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The Print
a day ago
- Business
- The Print
Defence Secy bats for competitive bidding, says Centre cut red tape to save up to 69 weeks
He revealed that the 'government has already cut timelines across multiple stages of the procurement process, potentially saving up to 69 weeks'. Speaking at the Confederation of Indian Industry (CII) Annual Business Summit held here Thursday and Friday, Singh emphasised the defence ministry's ongoing efforts to reduce procurement delays and implement structural reforms aimed at boosting private sector participation in the defence economy. New Delhi: Defence Secretary Rajesh Kumar Singh has stressed the need to move away from the traditional nomination-based, cost-plus procurement model—historically dominated by public sector undertakings (PSUs)—and adopt competitive bidding to create a level playing field for both public and private defence manufacturers. He added that the ministry is currently revising the Defence Acquisition Procedure (DAP) 2020 to better align with operational realities and expedite decision-making. Implementations of these reforms are underway in key programmes such as shipbuilding and the Advanced Medium Combat Aircraft (AMCA) programme. As ThePrint reported in March, the ministry had then approved a proposal to nearly halve procurement timelines—an initiative expected to feature in the updated DAP, anticipated later this year. Among changes under consideration are introduction of deemed licensing beyond a defined time frame to ensure accountability, removal of outdated practices such as product reservation for defence PSUs and streamlining of procedural bottlenecks that have historically slowed defence acquisitions. Defence Secretary Singh's comments come at a time when delays in defence production and delivery remain a pressing concern. Earlier at the same event, Air Chief Marshal A.P. Singh also alluded to these challenges, citing constant delays in defence projects and failure to stick to delivery schedules, especially of fighter jets. 'While signing the contract itself, sometimes we are sure that it is not going to come up, but we just sign the contract. Uske baad dekhenge kya karna hai (we'll see what to do about it later). Of course the process gets vitiated,' he said. This was a direct reference to the contract for the 83 Tejas Mk-1A contract signed in 2021, delivery of which is yet to begin. ThePrint had in 2021 reported that while the IAF signed the contract with state-owned HAL, the fear was that the delivery would not begin on time. The first aircraft was to be handed over to the IAF in February last year. While assuring the private sector of improved ease of doing business and a level playing field, the defence secretary further stressed the importance of long-term investments in research and development, saying that the future of India's defence sector will rest on the depth of its innovation capacity. He underlined that companies without adequate engineering manpower, capital equipment or willingness to invest in R&D would have limited relevance in the country's strategic ecosystem. Defence Research and Development Organisation (DRDO) chief Dr Samir V. Kamat, who also spoke before him at the summit, echoed these views, stating that both the government and private sector must increase their R&D outlays. 'Today, we spend 5 percent of our defence budget on R&D. The Raksha Mantri has promised that in the next five years, this will be scaled up to 10 percent,' he said. He further stressed that the private sector must also match this commitment by dedicating a similar proportion of their budgets to research. Further, Air Chief Marshal A.P. Singh, during his remarks urged the industry to voluntarily commit a tenth of their budgets to innovation. Drawing a parallel with the Sikh practice of 'dasvandh', the tradition of donating one-tenth of one's earnings for collective welfare, he said such a step was necessary to build credible self-reliance in defence. (Edited by Amrtansh Arora) Also Read: India used this battlefield hack to keep Soviet-era missile systems firing against Pakistan in Op Sindoor
Indian Express
a day ago
- Business
- Indian Express
India Air Chief's comments on delays in major defence projects call for introspection on issues plaguing manufacturing
