5 STANDING COMMITTEE ON DEFENCE (2019-20) (SEVENTEENTH LOK SABHA) MINISTRY OF DEFENCE DEMANDS FOR GRANTS (2020-21) GENERAL DEFENCE BUDGET, BORDER ROADS ORGANISATION, INDIAN COAST GUARD, MILITARY ENGINEER SERVICES, DIRECTORATE GENERAL DEFENCE ESTATES, DEFENCE PUBLIC SECTOR UNDERTAKINGS, CANTEEN STORES DEPARTMENT, WELFARE OF EX-SERVICEMEN, EX-SERVICEMEN CONTRIBUTORY HEALTH SCHEME, DEFENCE PENSIONS AND SAINIK SCHOOLS (DEMAND NOS. 18, 19, 20 AND 21) FIFTH REPORT LOK SABHA SECRETARIAT NEW DELHI March, 2020/ Phalguna, 1941 (Saka) FIFTH REPORT STANDING COMMITTEE ON DEFENCE (2019-20) (SEVENTEENTH LOK SABHA) MINISTRY OF DEFENCE DEMANDS FOR GRANTS (2020-21) GENERAL DEFENCE BUDGET, BORDER ROADS ORGANISATION, INDIAN COAST GUARD, MILITARY ENGINEER SERVICES, DIRECTORATE GENERAL DEFENCE ESTATES, DEFENCE PUBLIC SECTOR UNDERTAKINGS, CANTEEN STORES DEPARTMENT, WELFARE OF EX-SERVICEMEN, EX-SERVICEMEN CONTRIBUTORY HEALTH SCHEME, DEFENCE PENSIONS AND SAINIK SCHOOLS (DEMAND NOS. 18, 19, 20 AND 21) Presented to Lok Sabha on 13.03.2020 Laid in Rajya Sabha on 13.03.2020 LOK SABHA SECRETARIAT NEW DELHI March, 2020/ Phalguna, 1941 (Saka) CONTENTS PAGE COMPOSITION OF THE COMMITTEE (2019-20)………………………………….(iii) INTRODUCTION ……………………………………………………………………….(v) REPORT PART – I Chapter- I General Defence Budget …………………………………….1 Chapter- II Border Roads Organisation ………………………………….30 Chapter- III Indian Coast Guard …………………………………………..45 Chapter- IV Military Engineer Services …………………………………..53 Chapter- V Directorate General Defence Estates ………………………58 Chapter- VI Defence Public Sector Undertakings ………………………75 Chapter- VII Canteen Stores Department ……………………………… 133 Chapter- VIII Welfare of Ex-Servicemen …………………………………..137 Chapter- IX Ex-Servicemen Contributory Health Scheme …………… 154 Chapter- X Defence Pensions …………………………………………….160 Chapter- XI Sainik Schools …………………………………………………165 PART – II Observations/Recommendations ……………………………….. 173 APPENDICES Minutes of the Sittings of the Standing Committee on Defence (2019-20) held on 17.02.2020, 18.02.2020, 19.02.2020, 20.02.2020, 21.02.2020 and 12.3.2020…………………………………………………………………………………226 COMPOSITION OF THE STANDING COMMITTEE ON DEFENCE (2019-20) Shri Jual Oram - Chairperson Lok Sabha 2. Shri Deepak Adhikari (Dev) 3. Shri Hanuman Beniwal 4. Shri Ajay Bhatt 5. Shri Devusinh J. Chauhan 6. Shri Nitesh Ganga Deb 7. Shri Rahul Gandhi 8. Shri Annasaheb Shankar Jolle 9. Prof (Dr.) Ram Shankar Katheria 10. Smt. (Dr.) Rajashree Mallick 11. Shri Pashupati Kumar Paras 12. Shri Kapil Moreshwar Patil 13. Shri Anumula Revanth Reddy 14. Shri Jugal Kishore Sharma 15. Dr. Shrikant Eknath Shinde 16. Shri Prathap Simha 17. Shri Brijendra Singh 18. Shri Mahabali Singh 19. Shri Kotagiri Sridhar 20. Shri Durga Das Uikey 21. Dr. Kalanidhi Veeraswamy Rajya Sabha 22. Dr. Ashok Bajpai 23. Shri Prem Chand Gupta 24. Shri V. Lakshmikantha Rao 25. Shri Sanjay Raut 26. Dr. T. Subbarami Reddy 27. Smt. Vijila Sathyananth 28. Dr. Abhishek Manu Singhvi 29. Shri Kamakhya Prasad Tasa 30. Lt. Gen. Dr. D. P. Vats 31. Dr. Sudhanshu Trivedi SECRETARIAT 1 Smt. Kalpana Sharma - Additional Secretary 2 Dr. Sanjeev Sharma - Director 3 Smt. Preeti Negi - Assistant Committee Officer