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| New defence purchase policy soon |
| BS Reporter / New Delhi Feb 16, 2010, 00:06 IST |
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To favour Indian industry and indigenisation, says Antony.
A policy for defence production that has a heavy bias in favour of Indian industry and Indianisation of defence production will be announced shortly, and discussion was already on with stakeholders, Defence Minister A K Antony announced at the Defexpo that kicked off here today.
Antony noted that while in the last Defexpo in 2008, around 200 Indian companies had participated, their number had risen in this one to 350. “This is a substantial jump, suggesting Indian companies are becoming more self-confident,” he said.
Antony’s theme was that the first priority for items of defence procurement would be Indian companies each time, because ‘the ultimate goal is self reliance’. “Where Indian companies are not able to provide equipment, we will take foreign help,” he said. To this extent, he said, defence procurement policy would have a new impetus for ‘Indianisation’.
“It is not that we are against foreign companies. We welcome their help and 26 per cent Foreign Direct Investment does exist for foreign companies to invest in Indian companies,” he said, urging foreign defence manufacturers to sign more joint ventures.
Antony conceded that procurement systems in India were slow, but said scrutiny was needed because public money was involved. “Every paisa must be spent judiciously,” he said. He said that every version of Defence Procurement Policy was an improvement on the previous one. The aim of the Defence Procurement Policy 2010, which would be announced shortly, would be to reduce delays, make it more practical and workable and make it especially meaningful for Indian public sector and private sector companies.
Antony also said that while the proposal to purchase the $2.2-billion mid-air refuelling system sought by the Indian Air Force (IAF) had been turned down at the instance of the finance ministry, which felt India could postpone the purchase for the moment, the Cabinet Committee on Security (CCS) had cleared the purchase of Augusta Westland transport helicopters worth $300 million. These helicopters are meant to transport VIPs and were high on the list of essentials sought by the Special Protection Group.
‘New divisions not against China’
In reply to a question, he said the army was raising two new mountain divisions in the North-East, along the borders with China, but dismissed suggestions that the move was against the neighbour.
“We are raising two mountain divisions in the North-East. I must tell you it is not against China. But these are being raised under the overall policies to strengthen presence of the armed forces in the North-East,” Antony told a press conference on the occasion of the Sixth Defexpo in New Delhi.
The defence minister asserted that India is not a ‘war-mongering’ country and has “not invaded even an inch of soil of any other country ever”, but added “we will defend every inch of our territory.”
“We have to be on guard. So we have to strengthen our armed forces to act as a deterrent. That is our policy. That is why we are modernising all our equipment,” Antony said.
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