Private sector may soon provide its expertise to India’s war chest

A ‘go ahead’ from the Prime Minister's Office, if continued efforts by Defence Minister Arun Jaitley proved to be fruitful, will result in private sector being allowed to play a major role in manufacturing weapons for the Indian Armed Forces.

Even though leading private companies were waiting to get their hands on orders to manufacture aircraft, submarines and land systems, it was because of a clash within the bureaucracy that resulted in the delay.

Manufacturing and procuring defence equipments have always belonged to the public sector, even as private players have asked to be allowed to invest in the luring sector.

The defence ministry has now invited representatives from top private sectors from three industrial bodies, to unveil the progress made in this direction.

Indian Navy is eager for the projects to be initiated, given its urgent need for advance equipment. In the first phase, say sources, four projects will be taken up for the strategic partnership (SP) between the public and private sector, involving submarines, a naval utility helicopter, a single-engine fighter aircraft for the air force and armoured vehicles for the army.

"There is no doubt that involving the private sector in this way is the best way forward. Most of the issues have been resolved and the initiative needs to be started on a 'yesterday' basis - there is no time to be lost," a senior armed forces officer told ET.

Even though the private sector was initially divided on the modalities of the SP model, they are now on board with the government's plan.

The major private players in this race are said to be Larsen & Toubro, Tata, Mahindra & Mahindra, Reliance Defence, Bharat Forge and the Adani Group.