Remove entry barriers for Indian firms into Defence procurement: Industry body urges Govt
Updated: Jul 29, 2015 01:51:48pm
New Delhi, July 29 (KNN) In the spirit of ‘Make in India’ programme, the government should set an indigenization target within a time frame to encourage domestic companies to take part in manufacturing of the Defence equipment and facilities, said an industry body.
It is only then the home-grown companies will be able to participate in the multi-billion dollar defence procurement, said industry body ASSOCHAM.
In a detailed representation submitted to the Defence Ministry, the chamber has said, stringent conditions which block the entry of domestic firms into the defence procurement of the government should be diluted. This should be done in order to make it easier and more attractive for Indian vendors who are investing in high risk areas.
It recommended that the provision for nominations should be deleted or restricted to clearance by Cabinet Committee on Security (CCS).
“With billions of dollar worth of defence contracts going to foreign firms, the Indian firms are denied access to the same, mostly on the ground of lack of track record and experience. It is a chicken and egg situation,” noted the chamber.
It said eligible private sector players are currently not allowed to participate in a majority of programmes where they have both the technical and financial competence to deliver the project because of nomination of such programmes to DPSUs.
“Nomination in such cases is detrimental to the objective of creating a vibrant private sector defence industry which is one of the prime recommendations of the Kelkar Committee.
It also does not allow private industry to have relevant experience which forecloses participation in future related programmes/projects,” it said.
The chamber said it firmly opposes this practice of Nomination and requests the government to allow for eligible private sector players to participate along with the DPSUs in a fair competition. (KNN Bureau)
It is only then the home-grown companies will be able to participate in the multi-billion dollar defence procurement, said industry body ASSOCHAM.
In a detailed representation submitted to the Defence Ministry, the chamber has said, stringent conditions which block the entry of domestic firms into the defence procurement of the government should be diluted. This should be done in order to make it easier and more attractive for Indian vendors who are investing in high risk areas.
It recommended that the provision for nominations should be deleted or restricted to clearance by Cabinet Committee on Security (CCS).
“With billions of dollar worth of defence contracts going to foreign firms, the Indian firms are denied access to the same, mostly on the ground of lack of track record and experience. It is a chicken and egg situation,” noted the chamber.
It said eligible private sector players are currently not allowed to participate in a majority of programmes where they have both the technical and financial competence to deliver the project because of nomination of such programmes to DPSUs.
“Nomination in such cases is detrimental to the objective of creating a vibrant private sector defence industry which is one of the prime recommendations of the Kelkar Committee.
It also does not allow private industry to have relevant experience which forecloses participation in future related programmes/projects,” it said.
The chamber said it firmly opposes this practice of Nomination and requests the government to allow for eligible private sector players to participate along with the DPSUs in a fair competition. (KNN Bureau)
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