Lease model for military enables use of equipment without large initial capital outlay: Vice Chief of Naval Staff

ANI
·1-min read
Vice Admiral G Ashok Kumar, Vice Chief of Naval Staff (Photo/ANI)
Vice Admiral G Ashok Kumar, Vice Chief of Naval Staff (Photo/ANI)

New Delhi [India], November 18 (ANI): The lease model for the Indian military has advantages as it enables the use of equipment without making large initial capital outlay, Vice Admiral G Ashok Kumar, Vice Chief of Naval Staff said.

Kumar was speaking at E-Symposium on 'Leveraging leasing for Force Level Maintenance and Modernisation' via video conferencing.

"Armed forces are focused on modernism and are receptive of any new ideas and proposals... Navy has little experience in leasing assets. Ministry of Defence (MoD) has relied on upfront procurement of military equipment. The provision for leasing was added recently. The lease model has advantages as it enables the use of equipment without making large initial capital outlay," said the Vice Chief of Naval Staff.

He added lease model offers options for cost constraints and limited duration top gap requirements by way of faster induction.

"It further enables focus on core competence, removes technological complexities and lowers manpower cost for operation, maintained and training and reduced overall cost of acquisition," he said further.

According to Vice Admiral, leasing is a pay-by-use model and it becomes the vendor's responsibility to maintain the equipment. He added that Navy will look forward to leasing op-support assets and axillaries to enhance the country's op-capability.

"Leasing will help in avoiding huge investment of manning and maintaining the assets," he added. (ANI)