Pvt Sector May Be Allowed To Make Hi-Tech Weapons

Army chief General V P Malik yesterday indicated that ''policy changes'' could be made to open up advanced weaponry system manufacturing to the private sector.

Malik said most of Indian Army's capital budget was spent on imports of advanced systems such as surveillance systems, weapon locating radar, night vision devices, long range target engagement means and communications equipment, besides habitat stores for extreme cold areas. "We need to replace these items with indigenous production, either from the Ordnance factories, defence PSUs or the private sector", he said.

He was speaking at the National Council Meeting of the Confideration of Indian Industry.

 

He said that though participation of the private sector in terms of the percentage of total Ordnance Stores budget had increased from 8.32% in 1995-96 to 10.25% in 1998-99 and to 15.5% in 1999-2000 it was still inadequate.

Suggesting the bandwidth of the scope of private participation, Malik said that it was not limited to 15.5% of the Ordnance Stores budget. Citing the example of discontinuation of Shaktiman and Nissan family of vehicles in the Army, General Malik said Jabalpur, the vehicle factory, now procured CKDs from Ashok Leyland and TELCO, assembles the vehicles and supplies them to the Army.

While non-availability of technology and lack of manufacturing capability in the country were the two major obstacles in producing the items now being imported, outmoded defence procurement procedures had inhibited active participation of the industry.

Acknowledging his limitations in changing procedures the General said most of these were outside the Army chief's control. However, he pointed out that Army too had been voicing its concern with the ministry.

He hoped that the Arun Singh Committee, set up to provide inputs to the Group of Ministers on recommending overhaul of India's defence structures, would make recommendations which would reduce some of the red tape in defence procurement procedures.

He said though there was a case for opening up many more areas of defence production to private participation, strategic sectors like armaments and ammunition production would continue to be dominated by PSUs.

"However, some policy changes can be made provided industry is bold and prepared to step in" he suggested.