Geopolitics Show Daily 2016 day 3

Page 1

SHOW DAILY

INDIA 2016

www.geopolitics.in

3

DAY

DEFENCE n DIPLOMACY n SECURITY WEDNESDAY 30, MARCH 2016

GEO INTERACTS

RAKSHA MANTRI TO SMES:

YOU WILL BE IN THE COMPETITION

CMDE SUJEET SAMADDAR NM (Retd), CEO, ShinMaywa Industries India Private Limited

20

VINAYAK RAJAGOPAL

Director of Global Services and Support, Defence, Space & Security, Boeing

3 16 DR D K LIKHI

CMD, Mishra Dhatu Nigam Limited

S K SHARMA

Chairman & MD, BEL

22 3 ULF NILSSON Head, Saab Business Area Aeronautics

T

he representatives from Small and Medium Enterprises opened up in front of Defence Minister Manohar Parrikar and expressed their fears of being relegated to the sub-contract level with the aim to keep them out of competition. This came during a seminar at Defexpo and just a day after the Defence Procurement Policy was released by the Ministry of Defence. Speaking at the Global Investor Summit: Make in India for Defence Sector organized by Assocham, Anil Ambani, Chairman and CEO, Reliance ADA Group said, “Opportunity is being denied in the name of experience.” He also added that it was like a landmine, a booby trap to kill the competition. Ambani stressed on changing the mindset as it would help the private sector to achieve its important share in enhancing national security. The Reliance chief was pointing towards the experience of private industry while awarding contracts. He also made a reference to defence equipment being segmented by giving the example of ‘Surface and Sub-surface’ equipment related to the navy. Internationally, this did not happen, he said. Other speakers from industry also aired their worries. Speaking on the occasion, Bimal Sareen, OIS-AT Director, voicing the worries of industry, said, “SMEs are disturbed as large industries have convinced the Ministry of Defence that industry be divided tier-wise.” He also added that he was worried about SMEs being relegated to the sub-contract level. Sareen congratulated the Rakhsa Mantri for making the Defence Procurement Procedure simpler and mentioned that the IDDM (Indigenous

How about offsets financing startups?

Manohar Parrikar and Baba Kalyani in discussion during the seminar at Defexpo

efence Minister Manohar ParD rikar threw up a concept for wider discussions by the industry

on whether offset obligations could also be met by contribution towards a special fund which would finance startups in the field of defence in line with the idea of ‘Make in India’. He also expressed his willingness to consider a proposal from entrepreneurs in defence SMES that they could be given easier terms of credit from the banks. “Please discuss the ideas among yourselves and then give me a sectoral suggestion. I will look into it sympathetically,” the Defence Minister said during a seminar on Defence Offset: Challenages and Opportunities, organised by the CII at the 9th Defexpo today.

Design Development and Manufacturing) was a great gift. On his part, Ambani gave his suggestions to make the procurement process fair and transparent and said that Public-Private partnership held the key to success. According to him outsourcing to private industry needed to be extended significantly. Defence Minister Manohar Parrikar flayed the fears of the SMEs and said that the DPP was just a ground rule to create a level playing field and nothing beyond that. He said, “I am aware of the concerns and what are the constraints.” He added that suggestions and recommendations were welcome. “Maybe after six months we will see how the DPP works.” Parrikar also said that “the DPP will be as good as we execute and your cooperation is of utmost importance. DPP is the first step towards making our destiny.” Talking about the Defence Public Sector Undertakings, Parrikar said that retaining the Ordnance Factory Boards and PSUs was a necessity of the forces. Although it was not possible that 100 per cent defence manufacturing could be done by the DPSUs and the OFBs, he talked about a situation where a private company would have to stop operations if it did not get any orders. Thus, DPSUs and OFBs were necessary since they serve the defence forces at the critical time. Speaking about the DPP, Parrikar also said that it was a way to remove the shackles. The first target of his ministry was not procurement but to provide the best arms and equipment. He was quick to add: “Everyone should be ready for scrutiny.” — Mayank Singh, Goa


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