The Indian Ministry of Defense announced that domestic companies will now be allowed to bid for large defense contracts. So far domestic companies could supply only non-combative equipment to the Indian military. They can now bid for contracts for tanks, artillery and air-crafts. In July when the CAG’s report criticised defense procurement methods, this author had recommended a diversification of suppliers, “It (India) should diversify its defense procurements not only to reduce dependence and prevent Russia’s strategic stronghold, but also as a business strategy. This will allow for competitive biding and better deals.”
The changes to the Defense Procurement Procedure according to a Defense Ministry press release are aimed to provide “encouragement to the indigenous Defence Industry to play a major role in meeting the needs of the Armed Forces, ensuring transparency and accountability in all procurement cases.” The policy change will potentially open up a $100 billion market over the next ten years for Indian defense companies. Reuters reports, “with foreign countries reluctant to share advanced technology with India, the government wants to encourage private defence companies to enter the arms market, officials say.” The Indian government intends to spend more than $30 billion over the next five years and upgrade its primarily Soviet-era equipment. (Link) (Link)
In other news, the Indian Coast Guard will add 3000 additional personnel and numerous ships and air-crafts. Speaking at the 28th Coast Guards Commanders’ Conference the Indian Defense Minister announced that 3000 new personnel will be added to “make it a potent force to combat terrorism from the sea.” The Indian government has concentrated on tightening security along its coasts after the terrorist attacks on Mumbai last year. The terrorists were found to have entered Mumbai through the Arabian Sea. Detailing the infrastructural increments to the force the Minister said, “the Coast Guard is in the process of acquiring 20 Fast Patrol Vehicles (OPVs), 41 Interceptor Boats, 12 Coastal Surveillance Aircraft(Dorniers) and 7 off-shore Patrol Vehicles(OPVs)…work is in progress to put in place a chain of 46 Coastal Radars spanning 9 Coastal Stations across the country. Moreover, 9 new Coast Guard Station have been approved.“
