Government needs to treat private sector defence companies at par with with state-owned firms to boost defence manufacturing in the country, a top official today said.
"We need to break away from the monopoly of the (defence sector) PSUs and need to look at private sector companies and say these our national champions...Private sector and PSUs should be treated at par," Secretary in the Department of Industrial Policy and Promotion (DIPP) Amitabh Kant said.
He was speaking at a function on "Make in India' organised by University of Chicago Center in Delhi.
Citing the example of US companies, he also said that cost audit teams of public sector enterprises should work with private companies.
"I personally feel that defence manufacturing will take off if we do about 100-150 make programmes and if we identify about 50-60 Indian companies as national champions who will drive our defence manufacturing," Kant added.
Under make programmes, he explained that defence equipment could be identified and work can be done on them.
To boost domestic defence manufacturing and reduce import bill of the country, the government has increases foreign direct investment (FDI) limit to 49 per cent through approval route in the sector from the earlier 26 per cent.
The move is aimed at boosting domestic industry of the country which imports up to 70 per cent of its military hardware.
Further, FDI above 49 per cent will have to seek the approval of the Cabinet Committee on Security on "case to case basis, wherever it is likely to result in access to modern and state of the art technology in the country.
"In defence sector, we need to unleash many more make programmes. You have done only 2 make programmes...You need to unleash many more," he said.
