The Way Forward

As seen above, affordability analysis  must precede every major defence procurement proposal. Limiting the scope of affordability  to cost considerations can prove highly misleading and disadvantageous in the long  term. The country can get saddled with uncalled for fiscal and political  liabilities. Therefore, affordability analysis must accompany every procurement  proposal. It could be in the form of a criteria sieve through which a proposal  must pass, as per the sample given below.

It is essential to carry out the above  check diligently. Every parameter must be analysed objectively. In case of  probabilistic factors, a number of assumptions would have to be made.  Proclivity for tailor-making them to support own preferences must be curbed,  lest the whole exercise degenerates into a farce. Therefore, every assumption  must be based on logical, convincing and well-argued deductions. A great deal  of effort and forethought would be required for a realistic verification of all  aspects. As major defence procurements have long term strategic and financial  ramifications, it is in our national interest to study various facets of  affordability conscientiously.

About  Author – Major Gen Mrinal Suman is India’s foremost expert in defence  procurement and procedures and offsets. He heads Defense Technical Assessment  and Advisory Services Group of CII.