Indian Military News

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<b>PRIVATE SECTOR IN DEFENCE PRODUCTION</b>

Wednesday, March 19, 2008

In May 2001, the defence sector was opened up to 100% for Indian private sector participation with FDI permissible up to 26%, both subject to licensing. A very large number of Indian private sector companies are already working with Defence Public Sector Undertakings and Ordnance Factories and supplying input materials to them. Providing access to the private sector in defence production introduces an element of competition so that defence industry as a whole upgrades and improves its functioning. This will also facilitate utilization of resources available both in the public and private sector to accelerate the pace of self-reliance in defence production.

Capacity utilization of Ordnance Factories and Defence Public Sector Undertakings during last three years is indicated below:-

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Year     2004-2005  2005-2006   2006-2007
DPSUs:
HAL       95.00%      97.00%       100.00%

BEL       52.00%       59.00%       62.00%

BDL       44.00%       42.00%       37.00%

BEML     78.00%        87.50%      94.10%

MDL       75.86%        79.41%      93.43%

GSL       53.43%        65.91%      88.00%

GRSE      91.00%       92.80%      64.02%

MIDHANI  49.00%       44.52%      46.24%

OFB       74.29%        78.97%       76.11%
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