Key projects cleared; implementation is the key
With the Defence Acquisition Council clearing projects worth more Rs 21,000 crore, the Armed Forces can finally expect to lay hands on a bunch of new aircraft and vessels. Proposals for these had remained stuck in the political pipeline for some months now. Union Minister for Defence Arun Jaitley's nod for the purchase and production of a wide range of transport aircraft and combat, support and rescue vessels for the Army, the Navy and the Air Force, comes in the wake of his Budget proposal to invite 49 per cent foreign direct investment in defence production. It demonstrates the Union Government's commitment to fast-tracking the modernisation of the country's defence capabilities. The recent clearance by the DAC is worth nearly one-third of the total allocation for defence capital expenditure in the Union Budget. The decision will give a major boost to not just manufacturing in the public sector but also to private players who have been for some time now engaged with the defence industry. The cumulative impact will improve defence preparedness and generate fresh employment opportunities. Of course, there are still several projects in defence which are to see the light of the day, and they are as crucial as those now cleared. It is to be hoped that the Defence Ministry moves swiftly in that direction, given that we have already lost precious time. The previous Congress-led UPA Government and its Defence Minister AK Antony had virtually given up on enhancing the capabilities of the Armed Forces, taking refuge in bureaucratese and refusing to take bold decisions. For instance, while the then Government, after a great deal of prevarication, had given its preliminary nod to the acquisition and manufacture of the Rafale Medium Multi-Role Combat Aircraft, it did not move forward, and left the matter dangling in mid-air. It is now for the Narendra Modi Government to push the project ahead. News that deliberations have seriously begun in this regard is welcome, since it is time that we finalise the deal. We must remember that large fiscal outlays for defence are not the only solution, though they help; our defence capabilities can be met if we can efficiently push through the existing proposals and meet the deadlines.
The immediate beneficiaries of the DAC's clearance will be public sector HAl and defence shipyards whose order books are going to look pretty impressive. Besides, private players such as the Tata Group, the Reliance Group, the Mahindra Group, larsen & Toubro and some others will have an opportunity to increase their footprint in the domestic defence industry. If things go as planned, the Indian Air force will get 56 new transport aircraft to replace the aging Avro, and 32 light Utility Helicopters. The Navy and the Indian Coast Guard will have five new combat and support vessels, to be built by the public and the private sectors. All in all, it's an attractive bouquet. As always, implementation holds the key.