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Industry pressure has delayed enlisting of Raksha Udyog Ratnas: Antony

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BS Reporter New Delhi

Not only the trade unions, but even industry pressure has delayed the enlisting of Raksha Udyog Ratnas (RUR), Defence Minister A K Antony said here today.

RUR status to private sector companies would make them eligible to receive technology and part of defence off sets from foreign companies engaged in defence deals with India.

“It is a wrong perception that the announcement on the RURs has been delayed due to pressure of the Trade Unions. But that is not the (only) reason. It is also because a section of the Large and Medium Industry, particularly the electronics sector, are opposed to some of the Guidelines for the naming of the Raksha Utpadan Ratnas,” Antony said.

 

Antony also admitted that even the Congress’ trade union wing, INTUC is also opposed to RURs: “The trade unions, whether those be the Left-affiliated or even those backed by Congress or other parties are apprehensive of the RURs.”

In his inaugural speech at the INDAIR-08 on the topic of “strategic partnering of Indian Air Force and industry on Modernisation and Indigenisation' here today, Antony said that very soon a revised Defence Procurement Manual would be released incorporating amendments based on interface with the industry.

“The IAF has embarked on ambitious induction and upgrade programs. On effective implementation, these programs will provide an opportunity for the industry to enter into a profitable and mutually beneficial partnership with the armed forces. The advantages in having reliable indigenous private enterprises capable of delivering cutting edge technology products and services for the armed forces are well understood.

This in fact could be the key difference between developing and developed nations in times to come”, he said.

The UPA government, in the recent past, has introduced a number of incentives for the industry to partner with the armed forces in defence production. These measures include opening of the sector for up to 100 per cent private sector partnership,  transfer of defence related items from the reserved to the licensed category, issuance of detailed guidelines for the grant of industrial license by the Dept of Industrial Policy & Promotion (DIPP) and dispensing with separate licensing by Ministry of Defence.

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First Published: Aug 26 2008 | 3:32 PM IST

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