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INDIA 2016
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DEFENCE n DIPLOMACY n SECURITY TUESDAY 29, MARCH 2016
GEO INTERACTS
DPP TO BOOST ‘MAKE IN INDIA’
India has taken care of offsets and concerns of many foreign companies, assures Defence Minister Manohar Parrikar
BRADLEY N ROUNDING
Sr. Manager, Vertical Lift, Global Sales & Marketing, Boeing
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THOMAS LJUNGQVIST Sales Director, Weapons & Sensors, Saab
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NISHANT NAMBIAR
Director, Inforich Technology Solutions Pvt Ltd.
17 SERGEI GORESLAVSKY Deputy Director General, Rosoboronexport
PRAKASH SINGH IPS (Retd), DG, Border Security Force
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BABA KALYANI CMD, Bharat Forge
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DR. VIVEK LALL
Chief Executive, General Atomics
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n the latest amended Defence Procurement Procedure (DPP) that Defence Minister Manohar Parrikar highlighted on the inaugural day of the country’s 9th Defence Expo in Naqueri-Quitol, South Goa, Indian-designed developed and manufactured (IDDM) category will have the topmost priority. The DPP was amended last time in 2013. “This is not a perfect policy document. It is not full-proof. We will reexamine it after six months, during which I will be keeping eyes and ears open for suggestions to improve,” said the Defence Minister during his interaction with the press. The document has been partially uploaded in the Defence Ministry’s website today and will take another 15 days to give a holistic look with details, including annexures and corrections. “This DPP, I believe, can actually push the agenda of ‘Make in India’ and India’s target of achieving major successes in creating a defence industry network for its own need as well as exports,” Parrikar added. “We have ensured that there is more transparency, but also that procurement takes place faster, which you will realize through Defence Procurement Procedure.” Parrikar also stressed that the offsets or concerns of many foreign companies had been taken care of, adding that the few pending ones will be tackled in the coming months. Parrikar is convinced that the new DPP, with its emphasis on IDDM, will
not only strengthen the defence industry but also lead to its indigenization. “Technology is changing almost every year and India is one country which has a huge pool of people in engineering and technology who can convert many defence requirements into actual production,” the Minister said, emphasizing, “from being the largest importer of arms, India is on the path of becoming an important exporter of arms in the world.” According to the Defence Minister, in this financial year alone, India has exported defence equipment worth `2000 crore. “In fact, the sum is much higher as many dual-use items that are clear results of the defence offsets, have been de-listed — 66 per cent of the items from defence export clearances. If we will take them into account, then the sum must be more than `5000 crore. Be that as it may, let me assure you that by 2017, Indian defence exports will take a quantum jump,” Parrikar said, adding “I will rather go to the extent that India exports LCA aircraft, Akash and BrahMos missiles after meeting 90 per cent demands of our own forces.” He also said that global giants like Airbus and Boeing are more than keen to make their products in India and exporting them. The Defence Minister highlighted the importance of the small and medium scale industries (MSME) for ‘Make in India’ in the defence sector. “The government is pushing for ‘Start
INSIDE: Inauguration Coverage:Pg 2
up India’ by endorsing the contribution of small and medium industry in the defence sector. We are trying to help these companies by asking banks to finance them on easier terms and conditions. We are considering granting them some advan ce money too, if their products have been appealing to us,” Parrikar said. He highlighted, in this context, the importance of skilled and technical manpower. That India can produce state-ofthe-art defence platforms and weapons systems has been proved by the success of the Tejas, Parrikar said. “This fighter aircraft is one of the finest of its kind in the world. We have absolutely minor issues with its fueling system. This is going to be taken care of. In fact, this year, we will have eight units of Tejas for the Indian Air Force. Next year, we will produce at least 16 of them to increase our squadrons,” he said. The Defence Minister clarified that given the fact that weapons and other systems are procured over a period of time and in phases, the budgetary allocations are adequate for defence procurements that are already planned. “In fact, we have already finalized to procure, both indigenously and otherwise, items worth `157000 crore and are on the verge of finalizing items worth of `138000 crore. Thus, we have a total order of about `250,000 crore,” Parrikar said. Continued on Page 3
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