Antony asks defence PSUs to gear up for competition from private companies

Defence Minister A.K. Antony said here today that Defence Public Sector Undertakings will no longer enjoy the monopoly they had hitherto and they will have to face competition from the Indian private firms that will be awarded the Raksha Udyog Ratnas status.

Ghaziabad (UP), June 16 : Defence Minister A.K. Antony said here today that Defence Public Sector Undertakings will no longer enjoy the monopoly they had hitherto and they will have to face competition from the Indian private firms that will be awarded the Raksha Udyog Ratnas status.

Inaugurating the new research and development facilities of the Bharat Electronics Limited here the Defence Minister said that companies like BEL would have to step out of the protected environment and carve out a niche for themselves in the competitive market.

Antony said that even for defence supplies, there would be many competitors within India. The private sector firms, which are going to be awarded the Raksha Udyog Ratnas status, would be producing sophisticated items, largely in collaboration with foreign partners.

On June 6, a special committee under the chairmanship of former Secretary Defence Production Prabir Sengupta submitted its report that identified 13 out of the 41 private Indian companies to get the coveted Raksha Ratna Udyog (RUR) status that would help them import military appliances.

The private companies selected for the RUR status likely include Tata Motors, Larsen and Toubro, and Mahindra and Mahindra, who all would be treated at par with the defence PSUs during the bidding of military equipment production in the days ahead.

These private RURs would also have joint collaboration with foreign country for production of defence equipments.

After inaugurating the research facility, the Defence Minister said that the government is committed to ensure best equipment to country's armed forces. The effort would be to meet the defence requirements from indigenous sources, "as far as possible".

"Increased reliance on imported weapons and systems exposes the country to the possibility of sudden cessation of supplies during critical stages", Antony said, adding, "Therefore, our efforts have been focused towards promoting indigenous research and development".

Antony disclosed that suitable changes were being made in procurement procedures to encourage indigenous industry - both in the public and private sectors to enable them to play a larger role in meeting the defence needs of the country.

ANI