Regulatory hurdles delaying decision making in defence production: Anil Ambani

He cited the example of coal block auction ordinance where the bureaucracy has the necessary protection by the government and sought similar initiative for defence sector

Even as the India Inc is going gaga over the Make in India campaign, Reliance Group Chairman Anil Ambani was more upfront on the challenges faced by private sector from autonomous bodies like Central Vigilance Commission (CVC) and Comptroller and Auditor General (CAG).

“Decision-making in India in the defence sector is today hamstrung by sheer regulatory censure and investigative over reach. The long shadow of three Cs – the Central Bureau of Investigation, CVC and CAG is leading to a lack of initiative and decision making at all levels of the government. This needs to be changed and we need to have two new Cs added – courage and conviction,” Ambani said at the CEO conference on the theme, “Make in India in defence manufacturing” at the Aero India show on Wednesday.

The Reliance Group has evinced interest in getting into the defence sector very recently after Ambani’s meeting with Prime Minister Narendra Modi after he took charge in May last year.

Ambani cited the example of coal block auction ordinance where the bureaucracy has the necessary protection from the government and sought similar initiative for defence procurement.

“The modernisation of India’s armed forces cannot be held hostage to mindless vascillation and indecisiveness. Indeed the delays in defence procurement has perhaps caused a greater loss to the exchequer than any alleged impropriety,” he noted.

Ambani also sought a collaboration between the private sector and defence public sector units to ensure the Make in India slogan a reality.

The Make in India campaign of Prime Minister Narendra Modi found enthusiastic response from cross sections of the Indian industry and overseas investors from the aerospace sector for participation in defence sector manufacturing.

Union Defence Minister Manohar Parrikar, who spoke on the occasion, said he fully agreed with Ambani. “One thing which can get all three Cs neutralized is the removal of corruption in the public life. We have to control corruption. The removal of corruption can actually control all three Cs. Transparency in policy and approach can ensure that these three Cs need not be feared,” he said.

The Indian defence sector, with an annual budget of Rs 1.2 lakh crore with 60 per cent of the equipment being imported, offers vast potential for the Indian private sector. The BJP-led government has plans to liberalise this segment seeking the participation of private sector players in defence manufacturing, Parrikar said.

The defence minister also promised investors that the Make in India policy would be a comprehensive one seeking the expansion of the number of products produced in the country. The ministry also plans to come out with a separate guideline policy in the next couple of months, he said.

Speaking on the occasion, Bharat Forge Chairman and Managing Director Baba Kalyani said, “Now is the time for action.” The company which has already forayed into defence manufacturing said that it plans to establish four new manufacturing units — artillery weapons, anti-tank missiles, armoured vehicles and aerospace components.