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Cooperation between public and private sectors can establish a vibrant defence industrial base: Defence Minister

Updated: Sep 12, 2015 05:10:20pm
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New Delhi, Sept 12 (KNN) Defence Minister Manohar Parrikar on Saturday said that synergy between public and private sector can establish a vibrant defence industrial base in the country, greater indigenisation and self-reliance.

Addressing a seminar on ‘Outsourcing and Vendor Development by DPSU's and OF's: Opportunities for Innovation, Collaboration and Product Development’ jointly organised by FICCI and the Department of Defence Production, Ministry of Defence, the minister said that government is looking for greater outsourcing by defence PSU’s and ordnance factories, he said.

He said that it would be in the interest of India’s security, if defence capabilities are scaled up and requirements of the armed forces are met in-house.

MoD is the single buyer and has all the control however it needs to stop frequent shifting of goal posts and give pragmatic requirements which industry will be able to provide quickly, he said.

Parrikar also emphasised for fair protection for private sector and avid repeat of past kneejerk reaction on irrational blacklisting without any tangible benefit.

There was a need for a paradigm shift in the mindset of the ministry and to create an environment of ‘Mutual Trust’ with the Industry. This will help public and private sectors to manufacture defence products indigenously to meet the requirements of the Indian armed forces, he said.

Secretary (DP), Ministry of Defence, Ashok Kumar Gupta said that outsourcing would enhance product development and would help in attaining cost effectiveness and competitiveness, besides encouraging a robust participation of MSMEs.

He said that product categories for outsourcing have been decided and it included products which are less expensive and small, those requiring special manufacturing processes but are not strategic in nature, those which do not involve intensive technology and products that are technology sensitive.

President, FICCI, Jyotsna Suri, said that a system integrator should remain committed towards the core job of system integration and aim to develop a chain of niche MSME suppliers who can not only be his trusted partners but also have the opportunity to be a part of global supply chain of OEMs, thereby creating value for Indian industry.

In his presentation on ‘Changing Dynamics: Setting up of Expectations’, Managing Director, Inapex Pvt. Ltd, Vijay Mathur said that there was a need to set up an empowered multidisciplinary group that is responsible for negotiating and then implementing the major programs identified by the Ministry of Defence. He added that there was need for strong system integrators and committed time bound Phase Manufacturing Program linked to the start of the Indian operation. (KNN Bureau)

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