The Hindu Business Line : `We've to procure defence equipment worth $8-10 b'

AIR-TRIANGLE: Surya Kiran team performing at the aerospace & defence exhibition at Yelahanka Air Station in Bangalore on Wednesday. — Bhagya Prakash K

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Bangalore Feb. 7 Aero India 2007, now a top Asian aviation spectacle, flew off to a colourful start at the Yelahanka Air Force base near here, with the Defence Minister promising to speedily modernise the armed forces. The show is the sixth two-yearly edition organised by the Defence Ministry.

The modernisation would be the priority, with a healthy mix of imports and indigenisation. "During the 11th Plan period (2007-12), we have to procure defence equipment worth $8-10 billion and processes for that are going on," Mr A.K. Antony said at the opening of the five-day event on Wednesday.

"We are in the process of acquiring fresh capabilities for all the three wings of our armed forces. I can assure the armed forces that we won't delay the process. Negotiations, procedures are going on," he said.

FIGHTERS DECISION

He also said the much-awaited decision on calling bids for the 126 MRCAs (multi-role combat aircraft) for the IAF would be taken "at the earliest, at any moment" and it was in the final stages. Analysts put this deal at around $7-10 billion. Four of the five contenders for the purchase are now in Bangalore with their product. Mr Antony said that at the same time, the Government wanted to go beyond a mere buyer-seller relationship. "We buy, but with technology transfer; and we must be involved in design, development and co-production."

For the long term, the need was to ramp up self-reliance and indigenous products, involving both foreign and domestic industries. Mr Antony urged the Indian industry to make use of the new openings.

A committee is currently identifying `Raksha Udyog Ratnas' or Indian companies that can support defence production; a Defence Offset Facilitation Agency will ensure implementation of the offset policy that goes with Rs 300-crore-plus imports.

On the Defence Procurement Policy (DPP, put in place in September 2006), Mr Antony said its aim is to ensure total transparency in imports. The 30 per cent offset clause could be reviewed in the coming years based on the situation then. Air chiefs of over 30 countries witnessed the opening, marked by flypasts of fighters and aerobatics by the Sarang team of HAL-made Dhruv heli- copters.

Mr K.P. Singh, Secretary, Defence Production, said Aero India had evolved over 13 years into a regular international aviation brand and Bangalore its `ground zero.'

The next one will be held from February 11 to 15, 2009.

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