MCCIA sets up panel to interact with defence

Almost 50 per cent of the defence sector’s requirements, Pawar said while addressing the press on Thursday, could be easily catered to by them. “Not only will this help save valuable foreign exchange but increase self reliance.” With the country increasingly working towards indigenisation this, Pawar says, will go a long way.

But doubts remain about whether the industry will cater to the defence sector as most orders prove inadequate to register profits. “We want the government to ensure that a significant portion of their needs are lifted from the industry here. This way the money stays in the country,” Pawar argues.

The industry will target the huge components arena that form a sizable portion of the defence requirements. “The industry has orders worth almost Rs 1,800 crore. Even if we can target Rs 500 to 1000 crore of business it is a significant earning and saving for the government.”

In the set up the MCCIA will act as a catalyst. Adds Brig S B Ghorpade (retd) chairman and a core committee member, “We will liaison with the small scale and medium scale industries to cater to this market.”

In other words create a data base that will have crucial information – what the defence sector needs, whom to go to, and even what to make, if required. “We will tell the defence sector about who the vendors are,” says Ghorpade. The USP of the Indian industry, Pawar says, is competitive pricing. “Our products will be almost one-tenth the prices asked for abroad. So it will help the government also.” To add impetus to their concept the MCCIA also plans to hold a seminar in February that will help the defence research and production establishments to have a dialogue with the industry. “We also want the defence minister to participate,” says Brig Ghorpade.

Another concept that the MCCIA is looking at is the export market. “A number of products developed here can be exported outside and will find willing customers,” asserts Pawar. With George Fernandes demanding a hike in next year’s defence budget to a healthier 3 per cent, this could be the right time for the industry and the defence sector to cosy up to each other.