Delayed Military Supplies Will Lead To Contract Cancellation: India Warns Defence Companies of Tough Action

India's Defence Secretary Rajesh Kumar Singh has issued a stern warning to all defence companies supplying equipment to the nation, stating that contracts will face termination if delivery deadlines are missed.
This tough stance applies universally, regardless of the vendor's country of origin, aiming to instil greater accountability amid persistent delays in defence procurement.
The announcement came during his address at the National Security Summit in New Delhi on 28 November 2025.
Singh highlighted the ministry's policy for emergency procurements, mandating delivery within one year of contract signing, after which non-compliant deals will be foreclosed. He emphasised enforcement of stricter liquidated damages for delays, underscoring that such measures promote discipline in timelines critical for national security.
This approach seeks to prevent overpromising and underdelivering, a recurring issue flagged by Air Force Chief Amar Preet Singh regarding projects like the TEJAS MK-1A fighter jets.
Defence supply disruptions extend beyond India, with Singh citing global setbacks including delays in Russia's S-400 systems—known as 'Sudarshan Chakra' in India—due to the Ukraine conflict, alongside Israeli equipment and General Electric engine orders.
The S-400 deliveries, part of a $5.4 billion deal signed in 2018, have slipped, with the fourth and fifth squadrons now expected in 2026. These international challenges underscore that accountability must bind both domestic and foreign suppliers alike.
In a positive development, Singh revealed India is nearing finalisation of an agreement with a major international engine manufacturer for co-developing a 120 kN fighter jet engine, to be fully manufactured domestically with retained intellectual property rights.
The project, projected to span 10-12 years, aligns with planned collaboration with France's Safran for the Advanced Medium Combat Aircraft (AMCA) engine under a government-to-government deal. Formal decisions are anticipated at the highest governmental levels soon, bolstering India's indigenous aerospace capabilities.
These reforms reflect broader efforts to reform the Defence Acquisition Procedure 2020, designated as the 'Year of Reforms' in 2025, expediting trials, cost negotiations, and procurement cycles to enhance operational readiness.
By imposing one-year deadlines on emergency buys and leveraging proven foreign systems, the ministry addresses vulnerabilities exposed in conflicts like the Ladakh standoff. Such steps aim to fortify India's defence preparedness against evolving threats.
Agencies
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