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Dillinger @
sandy_3126
One possible way to go has got to be a DPSU-PVT sector partnership. The Public sector entities (DRDO/NAL) can be responsible for the research and development (important to keep strategically sensitive technologies under Govt control) and then outsource the production to the private sector who can use industrial best practices to produce quality products in greater numbers. As they are private entities there will inherently be checks and balances built into the contractual agreements and thus ensuring (theoretically ) both quality and quantity.
Looking at the DARPA model in the US this surely is a winning formula.
In this fantasy though HAL would largely have to be privatised, either being left intact as a single entity as it is now (probably not ideal) or broken up into smaller specialised components (rotary wing, fixed wing, avionics, after sales, post purchase upgrades etc).
The positive thing is that I do see this as a viable model and one that the MoD is perhaps already contemplating, the Kestral is an example of such:
(yes a Norwegian turret and US ATGM but this is a globalised world and to date no Indian entity produces anything comparable)
Much of the vehicle was designed by the DRDO, TATA came on board and gave certain design inputs and refined the product thanks to certain global brands under their umbrella (Supacat for example) and it was left to TATA to fabricate, integrate the various elements (turret, weapon systems, FCS etc) and produce the finished product.
The Norwegian turret, and US atgm, russian chassis, polish engines, every off the shelf item available to tata is also avaialble to BEML, BHEL, OFB, HAL, DRDO Labs etc. Arjun is a prime example. So the question we need to ask is what benefit would another integrator bring.
Are we looking to replace public companies stupidity with private company stupidity.
Privatization in defence has been hailed as the all supreme chalice that will ooze out the magic wine that will fix all our issues, but reality is much farther from that.
Looking at what these private organisations have done in last 65 odd years despite enjoying the same protection as these PSU's have enjoyed, look at their legacy products. None of them have a respectable viable product in the international market. Whereas kia's and hyundai's are giving run for the money to japanese automakers these days.
The problem I believe is we are looking for cutting edge products from non cutting edge companies who have been a couple of decades behind the curve of their international competitors.
Let me play the devils advocate here, or the PSU advocate to be precise.
Despite all failures and inefficiencies, the DPSU's have striven to deliver system which are needed by the forces, Eg Akash SAM, Astra BVR, Sagarika, etc. If the task was given to private sector, for example If I was asked to make an aam. I would first look at the multiple methods of developmental cost for the project, and then start optimising. More or less tech transfer for RVV -PD or Meteor would have been the fastest with the most return on investment, similar to the Tata showcased Atgm on norwegian turret. What would have that resulted into.... Now what happens when the same technology is sold by the parent company to you rival? as rvv aeand r27 r/er/et were sold to china?
We need to remind ourselves that defence market is a cut throat competiton market, and the work done is not for the love of country but for the greens. Tata's and Mahindra's have had defence market open to them for a very long time now, why haven't they developed say as pistol or assault rifle for the forces, the reason is the ,margins are small, thus no one is interested, on the other hand the poor old OFB is still striving with their mciws and what not.
If indian tech companies were equivalent of john deere, cummins, cat, ford, sharp, hitachi, samsung, then outsourcing full projects to them under DRDO supervision would have made sense. Right now I dont think the private eco-system is mature enough .
