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Both public & private sector have to rise to the occasion: DG Defence Acquisition on Indigenisation

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Both public and private sector have to rise to the occasion: DG Defence Acquisition on Indigenisation
By Sucheta Das Mohapatra

November 22, 2013: “No talks on indigenisation will succeed without a pyramid being built and both public and private sector have to rise to the occasion,” said Satish B. Agnihotri, Director General (DG) Acquisition, Ministry of Defence (MoD). He was speaking on the subject “Defence Acquisition in the New Paradigm: Moving towards Indigenisation”, at an interactive session organised by the Federation of Indian Chamber of Commerce and Industry (FICCI) on November 21. He said that the bottlenecks in the path of indigenisation have to be removed by the industry associations instead of depending on the government.

Agnihotri who will quit the MoD soon to take over as the Secretary, Ministry of New and Renewable Energy, released the “FICCI Compendium for Defence and Aerospace” on the occasion and remembered his journey as DG Acquisition, the formulation of Defence Procurement Procedure 2011 and 2013. He said that the expectations of the Indian defence industry is too high and in his humorous style said that the industry wishes there would be more and more request for proposals (RFPs). “But the beginning has been made and if there are deficiencies we need to improve it. The deficiencies can be overcome on two fronts, he said, by increasing indigenisation and increasing indigenisation content.”

He however added that indigenisation and indigenous content will take time, as Rome was not built in a day. “The Indian MoD needs to walk the talk as far as indigenisation is concerned.” However, he said that a modest effort has been made and both the defence public sector undertakings (DPSUs) and the private sector should together create an environment where indigenisation grows and succeeds.

Later answering to queries from the media and the industry as to how is the government handling issues like exchange rate variation (ERV) in cases where decisions get delayed by many years, Agnihotri said that the MoD is looking into the issue and is finding ways to sort it out.

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