The Hindu Business Line : Defence Ministry to cut revenue expenses, enhance capex

Hyderabad, Oct. 19 Mr M.M. Pallam Raju, Union Minister of State for Defence, has said that the Government is keen on reducing revenue expenditure and enhancing capital expenditure to modernise the Armed Forces, keeping in mind the future defence needs.

Talking to reporters on the sidelines of the fourth Military World Games here on Friday, he said the Government contemplated amendments to the ‘offset policy’ — that mandates sourcing 30 per cent of all defence deals above Rs 300 crore to the domestic industry — incorporating global benchmarks.

Referring to the offset policy of the Defence Ministry, he said the Government targets to meet 50 per cent of the Rs 43,000-crore worth defence procurements through indigenous production.

“We hope the private sector will join our efforts in this regard as the policy is not confined to the public sector only,” he said.

Getting prepared

Stating that 50 per cent of the world’ trade and 30 per cent of the oil exports transit through the Indian Ocean, he said the country needed to get prepared to face any eventuality.

On troop reduction in Jammu and Kashmir, the Minister said the decision would depend on the level of infiltration from across the border.