Defence Minister Pranab Mukherjee is a man of figures and finance is his forte. He was once included in a list of the "Best Finance Ministers in the World', whilst holding the portfolio.

At the press conference on 31st January after going round DEFEXPO 06 he was at his best answering questions by media men on the Defence Budget and offsets and such issues. Facts and figures were up his sleeve and like other Defence Ministers he did not have to turn to Shri KP Singh, Secretary Defence Production or Director Public Relations, Shri Sitanshu Kar who were seated on the dais along with him. He was clear that the Rs 83,000 crores that had been allocated for the year 2005–06 would be fully expended and stated that he was happy with the Finance and Prime Minsiters, as MOD had  substantailly allocated what he had asked for. He also added that he carried out a regular review and it was his duty to spend the entire allocation, or he should not have asked for it, as it would have deprived another Ministry. It was an apparent dig at past practice, when Defence procurements were curtailed to balance national deficits, which was the only area where the MOD could show savings –– and some of those deficiencies were being made up now.

Table –– Defence Budget for Last Six Years

The Defence Minister was asked specific questions on the large pending orders like the 155mm Howitzers, nuclear submarines reported from Russia on lease, 126 MRCA and the ordnance factory at Nalanda, where he admitted Denel’s contract had been suspended –– but he was non-committal. In fact South Africa which had taken part in past DEFEXPOs was conspicuous by its absence.

A list of the larger payments and near term projected procurement lists of the three services could be gauged form items displayed by the exhibitors, but spending on the nuclear command forces or any depiction of them was not at the show. The Army is set to get Smerch multi-barrel rocket launchers from Russia, additional UAVs and the  large order for 155mm self-propelled and towed guns was awaiting RPFs. Helicopters to replace the Chetaks appeared to be in the final stages of sanction. Upgrading of the Infantry, NBCD equipment and indigenous missiles with import content had progressed and a group of BrahMos missiles had been ordered and the Army had pitched for battlefield helicopters.

The Navy appeared satisfied as the Scorpene deal was swiftly signed and the Minister assured that there were offset clauses in the $3.3 b deal, which could benefit Indian industry by about $1b in direct or indirect offsets in the coming ten years. The Navy had already placed orders for the RORVs and it is was likely that the deal for the 17,800 ton USS Trenton and two PC-3 Orions offered by USA on excellent terms, could well be concluded as they are attractive and necessary and if the budget needs to be spent.

The IAF had their orders for the three Phalcons, Embraers, UAVs and Aerostats in the pipeline and their upgrade plans were on the board and the Ministrer confirmed it. The IAF were carrying out final selection of the 126 MRCA planes, which promises to be a long drawn out programme if past record of India was any guide.

From the satisfaction level expressed by the Indian industry, with 189 Indian exhibitors including all PSUs, it was clear that MOD had been placing a number of orders, including a plethora under the delegated financial powers.