The defence ministry on Tuesday sought an "urgent" additional allocation of Rs 20,000 crore for military modernization as well as day-to-day operating costs from the Centre, in a move that comes when Indian and Chinese troops continue to remain locked in a tense standoff near the Sikkim-Bhutan-Tibet tri-junction since mid-June.
Sources said MoD officials led by defence secretary Sanjay Mitra told their finance ministry counterparts in a meeting that the Rs 20,000 crore was urgently required in addition to the Rs 2.74 lakh crore allocated for defence in the 2017-2018 budget.
"The MoD officials said almost 50% of the capital and 41% of the revenue outlays in the defence budget had already been utilized in the ongoing fiscal. Moreover, the new customs duty on arms imports had also burnt a big hole in the defence budget. The finance ministry said the MoD request will be examined at the earliest," said a source.
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