Private Sector Participation in India's Defence Production

Security of their state is of paramount importance since time immemorial, and a degree of military expenses becomes a simple necessity irrespective of a point whether a land is wealthy or poor. A nation's durability revolved around retaining steady un-hindered economical improvement with the occurrence of mighty armies possessing proper stock of ordnance and armour to uphold the solidarity and sovereignty of this particular country. Appropriately, all over the world the rulers (including in India) got always dealt military and military services associated equipments, procedures, and employees clandestinely and with great care.

Scrutiny of the annals reveals that, production of ordnance and armour was never pressed in to the hands of private workers. Even in India, the production/stocking of armed service equipment always possessed the factor of secrecy and acquired always remained as a state-led organisation. Kautilya's Arthasastra emphasises, "The Chief of Ordnance shall create factories staffed with craftsmen for the production of machines for attacking in battles(Verse 2. 18. 1). All gadgets brought out in to the armoury shall be stamped with the King's seal and would be properly stocked(Verse 2. 18. 4). "The Moghuls had canon factories under the control of Emperor called as 'TOP-KHAANAS' with 'KHANSMAN' or 'Lord Steward' as an In-charge. Historian Robert Home registered that, even Tipu Sultan required a keen fascination with the production of firearms totally under the control of the state of hawaii, and founded at Seringapatam 11 armouries to make and concluding small hands; 4 large arsenals and 3 properties enclosure machines for monotonous guns".

Post Independence-Neutral Attitude. In tune with this old notion and idea of 'Defence Industry to be manipulated only by Status', the Planning Memorandum (PM) of 1945 and the Industrial Policy Resolution( IPR) of 1948 and 1956 located the munitions, plane and ship building companies in the general public sector under the control of the Central Authorities. There was a wide spread feeling that it was 'improper' for the Ministry of Defence (MoD) to go in for collaboration with the private sector. Parliament didn't permit any move around in this direction. Subsequently, in the area of defence production, revenue making by private individuals in times of conflict and serenity was considered undesired. Post freedom, Nehru commissioned PMS Blackett, a British physicist to prepare a written report outlining the actions necessary for India to be near self applied sufficient in defence creation. Though home reliance and personal sufficiency were on the Blackett's record, there was a lukewarm frame of mind towards military requirements due to the politics philosophies of Indian Country wide Congress and Nehru's strong postulated neutrality by means of Non -Align Movement (NAM).

Chinese Aggression. The real impetus for the army was only received in the aftermath of the 1962 Chinese language aggression. The ordnance factories, which until then were being gainfully applied to produce coffee percolators and film projectors, were revitalised. At exactly the same time, the geopolitical advancements around the globe have critically afflicted growing countries like India. The necessity to maintain qualitatively better armed forces, and therefore equipment and infrastructure, is just about the need of the hour. It was also obvious that the nation will have to be gradually being more reliant on its own capabilities and build a credible defence industrial base to serve the needs of armed forces. Regardless of the 'will' to contribute, the private sector at that juncture could not contribute much anticipated to insufficient knowledge, infrastructure and opposition from Govt procedures and was confined to play a subordinate role.

The Yawning Space. In the lack of worthwhile players in the private sector, considerable investments by the federal government to raise infrastructure for defence R&D in the sixties and seventies was a wise decision. However, because of the changing armed forces environment, the needs of armed forces towards advanced ordnance and equipment were ever before growing and could never be satisfied by the insufficient indigenous production rendered by the general public sector despite heavy investments. Therefore to fill up the yawning gap of projected requirements of military and available limited resources there appear an inevitable need for import of the required ordnance and equipments by spending Crores value of forex.

Foreign Exchange Spending. India's shelling out for biceps and triceps imports since 1999 Kargil conflict have increased to $ 25 billion and is likely to further go up beyond $ 30 billion by 2012. India's transfer of defence articles as on today is composed about 70% of the procurement in value conditions from foreign resources because the Indian community sector cannot deliver in terms of quality or speed on either research or production of armed forces stores. It would be astonishing to notice that, India is currently the world's biggest importer of hands well worth 3% of GDP or $ 30 billion. This does not augur well for a country that looks for self reliance and aspires to be always a global vitality.

Change in Regulations. Growing to the occasion, the govt has began to woo the private sector by announcing various insurance policy changes, liberalisations for the dynamic involvement in the defence development, and thereby to reduce dependency on the other countries. These include 100% involvement of the private sector in defence creation with FDI to the extent of 26 % at the mercy of licensing from the Dept of Industry Coverage and Campaign (DIPP), financing research and development, as well as appropriate procedures in Defence Procurement Strategies (DPP) of 2005, 2006 and 2008 along with some amendments to DPP-2008 that came effective from 01 Nov 2009.

