Unfair Gaps🇮🇳 India

Armed Forces Business Guide

13Documented Cases
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All 13 Documented Cases

रक्षा अनुबंध प्रसंस्करण में विलंबित भुगतान चक्र

₹10-50 crore+ in annual working capital opportunity cost for mid-tier contractors (estimated 6-18 month payment delays × cost of capital at ~8-12% annually)

Defence procurement in India involves multiple sequential layers of clearance and approval, creating elongated time cycles that delay contract execution and payment.

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अखंडता समझौता और ऑफसेट दायित्व अनुपालन जोखिम

₹5-20 crore per violation (bank guarantee forfeiture); additional ₹2-5 crore in remediation costs and audit penalties; 2-3 year debarment from future contracts

Defence Acquisition Procedure requires Integrity Pacts with bank guarantees and mandates DOMW oversight of offset obligations. Non-compliance can result in guarantee forfeiture, audit failures, and future bid disqualification.

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बहु-स्तरीय तकनीकी मूल्यांकन और क्षेत्र परीक्षण में दक्षता हानि

₹2-8 crore per contract in vendor opportunity cost (3-6 month delays × idle team capacity); ₹50-200 crore+ annually across Indian defence sector (estimated 50-100 concurrent contracts)

Defence procurement follows strict sequential evaluation: technical → field trials → commercial. Manual scheduling of field trials and committee meetings creates capacity bottlenecks for vendors and procurement teams.

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कर्मचारी तैनाती लागत लेखा में विरासत देयता जड़ता

₹4,000–8,000 crore annually (estimated at 8–16% of ₹50,000 crore annual defence capital budget trapped in legacy personnel and committed contract liabilities due to manual accounting delays)

Search results reveal that Defence Accounts Department uses Distributed Data Processing (DDP) centers with manual reconciliation workflows. The Focal Point Branch Scheme (introduced 1993) requires Defence Accounting Circles (DAC) to manually certify scrolls within 24 hours and return Date-wise Monthly Statements (DMS) by the 3rd of following month. One authoritative source states that up to 80% of Capital Head budget is allocated to 'committed liabilities' rather than new procurement—indicating capital inefficiency in personnel deployment cost tracking.

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