Speaking on May 29 at the CII's Annual Business Summit in his first public interaction post-Operation Sindoor, Air Chief Marshal Amar Preet Singh made several pertinent points about the Indian defence industry. Pointing at perennial delays in every major defence project, he questioned why those involved in developing military hardware, particularly fighter jets, 'promise something which can't be achieved'. Admitting that, although the Indian Air Force (IAF) had been reliant on imported aerial platforms, 'atmanirbharta' was now an imperative. Pointing at the cruciality of air power in contemporary warfare and expeditionary missions, he called upon the Defence Research & Development Organisation (DRDO) and the private sector to take up the challenge. Quoting Winston Churchill, he asked the private sector '…to do a very special thing…(in what could be) their finest hour', invest at least 10 per cent of earnings in R&D, start designing and developing in India, and importantly, honour the contractual commitments given to the Armed Forces. There are a number of reasons why we have lagged in fielding hi-tech weapon systems. First, modern fighter aircraft are complex platforms and require seamless integration and smooth, synergistic functioning of a number of high-performance, cutting-edge technologies. These include incredibly efficient, strong, lightweight, modern jet engines capable of withstanding extreme temperatures, giving high power, great speed, as well as manoeuvrability. This requires advanced metallurgy (including single crystal technology, which just a few nations possess) and tight advanced manufacturing processes. The aircraft must also incorporate 'stealth' to some extent or the other, meaning it should present as small a radar cross-section as possible. This is achieved through an intricate blend of various materials, shapes, and radar-absorbing technologies. The airframe must be strong, manoeuvrable, yet stable. Its avionics, computing, navigation and flight control systems must maximise assistance to the pilot in his mission, while the systems on board should be fully integrated with the various weapons (missiles, guns, guided bombs, etc) for precision delivery. Thereafter, the entire platform must perform flawlessly in an environment replete with radars and anti-aircraft weapons of diverse types. In sum, the complexity of a modern fighter aircraft cannot be overstated, and its indigenous production is directly contingent not only on the availability of cutting-edge/emergent technologies but also on an advanced military-industrial complex. There are four requisites for developing and/or obtaining cutting-edge, future-ready technologies. First, obtain technology through transfer. No original equipment manufacturer/country will transfer technology in which it invested decades of R&D efforts and tons of money to rectify flaws and to finally derive that refined, efficient military platform unless paid huge offsetting amounts. Yet, rather than start R&D from scratch, some cutting-edge technologies should be bought, imbibed and assimilated internally, and then utilised as a threshold point from where to take off. Second, institutions of higher education that produce innovation as well as cerebral, highly-skilled alumni. For this, these institutions should be liberal and free-thinking, not weighed down by political/religious ideologies, and staffed with good faculty. Speaking at the Delhi School of Economics' Diamond Jubilee in August 2014, Gita Gopinath, First Deputy Managing Director of the IMF, had, inter alia, advised that India's education system must be revamped. Yet, the NEP notwithstanding, our education system and curriculum remain archaic. The National Employability Report Engineers Annual Report 2019 stated that a large percentage of engineers did not possess enough skills to work in IT companies. The government's Economic Survey 2024 opines that only 51.25 per cent of India's graduates are deemed employable, pointing at a wide chasm in skills required for the 21st century. Third, provide adequate R&D funding. In 2023, the US spent approximately $784 billion on R&D, China $723 billion, Japan $184 billion, Germany $132 billion, the UK $88 billion, and India $71 billion. Companies like Huawei of China and Apple of US spend billions of dollars on research. In contrast, most Indian industries, operating on thin margins, are faced with a Hobson's choice of maximising profits, expanding into new fields or investing in R&D. They thus need credible R&D funding from the government. Fourth, an advanced, civil-military industrial base. While India has many islands of tech-industrial excellence, for indigenous production of a system as complex as a fighter aircraft, the derived innovations/technologies need to be further developed and then coalesced within an advanced military-industrial base comprising many disciplines with technological cross-overs within those industries. China's state-supported civil-military integration model merits a study in this regard. The critical role of educational institutions, R&D funding and an advanced industrial base in the development of emergent/future-ready technologies is evident from just two reports. One, the 2021 report by the Office of the US Under Secretary of Defence entitled 'A 21st Century Defence Industrial Strategy for America'. This outlines how the US's edge in innovation and manufacturing has declined since the end of the Cold War on account of decreasing innovation, a decline in educational institutions, a paucity of skilled workers, low R&D investments in high-tech, etc. This