Army presents big opportunities for domestic industry
An Rs.3 lakh crore defence budget and a CAGR of 15% is required to meet the desired level of indigenisation in the domestic defence industry, according to Mukesh Bhargava, Board Member and Vice President, L&T Defence.
“Until we have Rs. 3 lakh crore defence budget and a CAGR of 15%, we would not be able to meet the desired level of indigenisation and the ambitious target of US$5 trillion economy,” he told a webinar attended 150 business executives.
He also called for upgradation of the existing products, components and systems which can open big opportunities for the Indian industry under indigenisation.
Speaking at the webinar on the Indigenisation Requirements of Indian Army on 3 September 2020, Bhargava reiterated the fact that there should be long-term business orders for making the investment by the industry commercially viable.
But he requested that the performance bank guarantee should be done away with.
Responding, Maj Gen S Pavamani of the Indian Army assured of the defence budget, saying enough orders would be generated for the industry under indigenization programme.
The Indian Army is working on the Long-Term Sustenance Agreement plan which will offer the much-required commercial viability for the Indian industry, he informed.
Maj Gen Pavamani also assured that the Indian Army is committed to giving opportunities to the Indian MSMEs.
He said that the orders will be commercially viable and the Industry is expected to give a quality product with timely delivery and competitive price.
He answered all the queries of the industry and assured all possible support to the industry for a win-win situation under the indigenisation plan.
The Webinar was attended by around 150 Indian defence industry leaders and especially the MSMEs. It was held by PHD Chamber of Commerce and Industry.
The industry has achieved around 80% indigenisation requirement and is progressing on with the remaining 20%, said Lt Gen S K Upadhya, Master General of Ordnance, Indian Army.
“The Indian Army is very keen to work with the Indian industry for all their requirements and also offer to handhold them especially the MSMEs,” he said.
Quality check process is being simplified for the industry to participate more and more and to save their time and resources, he pointed out.
The industry to do more of Research and development and take technology to the next level, he added.
“As far as the indigenisation is concerned, we have to take the first steps first where we have the in-house capability to manufacture the materials, components and assemblies,” said Sanjay Aggarwal, Senior Vice President, PHD Chamber.
He noted that the 74% foreign direct investment (FDI) in the defence sector through the automatic route will give a big impetus to local manufacturing and especially to a large number of defence MSMEs especially niche technology.
Some of the critical and strategic raw materials imported in large quantity annually for the various defence requirements should be brought under the import embargo list under the indigenisation plan if the capability exists within the Indian industry. This call was made by M K Gupta, Chairman, PHD Chamber Defence.
The Indian Army is following a well-laid plan for covering all the components, spare parts, assemblies, sub-assemblies, platforms and also for the upgradation, according to Brig. Chander Sheikhar, who gave a detailed presentation on the Indigenisation Plan of the Directorate of Indigenisation. #products #manufacturing #process #indigenisation #equipment /fiinews.com
