Pvt Sector to get level playing field in Def Mnfg:Pallam Raju

New Delhi, Aug 24 (UNI) Assuring a level playing field for the private sector in defence manufacturing, the Government today urged private players to take advantage of the Defence Offset Policy.

''Foreign vendors in big ticket defence deals are free to choose an Indian partner,'' Minister of State for Defence MM Pallam Raju told a seminar here.

The Minister pointed out that India would spend nearly Rs 42,000 crore (over 10 billion US dollars) on buying weapons, systems and equipment during the current financial year -- as envisaged in the Union Budget.

Meanwhile, the Confederation of Indian Industry (CII) estimates that India will spend about 45 billion US dollars in arms purchases -- making it one of the most attractive defence markets in the world.

Benefits to the tune of Rs 10,000 crore were expected to accrue to the Indian industry as a result of the new offset policy -- as spelt out in the Defence Procurement Procedure, 2006.

Minister Raju said the aim was to build such indigenous capabilities in defence industry that would be export-oriented over a period of time.

Over 100 entrepreneurs attended the day-long seminar on 'The Defence Offset Policy: Opportunities for Indian IT and Electronics Industry' -- orgainsed jointly by the Defence Offset Facilitation Agency (DOFA) and CII.

Interacting with the entrepreneurs, Additional Secretary for Defence Production PK Rastogi admitted that exports by just a couple of defence PSUs were still a small fraction of the country's huge defence budget of Rs 96,000 crore.

Minister Raju also released a book 'Indian Defence Procurement Opportunities - A Guide' written by Major General Bhupinder Verma on the ocassion.

The Defence Offset Facilitation Agency (DOFA) was set up by the Defence Ministry in September last year to act as bridge between the Indian defence industry and potential vendors, both foreign and Indian.

It also helps the private industry obtain industrial licences for manufacture of defence products from the Department of Industrial Promotion and Policy (DIPP). There existed enormous potential as only 37 such licenses had so far been granted, Secretary Rastogi averred.

UNI