Security: February 2021 Current Affairs Current Affairs Notes | EduRev

Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Current Affairs : Security: February 2021 Current Affairs Current Affairs Notes | EduRev

 Page 1


 
                                                                                                                                                        
4. SECURITY 
4.1. DEFENSE MODERNIZATION  
Why in News? 
The 15th Finance Commission has recommended constitution of a dedicated non-lapsable Modernisation Fund 
for Defence and Internal Security (MFDIS).  
More about the Fund  
• The primary aim of the Fund is to bridge the gap between projected budgetary requirements and allocation 
for defence and internal security. 
• The indicative size of the MFDIS for 2021-26 is about ?2.5 lakh crore.  
• However, the unutilised amount from the normal budgetary allocations to the Ministry of Defence (MoD) 
and the Ministry of Home Affairs (MHA) for capital expenditure shall not be part of the Fund. 
• In its action-taken report, the government said that it has “in-principle” accepted the creation of the fund in 
the Public Account of India. The sources of funding and modalities will be examined by them in due course.  
o The Commission has recommended four specific sources of incremental funding which include transfers 
from the Consolidated Fund of India, disinvestment proceeds of defence public sector undertakings 
(DPSUs), proceeds from the monetization of surplus defence land, and proceeds of receipts from 
defence land likely to be transferred to them and for public projects in future. 
• As per the Commission, the proceeds will be utilized for capital investment for modernisation of defence 
services, capital investment for the Central Armed Police Forces (CAPF) and modernisation of State police 
forces.  
o The Fund would 
also allocate ?1,000 
crore per annum for 
the welfare of 
families of the 
defence and CAPF 
personnel who 
sacrifice their lives 
in frontline duties. 
What are the steps that 
have been taken?  
• For defence production 
and indigenization:  
o Draft Defence 
Production and 
Export Policy 2020 
with an aim to 
double India's 
defence production 
in five years. 
o Defence 
Acquisition Procedure, 2020 aims to empower Indian domestic industry through 'Make in India' projects 
with the ultimate aim of turning India into a global manufacturing hub. 
o SRIJAN Portal: It is a ‘one stop shop’ online portal that provides access to the vendors to take up items 
that can be taken up for indigenization.  
o Encouraging Defence Entrepreneurship: Organization of initiatives like Defense India Startup Challenge 
for creation of create functional prototypes of products/technologies relevant for national security.  
o Creation of Naval Innovation and Indigenisation Organisation (NIIO) to put in place dedicated structures 
for the end users to interact with academia and industry.  
 
 
Page 2


 
                                                                                                                                                        
4. SECURITY 
4.1. DEFENSE MODERNIZATION  
Why in News? 
The 15th Finance Commission has recommended constitution of a dedicated non-lapsable Modernisation Fund 
for Defence and Internal Security (MFDIS).  
More about the Fund  
• The primary aim of the Fund is to bridge the gap between projected budgetary requirements and allocation 
for defence and internal security. 
• The indicative size of the MFDIS for 2021-26 is about ?2.5 lakh crore.  
• However, the unutilised amount from the normal budgetary allocations to the Ministry of Defence (MoD) 
and the Ministry of Home Affairs (MHA) for capital expenditure shall not be part of the Fund. 
• In its action-taken report, the government said that it has “in-principle” accepted the creation of the fund in 
the Public Account of India. The sources of funding and modalities will be examined by them in due course.  
o The Commission has recommended four specific sources of incremental funding which include transfers 
from the Consolidated Fund of India, disinvestment proceeds of defence public sector undertakings 
(DPSUs), proceeds from the monetization of surplus defence land, and proceeds of receipts from 
defence land likely to be transferred to them and for public projects in future. 
• As per the Commission, the proceeds will be utilized for capital investment for modernisation of defence 
services, capital investment for the Central Armed Police Forces (CAPF) and modernisation of State police 
forces.  
o The Fund would 
also allocate ?1,000 
crore per annum for 
the welfare of 
families of the 
defence and CAPF 
personnel who 
sacrifice their lives 
in frontline duties. 
What are the steps that 
have been taken?  
• For defence production 
and indigenization:  
o Draft Defence 
Production and 
Export Policy 2020 
with an aim to 
double India's 
defence production 
in five years. 
o Defence 
Acquisition Procedure, 2020 aims to empower Indian domestic industry through 'Make in India' projects 
with the ultimate aim of turning India into a global manufacturing hub. 
o SRIJAN Portal: It is a ‘one stop shop’ online portal that provides access to the vendors to take up items 
that can be taken up for indigenization.  
o Encouraging Defence Entrepreneurship: Organization of initiatives like Defense India Startup Challenge 
for creation of create functional prototypes of products/technologies relevant for national security.  
o Creation of Naval Innovation and Indigenisation Organisation (NIIO) to put in place dedicated structures 
for the end users to interact with academia and industry.  
 
