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 The
changes attuned to value addition, focus on critical
technologies, a conducive taxation regime and
strengthening of the R&D base are expected to
be unveiled by September this year, Sharma said
while inaugurating the Defexpo India 2010 Seminar
on ‘Defence Procurement- Movement from Offsets
to Buy and Make Indian’ organised by defence ministry
and FICCI.
“DPP was not an end in itself but a vehicle to
meet the larger goal of security of the nation,”
said Sharma.
He said that if India was to have a say in the
global milieu, it needed to have a vibrant defence
industry.
In this context, Sharma said that there was a
need for greater involvement of the private sector
in defence production and its absorptive capabilities
would have to match the technologies available
worldwide.
The recent introduction of “Buy and Make (Indian)”
category in the defence acquisition process has
been designed to enhance participation by the
Indian industry, meeting our requirements for
state of the art defence systems and platforms
by getting into tie ups with technology providers
through mechanism of technology transfers in joint
ventures. This is a major step which has been
taken by the Government as a result of the review
of Defence Procurement Procedures. In capital
acquisition cases categorised as “Buy and Make
(Indian)”, the Request for Proposal will be issued
to those Indian industries that have requisite
financial and technical capabilities to enter
into Joint Ventures, as also absorb technology
and undertake indigenous manufacture.
The procedure to be followed in this regard will
be akin to the existing “Make” procedure with
a difference that the production and development
by the Indian industry will be through Transfer
of Technology and not through Research and Development.
This provided companies an opportunity to pursue
tie ups and joint ventures as “Buy Indian”; “Buy
and Make Indian”; and “Make” will be the preferred
categories with option of “Buy Global” being resorted
to only where equipment with requisite Qualitative
Requirements are not possible to be procured through
these methods in the required time frame.
In the context of the ongoing modernisaiton
of the armed forces and the acquisition reforms
undertaken by the government, the Indian defence
market now offers tremendous opportunities for
formation of joint ventures and direct sourcing
by the global players. India needs highly sophisticated
and technologically advanced products to meet
the requirements of the armed forces. The government
was also looking for collaborations in the field
of defence R&D and tie-ups in critical technology
areas in order to meet the requirements of the
armed forces through indigenous sources to the
extent possible.
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