INTRODUCTION I, the Chairperson of the Standing Committee on Defence (2019-20), having been authorised by the Committee, present this Fifth Report (Seventeenth Lok Sabha) on Demands for Grants of the Ministry of Defence for the year 2020-21 on ‘General Defence Budget, Border Roads Organisation, Indian Coast Guard, Military Engineer Services, Directorate General Defence Estates, Defence Public Sector Undertakings, Canteen Stores Department, Welfare of Ex-Servicemen, Ex- Servicemen Contributory Health Scheme, Defence Pensions, Sainik Schools (Demand Nos. 18, 19, 20 and 21)'. 2. The Demands for Grants of the Ministry of Defence were laid on 10 February, 2020 in Lok Sabha. The Committee took evidence of the representatives of the Ministry of Defence on 17, 18, 19, 20 and 21 February, 2020. The draft Report was considered and adopted by the Committee at their Sitting held on 12 March, 2020. 3. The Committee wish to express their thanks to the officers of the Ministry of Defence and representatives of the Services/Organisations for appearing before the Committee and furnishing the material and information which the Committee desired in connection with examination of the Demands for Grants. 4. For facility of reference and convenience, Observations/Recommendations of the Committee have been printed in bold letters in Part II of the Report. New Delhi; JUAL ORAM 5 March, 2020 Chairperson 15 Phalguna, 1941(Saka) Standing Committee on Defence ABBREVIATIONS S.No. Abbreviations Full Form 1. A&A Aircraft and Aeroengines 2. ACCS Air Command & Control System 3. ACRR Acquisition, Custody Relinquishment Rules 4. AFGIS Armed Forces Group Insurance Scheme 5. AGI MBS Army Group Insurance Medical Branch Scheme 6. ALH Advanced Light Helicopter 7. AMRUT Atal Mission for Rejuvenation and Urban Transformation 8. AMWP Annual Major Works Programme 9. AOA Air Officer-in Charge Administration 10. APP Annual Procurement Plan 11. ARV Armoured Recovery Vehicle 12. ASW Anti-Submarine Warfare 13. ASW SWCs Anti-Submarine Warfare Shallow Water Craft 14. ATGMs Anti-Tank Guided Missile 15. AWP Annual Works Plan 16. AWS Akash Weapon System 17. BDL Bharat Dynamics Limited 18. BE Budget Estimates 19. BEL Bharat Electronics Limited 20. BFE Buyer Furnished Equipment 21. BOCCS Board of Control for Canteen Services 22. BPCL Bharat Petroleum Corporation Limited 23. BRDB Border Roads Development Board 24. BRO Border Roads Organization 25. BTA Basic Trainer Aircraft 26. CA Capital Acquisition 27. CAS Cradle Assembly Shop 28. CB Cantonment Board 29. CBRP Capital Booking Revenue Procedure 30. CCA Central Coordinating Authority 31. CCS Cabinet Committee on Security 32. CDO Central Design Office 33. CDS Chief of Defence Staff 34. CE Chief Engineer 35. CEMILAC Centre for Military Airworthiness & Certification 36. CEO Chief Executive Officer 37. CETFC Chief Engineer and Task Force Commander 38. CFI Consolidated Fund of India 39. CGDA Controller General of Defence Accounts 40. CGE Central Government Expenditure 41. CGO Coast Guard Organisation 42. CII Confederation of Indian Industry 43. CIL Coal India Limited 44. CLAR Cantonment Land Administration Rules 45. CNA Competent National Authority 46. COC