India investing Rs.100 bn in defence projects

India investing Rs.100 bn in defence projects

--------------------------------------------------------------------------------

India investing Rs.100 bn in defence projects

BANGLORE: The Indian government is investing about Rs.100 billion (over $2.2 billion) in three major defence projects to give a fillip to research and development and in manufacturing new products.

Inaugurating the international aerospace seminar here Monday, Defence Minister Pranab Mukherjee said the investments were being made in projects such as the Light Combat Aircraft (LCA), the Kaveri aircraft engine to power the LCAs and Early Warning Systems.

"Though these are ongoing projects being undertaken by the Defence Research and Development Organisation (DRDO), these products are being developed indigenously," Mukherjee told about 500 participants at the three-day seminar on "Aerospace Technologies: Developments and Strategies".

Referring to the cost over-runs and time delays in such ambitious projects, Mukherjee said these factors were inevitable in the case of new products and efforts should be made to address the deficiencies.

"We learn through trial and error in this type of technology development. Such complex projects do take longer time. We try to avoid both cost overruns and time delays. They are being constantly addressed," Mukherjee said according to a report of IANS.

At the same time, efforts are being made to encourage joint participation in the development of defence systems with global aerospace industries, keeping in view the economies of cost and scale in such joint ventures.

"The role of the private industry buttumes significance in view of the skills and expertise developed over the years in aerospace and aviation technologies. Investments in education and training in a mission mode are essential to harness these technologies," Mukherjee butterted.

On the opening up of the defence sector to overseas investments (FDI) up to 26 percent, the minister said it was up to the stakeholders to avail of this opportunity and leverage the strengths of the Indian aerospace industry.

"The sector has been opened. It is not that we are dying for investments. But those who are interested are welcome to bring in their investments and take advantage of the resources here for joint collaborations or ventures with their Indian counterparts," Mukherjee added.

India is already in the league of a handful of countries with the capability to develop and manufacture high-tech aircraft such as the LCA, the Intermediate Jet Trainer (IJT) and the Advanced Light Helicopter (ALH).

"The co-development of the BrahMos missile with Russia is an example of what can be effectively achieved with international collaboration," Mukherjee said