CPI opposes entry of private sector in Defence production

New Delhi, June 18 (UNI) The Communist Party of India (CPI) has expressed great concern over the Centre's decision to allow the entry of private sector in defence production of the country.

''Conferring Raksha Udyog Ratna status to 12 corporate houses in the country for getting the private sector into defence production is a wrong decision,'' a statement said today quoting CPI General Secretary A B Bardhan.

He said these companies will be allowed to access foreign technologies, enter into collaboration with overseas players and avail themselves upto 26 per cent Foreign Direct Investment (FDI).

In addition, they will get government financial investment upto 80 per cent for design, development and manufacture of defence products. Thus, these corporate gains will enter the Defence sector as major players with assured public funds in the name of Research and Development (R&D), for earning profits through defence supply and exports and that too with tax concessions.

He said this will be at the expense of Ordinance Factories and Defence PSU's. This straight forward entry in the most strategic area of the country will seriously jeopardise the country's security. With the spectra of terrorism looming large, a free access to private sector, both Indian and foreign in manufacturing arms and ammunition would also pose a serious security hazard.

The defence unions have already protested against this move.

They have set up a " Trade Union Forum for Self Reliance in Defence". ''Government should first strive to maximise the use of our own defence production capacity. Defence employees are prepared to extend full cooperation in this effort in the interest of self-reliance,'' the statement added.

UNI