Indian Defence Industrialization: Provide Private Sector With Right In

Discussion in 'Strategic Forces' started by AVERAGE INDIAN, Nov 10, 2014.

  1. AVERAGE INDIAN

    AVERAGE INDIAN EXORCIST Senior Member

    Joined:
    Sep 22, 2012
    Messages:
    2,762
    Likes Received:
    2,718
    Location:
    Detroit MI
    Indian Defence Industrialization: Provide Private Sector With Right Incentives & State Support


    But with support, they can deliver as they have in the past. Companies such as Godrej Industries and L&T have delivered critical components in strategic programmes like Brahmos and ATV respectively while companies like Tata Power SED, Mahindra Defence System and many others have a relatively healthy track record of defence supplies.
    But with support, they can deliver as they have in the past. Companies such as Godrej Industries and L&T have delivered critical components in strategic programmes like Brahmos and ATV respectively while companies like Tata Power SED, Mahindra Defence System and many others have a relatively healthy track record of defence supplies.

    Companies like Dynamatic Technologies, Astra Microwave, Bharat Forge show promise while many companies like Punj Lloyd and Kineco Kaman recently obtained licences to manufacture different defence items, in addition to over 230 licence holders.

    Although five out of the nine defence public sector units (DPSUs) are naval system producers, in the case of submarine production, only Mazagon Dock Limited (MDL) has some capacity. MDL is otherwise overburdened with the Scorpene project, which is facing delays. It would thus be interesting to watch which Indian companies will be invited for the submarine tender.

    At the moment, prospects for L&T look bright. It has the capacity to bring in foreign partners (like the Tatas who are joining hands with Boeing to participate in Avro replacement project) like Nevantia, HDW, DCNS or Hyundai Heavy Industries. A meaningful collaborative or consortiumbased approach could always be initiated by Indian companies to prove their worth in programmes like P75-I. Last but not least, can Indian companies be a part of the global supply chain? The answer is again yes.

    All categories of Indian companies can demonstrate their capacities in component, sub-system or system supplies, only if they are consciously encouraged by the state. Companies like Dynamatic are already a part of the global supply chain, with many more waiting in the wings.None of the large Indian companies is a true system integrator or defence dependent (like Lockheed or Raytheon), but they can graduate to that level over a period of time, if they are provided with the right incentives, a conducive atmosphere and prudently crafted state direction.

    Indian defence industrialization: Provide private sector with right incentives & state support - Page2 - The Economic Times
     
  2.  
  3. sgarg

    sgarg Senior Member Senior Member

    Joined:
    Sep 9, 2014
    Messages:
    3,479
    Likes Received:
    961
    Re: Indian Defence Industrialization: Provide Private Sector With Righ

    I agree with this article. The private sector needs support just like government sector for military industries. As arms has no other customer except the government, producing arms cannot be a commercial proposition. Here a private company is basically providing its expertise and facilities for government work, and this is how it must be treated.
     
  4. no smoking

    no smoking Senior Member Senior Member

    Joined:
    Aug 14, 2009
    Messages:
    3,172
    Likes Received:
    422
    Re: Indian Defence Industrialization: Provide Private Sector With Righ

    You forget a few things: the government support here is worth billions of dollars and you won't see any return in 20 years.
    I wonder if Indian tax payer will be happy to see this.

    How can private company provide their expertise and facilities in fields they have never worked?
     
  5. ezsasa

    ezsasa Senior Member Senior Member

    Joined:
    Jul 12, 2014
    Messages:
    3,503
    Likes Received:
    3,034
    Location:
    Hyderabad, Andhra Pradesh, India
    Re: Indian Defence Industrialization: Provide Private Sector With Righ

    Indian defence companies seriously need to do what Avinash chander suggesting them to do, they need to get into consortium mode. DRDO Chief was saying that india needs atleast two consortiums like in america. For private sector to get into consortium-mode services should do what modi has asked them to do, which is give out a long term plan on acquisitions for atleast twenty years. Then again for services their current requirements can be fulfilled with in ten years if the current rate of acquisitions are maintained, then ball comes back to government to confirm the strategic vision for india 30 years from now.
     

Share This Page