AIM

Aim of this paper is to analyse the role of private sector involvement in the defence production in the light of growing needs of complex ordnance and equipment by the military vis- -vis the incapability of public sector to meet the challenges.

PUBLIC SECTOR AND PRESENT STATUS

Indian Ordnance Factories Organisation

Formation. To be able to meet the increased, simultaneous dependence on armaments and armed forces equipment in the Euro and Eastern theatres of war and consequent British isles inability to dispatch the requisite quantities of forearms and ammunition, a number of defence oriented industries were create in India by the English. The rifle stock at Ishapore (oldest proven in 1801), ammunition manufacturing plant at Kirkee, shells and gun carriage manufacturing plant at Jabalpur and saddler factory at Shajahanpur are a few in occasion. Currently, there are 39 Ordnance Factories geographically sent out from coast to coast at 24 different locations and are running under the Section of Defence Creation under Ministry of Defence.

Role of Ordnance Factories. The company is primarily employed in make of Hands, Ammunitions, Equipment, Armoured Vehicles & Staff Carriers, Transportation Vehicles, Clothing and General Stores items. After get together the primary dependence on the Armed Forces, extra capacities are utilised for resource to non-defence sector and exports. The gross creation of Ordnance factories during the 12 months 2005-06 was Rs 8811. 59 Crores. Total sales including issues to military and other organizations and civil trade in the same 12 months was Rs 6891. 68 Crores. This constitutes around 40 percent of home supplies to the armed forces. Whereas, the contribution of OFB to IN in the entire year 2009-10 was a meagre one and half percent. The projected concentrate on was 11, 000 Crores and sent was only 6, 000 Crores.

Innate Challenges. The traditional difficulties to the management of Ordnance Factories have been explained in the following sub paragraphs. However, the point to note would be that the Ordnance Factories perceptibly have never done well except regarding the last of the difficulties, i. e. they may have not been taking any net budgetary support from the federal government since 1999-2000:-

(a) Significant decrease in the over head cost through reduced amount of excessive staff while at exactly the same time retaining quality man vitality.

(b) Speed up production to meet up with the prospects of the leading customers.

(c) Faster absorption of imported new systems either from abroad under license development or from the DRDO.

(d) Reduced budgetary support from the Govt.

Utter Fiasco. It really is obvious that owing to the constant monopoly they may have enjoyed over a period of years as 'express pampered organisations' they could not maintain in the race with foreign counter parts in producing superior goods warranted by military or at least in showcasing such functions. With the continuous dependency on DRDO, and total disregard of in-house R & D facilities they miserably didn't deliver the desired goods in time. The Ordnance Factories are plagued with slackness scheduled to lack of competition, multiple inner human reference problems. A brief note on DRDO is worth talking about in this back again drop to appreciate the close link between both of these mutually failed organisations.

DRDO Organisation

Formation of DRDO Organisation. The Defence Research and Development Organisation (DRDO) was developed in 1958 and since then, DRDO has risen from a few laboratories to a sizable organisation with fifty one well-established laboratories pass on throughout the country. The DRDO is involved in search of advanced technologies to be able to achieve progressive self-reliance in defence weapons and equipment". Every year about 200 plus experts join the DRDO. The labor force of the DRDO is over 25, 000 personnel with 6750 researchers in its Defence Research Development Service (DRDS) cadre.

Achievements of DRDO

Integrated Guided Missile Development Program. The most important breakthrough in neuro-scientific high technology that DRDO can boast off is the Integrated Guided Missile Development Programme(IGMDP). Federal of India approved the IGMDP in 1983-84 with the aim of producing a wide range of led missiles. Supersonic anti-ship cruise missile BRAHMOS is another (though it is a joint venture with Russia) success story. Besides these, accomplishments in other areas they claim are Main Struggle Container Arjun, Advanced Light Helicopter, Pilot less aim for airplane, radar systems like the INDRA I and II, special steels, crammed foods, snow clothing, vehicles, bridge levels, naval sonar's and EW consoles to mention a few.

