Defence, aerospace sector seeks separate finance corporation

Defence and aerospace sector for seeks separate finance corporation on the lines of Indian Railway Finance Corporation (IRFC).

“Considering the huge potential of industrial growth in defence and aerospace (both civil and military) and challenges of meeting the financial needs for mega aviation projects in India, it is important to think of establishing an organisation like Indian Defence Finance Corporation (IDFC) on the lines of IRFC,” said Dr. R. K. Tyagi, Chairman of Aeronautical Society of India (AeSI) and former Chairman-HAL.

“With Defence Corridors planned in Tamil Nadu and UP, other initiatives of the Government, opportunities will abound in these sectors and we will need more money than ever”, he said at a seminar on ‘Energising indigenisation in Aerospace and Defence’ organised by AeSI and the Society of Indian Technologies and Industries (SIATI).

On civilian front, India will need at least additional 1,000 aircraft which means the country buying two aircraft per week in next few years and our industries must take advantage of such a situation by developing indigenous civil aircraft to ensure success of Government’s Regional Connectivity Schemes like UDAN, said Dr. Tyagi.

“The future belongs to technology and the use of Artificial Intelligence and Robots will be more pronounced”, he added.

Shekhar Srivastava, CEO Bangalore Complex, HAL, pointed out that material cost incurred drives up the cost of indigenous Indian products especially when one is dependent on foreign OEMs thus making the finished products unviable. It is therefore important that all stakeholders come together and find solutions for any indigenisation process to succeed, he said.

The topics for the day-long seminar included indigenisation plan of Indian Air Force, Navy and Army and opportunities for industry, ISRO model of sustainable supply chain, make-in-India plan for vendor development and panel discussion.