Maj. Gen. Mrinal Suman (retd)

The inevitable has happened. The much-trumpeted Strategic Partnership (SP) scheme has failed to take off. The government had claimed that the scheme would kick-start Indian defence industry by harnessing the potential of the private sector in the manufacture of high-tech defence equipment indigenously. The scheme aimed at creating additional capacity over and above the capacity and infrastructure that exists in the public sector. However, it was doomed to be a non-starter as the entry of the private sector is considered to be a threat to the very survival of the public sector and hence all stratagems are tried to abort such initiatives.

Regrettably, the decision makers either failed to learn from the history or deliberately attempted to hoodwink the environment by announcing a policy that they knew to be unimplementable. Earlier, a similarly delineated Raksha Utpadan Ratna (RUR) programme failed to overcome the obstacles created by the entrenched interest groups — public sector enterprises and their bureaucratic mentors. Success of the public sector in blocking the entry of the private sector can be gauged from the fact that since the opening of the defence production to the private sector in January 2002, the private sector has bagged no major contract, with the sole exception being the order placed on L&T for the supply of 100 units of 155mm/52 calibre Tracked Self-Propelled Gun systems (K9 VAJRA-T) in 2018.

The ministry of defence (MoD) is fully cognisant of the fact that both public and private sectors are national assets; and that, harnessing of the potential and prowess of the private sector is absolutely indispensable if India wants to achieve self reliance in defence production. It was in 1998 that MoD took the first major step to involve the private sector in defence production and constituted six joint task forces with the Confederation of Indian Industry to examine various issues. Consequently, the defence sector was thrown open to the private industry in 2002.

Repeated representations to MoD resulted in the constitution of Kelkar Committee in Jul 2004. It was tasked, inter alia, to examine and recommend modalities of integration of the user (services), MoD and the Indian industry (both private and public). The committee recommended that select private sector industry leaders be identified as RUR and treated at par with the public sector for all defence acquisition purposes to include design and development of high technology complex systems; production of platforms and integration of large weapon systems; receipt of contracted foreign technology for indigenous production; discharge of offset obligations; and receipt of funds for developmental projects.

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The above suggestions were accepted by MoD and detailed guidelines