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        Referring to the emerging security scenario in the neighbourhood and in the World, Shri Vajpayee said that, September 11 incidents in New York and Pentagon demonstrate vividly the nature and extent of the asymmetry in the confrontation between terrorism and the civilised world.

        On the externally sponsored terrorism in Jammu and Kashmir and insurgencies in the North East, the Prime Minister said that it is only our resilient democratic polity, together with the vigilance of our armed forces, which can help us overcome these challenges. And no one should have the slightest doubt that we shall overcome them.

        The Prime Minister reminded the commanders that India has to constantly upgrade its technical and human capability to anticipate and counter such threats to its security. The revolution in technology has completely transformed the conduct of offensive and defensive military operations in these times. Our military strategists should factor these developments into their long term defence planning. It is also a major challenge for our Defence Research and Development Organisations, which are often hamstrung by unreasonable and discriminatory technology control regimes. A long term National Defence Policy can draw in all these strands into a coherent action agenda to defend our core national interest, Shri Vajpayee said.

        Referring to the recent reforms in the defence management, the Prime Minister said that integration of services headquarters with the Ministry of Defence would promote decentralisation of decision making. The defence procurement board should streamline the acquisitions process with greater professionalism and cost-effectiveness. Long term perspective planning would be institutionalised.

        The Prime Minister complimented the Armed Forces for their brave and professional service to the nation and said that our democracy and national integrity are strengthened by these vital characteristics.

        Paying tributes to the Armed Forces, the Defence Minister, Shri George Fernandes lauded their efforts to guard the frontiers and preserve the integrity of the country. Describing the 11 September incidents in New York and at the Pentagon, he said that it was a turnaround in global security concerns. For almost 11 years our army and other security forces had been fighting the menace of terrorism in J&K and other parts of the country by paying a heavy price. Innumerable initiatives by India at the UN and other international fora failed to stir every major power to take cognisance of our concerns. Now the commitment of the Global Coalition to wage war till every shade of terrorism is wiped out, if honoured in practice, could vindicate the restraint shown over these many years by India in dealing with its neighbour.

        Regarding the recent initiatives of reforms in the defence sector, Shri Fernandes stressed the need for cost effective utilisation of scarce resources, higher operational efficiency, better co-ordination and flow of information. The separate dedicated structure for defence procurement will lead to better time and cost management in the acquisition process. The acquisition wing has been created with the officers from the Dept of Defence, Finance Division and Service Headquarters working together as a close-knit team. It is aimed at harmonising and expediting the decision making process and building up the necessary synergy and transparency in all aspects of defence procurement.

        Referring to the capital budget of the Services this year, Shri Fernandes said that there had been a significant increase to Rs.19,958.52 crores as against the actual expenditure of Rs.12,384.05 crores in the last financial year, indicating an increase by 61 per cent. With the organisational changes under way, it is expected that things will improve and the expenditure under Capital Budget will get greater pace.

        Recent acquisitions to the Armed Forces with the agreement to purchase T-90 tanks, Sukhoi 30 MK-1 Fighter Aircraft, with transfer of technology for indigenous production, have added considerable strength. The upgradation of Jaguar aircraft, MiG-27 M and MiG-21 BIS is also under way. One major acquisition – The Advanced Jet Trainer has been delayed for far too long. The Government means to proceed with acquiring it without any further delay, Shri Fernandes said.

        The Light Combat Aircraft which did its first flight-test in the beginning of January of this year, has successfully completed the first series of flight tests. The DRDO, HAL and others associated with this project are looking forward to test flying the second Light Combat Aircraft very soon, Shri Fernandes added