Centre to facilitate private sector investment in defence production, says officialNovember 14th, 2007 - 2:54 am ICT by admin
Singh said that the new Defence Offset policy that is expected to bring in 12 billion dollars by 2011, will give a fillip to the Indian industry as it gives the foreign vendors the responsibility to select Indian collaborators, encouraging competition among the Indian industry.
As 60 percent of defence production was being imported, there is great opportunity for investment and called upon the industry to do its best in meeting the challenges in the aerospace industry.
Singh also clarified that the foreign suppliers can choose its Indian Offset Partner from Private Sector or Public Sector.
In his keynote address, Dr B V R Mohan Reddy, Chairman and Managing Director, Infotech Enterprises Ltd hoped that the government initiatives like the Defence Offset policy, the setting up of export promotion zones, tax incentives and the government’s commitment to invest 40 billion dollars in the aerospace industry would encourage industry participation and put India on the global map.
He said the Indian industry was already in a state of preparedness with domestic R and D expertise, greater indigenisation of R and D and government initiatives to self-reliance, grooming talent and encouraging innovation.
The growing commercial aviation demand, booming commercial airlines, air cargo market and increase in the number of passengers provides an opportunity to global companies to seek a role in the Indian aerospace industry. Speaking about growing global engineering partnership, Reddy said as 70 percent of R and D is being outsourced globally, collaborative and concurrent engineering is on the rise. With a surplus working population and a large talented manpower pool, India was comparatively at an advantageous position.
Session Chairman N N Vohra observed that the willingness of the government to allow the private sector to play a key role in the defence production is encouraging and the future looked bright.
Air commodore Jasjit Singh, Director, Centre for Air Power Studies, in his closing remarks, said inadequate local repair capacity and rapid airline growth are presenting MRO providers with an opportunity to get in on the ground floor. He also called for necessary policy changes to facilitate the tapping of technical skills of the defence forces in the MRO sector. He said there is a need for Indian involvement in aircraft manufacturing especially commercial aircraft.
Delivering the vote of thanks,Lt Gen (retired) S S Mehta, Director General, CII, said if gainfully spent, defence expenditure will fuel India’s economic growth. He urged the Defence Services not to lose their skilled manpower and also stressed that they be trained and certified to global standards. (ANI)
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Tags: aerospace industry, air cargo market, billion dollars, commercial airlines, concurrent engineering, defence production, encouraging innovation, global engineering, government initiatives, indian industry, industry participation, infotech enterprises ltd, private sector investment