tends to validate the claim made to the South China Morning Post in October 2024 by Lu Yongxiang, former vice-chairman of the National People's Congress, former president of the Chinese Academy of Sciences and director of expert advisory board for 'Made in China 2025', that China will overtake the US in hi-tech and advanced military manufacturing within a decade as 'overall, the decline of the US manufacturing industry ….become an irreversible trend.' The second is the July 2023 National Security Scorecard by commercial data company Govini. It evaluated 12 technologies critical to national security and found that in all 12, 'the USA is falling behind China in the core science.' Another reason is that militaries, being large, complex organisations and required to function in high-stakes environments with order, efficiency, and coordination, are often very bureaucratic. This stifles innovation and change by promoting a culture of conformity while emphasising adherence to established norms. General Mark Milley, former Joint Chiefs of Staff, and Eric Schmidt, chairman Special Competitive Studies Project, outline in Foreign Affairs (September/October 2024) 'America isn't Ready for Wars of the Future' because it persists with legacy structures, platforms and doctrines, but has yet to incorporate autonomous weapons, military AI, drones, etc. Nearer home, the US began using armed drones (for example, the Predator, Reaper) from 2002 onwards to kill militants/terrorists in Pakistan's west — yet, it took nearly 18 years, that is, the 2020 Armenia-Azerbaijan war, for us to truly appreciate and situate the role of UCAVs in modern warfare. While DRDO picks up some of the best technical brains from India's universities, merely knowing science doesn't automatically translate into advanced, military sub-systems/systems. To truly understand, develop and manufacture such systems, the DRDO also needs scientifically-qualified military personnel with immense combat experience. In contrast, the Indian Navy's in-house WESEE (Weapons & Electronic Systems Engineering Establishment) has achieved far greater technological success and self-reliance. Perhaps, the IAF too needs to look at a WESEE kind of set-up which cooperates comprehensively with the private sector. Presently, the IAF operates 31 combat squadrons against an authorised strength of 42 squadrons, with the 36 4.5-generation Rafale being the most advanced combat jets in its inventory. The air power deficit stands aggravated by an ageing fleet and delays in key indigenous projects, particularly the Advanced Medium Combat Aircraft (AMCA), and the Light Combat Aircraft (LCA) Mk-2, at a time when China already has two variants of fifth-generation fighters in service and is trialling two new sixth-generation fighters, and Pakistan is fast-tracking acquisition of 40 Chinese J-35 stealth fighters. Speaking at the same event as the Air Chief, the DRDO chief Samir Kamat stated that the first prototype of India's indigenous, fifth-generation AMCA will be rolled out by late 2029, with five out by 2031. The words of the Air Chief, therefore, merit attention. It remains to be seen how we refine our education system, inspire innovation, and develop a military-industrial base with coherent manufacturing strategies that function under an empowered bureaucracy with de facto policymaking capabilities, but bereft of political meddling. The writer is a retired Brigadier from the Indian Army
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Business Standard
2 days ago
- Business
- Business Standard
Help turn Amaravati into another Hyderabad, Andhra CM Naidu urges industry
Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday urged industry to help him turn Amaravati, the new capital of his state, into another Hyderabad, but also flagged the need for pursuing responsible capitalism. Speaking at the concluding session of the Confederation of Indian Industry's (CII's) Annual Business Summit here, the 75-year-old leader spoke of the need to treat people as capital and not as liability to address increasing income disparity. He said his vision is of initiating a 'P4 model' for inclusive growth where P4 stands for public-private-people partnership. Naidu recalled how he pioneered India's first wave of infrastructure reforms through public-private partnership (PPP) models in power, telecom, roads, and ports. While they brought development, they also increased disparities, he said. The Andhra CM said he hailed from a middle-class farming family, but got opportunities at crucial junctures in his life. He referred to how B R Ambedkar, the architect of India's Constitution, and former President A P J Abdul Kalam received crucial help from benefactors. 'I urge India's top 10 per cent wealth creators to mentor and handhold the bottom 20 per cent. This is the essence of responsible capitalism,' he said. 