Indian Official Says Government-Owned Defense Companies Must Compete
Signaling the end of the monopoly enjoyed by Indian government-owned Defense Public Sector Units, Minister of State for Defense M.M. Pallam Raju has asked DPSUs to shift gears and compete for defense manufacturing work.
Pallam's comments are significant in light of increased participation of private players in the defense and aerospace sectors.
"The [privately owned] Tatas, Larsen and Toubro and Mahindras are already in the defense manufacturing sector now, and they are expanding in a big way," Pallam says. "This is due to the renewed thrust given by the Indian government to increased self-reliance. The DPSUs are no longer in a comfort zone. However, they have shaped up well in the last few years, which is a positive sign."
In Bangalore last week for the golden jubilee raising day celebrations of the 106 Infantry Battalion (Territorial Army) of the Parachute Regiment, Pallam said there are a number of small- and medium-sized enterprises that already participate in this process, and now the Ministry of Defense is looking for bigger companies to step in.
On another matter, Pallam said the defense ministry is considering increasing the number of Territorial Army (TA) units.
"Currently there are about 50,000 personnel in TA units across India, and we are in the process of identifying areas where this could be increased," he says.
A series of steps have also been implemented to strengthen the coastline in the wake of the November 2008 Mumbai terrorist attacks.
"Post 26/11, the Indian navy has been made the nodal agency for strengthening surveillance across the country's 5,422-km. coastline," Pallam said. "Setting up of maritime police stations, lighthouses equipped with radars and sensors, induction of patrol boats and automatic identification systems to track small vessels are being planned for enhancing coastal surveillance."
To a question posed by AVIATION WEEK, Pallam says: "The upcoming air show in Bangalore (in February 2011) will showcase a series of indigenous developments. It will be different in many ways, and one would get an up-close [look] on some [of the] latest indigenous developments worldwide."
Pallam photo: Defense PRO, Bangalore
Indian Official Says Government-Owned Defense Companies Must Compete | AVIATION WEEK