Systemic changes required before ‘Make in India’ becomes reality in Defence & Aerospace

Sangeetha Chengappa Updated - January 24, 2018 at 07:09 PM.

Sister organisations should come under one entity: experts

The 10th edition of the biennial Aero India show, which concluded on Sunday, was a landmark event since it was the first time that the show was inaugurated by the Prime Minister of India. However, Narendra Modi’s ‘Make in India’ campaign to promote local manufacturing in the defence and aerospace industry may remain a pipedream unless systemic changes are made, say experts.

Retired Wing Commander and Test Pilot, Indian Air Force, KT Sebastian, believes that India has the potential to design and develop not only fighter aircraft, but transport aircraft, helicopters, UAV etc, provided all the government organisations attempting to develop aircraft indigenously are brought under one entity.

“What the country needs is one entity which should be formed by integrating ADA, ARDC (Aircraft Research and Design Centre) of HAL and CSIR-NAL into one national aeronautical design organisation,” he said.

While ‘Make in India’ is all about encouraging the private sector to manufacture locally for India and export markets, experts say there is no incentive to manufacture as there are no economies of scale. Bengaluru-based Radel Advanced Technology Group has developed a rocket distributor unit for the Jaguar Aircraft against a development order from the IAF.

Having delivered two units, the company is still awaiting serial orders from IAF for the same. “Unless a company has the financial muscle, it is difficult to survive,” said Radel’s MD, Raj Narayan.

Sikorsky has a joint venture with Tata Advanced Systems to manufacture 4,000 parts for the S92 helicopter cabins but, none of it is for the Indian market; similarly if global aerospace OEMs such as Dassault, Boeing etc give private companies in India access to global markets, they will be able to achieve economies of scale and ‘Make in India’ will become a reality, noted Air Marshall BK Pandey (Retired).

Industry analysts say the lack of accountability in project cost would impede progress of ‘Make in India’ as the Government doles out money for a project without any major milestones being achieved.

Citing one such instance, Sebastian said, “Work on the LCA started in 1983, with the aim of getting into Indian Air Force service by 1995 with an initial cost estimation of ₹575 crore, which has exceeded ₹18,000 crore. Funds must be released based on milestones achieved and stopped if there is no progress.

Published on February 24, 2015 17:41