Failure of DRDO

Gp Capt A G Bewoor anguishes in his article as, "whenever the military want a weapon system, the DRDO invariably says they can make it, and they produce an unassailable record of never providing. Ultimately, we transfer that same equipment at ten times the price. Stories of such perfidy are too many to enumerate. Every indigenisation job of DRDO/OFB is much behind the routine with success testimonies limited by few technology demonstrators. The basic examples of our R & D failures will be the Arjun tank, INSAS rifles, Saras, Kaveri, Akaash, Nag, Indra Radar therefore many. "

Absence of Perspective Plan. The lackadaisical frame of mind of Ordnance Factories still left indelible blemishes on the public sector technological leading despite being the largest workplace of man electricity, and pushed it towards incompetence and organisational failure. In the absence of any road map of their future perspective, they even cannot provide any assurance they can meet up with the projected needs of military and thus fail to generate any more faith of an individual. Another noteworthy feature is as the defence general population sector under takings outsource to the amount of 30 percent, this figure is approximately 80 percent in the case of ordnance factories. Thus, it was visible that, the ordnance factories in turn are dependent on private sector and the role of private sector can't be under approximated though for the time being they are limited to a secondary role.

DPSUs AND PRESENT STATUS

The country's defence commercial capacity was concentrated in another class of venture, the Defence Community Sector Undertakings (DPSUs) besides Ordnance Factories. The DPSUs are organised under the Department of Defence development within the Ministry of Defence. With an increase of creation of armaments during the 1960-70s the number of DPSUs had grown up to nine by the 1980s. This is reduced to eight in 1986 by the copy of Praga Machine Tools limited to the Ministry of Industry. The DPSUs will involve themselves in the manufacture of modern complex weapon systems, in advanced consumer electronics, and in the development of exotic steel alloys for aerospace projects. The eight DPSUs are M/s Hindustan Aeronautics Limited, M/s Bharat Gadgets Small, M/s Bharat Earth Movers Limited, M/s Mazagon Dock Limited, M/s Goa Shipyard Small, M/s Garden Reach Shipbuilders and Engineers Small, M/s Bharat Dynamics Limited and M/s Mishra Dhatu Nigam Small.

DPSU Overview. The DPSUs have been creating a wide selection of weapon systems and equipment under licence creation. This large professional effort should, in theory, provide the methods to produce maintain and repair significant helpings of the India's armed forces equipment, providing leverage against dependency on overseas supply and the methods to ensure sustained armed forces procedures. However, as presented by Baidya Bikasha Basu, "there has been just a little or no make an effort in this course. OFs/DPSUs and the private sector should involve themselves in experimentation and producing defence equipment in totality of defence requirements. In such a venture, where cooperation and cooperation business lead to invention or failures, the OFs / DPSUs should anticipate to admit both. "

Emerging obstacles offer opportunities to check out change. The defence industry by virtue of its technical advantage and security applications is a crucial strategic industry. Nationwide governments in the western have long recognised this linkage and continue steadily to evolve plans that both support the industry and hold on to its competitiveness. In contrast, the Indian government, while dealing with all defence PSUs as security related, has done precious little to prepare these vital companies to meet global difficulties. India therefore, frequently falls prey to the video games that developed countries play. Realising the damage, Govt has woken up and started reforms by promulgating various liberalisations and policies to encourage the private sector therefore to curtail the dependency on international resources.

GOVT POLICIES

Defence Offset Policy

Defence Procurement Technique 2005. Inclusions of procedures related to off pieces in DPP 2005 was only a moderate beginning. Aside from specifying the agreement threshold of Rs 300 Crore and prescribing an offset limit of thirty percent of the agreement, there is not too much of elaboration on the modalities and other conditinalities for discharging the offset obligations. The task was vague in relation to addition of private sector industry for discharging offset obligations. Although symbolically a good beginning was made through the addition of an offset policy in the DPP 2005, it continued to be as a non-starter primarily owing to insufficient clarity.

Defence Procurement Procedure 2006. In 2006 the range of the policy was clearly defined and the areas for discharging the offset obligations were plainly enunciated. The defence offsets were compulsory for any capital acquisitions under the category of 'buy' (outright purchase), 'buy and make' (obtain a foreign vendor followed by licensed production), where ever the cost of acquisition in the RFP exceeds Rs 300 Crore (about $ 70 million). The bare minimum requirement of offsets at 30 percent under the 'buy ' category and a minimum of 30 percent of foreign exchange aspect under the 'buy' and 'make' category was prescribed. In terms of areas for release of offset responsibilities, the insurance plan was specific namely:-

(a) Direct purchase of, or executing export requests for defence products and components produced by, or services bought by the Indian Defence Business.

