ANNUAL REPORT 2006–2007 Ministry of Defence Government of India CONTENTS 1. The Security Environment 1 2. Organisation and Functions of the Ministry of Defence 11 3. Indian Army 17 4. Indian Navy 27 5. Indian Air Force 35 6. Coast Guard 41 7. Defence Production 45 8. Defence Research and Development 65 9. Inter-Service Organisations 87 10. Recruitment and training 99 11. Resettlement and welfare of ex-servicemen 117 12. Cooperation between the armed forces and civil authorities 133 13. National Cadet Corps 141 14. Defence Cooperation with Foreign Countries 151 15. Ceremonial and other Activities 157 16. Activities of Vigilance Units 169 17. Empowerment and Welfare of Women 173 Appendix I. Matters Dealt by the Departments of the Ministry of Defence 179 II. Ministers, Chiefs of Staff and Secretaries 183 who were in Position from April 1, 2006 onwards III. Summary of Latest Comptroller & Auditor General 184 (C&AG) Report on the Working of Ministry of Defence 1 THE SECURITY ENVIRONMENT Army soldiers guarding the icy frontiers in Siachen 1 ndia shares land borders with seven countries - I including Bangladesh (4096 kms), China (3439 kms), Pakistan (3325 kms) and Myanmar (1643 kms) - and maritime borders with five countries. 1.1 India’s national security environment is Armed Forces are now playing a pivotal role in determined by a complex interplay of its creating stable conditions for the nation’s geographical attributes, historical legacy, and economic development. With its economy socio-economic circumstances as well as regional growing at over 8% per annum last year and set and global developments. India is the seventh to rise further, India’s one billion people are largest country in the world with a land area of increasingly becoming an engine of regional and 3.2 million square kilometres, a land boundary of global growth and prosperity. Software, 15,000 kilometres, peninsular coastline of 7700 manufacturing, agriculture, nuclear energy, kilometres, 600 island territories and an Exclusive space, disaster management, maritime affairs, Economic Zone of 2.5 million square kilometres. entertainment and culture are only some of the Some of the island territories in the east are 1300 areas in which India’s role is becoming kilometres away from the mainland and virtually increasingly vital for the region and the world. adjacent to India’s ASEAN neighbours. India With the steady growth of the Indian economy, shares land borders with seven countries - India has now a significant stake in a stable world. including Bangladesh (4096 kms), China (3439 kms), Pakistan (3325 kms) and Myanmar (1643 1.4 There are grave challenges facing the kms) - and maritime borders with five countries. region. While India and some other littoral states appear to be on a path of sustained economic 1.2 Given the size of the country and its role progress, high levels of poverty characterise most in the comity of nations, our security concerns of the region. As per rough estimates, it is also and interests are not limited to our immediate the locus of 70% of the world’s natural disasters. neighbourhood. India’s area of security interest The presence of a number of nuclear weapon or clearly extends beyond the confines of the nuclear capable states makes the situation even conventional geographical definition of South more critical. In fact India has to operate in a Asia. Given its size, geographical location, trade neighbourhood fraught with chronic political links and the EEZ, India’s security environment instability. There is also an apprehension that the extends from the Persian Gulf to the straits of sources of conflict between the states will multiply Malacca across the Indian Ocean, including the in the coming days as there will be an intense Central Asian region in the North West, China in competition among states for water and non- the North East and South East Asia. renewable energy resources like oil. India has to 1.3 With geo-economics gaining precedence adopt a forward looking policy of constructive over geo-politics, the tasking of defence forces engagement with all its neighbours to take on the world over, is undergoing a sea change. Our these challenges in future. 2 1.5 Unlike the other major oceans of the world, towards safety of this key energy flow. This can the Indian Ocean is bounded by landmasses. only be achieved by having visible and potent Flow of shipping into the Indian Ocean is impeded defence forces that can effectively deter attempts by many sensitive choke points. Indian Ocean can by any state or non-state actors to destabilize the be accessed from the West only via the Cape of trade routes. India is a major maritime country in Good Hope; from the North via the Straits of Asia, with blue water – capable Navy, Hormuz and the Persian Gulf; from the East via commensurate with its responsibilities and the Straits of Malacca, the Sunda and Lombok- commitments. Apart from the geo-strategic