DPSUs, OFB have to think like 'commercial entities': Parrikar

Assuring more autonomy for Defence Public Sector Undertakings and the Ordnance Factory Board for their expansion and diversification, Defence Minister Manohar Parrikar today said that these entities would, on their part, have to think like a "commercial organisation".
Stating that the ministry would be bringing about major changes in the Defence Procurement Procedure and the Defence Production Policy to provide greater autonomy to the DPSUs and OFB units, Parrikar said there is a need to delegate powers to these organisations so as to enable them to take decisions for improving the serviceability of the platforms available to the armed forces.

"Every machine in operation is like adding an additional equipment. DPSUs will be provided support but they must think like a commercial organisation", Parrikar said at a meeting of the Consultative Committee attached to his ministry.
The meeting, attended by 14 MPs, discussed in detail the performance of the 41 ordnance factories and nine DPSUs.
Taking part in the discussions, the MPs wanted to know whether the government has drawn up a clear road map for reducing defence imports.
Some of the members felt that there was a concerted campaign to denigrate the public sector and to promote the private sector, an official statement said.

They felt that unlike consumer products, the design and development of defence products has a long gestation period and the contribution of DPSUs has to be appreciated in that light. They expressed the view that the private sector must be promoted in a big way, but not at the cost of the public sector, the statement added.

Among the MPs who attended the meeting were Congress leaders Mallikarjun Kharge and Ambika Soni, Independent Rajeev Chandrasekhar and H K Dua.
Defence Secretary R K Mathur, Secretary of Defence Production, Mohan Kumar and ESW Secretary PD Meena, too, took part in the meeting.

Meanwhile, talking about the 'Make in India' drive with respect to defence, Parrikar underlined the need for further improvement. Defence industry in India is a unique industry where the only customer is the Services, he said.