(b) FDI in Indian Defence Industries, and

(c) FDI in Indian Organisations involved in defence.

Defence Offset Facilitation Organization (DOFA). The most important feature of the 2006 plan was in terms of creation of any organisational structure for execution of Offsets viz, Defence Offset Facilitation Organization (DOFA).

Defence Procurement Method 2008. The Defence Offset Policy 2008 arrived to effect on Sep 01, 2008. Based on the inputs from all quarters the procedures related to bank of offset credits were integrated, the licensing necessity from MoD for the manufacture of defence products was done away with. Instead, adherence to the task stipulated for the defence professional licensing necessity as mandated by the Dept of Industry Policy and Campaign ( DIPP), process of Min of Industry is currently necessary to complied with. However, the modified procedure of 2008 remains silent on the problem of multipliers. Besides this, a new clause has been included (as an aftermath of 26/11 occurrence) that, the procedures will not be made relevant to the procurements made under the Fast Track Procedure (FTP) in every probabilities to obviate the delays involved with entering into execution of offset deals.

Draw Backs of Defence Offset Policy

Lack of Universally Accepted Explanations. In its current form the offset treatment is bound to direct offsets. However, the immediate offset procedures are not exactly in sync with the internationally practised classification of immediate offsets. Therefore, adoption of universally accepted or recognized definitions for quality of thought among all the stake holders is the necessity of the hour.

Banking Offset Credits. Procedures on bank of offset credits help in the vendor to start business functions in the customer country without looking forward to the prize of a procurement contract. However, credited to rigidity of the provisions in the policy, if a vendor can create more offsets than his commitments under a particular contact, the supplier's credit can be banked and would continue to be valid only for an interval of 2 yrs after summary of the contract, and for this reason the efforts put in by the vendor goes in vain and functions a disincentive.

Offset multipliers. There is absolutely no reference to Offset Multipliers in 2008. Although DPP 2006 state governments that, the option of offering additional weights to offset having multiplier results in conditions of exports generated or building indigenous capabilities in strategic technology products, or other issues may be considered after reviewing the experience of implementing these policy. It would therefore be appropriate to accord a higher multiplier factor for a expanding country like India, purring the center goal of defence industrial bottom part through defence offsets.

PRIVATE SECTOR Contribution - PRESENT STATUS

The degree of private sector involvement vis- -vis the defence outlay has been relatively limited this very good. Alternatively, the private sector often looks at short-term investment and dividends, which inhibit tactical investments. The shortcoming to export is another constraint; because the quantities required may often be limited, there have to be concerted efforts to market exports, within the bounds of nationwide security. The contribution of the private sector to the Indian defence industry is definitely significant albeit in a piece meal basis. The major defence related initiatives and successes of the private sector companies are enumerated in the next sub -paragraphs:-

(a) Tata Group. The Tata group is providing full systems for DRDO-developed Pinaka multi-barrel rocket launcher, building a kick off vehicle for Akash missile system and a major participant within an electronic warfare program. Tata Motors has developed an indigenous light specialist vehicle (LSV) that is currently being tested by the Indian Army. Tata's introduction as a major make bodes well for the Indian defence industry, which is often characterised by monopolistic companies and high import-dependency. Its presence on the market will also improve India's 'self-reliance' in defence development.

(b) Larsen & Toubro (L&T). Licences have been directed at L&T, one of India's largest engineering and building companies, to develop warships, submarines, weapon systems (offshore, floating and submerged), broadband watercraft, radar, sonar, electric warfare equipment, armoured and combat vehicles including associated systems and sub-systems such as turrets and bridge-layers. The Boeing Company has authorized a memorandum of understanding (MoU) with Larsen & Toubro Limited (L&T) for joint exploration of business opportunities in the Indian defence sector.

(c) Mahindra & Mahindra (M&M). Mahindra & Mahindra has set up the Mahindra Defence Systems. The Mahindra "Striker, " a light-weight combat vehicle, is considered ideal for equipped reconnaissance and attached patrols. Mahindra Defence Systems lately unveiled their Light Specialist Vehicle ''Axe'', the all-terrain vehicle, which can accommodate six/nine soldiers. They are simply venturing directly into producing various under drinking water delivery systems.

(d) Ashok Leyland. Truck-maker Ashok Leyland started out with products of "Hippo, " the popular heavy trucks for an over-all service role in the past in the seventies. Since that time, the company has produced field artillery tractors, high flexibility vehicles, light recovery vehicles and normal water carriers.