Carry Over Capital 47. COCO Company Owned Company Operated 48. COP Chief of Personnel 49. COSC Chief of Staff Committee 50. CPI Consumer Price Index 51. CPI-C Consumer Price Index-Combined 52. CPSU Central Public Sector Undertakings 53. CSD Canteen Stores Department 54. CSN Coastal Surveillance Network 55. DAC Defence Acquisition Council 56. DAD Defence Accounts Department 57. DCB Ditch cum Bund 58. DDR&D Department of Defence Research and Development 59. DEO Defence Estates Officers 60. DFG Demands for Grants 61. DGAQA Directorate General of Aeronautical Quality Assurance 62. DGBR Director-General Border Roads 63. DGDE Directorate General Defence Estates 64. DGOF Directorate General Ordnance Factories 65. DGQA Director General Quality Assurance 66. DGR Directorate General of Resettlement 67. DoD Department of Defence 68. DoDP Department of Defence Production 69. DoESW Dept of Ex-Servicemen Welfare 70. DPSU Defence Public Sector Undertakings 71. DRDC Disaster Recovery Data Centre 72. DRDO Defence Research and Development Organisation 73. DSC Defence Security Corps 74. DSE Defence Services Estimates 75. DSV Diving Support Vessels 76. ECHS Ex-Servicemen Contributory Health Scheme 77. E-in-C Engineer-in- Chief 78. EMC Electromagnetic Compatibility 79. EMI Electromagnetic Interference 80. EPC Engineering Procurement Construction 81. ERV Exchange Rate Variation 82. ESM Ex-Servicemen 83. ESW Ex-servicemen Welfare 84. EVM Electronic Voting Machines 85. EWS Electronic Warfare System 86. FAR Floor Area Ratio 87. FIB Fast Interceptor Boats 88. FMA Fixed Medical Allowance 89. FOJ Fitting Out Jetty 90. FPR Final Project Report 91. FPVs Fast Patrol Vessels 92. FRP Fibre Reinforced Plastic 93. FSI Floor Space Index 94. GBMES Ground Based Mobile Elint System 95. GDB General Defence Budget 96. GDP Gross Domestic Product 97. GJHJ Ganga Jetty and Hooghly Jetty 98. GREF General Reserve Engineer Force 99. GRIHA Green Rating for Integrated Habitat Assessment 100. GRSE Garden Reach Shipbuilders and Engineers Ltd 101. GSE Ground Support Equipment 102. GSL Goa Shipyard Limited 103. GST Goods and Services Tax 104. GTG Gas Turbine Generators 105. HAL Hindustan Aeronautics Limited 106. HDT Heavy Duty Truck 107. HSL Hindustan Shipyard Limited 108. HTT High Temperature Test 109. IACCS Integrated Air Command and Control System 110. ICBRs Indo-China Border Roads 111. ICG Indian Coast Guard 112. ICGA Indian Coast Guard Academy 113. ICS Integrated Communication System 114. IDES Indian Defence Estates Service 115. IOC Initial Operating Capability 116. IOCL Indian Oil Corporation Limited 117. IPV Inshore Patrol Vessels 118. ISO Inter-Service Organisations 119. ISRO Indian Space Research Organisation 120. J&K LI Jammu and Kashmir Light Infantry 121. JCO Junior Commissioned Officers 122. JNNURM Jawaharlal Nehru National Urban Renewal Mission 123. JS Joint Staff 124. KCR Kargil Committee Report 125. KSB Kendriya Sainik Board 126. LCA Light Combat Aircraft 127. LCH Light Combat Helicopter 128. LDP Landing Platform Dock 129. LIC Low Intensity Conflict 130. LIC EWS Low Intensity Conflict Electronic Warfare System 131. LMA Local Military Authority 132. LRF Ladle Refining Furnace 133.