Pri­vate industry has big role in mak­ing mod­ern equip­ment for Army

FICCI Business Digest - - Contents -

Greater par­tic­i­pa­tion by the pri­vate sec­tor to meet the grow­ing re­quire­ments of the In­dian Army for in­di­genised, cost ef­fec­tive and in­no­va­tive so­lu­tions to mod­ernise its equip­ment and tech­nol­ogy was the need of the hour, Lt. Gen. Philip Cam­pose, PVSM, AVSM**, VSM, ADC, Vice Chief of Army Staff, In­dian Army, said while ad­dress­ing a two-day in­ter­na­tional sem­i­nar on 'Mod­ern­iza­tion Vi­sion & Plan of In­dian Army In­dian, Industry Pre­pared­ness and Fu­ture Com­mit­ments' or­gan­ised by FICCI in as­so­ci­a­tion with the In­dian Army in New Delhi on June 4, 2015.

He said that the 'Make in In­dia' cam­paign launched by the Gov­ern­ment of In­dia has been re­ceived with great en­thu­si­asm by the In­dian Army. The highly com­plex, tech­no­log­i­cally ad­vanced and lethal bat­tle­field of to­day re­quires In­dia to be well equipped and op­er­a­tionally pre­pared, Lt. Gen. Cam­pose said and added that there was need for a syn­er­gised ap­proach by all stake­hold­ers to en­sure suc­cess of the 'Make in In­dia' cam­paign.

On the oc­ca­sion, FICCI–Q-Tech Com­pen­dium on 'In­dian Defence – Land Sys­tem Plat­forms' was re­leased by Lt. Gen. Cam­pose.

Vivek Rae, Mem­ber, 7th Cen­tral Pay Com­mis­sion & former Di­rec­tor Gen­eral (Ac­qui­si­tion), Min­istry of Defence, Gov­ern­ment of In­dia, said that the gov­ern­ment needed to be re­al­is­tic about the ca­pa­bil­i­ties of the In­dian com­pa­nies to play a lead role in the 'Make in In­dia' cam­paign. He sug­gested that first the ca­pac­ity of In­dian com­pa­nies, such as large sys­tem in­te­gra­tors, should be as­sessed. Ac­cord­ingly com­pa­nies must be iden­ti­fied as cham­pi­ons of industry through a trans­par­ent process and na­tional con­sen­sus, for their ca­pa­bil­ity to de­velop com­plex defence prod­ucts. Then a mech­a­nism could be cre­ated where th­ese com­pa­nies could be awarded or­ders so that they could be­come glob­ally com­pet­i­tive.

Rae said that there was a need to boost cost ac­count­ing ca­pa­bil­ity in the sec­tor. Price dis­cov­ery through bid­ding would have been an ideal sit­u­a­tion but there were not many com­pa­nies that would bid for defence projects in In­dia. Hence, it was es­sen­tial for Army to be able to probe the life­cy­cle cost of projects ac­cu­rately and af­ter adding a profit mar­gin of 10-15%, they could of­fer a project to com­pa­nies.

Dr. Jy­ot­sna Suri, Pres­i­dent, FICCI, said that the defence sec­tor was in­creas­ingly oc­cu­py­ing more space in the gov­ern­ment's long term strate­gic plan­ning with the defence co­op­er­a­tion agree­ments that In­dia was sign­ing with key na­tions. She added that his­tor­i­cally in­sti­tu­tions like DRDO, defence pub­lic sec­tor units, or­di­nance fac­to­ries and lately the pri­vate sec­tor have con­trib­uted in achiev­ing par­tial self-re­liance. How­ever, this is not com­men­su­rate with the as­pi­ra­tions of be­com­ing a global eco­nomic power.

Rahul Chaudhry, Co-Chair­man, FICCI Defence Com­mit­tee & CEO, Tata Power SED, said that with 'Make in In­dia' cam­paign, the In­dian gov­ern­ment had, for the first time, show­cased a will to not only in­di­genise the In­dian Army but also to ex­port In­dian defence sys­tems. There was a need for the pri­vate industry and armed forces to cre­ate tech­nol­ogy and weapons in In­dia with a con­trol over in­tel­lec­tual prop­erty, he added.

Lt. Gen. Philip Cam­pose, PVSM, AVSM**, VSM, ADC, Vice Chief of Army Staff, In­dian Army, ad­dress­ing the sem­i­nar.

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