(e) Kirloskar Engine oil Engines Ltd. It specialises in ship engines and has been participating in many programmes with the Indian Navy.

(f) Godrej Aerospace. Godrej Aerospace, a business under Godrej & Boyce offers a critical program for the Agni missiles. It has additionally added to the production of hardware and sub-systems for India's cryogenic engine motor programme. The company is also actively involved in habitability alternatives for naval warships.

Indigenisation

Towards Self Reliance. As the Defence Secretary mentioned, "The Indian Defence Industry in the private sector is now gradually supposing the role of system integrator and manufacturer of complete defence equipment and systems. Indigenisation in defence production is now one of the major thrust regions of the Government. As a result, our efforts are actually directed towards reduced amount of defence imports and promoting indigenisation in defence production sector with the lively support of the Indian Defence Industry, both in the general public as well as in the private sector. The problem of indigenisation is a two times edged weapon. On the one hand there can be little debate that is indeed the way ahead; however the factor of cost negatives in indigenous production and the speed of absorption of modern technology are indeed despairing factors. This plan needs to be dovetailed with a larger training part in the induction program and as far as possible a Transfer of Technology (TOT) option.

Transfer of Technology (ToT). The ToT within offsets has been intentionally let off of the purview of the offset insurance policy. As a distinguished Scientist of DRDO sets in "Critical defence technology are either rejected or manipulated through various control regimes. These are never offered and therefore can't ever be obtained through the RFP course even if the united states is prepared to pay. Therefore, often it is not possible to have the technology through deals and leveraging our purchase electric power though offset insurance plan shows to be only sure method for acquisition of refused technology".

Steps Galore. Various steps have been used this route. The recent launch of "buy and Make (Indian)" category in the defence acquisition process has been made to enhance participation by the Indian industry, getting together with requirements for advanced defence systems and platforms by engaging in tie ups with technology providers through device of technology transfers in joint ventures. In capital acquisition cases categorised as "Buy and Make (Indian)", the RFP will be granted to people Indian industries that have essential financial and specialized capabilities to enter Joint Ventures, as also absorb technology and undertake indigenous manufacture. The procedure to be implemented in this respect will be comparable to the existing "Make" procedure with a difference that the creation and development by the Indian industry will be through Copy of Technology rather than through Research and Development.

Indigenisation Plan. The Navy possessed ready a 15-12 months indigenisation plan that was well received by the industry. A Science and Technology roadmap has been used for the Navy that recognizes the 'end-product' features that should be built over the next 20 years. This roadmap provides clear picture of technology and products that are foreseen for induction and can further help establish what can be studied up by civil industry.

Possible Key Areas for Contribution of Private Sector. Areas where in fact the private sector can participate and where indigenisation is possible are indicated in Appendix 'A'. Mr Gurpal Singh, Deputy Director General, CII, explained that, CII wish to accelerate the reform process in the defence sector. He said that the effective implementation of the defence offset coverage can facilitate the absorption and indigenisation of international aeronautic systems that accrue to the country via offset deals. It would be appropriate here to discuss the role played by the Confederation of Indian Establishments in realising this feat by the private sector.

Confederation of Indian Industry (CII)

Role of CII. The Confederation of Indian business (CII) has played a significant role in striving to develop a partnership between your Industry and Defence. The CII have been the pioneers in organising interactive classes between the defence forces and the industries and doing several events like the NIP (Navy Industry Collaboration meet), DEFCOM(Defence Communication Seminar), Defence IT Conventions along with the Defexpo India (Asia's most significant land and Naval Systems) exhibitions.

It had formed the Defence Section in 1993 to catalyse change in the Defence sector by pursuing the Government to liberalise Defence Development and by initiating the process of partnering with the Defence organizations in organising interactive conferences with the finish users, i. e. the Armed Forces. The aim of this section is to "Set up a strong relationship between Defence Services and Industry and expand the role and scope of Indian industry in defence production for mutual gain and enhance the Country wide Security".

Activities of the CII. Activities of the CII Country wide Committee on Defence are divided under the following major minds

(a) Defence Industrial Coverage and Procurement Procedures

(b) Trade Promotion

(c) International Linkages for Joint Ventures, Technology Tie-Ups and

(d) Export

(e) Advocacy / Consulting / Training Services

ROAD MAP

Can the Indian Industry Deliver?

