FICCI welcomes Defence Acquisition Counci's (DAC) decision to clear an IAF proposal for issuance of a tender for construction of 56 transport aircraft by private industry players to replace the the ageing AVRO fleet of Transport Aircraft of the IAF. This initiative to create second line of aircraft building in the national interest of both from user (Indian Air Force) and from Military and Civilian Aerospace industry's perspective.
According to A Didar Singh, secretary general, FICCI ''This opportunity to Indian private sector would create a second line of aircraft production and will strength the indigenous capability of Indian industry in aircraft manufacturing. This will encourage the growth of an Indian aerospace industry in the private sector and eventually will prepare Indian industry to participate in more complex programmes in the future.''
This innovative model cleared by the DAC of a new categorization of Buy & Make with ToT to an Indian Production Agency (IPA) is a farsighted measure to build capabilities in Indian industry that would act as a force multiplier and pave way for domestic capability creation to address growing need of Indian defence as well as civilian aerospace sectors.
FICCI also hails the open and transparent manner in which Indian Industry was involved over the last three years in conceptualizing the innovative model in this proposal through interactions at various levels at HQ IDS and Service HQs. The involvement of the private sector in understanding the users requirement and user evaluating industry’s current capability and desire to innovate, strengthen and achieve next higher level gave Indian Industry confidence about the MoD's intent to truly open up defence production and doing away with the erstwhile nomination regime.
Singh added, ''The doing away with nomination process will lead to competition and benefit the user and make both private & public sector more efficient leading to innovation and product specialisation.” FICCI believes that Indian defence industry must utilize each and every available opportunity, form strategic consortiums for investments and absorb specialized knowledge. This program gives an excellent opportunity to HAL to team up with IPA in a Consortium / SPV model and contribute to the program through value proposition by sharing its vast experience as well as facilities invested in to by MoD, Govt of India.''
