NEW DELHI: When in March last year the then Army chief General V K Singh wrote a confidential letter to PM Manmohan Singh to warn of "critical deficiencies" in his force's operational capabilities, it had set alarm bells clanging.

Stung by the classified letter's "leak" as well as its startling disclosures of "large-scale voids" in crucial weaponry and ammunition, the government promised to make amends. But 18 months down the line, the situation remains "somewhat similar", say sources.

Despite being confronted by two potential adversaries along unresolved borders, and the prospect of a two-front war in a worst-case scenario, the Army is grappling with obsolete air defence systems, lack of requisite weaponry for its 355 infantry battalions, no induction of new 155mm howitzers, dismal night-fighting capabilities and the like.

None of its major modernization projects, from different artillery guns and helicopters to anti-tank guided missiles (ATGMs) and assault rifles, has materialized till now. Incidentally, the ongoing Army commanders' conference here is reviewing the "equipment readiness for the northern borders" with China as well as the "overall ammunition management" of the 1.13-million force.

Gen Bikram Singh, who took over from Gen V K Singh on May 31 last year, has tried to overhaul the shoddy management of projects and ensure better coordination with the defence ministry. But given the cumbersome procurement policy and sluggish decision-making, often derailed by corruption allegations, it has achieved little.

Over 50 modernization schemes, for instance, were earmarked for the 2013-14 fiscal. But just six small contracts, from tank simulators to range-finder binoculars, together worth Rs 425 crore were concluded in the first quarter (April-June).

Of the 17 "schemes" identified for the second quarter (July-September), only four have been sealed so far. The only big-ticket deal has been the over Rs 3,000 crore one for 25,000 3UBK Invar missiles for T-90S tanks, which were fast running out of ammunition, from Russia and defence PSU Bharat Dynamics.

Though some deals like the one for two more "troops" of Israeli Heron spy drones (Rs 1,200 crore) and 236 additional Russian T-90S tanks (Rs 6,000 crore) are "in the final stages" now, the condition is grim.

"Army's modernization has fared poorly compared to IAF and Navy in the last two-three years. Decision-making has already slowed down in MoD, and will virtually halt by end-December ahead of the general elections," said a source.

Overall, the Army has around 680 projects worth over Rs 2 lakh crore for the 12th Plan (2012-17) period to both plug operational gaps as well as ensure "capability development" along both the western and eastern fronts.

Some of the important pending projects are for the induction of 1,78,000 new-generation assault rifles for around Rs 10,000 crore and different artillery projects worth Rs 30,000 crore for 145 ultra-light howitzers, 100 self-propelled tracked guns, 814 mounted gun systems and 1,580 towed guns, among others.