'For over three decades now, you have understood and engaged with my vision and knowledge. Back in the mid-1990s, the CII was still an emerging platform, struggling to find relevance in India. I was often cautioned that associating with industrialists or attending global forums like Davos would tarnish my image as pro-rich and cost me votes. Despite these warnings, I continued to visit Davos whenever I held office, from 1995 onwards, even though many chief ministers at the time did not,' he recalled. To CII President Sanjiv Puri's remark that industrialists referred to him as the chief executive officer (CEO) of Andhra Pradesh and not as the state's CM, Naidu said the moniker hurt him politically. But he pointed out that entrepreneurs generate wealth and revenue, which help fund impactful welfare programmes. "Without wealth you cannot have welfare programmes," he said. During the years when the CII Partnership Summit was held in Hyderabad, it brought immense visibility and investment. 'Now, I seek your support to bring investment to Andhra Pradesh, so we can continue creating wealth. We are at a truly inspiring moment in time,' the Andhra CM said, adding that it is fortunate for the country that at this critical juncture it has 'the right leader' in Prime Minister Narendra Modi. Naidu said India is the fourth-largest economy, and will soon become the third-largest. 'But from this point on, the real competition begins with China and the US. The industry must prepare to meet this challenge,' he said, adding that India lags behind in manufacturing and needs to strengthen its ability to produce globally competitive products. He said during his first term as the CM of undivided Andhra, from 1995 onwards, he built a thriving ecosystem, especially in Hyderabad, which now contributes 70 per cent of Telangana's income. While Hyderabad was a 'brownfield' capital, 'destiny has allowed me to build a greenfield capital in Amaravati', he said and invited industry to help him build it. Naidu detailed the various projects that are coming up in Amaravati, including India's first Quantum Computing Centre. He also sought industry's support in establishing a Global Leadership Centre in Amaravati to train entrepreneurs and political leaders. The Andhra CM elaborated on his government's tieup with the Bill & Melinda Gates Foundation in Kuppam to integrate artificial intelligence (AI) into healthcare and establish real-time medical monitoring. He also talked about the river-interlinking projects Andhra, and the plans to establish aquaculture, horticulture, and agri-processing zones in the state to increase rural income.
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Business Standard
2 days ago
- Business
- Business Standard
Help turn Amaravati into another Hyderabad, Naidu urges industry
Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday urged industry to help him turn Amaravati, the new capital of his state, into another Hyderabad, but also flagged the need for pursuing responsible capitalism. Speaking at the concluding session of the Confederation of Indian Industry's (CII's) Annual Business Summit here, the 75-year-old leader spoke of the need to treat people as capital and not as liability to address increasing income disparity. He said his vision is of initiating a 'P4 model' for inclusive growth where P4 stands for public-private-people partnership. Naidu recalled how he pioneered India's first wave of infrastructure reforms through public-private partnership (PPP) models in power, telecom, roads, and ports. While they brought development, they also increased disparities, he said. The Andhra CM said he hailed from a middle-class farming family, but got opportunities at crucial junctures in his life. He referred to how B R Ambedkar, the architect of India's Constitution, and former President A P J Abdul Kalam received crucial help from benefactors. 'I urge India's top 10 per cent wealth creators to mentor and handhold the bottom 20 per cent. This is the essence of responsible capitalism,' he said. 'For over three decades now, you have understood and engaged with my vision and knowledge. Back in the mid-1990s, the CII was still an emerging platform, struggling to find relevance in India. I was often cautioned that associating with industrialists or attending global forums like Davos would tarnish my image as pro-rich and cost me votes. Despite these warnings, I continued to visit Davos whenever I held office, from 1995 onwards, even though many chief ministers at the time did not,' he recalled. To CII President Sanjiv Puri's remark that industrialists referred to him as the chief executive officer (CEO) of Andhra Pradesh and not as the state's CM, Naidu said the moniker hurt him politically. But he pointed out that entrepreneurs generate wealth and revenue, which help fund impactful welfare programmes. "Without wealth you cannot have welfare programmes," he said. During the years when the CII Partnership Summit was held in Hyderabad, it brought immense visibility and investment. 