"Indian private industry should move from fringes to mainstream, " observes Air Chief Marshall, PV Naik, Main of Air Personnel while speaking at the brochure release service of the 5th International Discussion on Energising Indian Aerospace: Accomplishments and Future Strategies, organised by the CII. He further said that Indian Air Push has been recommending private sector's involvement in defence professional bottom and indigenisation. However, the improvement is a restrained one. Private sector entrepreneurship and advancement can help augmentation of R&D basic and creation of system integration features. In fact, the will enjoy two advantages by permitting higher civilian professional sector's involvement in defence development. First, on account of its complimentary character with state units, defence production can be better and second the contribution of R & D more tangible.

Gearing Up for Problems. The Indian Industry today is ready to assume such increased responsibility to make the united states self-sufficient in defence production. As mentioned by the Defence Secretary " India is a growing market and growing as a strong economy. With the projected progress of the Indian market, its defence needs are also correspondingly growing. India, therefore, offers excellent opportunities, both for domestic as well as foreign companies, to forge new alliances and partnerships in the form of jv, co-production and co-development preparations in the Defence sector. "

Identification of Specific Thrust Areas. To go ahead, there's a clear dependence on dedicated groups comprising representatives from the Services, Department of Defence Creation, DRDO and the Private Sector to address 'specific thrust areas' recognized by each of the Services. These groups would be better able to define requirements, identify the model and amount of contribution of the private sector, and workout the methodology for meshing together with current acquisition strategies and techniques. "Publishing the 'Technology Point of view and Functionality Roadmap, ' covering a period of 15 years, to talk about the future needs of your armed forces as presented by the Defence Minister is actually a right move. "

Kelkar Committee - Raksha Udyog Ratna's. The Vijay kelkar Comittee advised to nominate a dozen Indian private sector companies as Rakhsa Udyog Ratna (RUR)s with a position equal to that of the defence PSUs when it comes to bidding for major defence deals. The RUR Insurance plan is an stimulating part of the right way. Once the authorities identifies those Indian companies to be treated as RURs, the private sector would get an additional push towards creating itself as a viable alternate to defence devices in the sphere. RURs will not only bring parity with Status industries in conditions of treatment, getting R & D support, forging partnership with others but with their know-how and resources they may take India towards 'do it yourself -reliance'.

RECOMMENDATIONS

To ensure that the united states retains a credible defence ability, there can be an urgent need for the government to part of and reform the existing administrative set-up and to set up a defence spending equipment to ensure optimum utilisation of funds and long term perspective planning both procurement and production. Very often the ills of defence procurement and development point towards red tapeism and the MoD.

The IN Maritime Strategy obviously states, "We should maintain our futuristic initiatives and harness the available capacity, infrastructure and resources, including intellectual capital, to the fullest extent to develop a vibrant and proactive Defence Industry. A strong and healthy partnership between the people and private sectors alone will allow India to sustain a powerful defence industrial bottom part for future years, setting us firmly on the road of self-reliance. Work to produce synergy between private and public-owned industry, would be founded after the exploitation of 'core competence' of every sector. " Keeping because these dogmas recommendations are created in the subsequent paragraphs for the effective participation of private sector in the defence industry.

Need for Collaborative Strategy. In what of Def Secretary, "We are 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 MILITARY through indigenous resources to the level possible. "

Joint Ventures. The exponentially widening India's defence industry base needs joint endeavors to maintain the phase and carve a niche, and to lay claim a spot in the global world of armament/defence production.

Conducting Awareness Campaigns. More Seminars, Work Retailers, Def Expos be conducted frequently for more relationship between the customer ( armed forces) and the maker ( private industry)to bring significant consciousness amongst the other person and for better appreciation of each other's needs.

Amendments to Defence Offset Plan. Necessary amendments about the launch of multipliers and endorsing accountability to DOFA be taken up on priority.

Appendix A

(Identifies Para 32)

POSSIBLE KEY AREAS FOR Contribution OF PRIVATE SECTOR

1. Chemical and Non-Metal Materials.

Chemical.

Rubber and plastics.

New non-metal materials

2. Metal.

Iron and metal works.

Basic metallic industry.

Forge.

Machinery and mechanised components.

3. Electrical power Materials.

Batteries.

(b) Ability generator products.

(c) Electric cables.

(d) Electric engines.

4. Textiles, Clothing and General Utilities.

5. Software and Systems Anatomist.

6. Gadgets.

(a) Semiconductors.

(b) Digital components.

(c) Opto-electronics.

Computers/Communications.

Security systems and radars.

7. Shipbuilding.

8. Aerospace.

9. Vehicles.

10. Explosives.

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