Panel exploring private role in defence readies report

The defence procurement policy is being called a landmark move that could significantly boost India's defence equipment manufacturing capabilities

The highly anticipated defence procurement policy (DPP) that is being formulated by a panel, led by former Defence Research and Development Organisation  chief V K Aatre, will be submitted to the defence ministry on January 15. The document, which will outline the strategy to involve the private sector in Indian defence manufacturing, is being called a landmark move that could significantly boost India’s defence equipment manufacturing capabilities.

Aatre said it was very important for the country to not just manufacture in India, but also conceptualise, design and hold intellectual property rights for innovation.

“There’s a committee or a task force under my chairmanship to look at how we can utilise the expertise available in private industries to support the productisation design in defence technologies. If things go well, within a week or so we will submit the report to the defence minister,” said Aatre, who is also a professor emeritus at the Indian Institute of Science.

Defence Minister Manohar Parrikar had earlier said his ministry would target 40 per cent defence procurement to be taken under the ‘Make in India’ scheme.

India imports nearly  70 per cent of its weapon requirements. In 2014-15, the country’s defence imports stood at  $8.54 billion in 2014-15.

In the next five years, the ministry of defence wants 70 per cent localisation in manufacturing of equipment.

The Aatre committee has experts from banking, chartered accountancy, among others, to build a holistic plan for setting guidelines for picking the right strategic partner when it comes to defence manufacturing.