Tata Power marks push in defence sales

In fiscal 2004-05, Tata Power’s strategic electronics division has developed Pinaka, a multi-barrel rocket launcher and the Samyukta, an integrated electronics warfare and supplied for induction by the Indian Army, as per information available in its annual report.

The company also received orders for Akash (self-propelled launcher III) for the Army and Akash (an Air Force launcher) with high production potential which, the company says, were received in the face of stiff competition from both private and public sector companies. The launchers are now in the final stages of delivery.

With the demand from the Indian army now on the rise, Tata Power is expecting this division to be a major growth driver and is planning new business verticals which includes command, control, communications and computers intelligence surveillance and reconnaissance equipments code-named C41SR, tank electronics, artillery upgrades, avionics and UAV, display systems, embedded systems and simulators.

In fact, Tata Power is not the only company which is making inroads into the Indian Army. Group firm Tata Motors is in the process of making armoured vehicles for the Indian Army. Among other Indian companies, Hinduja-owned Ashok Leyland and Mahindra and Mahindra are also in the race to bag orders from the defence sector.

The defence-related production orders were earlier given only to public sector units. However, the government decided to open up the sector for private sector to encourage more research and development.

Indian companies are now eligible to apply for licence to set up defence industry for manufacture of all types of defence equipment with foreign direct investment of up to 26 per cent of their equity. Since 2001-02, 27 applications have been received 13 letters of indent have been issued.