Press Information Bureau
Government of India
Ministry of Defence
14-November-2011 18:07 IST
Defence Part of Five Year Plan’s Industry Outlook for First Time Ever
The Defence Minister Shri AK Antony has said that the defence industry has found place in the Planning Commission’s Five Year Plan exercise for the first time ever. Addressing a gathering here today before Shri Antony gave away the Raksha Mantri’s ‘Awards for Excellence 2009-10’ to Defence PSUs and Ordnance Factories, Shri Antony said that the Department of Defence Production has been involved in the formulation of the Twelfth Five Year Plan. The reports of the Working Group on Defence Equipment and Aerospace that would be incorporated in the framework of the industry outlook during the Twelfth Five Year Plan for the period 2012-17 would facilitate the indigenization of the defence procurement, he added.

Following is the full text of the speech delivered by Shri Antony:

“I am glad to be in your midst for presentation of "Awards For Excellence". I extend my heartiest congratulations to all the award winners being felicitated today. These awards are being presented to encourage and sustain the competitive spirit among the Defence Public Sector Undertakings (PSUs) and Ordnance Factories (OF) to boost production and work output, in general.

As you all are aware, it is for the first time, the Department of Defence Production has been involved in the Plan exercise of Planning Commission for the 12th Five Year Plan. I am sure that the reports of the Working Group on Defence Equipment and Aerospace under the Steering Committee on Industry for the 12th Five Year Plan, which contain some good recommendations that would facilitate innovation and development of defence industry. We need to accelerate our indigenisation process in a big way.

Earlier this year, the revised Defence Procurement Procedure (DPP) has been issued. We have refined and simplified the defence procurement framework, aimed at providing a level-playing field for our indigenous defence industry - be it in the public, or the private sector. The revised DPP should spur Defence PSUs and OFBs to boost innovation and modernisation. Our public sector and private sector need to indulge in a healthy competition that further strengthens the defence industry as a whole. Rather than looking at each other as competitors, the public sector and the private sector must become participants in boosting the defence sector in general, and defence production, in particular. Our singular objective must be to keep down the import requirements to the bare minimum possible. The Offset Policy is an integral component of the DPP and it has been visualized to ensure more inflow of technology and foreign investments.

The requirements of our Defence Services will only increase over a period of time. Till now, we have been over-dependent on imports to meet our requirements. The earlier we reverse this trend, the better it is for our defence industry - not only in economic terms, but also in terms of military infrastructure. Our Defence PSUs and OFBs have the talent and the skilled manpower to meet international standards of excellence. The only need is to maintain a sharp focus on the core areas of activity. You must factor in the future requirements of the end users, that is our Armed Forces, by holding regular consultations with them. This will also ensure the best quality and timely delivery of the finished products that match their requirements and also come up to the best international standards. Thus, the need for increased synergy between our Armed Forces and the Department of Defence Production is being felt like never before. You must also draw up a detailed process to scrutinize and monitor your performance on a regular basis.

I wish to strongly reiterate that our Defence PSUs and OFBs must innovate and reform at a faster pace than they have done till now. Modernisation must be accompanied by even greater transparency and accountability. This in turn, calls for a far more efficient and professional management of both the physical and human resources. The management at higher levels must be sensitive to the needs and professional aspirations of their employees. Human resources need to be nurtured well and preserved and provided with a work environment that brings out the best in them. The need to provide regular and best training to the employees can never be over-emphasised.

I would like to briefly touch upon another core area - R&D. Not just DRDO, but all organisations should take a lead in investing more and more time, money and human resources in research & development. To achieve this objective, our DPSUs and OFBs must develop and encourage in-house capabilities. Increased self-reliance is the best way to strengthen the twin processes of modernisation and indigenisation.

I once again congratulate all the award winners for their outstanding performance. I am sure that all of you will work with renewed vigour and dedication to achieve the desired results for our DPSUs and OFBs. For those who have not been able to win, I would like to say that more than winning, it is the will to win that is more important.

I am sure that our public sector, private sector and Armed Forces will continue to innovate with a rare zeal and devotion to take our nation to greater heights in the years to come.”