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19 private companies like Tata, Mahindra, Punj Lloyd get DIPP nod to make defence products!!

ravinderpalrulez

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NEW DELHI: The Department of Industrial Policy and Promotion ( DIPP) has granted permission to 19 private companies to manufacture arange of defence products, adding to a slew of such clearances by the Modi government and strengthening its 'Make in India' initiative.

The biggest gainer in the latest round is Kalyani Strategic Systems Ltd, the defence arm of Bharat Forge. The Pune-based company, that develops artillery systems for the army, has got permits to make 13 new types of products.

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These range from manufacture, maintenance and overhaul of torpedoes, missiles and mines to large platforms such as tanks, off road military vehicles and hovercrafts. Other permits include manufacturing of simulators for the armed forces and ammunition and fuze setting devices.

Several relatively unknown players too have managed to grab permits, including Himachal Futuristic Communications Ltd which has given an address of Bhind in Madhya Pradesh. The company was granted industrial licences for assembling electronic warfare systems, radars and the design, development and manufacturing of aircraft, including choppers.

The company also wants to manufacture and upgrade tanks and combat vehicles, besides armoured and protective systems. Other companies that have managed to get defence manufacturing permits includes Narendra Explosive Ltd from UP's Saharanpur, Noida-based OIS Aerospace and Gurgaon-centered Metaltech Motor Bodies Ltd.

The Modi government has been granting licences to the private sector quite generously, with a record number of clearances since last year. With defence as a chosen sector for the Make in India drive, licences that had been pending for over four years have been granted to private firms, including major players such as Tata, Mahindra and Punj Lloyd.
 
NEW DELHI: The Department of Industrial Policy and Promotion ( DIPP) has granted permission to 19 private companies to manufacture arange of defence products, adding to a slew of such clearances by the Modi government and strengthening its 'Make in India' initiative.

The biggest gainer in the latest round is Kalyani Strategic Systems Ltd, the defence arm of Bharat Forge. The Pune-based company, that develops artillery systems for the army, has got permits to make 13 new types of products.

Follow @ETDefence Twitter handle for comprehensive coverage on other buzzing Defence stories

These range from manufacture, maintenance and overhaul of torpedoes, missiles and mines to large platforms such as tanks, off road military vehicles and hovercrafts. Other permits include manufacturing of simulators for the armed forces and ammunition and fuze setting devices.

Several relatively unknown players too have managed to grab permits, including Himachal Futuristic Communications Ltd which has given an address of Bhind in Madhya Pradesh. The company was granted industrial licences for assembling electronic warfare systems, radars and the design, development and manufacturing of aircraft, including choppers.

The company also wants to manufacture and upgrade tanks and combat vehicles, besides armoured and protective systems. Other companies that have managed to get defence manufacturing permits includes Narendra Explosive Ltd from UP's Saharanpur, Noida-based OIS Aerospace and Gurgaon-centered Metaltech Motor Bodies Ltd.

The Modi government has been granting licences to the private sector quite generously, with a record number of clearances since last year. With defence as a chosen sector for the Make in India drive, licences that had been pending for over four years have been granted to private firms, including major players such as Tata, Mahindra and Punj Lloyd.
Great .now some of these private players must be invited to be part in LCA production process.
 
Great .now some of these private players must be invited to be part in LCA production process.

This is happening.

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Large sections of mark 2 and amca will be made the private firms. If HAL royally screws up the Tejas production, ADA may prefer a private firm as the lead integrator of AMCA.
 
Several relatively unknown players too have managed to grab permits, including Himachal Futuristic Communications Ltd which has given an address of Bhind in Madhya Pradesh.
Seriously werent they involved in telecom scam ? things are going wrong, I smell a scam first reliance now hfcl.
 
This is happening.

Fa6UkSe.png


Large sections of mark 2 and amca will be made the private firms. If HAL royally screws up the Tejas production, ADA may prefer a private firm as the lead integrator of AMCA.
Any idea on the timescale of this transition?
 
If what is happening now happened 15 years ago, the Indian defence industry would be much different....
Absolutely, these things can't happen overnight and Modi's "Make in India" slogan isn't going to suddenly create Boeing and Lockhead Martin out of TATA and L&T. So for now one needs to appreciate that the military DOES need to continue to import on critical equipment that the Indian industry just simply isn't able to make at home. But this is the top tier, in many other areas where India is importing today Indian companies could easily do an equal job. This should be an organic, capability lead policy and not a case of putting the cart before the horse- ahem:


arjun_spg2.jpg


For god's sake, import where you need to import, don't let the military suffer for the incompetence of the industry.
 
Absolutely, these things can't happen overnight and Modi's "Make in India" slogan isn't going to suddenly create Boeing and Lockhead Martin out of TATA and L&T. So for now one needs to appreciate that the military DOES need to continue to import on critical equipment that the Indian industry just simply isn't able to make at home. But this is the top tier, in many other areas where India is importing today Indian companies could easily do an equal job. This should be an organic, capability lead policy and not a case of putting the cart before the horse- ahem:


arjun_spg2.jpg


For god's sake, import where you need to import, don't let the military suffer for the incompetence of the industry.

The counter to that is sometimes the military need a push too. I think some things have changed forever. There is not about to be any large scale import of artillery, tanks & ships any more. That will true of some types of choppers too. With orders flowing in, domestic companies (and these are big hitters, no babes in the woods starting out) will be able to buy technology to close the gaps rapidly. The key to that is to force such an outlook, both of the companies here as well as the military. Once there is a realisation that they are not about to import certain stuff, there will be a reasonable quick change in the mindset. There needs to be a taking of the ownership of the products. If the military sheds its mindset & work with the developers, we will get to the sweet spot much quicker. No Indian company will become a Lockheed Martin or a Boeing unless they are encouraged over a substantial period. It is pointless to expect that they will spend billions of dollars if they have no guarantee of an order.

The other point here is that there will be little interest by foreign companies in transferring technology & working in partnership if there is a possibility that they stand to get the whole order by themselves. Take that cake away & there will be a lot more interest in working with Indian companies. The make in India argument is not just about the armed forces, it is to further the interests of India as a whole. In some areas, compromises may be necessary initially, in other areas a direct import may have to come to pass but every such purchase must be scrutinized deeply & alternatives explored before taking that option. Can never be the preferred route. Not anymore.
 
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