It was during the late Atal Bihari Vajpayee’s term as Prime Minister when the defence industry was opened to the private sector. Until May 2001, the defence public sector undertakings (DPSUs) reigned. They continue to do so, but private sector is slowly emerging as they are quicker in delivering results. The present dispensation which is aggressively pushing for the ‘Make in India’ programme, has reportedly issued 442 licences for manufacturing of defence items. The Defence Product List has been progressively rationalised and trimmed and the licensing procedure has been simplified, to enthuse the private sector.
Welcome move
The news that the next generation ‘fire and forget’ ATGM (anti tank guided missile) under Make-II category is available for the private sector to take up manufacturing is welcome, hoping that the private sector, unlike the DPSUs, are able to deliver the systems without any time or cost over-runs. Yes, they may have to go for technology transfers from foreign OEMs. There are some concerns that foreign companies, having failed to sell directly, may get their products in by piggy-riding on Indian partners.
This story is from the January 2021 edition of Geopolitics.
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This story is from the January 2021 edition of Geopolitics.
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