Ajay Banerjee

Tribune News Service

Chennai, April 11

When Prime Minister Narendra Modi arrives to formally inaugurate the ‘DefExpo-2018’ on Thursday, he may do well to assure foreign and national investors that New Delhi has the money for a steady flow of investments in the defence-manufacturing sector along with a committed timeline to implement key policy formulations.On the table of the Ministry of Defence is finalisation of the new defence production policy and a proposed amendment and implementation of the strategic partnership model on which hinges India’s military readiness—Tanks, copters, fighter jets and submarines. Speaking at the DefExpo on Wednesday, Defence Secretary Sanjay Mitra said, “There is no shortage of funds. Some 33 per cent of the country’s capital budget is allocated to defence.” He was responding to questions on how the parliamentary standing committee had, in its report on March 13, mentioned that the military budget was “inadequate”, “barely enough” to cater to inflation and “insufficient” for the existing liabilities. Maj Gen BC Khanduri (retd), a BJP MP from Uttarakhand, heads the panel.The MoD has received some 100 suggestions to the draft defence production policy that promises to turn India into an exporter (it currently is the biggest arms importer), increase FDI limit to 74 per cent and augment the domestic production. Ajay Kumar, Secretary, Defence Production, said, “The suggestions are being examined. We will soon come out with the policy following consultations with other ministries.” Defence Secretary Mitra has dismissed any apprehensions about the fighter jet procurement tender: “It will not be a re-run of the scrapped MMRCA (Medium Multi-Role Combat Aircraft) deal.” He was asked whether the fresh tender would be a re-run of the previous process to acquire 126 MMRCA, which started in 2004 and was scrapped in 2015. Last week, India kick-started the process to procure around 110 fighter jets by issuing an RFI (Request for Information) or initial tender for the deal. The Air Force is operating with 31 fighter squadrons as against the authorised strength of 42.Foreign or Indian-made, forces free to choose equipment: Sitharaman  Defence Minister Nirmala Sitharaman said at the DefExpo that the armed forces had been given the choice to choose their equipment — Indian or imported — as per their needs. “I am telling the forces to procure from indigenous sources, but they are free to decide what they need. They are free to choose their equipment. They are using indigenous products may be not as much as we would want. However, there is a fine line. The forces will have to take a call on what they need.”