'Now, I seek your support to bring investment to Andhra Pradesh, so we can continue creating wealth. We are at a truly inspiring moment in time,' the Andhra CM said, adding that it is fortunate for the country that at this critical juncture it has 'the right leader' in Prime Minister Narendra Modi. Naidu said India is the fourth-largest economy, and will soon become the third-largest. 'But from this point on, the real competition begins with China and the US. The industry must prepare to meet this challenge,' he said, adding that India lags behind in manufacturing and needs to strengthen its ability to produce globally competitive products. He said during his first term as the CM of undivided Andhra, from 1995 onwards, he built a thriving ecosystem, especially in Hyderabad, which now contributes 70 per cent of Telangana's income. While Hyderabad was a 'brownfield' capital, 'destiny has allowed me to build a greenfield capital in Amaravati', he said and invited industry to help him build it. Naidu detailed the various projects that are coming up in Amaravati, including India's first Quantum Computing Centre. He also sought industry's support in establishing a Global Leadership Centre in Amaravati to train entrepreneurs and political leaders. The Andhra CM elaborated on his government's tieup with the Bill & Melinda Gates Foundation in Kuppam to integrate artificial intelligence (AI) into healthcare and establish real-time medical monitoring. He also talked about the river-interlinking projects Andhra, and the plans to establish aquaculture, horticulture, and agri-processing zones in the state to increase rural income. To a question on how Andhra stands out at a time when several states are involved in competitive federalism, Naidu said there are so many brands but only a few will have value, and 'CBN (Chandrababu Naidu) is a brand'. He said 'credibility' cannot be earned overnight, it takes time to build.
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Business Standard
2 days ago
- Business
- Business Standard
National Manufacturing Mission to be launched next month: NITI CEO
The National Manufacturing Mission, announced in the 2025-26 (FY26) Budget, will be formally announced next month, NITI Aayog Chief Executive Officer (CEO) B V R Subrahmanyam said on Friday. The mission aims to propel India's manufacturing sector to a $7.5 trillion economy by 2047. 'We need a body with teeth, which can get things done. So, we are looking at how it is to be structured, the kind of muscle it needs to get things done spread across departments,' Subrahmanyam said at the Confederation of Indian Industry (CII) Annual Business Summit here. The mission is in the final stage, he said. In her Budget speech in February, the finance minister had said the National Manufacturing Mission would focus on five focal areas, i.e., ease and cost of doing business, future-ready workforce for in-demand jobs, a vibrant and dynamic micro, small and medium enterprises (MSME) sector, availability of technology, and quality products. The mission will also support clean-tech manufacturing to improve domestic value addition, and build an ecosystem for solar photovoltaics (PV) cells, EV batteries, motors and controllers, electrolysers, wind turbines, high voltage transmission equipment, and grid-scale batteries. 'It should be an overarching body, which has the power to give directions, control, and ensure that things get done… the idea is to understand, hand-hold, and see that these sectors get transformed within five to 10 years, in line with the mission's goal to achieve results by 2030 to 2035,' the CEO added. Citing the example of China's 'Made in China 2025' mission, prepared in the previous decade, that helped the neighbouring country become the largest automobile exporter from being a non-entity, the CEO said, NITI has probed their progress and mission in great detail. The mission will also look at skewed regional imbalances in manufacturing to ensure that the push is pan-Indian. A large part of the mission will be skilling initiatives by the Centre, with the Aayog looking to fundamentally change India's skilling framework. The government is also deliberating on new ideas like a 'skill passport' – the passport will be a record of a person's employable skills, keep an updated account of the skilling an individual goes through, and the number of times they have gone for reskilling and upskilling. The CEO also added that the industrial training institutes should be handed over to the respective industry – the government can fund it, but only industry has a handle on what the contemporary relevant skills are at a local level. The Aayog is also working on a net-zero carbon emission modelling framework. 'We don't have a pathway for the net-zero commitment by 2070. We've modelled it and next month we'll be announcing the pathway and making the model public... people can tinker with, and play multiple pathways to the same outcome,' Subrahmanyam said.
