Defence PSUs should be globally competitive, says Antony

Defence Minister A.K. Antony Tuesday said that the defence public sector units (DPSUs) need to compete with private organizations and global companies to get orders and should work towards reducing costs and improving quality and productivity.

Addressing a meeting of the consultative committee attached to his Ministry, Antony said there was need to take a long-term view about the current levels of productivity and how the present levels can be enhanced.

"If the DPSUs want to be truly competitive, they must enhance productivity, reduce costs, increase product quality and align production processes to meet the increasing demands of the defence forces. The emphasis must be on working harder and more importantly in the right direction," he said.

Referring to the defence procurement procedure (DPP), which was amended recently, Antony said it has undergone a sea change with a view to strengthen defence manufacturing infrastructure in the country.

The minister hoped that the amendments in the DPP would bring in greater participation of industry and noted that the only way forward in the present environment was to meet the increasing defence requirements through indigenous products.

He said the ministry places great emphasis on transparency and probity not only in procurement but in every aspect of the working of organisations under the ministry and DPSUs were no exception.

According to an official release, members of consultative committee wanted the DPSUs to be more competitive and also sought greater participation of private sector in meeting the requirements of the services. A member suggested that the DPSUs should try to get third party certification for modernizing their production facilities.

The MPs also expressed their appreciation for the "outstanding service" rendered by the armed forces in Uttarakhand.