FICCI seeks priority for Indian SMEs in defence procurement
Updated: Apr 24, 2013 12:26:45pm
"Clarity in the definition of indigenous content and resolution of issues related to taxes and duties with respect to the private sector are welcome steps," said the secretary general of FICCI, A Didar Singh.
"Industry will look forward to the fine print and hopes that issues related to loading of taxes and duties on Indian offset partners where system integration is done within India by the private sector as also domestic industry being granted purchase preference over foreign OEMs are addressed," he added.
The government unveiled the new amended policy called Defence Procurement Procedure (DPP) that seeks to give first priority to Indian firms for major military procurements.
"The initial feedback from the industry on the policy is positive; however, the fine print will bring more clarity and help assess the true impact of the revised policy," FICCI said in a statement.
Further, FICCI also emphasised the remaining unaddressed issues which were - long-pending demand for setting up an office of Additional Secretary in MoD, taking accountability of the private sector and indigenisation.
“While funds have been earmarked for MSMEs in defence to support them in development of defence equipment, the issue of earmarking a pie of the defence procurements to the MSMEs remains unaddressed,” said the release.
The latter is the key to creating a vibrant defence MSME sector which can actively contribute to the indigenisation goal, it added. (KNN)