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Defence manufacturers hail DPP

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By Anil MishraPanaji | Sunday, Apr 3 2016 IST
 
The new Defence Procurement Procedure (DPP),which was announced by the Defence Minister Manohar Parrikar whileinaugurating 9th edition of Defence Expo at Naqueri-Quitol in SouthGoa on March 28 last, has been hailed by defence equipment manufacturers.The industry leaders have welcomed the new policy which has amongother things a category called Indian-designed developed andmanufactured (IDDM) which is aimed at increasing indigenisation ofdefence manufacturing. However, Mr Parrikar had said that the policy was not a perfectdocument and would be examined after six months. "The policy willbe examined after six months and we are open for suggestion toimprove" Speaking to UNI, Ashok Atluri, Managing Director, Zen Technologies,said the new DPP is the biggest thing which has ever happened in thehistory of government procurement. The DPP will help companies likeZen Technologies. Many companies will come up with three years ofinvestment as now they would be assured of orders.''

Mr Zen, whose company provides simulation technology basedtraining solution, said "IP has to be in the country. If wecollaborate with foreign companies, we get certain portion of incomeand rest goes to the major company. But if we invest on researchand development (R&D) and develop our own products, we can get lotof orders.''

However, Mr Atluri said R&D was a culture and difficult for atrading company to become an R&D company.

"It is not possible for trading company to become R&D companyover night but the companies which are already in the R&D will benefit tremendously from the policy. Now the companies will not be encouraged to partner with foreign companies but would start their ownR&D. Earlier, we were not manufacturing but now focus would be onmanufacturing. It is a brave step which would change the face ofIndian defence production sector,'' he opined.

Shekhar Saredssai, whose company Kaneco Pvt Limited hasmanufactured a sonar dome, which has been designed by R&D Engineers,at DRDO Laboratory based in Pune, for Naval warships, said IDDM was aflagship clause of the new DPP because it encouraged local designand development which was never a priority.

" If we are looking at Make In India in defence, we cannotremain just nut bolt assembler. If defence capability is to beimproved, we must have design, domain knowledge and IP. Now the governmentwill be supporting the companies which wish to manufacture. Earlier,we would design and develop something which would go into tendering. and all of a suddensomebody would come and offer the same kind of product at cheaperrates and we would lose. This happened again and again,but nowwe think the scenario will change,'' he told UNI.

Mr Sardessai, who is also the Chairman of Goa chapter of Confederationof Indian Industries(CII) said through IDDM category governmentwould be extending support to small and medium scale industries. "The new DPP has laid great emphasis on small and mediumenterprises (SME) which have contributed to the defence sectoracross the world. The new policy acknowledges the role of SME,''

Sunil Raina, Managing Director, Rockwell Collins India, whichoffers communications and aviation electronics solutions, alsoechoed the same sentiment saying major change in the DPP was IDDMwhich was more focused towards indigenous design.

''We already have thought process going forward and we areworking towards this. We will see how we fit into the model,'' saidMr Raina.

Last amendment in the Defence Procurement Policy (DPP) was madein 2013. UNI AKM SM CJ

-- (UNI) -- C-1-DL0169-665673.Xml

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