Straits and the Ombai-Wetar-Straits. It is well importance of the straits, the increased incidences known that oil is a critical factor in influencing the of maritime crime are prompting several regional geo-political strategies of a nation, and any and extra-regional countries to discuss and move disturbance in its supply could have serious towards maritime security cooperation. security ramifications. Considering the fact that India, China and Japan are relying on oil 1.6 It is a fact of life that the end of the Cold shipments to push forward their economies, it is War has not made the world any safer. natural that these countries are sensitive to the Proliferation of weapons of mass destruction and security of the sea-lanes of communication missiles and their related technologies continue (SLOCs) and choke points of the region. Major to threaten regional and international security. energy lifelines of the world, carrying 66% of the India is deeply concerned at the nuclear test total world oil trade, pass in close proximity to conducted by DPRK in violation of its international India, thereby placing a prime responsibility commitments. The test confirms vividly the true Infantry soldiers crossing a riverine obstacle in the North East 3 extent and depth of clandestine transfers that Nagaland . Terrorist violence was also witnessed have taken place to DPRK. India has all along during the year in Varanasi, Mumbai, Malegaon expressed its concern regarding such and other parts of India, in which the role of proliferation. At the global level there is a wider externally supported terrorist groups was strongly recognition of India as a responsible power and evident. Naxal violence is also an area of concern. a growing desire to work with India to eliminate While the number of naxal violent incidents has such threats. India has expressed its readiness shown a marginal decrease in 2006, casualties to be part of any constructive effort at the of civilians and security personnel have remained international level to ensure regional and global at the same level as in 2005. security. 1.9 On the Jammu & Kashmir issue, India is 1.7 At a time when the international scenario ready to look at options, short of redrawing the is surcharged with violence, insecurity and boundaries. On 24 March 2006 and again on 20 tension, it is comforting to see in December 2006 at Amritsar, the our immediate neighbourhood that At the global level Prime Minister declared India’s the political violence and social there is a wider readiness to find a pragmatic turmoil in Nepal have tapered out, recognition of India as solution to resolve the J&K issue. He with political space opening up for a responsible power also envisaged a situation where the popular democracy. It is and a growing desire two parts of Jammu & Kashmir can, encouraging to see the to work with India to with active encouragement of the reconciliation process between the eliminate nuclear governments of India and Pakistan, Seven Party Alliance and Maoists threats. India has work out cooperative, consultative moving ahead. However, the expressed its mechanisms so as to maximize the overall security environment in our readiness to be part of gains of cooperation in solving immediate and extended any constructive effort problems of social and economic neighbourhood has continued to at the international development of the region. deteriorate over the years and level to ensure 1.10 India is continuing to have there is a need to continuously regional and global security concerns with Pakistan on monitor and analyze developments security. cross-border terrorism. Terrorist impinging upon our security. The groups continue to operate freely in menace of international and cross-border Pakistan. They also find shelter, support and terrorism is growing rapidly in all parts of the world, training for operations across the border/LOC both in magnitude and in sophistication. Similarly, from elements in Pakistan. Recent incidents of employment of subversive tactics for resolution terrorism and suicide bombings in some countries of inter-state disputes is continuing. All these have demonstrated the ever-increasing reach of factors pose new challenges to international Pakistan-based terrorist organisations, such as peace and security and need to be taken into the homegrown Lashkar-e-Taiba. India is account for determining the role to be played by committed to peace, friendship and good India in the future. neighbourly relations with the people and the 1.8 The global ascendancy in violence directly government of Pakistan. In pursuance of this goal, impacts on India’s internal security scenario. The Government of India has taken a number of policy violence level in the North East has shown a initiatives. It has proposed several confidence- marginal increase in 2006, mainly in Assam and building measures aimed at enlarging the areas 4 of convergence and building trust.