With no discernible hand at the tiller, the defence ministry seems directionless and inept. The caretaker minister, Arun Jaitley, appears to have neither the time nor the experience to chart a bold, new direction. Mr Jaitley's first defence Budget is his predecessor's last Budget, a token hike of two per cent failing to mask the resemblance. Worse, the new government's first big acquisitions are marked by a familiar lack of planning and direction, suggesting that the old, blinkered officialdom calls the shots in South Block rather than a new, visionary leadership.
On Saturday, the Defence Acquisition Council, the apex decision-making body that the minister chairs, cleared acquisitions worth Rs 21,000 crore. This includes an Rs 11,897-crore project for 56 transport aircraft to replace the obsolescent Avro-748 (given the rupee's fall since when the project was sanctioned, the eventual cost would be closer to Rs 14,000 crore). Former defence minister A K Antony told Parliament in 2012 that this aimed to "encourage development of the Indian private sector in aircraft manufacture". His blunt-speaking Indian Air Force (IAF) chief then, N A K Browne, said the aim was to develop a competitor to Hindustan Aeronautics (HAL).
The international vendor that wins the Avro-replacement tender must choose an Indian private company to build 40 aircraft, while delivering the first 16 off-the-shelf, all within eight years. The favoured contenders are European multinational Airbus Defence and Space, Antonov of Ukraine and Alenia Aeromacchi, all of which have aircraft that meet India's specifications. The Tatas, Larsen & Toubro or the Mahindras could be chosen as the "Indian Production Agency".
21/07/14 Ajai Shukla/Business Standard
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On Saturday, the Defence Acquisition Council, the apex decision-making body that the minister chairs, cleared acquisitions worth Rs 21,000 crore. This includes an Rs 11,897-crore project for 56 transport aircraft to replace the obsolescent Avro-748 (given the rupee's fall since when the project was sanctioned, the eventual cost would be closer to Rs 14,000 crore). Former defence minister A K Antony told Parliament in 2012 that this aimed to "encourage development of the Indian private sector in aircraft manufacture". His blunt-speaking Indian Air Force (IAF) chief then, N A K Browne, said the aim was to develop a competitor to Hindustan Aeronautics (HAL).
The international vendor that wins the Avro-replacement tender must choose an Indian private company to build 40 aircraft, while delivering the first 16 off-the-shelf, all within eight years. The favoured contenders are European multinational Airbus Defence and Space, Antonov of Ukraine and Alenia Aeromacchi, all of which have aircraft that meet India's specifications. The Tatas, Larsen & Toubro or the Mahindras could be chosen as the "Indian Production Agency".
21/07/14 Ajai Shukla/Business Standard
