Indian Navy admits to shortage of funds to pay defence vendors

By Newsmeter Network  Published on  9 Oct 2019 7:44 AM GMT
Indian Navy admits to shortage of funds to pay defence vendors


Indian Navy delays in payment to defence vendors

* Vendors express delay in payment and fines on late delivery

* Vice-Admiral Sunal Anand asks authorities to resolve

Visakhapatnam: The shortage of funds is delaying the release of payments to the vendors in the defence sector in some cases, conceded Vice Admiral Sunil Anand, Controller of Logistics in Indian Navy.

Sunil Anand accepted that there is a shortage of funds while he was answering questions from the vendors at the recently concluded Vendors’ Conclave conducted by Material Organisation, Visakhapatnam in association with CII (Vizag Chapter)

Representatives from various firms, MSMEs, PSUs, Senior Officials from CII and young entrepreneurs participated in the conclave. The primary aim of the meet was to spread awareness about the procedures involved in defence procurement, indigenisation, inspection modalities and complex nature of naval inventory.

During the conclave, some of the vendors raised the issue of late payment. They expressed that they were only getting the payment a year after delivering the product to the Indian Navy.

A vendor raised the point that whenever they miss the deadline for deliveries they have to pay the required penalties. So why is there a delay in receiving their payments?

Some of them also wanted to know about how small vendors or start-ups without a decent turn-over can participate in the tendering process. Many also enquired about tax-related issues.

Vice Admiral Sunil Anand directed the local concerned authorities to resolve the issues at the earliest. This conclave is the best platform for the Indian Navy and vendors to interact with each other and to understand each other's requirements, he added.

Sunil Anand also opined that direct interaction helps to clarify doubts, share required information and nurture the vendors to realize the ‘Make In India’ dream.

Officials from the Indian Navy apprised the audience about the mandate and role of Material Organisations in providing logistics/material support to the warships, submarines and aircraft as well as establishments of the Indian Navy.

The meet also aimed to encourage entrepreneurs, MSMEs and Start-ups to get registered on the Government eMarket Place (GeM), participate in indigenised manufacturing & development of products towards reducing imports, they added

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