Pvt Sec to Get Increased Role in Defence System Integration:Pranab

New Delhi, June 9 (UNI) In an effort to encourage healthy competition within the domestic defence industry and to expand the defence industrial base, the Government has set up a Committee to identify 'Raksha Udyog Ratna' industries to contribute in defence production.

Announcing this here today, Defence Minister Pranab Mukherjee said the exercise would help encourage RUR industries assume the role of system integrators of large weapon systems and producers of platforms required by the Armed Forces.

Addressing a function held here for presentation of the Defence Minister's 'Awards for Excellence', Mr Mukherjee said once accredited as RURs, these industries would be treated at par with Defence PSUs and may be selected for receiving technology and undertaking licensed production with Transfer of Technology from overseas sources.

''This will encourage healthy competition within the domestic defence industry and pave the way for further development of defence industry in the country... Besides, this would also lead to expansion of our defence industrial base, enhance indigenous defence capability and ultimately contribute to the combat potential of the Defence Forces....'' The Minister said the Government had considered the recommendations made by the Kelkar Committee and accepted most of them for implementation in order to synergise the efforts of various stakeholders, improving the prospects of indigenous production and utilising the resources available -- both in the public and private sectors -- with the objective of strengthening self-reliance in defence preparedness.

He said an Offset provision -- making it mandatory for the foreign companies to invest 30 per cent of the amount in India for any procurement valued at Rs 300 crore or more -- had already been incorporated in the Defence Procurement Procedures to give a fillip to the domestic defence industry.

''This policy will open up new avenues for growth within the country in terms of industry participation, technology upgradation, employment and exports....'' Minister Mukherjee called upon the top managers to adjust and adapt to the changing environment due to globalisation of the defence industry. ''There is no denying the fact that India possesses a comparative advantage in many respects....'' ''With its experienced workforce, large pool of scientists, engineers, reasonable endowment of natural resources and a large domestic market, India has the potential to emerge as a major manufacturing hub for the global market. This is also absolutely true as far as defence industry sector is concerned....'' The Defence Minister said new defence systems -- be they submarines, multi-role aircraft or any missile system -- had become an amalgam of systems. ''Therefore, there will always be more than one major player in the production of these large systems and this will require management solutions....'' In this context, he called upon the Captains of Defence PSUs to carryout the required changes in their management structure to be able to follow a consortium approach in order to deliver the best results.

Mr Mukherjee also gave away the Defence Minister's 'Awards for Excellence' for the year 2003-04.

Hindustan Aeronautics Limited bagged the maximum number of awards, including Excellence in Performance, Best Performance in Exports, Import Substitution and Innovation.

Bharat Electronics Limited got the awards for Best Performing Division, Best Design Effort and for Designing and Developing Citizen Card.

The function was attended, among others, by Minister of State for Defence Production Rao Inderjit Singh, Minister of State for Defence MM Pallam Raju and Defence Production Secretary KP Singh.

UNI DG MSJ DS1610