Sitharaman wants defence PSUs to target global markets

Defence Minister Nirmala Sitharaman Thursday asked public sector defence firms to aim at selling their products to other countries also and not rely only on the "captive market" of the Indian armed forces.

She was addressing a gathering after launching off-shore patrol vessel 'Sachet' of the Coast Guard at Goa Shipyard Limited, a PSU, in Vasco.

"I want every defence public sector undertaking to look at themselves as manufacturers of international class, not just depend on your captive market which is the defence forces, or the Coast Guard...," she said.

"You have a market everywhere," the minister added.

When the Indian defence or commerce minister goes abroad, foreign countries show immense interest in buying from India things such as off-shore patrol vessels and speed-boats for guarding their coasts, she said.

Several South East Asian countries are interested in buying from India defence products which they would have otherwise procured from western firms, Sitharaman said.

The Union government will ensure that defence firms get their due orders so that "so that the workforce is completely busy," the minister said.

"But I also want the management, together with expert workforces, to devise a plan whereby you will work very closely with the Ministry of Commerce to make sure that you capture those (outside) markets which are appreciative of your work," she added.

"If they are appreciative of your work, half the bridge is already crossed," the defence minister said.

"Be the leader. Tell us what you want from the ministry. Your workers deserve more from you rather than every now and then coming and pleading with the Ministry of Defence," she added.

PSU managements "should have self-confidence that I know this market which exists in X country or Y country, can the government of India help us get order from there," she said.

"I request the management to say that we are capable of competing globally, we want those markets, help us to do that," Sitharaman added.

She also spoke about private sector's role in India's defence purchases.

"Armed forces are buying...which is required for their operational capabilities, therefore there's no grudge about buying, but can the buy be serviced by both private and public sector is a very important question," she said.

"That is where the PM (prime minister Narendra Modi) is inviting everybody to make in India (which) has enthused and encouraged Indian investors, Indian manufacturers to get into private sector manufacturing abilities which will cater to India's defence forces and their requirements," she said.

Patrol vessel Sachet is part of a project under which a total of five such vessels would be built for the Coast Guard. The project was inaugurated by Modi in November 2016.

Sachet will be deployed for policing the Indian Exclusive Economic Zone. It is 105 metres long and has a displacement of 2,350 tonnes at full load. The ship, with an endurance of 600 nautical miles, will have a crew of 133 including 14 officers.