NEW DELHI, Aug 11: Industry body ASSOCHAM today said it has urged Ministry of Defence to review affirmation of indigenous content at trial stage in the Aerospace and Defence (A&D) as it is “impractical and utopian in nature”.
“Ensuring adherence to 30-50 per cent indigenisation at trial stage is an unreasonable and impractical requirement that needs to be re-considered, more so as currently India neither possesses any know-how nor the infrastructure to manufacture high-end defence equipments.” said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a note submitted to Defence Minister A K Antony.
In the note, the chamber has also highlighted that certain provisions in the Defence Procurement Procedure (DPP) are “heavily lopsided” in favour of Defence Public Sector Undertakings (DPSUs).
“Though, the DPP seeks to provide a level playing field to domestic private players in the defence sector, the provision vis-à-vis benefit of Exchange Rate Variation (ERV) is biased as it is extended only to DPSUs in ab-initio single vendor cases or when nominated as a production agency,” said Mr D S Rawat, secretary general of ASSOCHAM.
(UNI)
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