 
 
                                                                                                                                                        
• For improving military organization:  
o Chief of Defence Staff (CDS) was created to provide “effective leadership at the top level” to the three 
wings of the armed forces. This is addition to creation of new Department of Military Affairs for better 
management of military resources and procurement.  
o Creation of Integrated Battle Groups: IBGs are brigade-sized, agile, self-sufficient combat formations, 
which can swiftly launch strikes against adversary in case of hostilities. 
o Theatre commands with tr-service capabilities: The armed forces are envisaged to be reorganized in 
multiple Theatre commands in which all the three services will operate in a regionally integrated manner.  
• Other efforts towards Modernization:  
o Integrated Air Defence Weapon System (IADWS): US has approved the sale of an IADWS to India. It will 
create a multi-layered missile shield over the National Capital Territory (NCT) of Delhi.  
o Defence Testing Infrastructure Scheme: Setting up of Defence Testing Infrastructure will provide easy 
access and meet the testing needs of the domestic defence industry. 
What are the challenges that remain? 
• Large time taken for the decision-making process: Experts have highlighted that despite multiple avenues 
available for procurement and development, production and acquisition contracts take close to 7 to 9 years 
for finalization before the production starts.  
o This creates a mismatch between needs of the armed forces and availability of equipment. Also, elongated 
timelines lead to creation of a lag between the manufactured technology and the state-of-the-art 
technology.  
• Limited Public Sector Manufacturing Capacity and Capability: The public sector manufacturing capacity with 
agencies like Ordnance Factories, DRDO, HAL etc. are limited and overburdened and is marred with several 
issues.  
o For example, program to indigenously manufacture a fleet of modern battle tanks, christened as future 
ready combat vehicle, is also not moving forward due to procedural delays.  
• Absence of a concrete Defense Industrial Base: Participation of the private sector in Defense manufacturing 
has been limited. The primary reason for this can be attributed to absence of communication platforms 
between industry and defense.  
o Although efforts are being made in the form of creation of Defense Industrial Corridors (DIC) such as Tamil 
Nadu DIC, private sector participation in Defense production is still miniscule.  
• Absence of discourse on nature of future warfare: Although several threats have been emerging like 
increasing cyberattacks, China’s tilt towards hybrid warfare through informational superiority etc., clear plan 
or strategy for future development of such capabilities has not been created.  
Way Forward  
• Change in ideology from being the major importer to major exporter: Change in ideology would indirectly 
streamline the acquisition and production procedures. This will also necessitate partnership with private 
sector to contribute and complete the development-design-produce-export cycle.  
• Providing handholding to private sector: The Indian defence industry is currently nascent and would require 
handholding in the form of guaranteed procurement, joint development etc.  
• Development of Industry-defence-academia linkage: Modernization of defence forces is directly dependent 
on research. As a result, it becomes important that country’s research capabilities are tapped by engaging the 
academia and taking them forward via industrial and defence production channels.  
• Looking at defence modernization in an integrated manner: Defense modernization cannot happen in a silo, 
but has to happen in conjunction with infrastructural modernization, growing human resource capabilities of 
the country etc. Therefore, defense modernization should be looked in integration with overall modernization. 
o For example, shipbuilding industry and developed ports play a key role in development of naval systems 
like submarines.  
 
 
 
 
 
 
Read More
Offer running on EduRev: Apply code STAYHOME200 to get INR 200 off on our premium plan EduRev Infinity!

Related Searches

Viva Questions

,

shortcuts and tricks

,

Previous Year Questions with Solutions

,

study material

,

Semester Notes

,

ppt

,

mock tests for examination

,

Exam

,

Extra Questions

,

Objective type Questions

,

Security: February 2021 Current Affairs Current Affairs Notes | EduRev

,

practice quizzes

,

Free

,

Important questions

,

pdf

,

past year papers

,

Sample Paper

,

Security: February 2021 Current Affairs Current Affairs Notes | EduRev

,

MCQs

,

Summary

,

Security: February 2021 Current Affairs Current Affairs Notes | EduRev

,

video lectures

;