to remain fragile with a severe South Asia to maintain reasonable economic deficit of inclusive and balanced economic growth rates as well as improvements in their development. Pakistan also continues social development indicators, is another to relentlessly expand its military forces, positive dimension that augurs well for longer- especially nuclear and missile capabilities. term stability in the region. The country is torn by ethno-regional conflicts, 1.5 In Afghanistan, the Afghan National with the zone of conflict expanding from the Security Forces have taken over the security tribal areas on Pakistan-Afghan border to the responsibility and are facing a daunting hinterland. Although the military has made challenge of fighting insurgents with reduced efforts to improve the security situation in the international combat support. The Taliban now country, it has avoided taking action against controls more territory in Afghanistan than jihadi and terror outfits that target Pakistan’s at any time since their ouster in 2001 and is neighbours. Support to such groups persists pursuing distinct military as well as political despite ongoing efforts by the international objectives. Pakistan has been manoeuvring to community, including India, to list the head of expand its influence using insurgent groups as the terrorist group JEM, Masood Azhar, as an proxies. India continues to play a role in training international terrorist. Such outfits continued to and supporting capacity building of the Afghan be encouraged to infiltrate into India under the Security Forces. India has so far provided US cover of massive cross-LoC and cross-border $2 billion in assistance towards development in firing in Jammu and Kashmir and other areas Afghanistan and has committed a further US $ 1 throughout the year. Pakistan based terrorists billion for capacity and capability building. attacked military bases in India, triggering an appropriate response by Indian armed forces. 1.6 While the political situation in Bangladesh is stable, proponents of radical 1.8 India’s central peninsular position in the ideology continue to make efforts to propagate Indian Ocean and geo political circumstances their narrative within Bangladeshi society. The makes it reliant on the seas. India’s oil imports activities of such organizations have posed a have risen to nearly 80%, almost all of which grave challenge to Bangladesh’s security in the is transported by sea. 95% of India’s total past year. Nepal witnessed prolonged turmoil overseas trade by volume is through shipping. by way of the Madhesi agitation after the A third of the world’s bulk cargo and half its promulgation of the constitution in September container traffic passes through the Indian 2015. The internal situation has since improved, Ocean. The security of trade and commerce is, but remains fragile. With the new NLD therefore, of utmost primacy and importance Government in power, Myanmar has moved for India. The location of choke points such towards democratisation. The new government as Straits of Hormuz, Malacca and others and has made efforts towards resolution of ethnic the presence of multinational maritime forces conflicts and establishment of peace. While makes the scenario in the Indian Ocean Region the security situation in Sri Lanka is stable, the (IOR) dynamic. economic scenario remains challenging despite efforts by the government to shore up revenue 1.9 Developments in the IOR region in the through new taxation measures and other past one year have increased security challenges initiatives. for India. In order to address these, India has 3 taken pro-active measures to enhance the peace Straits. Peace and stability in the region is of and stability in the region. India’s relations with great significance to India. India undertakes IOR rim countries, including on-going initiatives various activities, including cooperation in for defence and security cooperation will help oil and gas sector, with littoral states of South shape a stable maritime environment. We have China Sea. Keeping in mind implications concluded ‘White Shipping’ agreements with a for regional peace and stability of recent range of partners and cooperate on coastal and developments in the South China Sea, India’s EEZ surveillance with some of our neighbours. position on the issue is consistent and has been India actively participated in arrangements like reiterated bilaterally and in multilateral fora the ReCAAP (Regional Cooperation Agreement on several occasions. India supports freedom on Combating Piracy and Armed Robbery of navigation and overflight, and unimpeded against Ships in Asia) and the SOMS (States commerce, based on principles of international of Malacca and Singapore) mechanism for law, as reflected notably in the UNCLOS. India maritime safety. We also took an active role in believes that States should resolve disputes fighting piracy, both to our west and east. Since through peaceful means without threat or use of 2008, the Indian Navy has undertaken more force and exercise self-restraint in the conduct than 50 anti-piracy escort missions in the Gulf of activities that could complicate or escalate of Aden contributing to greater maritime safety disputes affecting peace and stability. As a State in the region. Building on 2004 tsunami relief Party to the UNCLOS, India urges all parties to experience, India has undertaken a wide range show utmost respect