For defence self-reliance, Govt paves way for pvt Raksha Udyog Ratnas

‘‘Once accreditated as RuRs, they would be treated at par with defence PSUs and may be selected for receiving technology and undertaking licence production with transfer of technology from overseas sources,” Mukherjee said, adding ‘‘The government has accepted most of the recommendations of the Kelkar Commission meant to augment self reliance in defence and improving the prospect of indigenous production.’’

Explaining an earlier measure on similar lines, the minister said that an ‘‘offset provision’’ has already been incorporated in the defence procurement procedures with a view to boost the defence industry and enhance the scope of industry participation. The provision makes it mandatory for foreign companies to invest 30 per cent of the procurements worth Rs 300 crores or more in India.

Mukherjee is of the view that India has the potential to emerge as a hub of defence production given it’s manpower, technical expertise and natural resources. Since the new defence mechanisms have become an amalgam of systems, he said that there would always be several players in the market for their production that will necessitate management solutions. He urged the captains of defence PSUs to initiate changes in their management structures to be able to follow the “consortium approach”.