Kelkar's defence report in August

The second part of the report by the Vijay Kelkar committee, set up by the ministry of defence, government of India (GoI) to review defence-industry linkage, is expected to be submitted by August.

"Ministry of defence has set up a committee headed by V L Kelkar to review the deficiency in areas relating to 'poor' private sector association with defence. The committee will submit its second report with recommendation latest by early August. The committee shall also comment on the modernisation of the ordinance factory," said Pranab Mukherjee, defence minister, government of India in a meeting on 'Defence Procurement from SME' organised by the Bengal National Chamber of Commerce and Industry (BNCCI).

The committee has industry representatives along with personalities from different chambers of commerce and industry.

Mukherjee further noted that there were around 27 letters of intent/ industrial licence for manufacturing a wide range of defence item, but barring Tata group and Larsen and Toubro (L&T), no other major private manufacturer came up in a major way.

Mukherjee further stressed on the possibility of co-production and transfer of technology in defence between India and United States of America (USA).

"Instead of outright procurement of defence goods today it is an era of co-production and technology transfer with USA. This is an area where Indian private sector might be interested, where they can set up joint venture with USA-based counterparts," he added.

It was further hinted that after USA, India would also like to set up and enhance similar tie-ups with countries like France and Russia.

Small and medium enterprises (SME) need to upgrade their technology in order to become a sustainable supplier to defence and for that, a linkage between research and development (R&D) centre and SME is urgently required, said Mukherjee.

"The ministry is considering to set up a link between R&D centre and SME, so that they can upgrade their technology. The ministry will also suggest Defence Research and Development Organisation (DRDO) to work on the matter," he said.

Mukherjee further noted that eight defence public sector undertakings have registered a turnover of around Rs 11,000 crore coupled with Rs 6,000 crore by 39 ordinance factory in 2004-05.

Mukherjee further informed that there has already been two rounds of discussion on issue of with regard to demilitarisation of Siachen glacier.

"We are trying to develop a mechanism where process of military withdrawal shall be completed, after identifying the current position of both the sides," he added.