The Indian Navy (IN) has one Naval Dockyard (ND) each at Mumbai and Visakhapatnam and one Naval Ship Repair Yard (NSRY) each at Kochi, Port Blair and Karwar. The repair and refit requirements of IN ships and submarines are collectively met by the above mentioned repair agencies. NDs have the capacity and capability to handle Major Refits (MR). The Operational-cum-Refit cycle of each ship / class of ship is promulgated by IHQ MoD (N) from time to time.

The transformation from the comforts of outlay budgeting to an environment of accountability with outcome budgeting is difficult but not impossible. This re-engineering is essential as in the absence of outcome budgeting, budget management may be ineffective and ineffective budget management would weaken the Public Financial Management (PFM) system. A weakened PFM could even threaten established economic, social and political equilibriums.

India's raised its defence budget for 2010-11 by 3.98 per cent to Rs. 1,47,377 crore. This allocation represents 2.12 per cent of gross domestic product (GDP), which is below the global average of 2.5 per cent. Considering the void in defence preparedness and the rising military expenditure and capability in neighbourhood, India needs to increase its defence spending to around 2.5-3.0 per cent of GDP. However, the increase in allocation has to go with reforms in capital acquisition system, which in present form is unable to spend the allocated resources.