The Ministry of Defence has provided a list of about 100 items and systems for manufacture by India's private sector as part of the government's efforts to attract private participation in the defence sector.
According to a senior official, the list includes high altitude clothing, simulators and bullet-proof vests.
The production of these items could begin in two to three years, said S Sen, who is spearheading the Confederation of Indian Industry's efforts to this direction. The private sector is looking at the viability aspects of the business and for possible strategic partners.
The CII is regularly taking delegations to foreign countries, including the United States, to scout for foreign partners. A CII defence delegation is expected to visit Israel later this year.
Under the liberalised rules introduced recently, up to 26 per cent foreign investment is allowed in the defence sector. Indian companies are also permitted to form consortiums for taking up major defence projects, Sen said.
At present, the majority of India's defence requirement is met by imports. The rest is procured from 39 ordnance factories and eight defence public sector undertakings spread across the country. Only a small percentage comes from the private sector.
Indian Air Force chief Air Chief Marshal S Krishnaswamy had on October 6 said that private sector participation in the defence sector is 'really gathering momentum'.
Officials say the first sign of a major private sector involvement in the manufacture of a full military system - away from the traditionally items like vehicles - would be the 'Pinaka', the multi barrel rocket launchers that can fire 12 rockets in a salvo. The Armament Research and Development Establishment in Pune and the Tatas had jointly developed 'Pinaka', which was tested in Kargil during the 1999 conflict. According to a senior MoD official, the Tatas have been given permission to manufacture the cutting edge weapon system.
Besides this, industry sources said the Strategic Electronic Division of Tata Power has approval for manufacture of Trishul and Agni missiles. However, there is no confirmation from the government.
The Indian Navy provides a major platform for private sector because of its strenuous efforts towards indigenisation of major naval systems, including ships.
Larson and Turbo, which is involved in several naval projects, is reportedly looking at increasing its turnover in defence products from Rs 100 crore to Rs 400 crore. This would be achieved by manufacturing some of the items mentioned in the MoD list of items for the private sector.
