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Allow more FDI in defence sector: IAF Vice Chief

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  • BARBORA
    ‘We have to take steps...we need to be bold enough to invite Foreign Direct Investment, more so into defence use.’
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    Suggesting that politicking was hampering defence requirements, IAF Vice Chief Air Marshal P K Barbora said on Thursday that private industry's participation be increased in the defence sector and India should be "bold enough" to allow more FDI in the area.

    "We have to take steps...we need to be bold enough to invite Foreign Direct Investment (FDI), more so into defence use," he told a CII seminar on energising aviation sector in India.

    At present, foreign companies are allowed to invest only 26 per cent in Indian companies. Some of the global defence giants such as BAE Systems had proposed to start a joint venture with Mahindra Defence Systems with 49 per cent stakes but it did not get government's approval.

    Commenting on the politics over military purchases, Barbora said whatever defence requirements are cleared by the government, they are opposed by the opposition parties and the same happens when roles change and opposition sits in government.

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    "That impinges very badly on our defence requirements," he said.

    Stressing on the need for giving more freedom to private industry, Barbora said, "Private industry has to be evolved and given a market of their choosing and not our choosing, of course with certain guidelines."

    He said bringing in private players was very important for the aviation sector as India was not even contributing one per cent to the world market in the aerospace industry.

    Asking the private companies to learn reverse engineering processes the way China did to develop most of its defence technologies, he said, "Forget about ethics. China has done all the reverse engineering. Has anyone ever had the courage to ask China why are you doing it. No one cares a hoot. If you can't do it yourself, you should know how to reverse engineering. We have not been able to move forward for some reason or the other," Barbora added.

    ... contd.

    Next12
    Politicians does matterBy: balaji chennai | 20-Nov-2009 Reply | Forward What the cheif said is the ultimate truth, its the shy politicians who lacks courage to explore new things & which fights to hold its seat to their life time takes away the pride of our nation, But shame on our self because we elected those mens.
    Allow more FDI in defence sector: IAF Vice ChiefBy: MSR Ayyangar | 20-Nov-2009 Reply | Forward It is not just the matter of FDI, but Ind.Govt-local private sector partnership in the defense field is desirable because of the speed it can impart to the development & supplies for military needs. It may incidentally also marginally reduce the high levels of coruption that plagues the establishment and drains the tax payer. First and most imporatn factor is the self sufficiency in technology. 2nd is the sourcing from within the country in times of emergency to avoid external blackmail prejudicial to our national interests. 3rd important factor is the cost of acquisition which can be a small fraction of what we are paying now - there by enabling us to have sufficiently large inventory levels of equipments & ammunition required for deterrance as also meeting the chanllenges - considering our hostile neighbourhood. Spill over from defence R&D can help the industrial growth in general and thus employment - indirectly helping growth of patriotism at least out of private vested interest.
    Barbora is a heroBy: arun lal | 20-Nov-2009 Reply | Forward Air Marshall Barbora is a hero for telling the truth and trying to give future direction to India's defence industry. Our politicians have wasted (and made for themselves) billions with very little to show for it interms of defence capability. Well done Air Marshall Barbora - the Indian people are with you!
    Forgeiner should not be allowedBy: Salim | 20-Nov-2009 Reply | Forward No FDI should be allowed, Defence industry is powerfull to cause was so they goods are consumed. They will lobby the goverment to fight And politicians would slle themself so be ware no forgein direct investment
    Does it matterBy: Prakash Krishnagiri | 20-Nov-2009 Reply | Forward For the Vice Chief, should it matter whether it is FDI or not. He should be focussing on how to upgrade our defense systems and not enter into the economics of recommending FDI. It is simply not his domain. May be he might have few companies in his mind? I hope not. It is true that everyone has got the freedom to express their views but people in responsible positions should be more careful in what they suggest. At a time when things are delayed in the fear of kick-backs and corruptions in the Defense Procurements, a Vice Chief recommending FDI might suggest his interest in some foreign companies. If he is serious about it he should have tabled his recommendations to the Ministry.
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