Govt to strength ordinance board for indigenisation

By: | Published: February 8, 2015 12:05 AM

Defence minister Manohar Parrikar said his government was looking into the possibility of turning India into a defence equipment exporter and the country’s advancement in rocket science has generated interest among many countries

The defence ministry will soon strengthen the ordinance board to start indigenisation of defence equipment and armaments, while
it also wants to create larger scope for the private sector for defence equipment manufacturing.

Defence minister Manohar Parrikar, while addressing a conference organised by the Forum for Integrated National Security (FINS), said armament indigenisation is an initiative in line with Prime Minister Narendra Modi’s ‘Make in India’ policy. “We will have to indigenise armaments on a priority basis for sake of the country’s security and will have to give priority to the defence sector,” he added.

Parrikar said since indigenisation would need larger government investment, “we will need to get it approved and ratify with the existing procedures”. He added that defence indigenisation could turn India into a global hub for investment.

He said his government was looking into the possibility of turning India into a defence equipment exporter and the country’s advancement in rocket science has generated interest among many countries to source armaments from India.

At present, 70% of India’s defence equipment were imported and they were sourced from a very few buyers among the limited suppliers across the globe. Taking a dig at the previous government, Parikkar said indiscriminate black-listing of companies has created such a situation that for procuring certain equipment only one company can participate in the tender and “ you go by a single bidder”. The government can
impose penalty on a company, which has done something wrong, but putting blanket ban on companies squeezes the market for a few.

Although Parrikkar didn’t want to comment whether the government would lift the ban from defence truck suppliers like Tatra, an official in the know said that the ministry was reviewing the cases of all the international suppliers on whom ban has been imposed.

“Even indigensation will require 30% import and the country has to make imports for defence fair,” Parikkar said.

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