Parrikar: Will amend rules of procurement

Tribune News Service

New Delhi, January 30

Defence Minister Manohar Parrikar today reiterated that major changes will be made in the Defence Procurement Procedure and the Defence Production Policy which will aid in diversification and expansion of public sector companies owned by the Ministry of Defence (MoD).
Addressing the Consultative Committee attached to his Ministry, Parrikar said this would provide greater autonomy to the Defence Public Sector Undertakings (DPSUs) and Ordnance Factory Board (OFB) units for their expansion and diversification. The committee has members from both Houses of Parliament.
Parrikar had, in the past, announced that PSUs will be given more tasks and will be asked to do more. At present, the PSUs do only work within one segment. One of the key ideas is to expand a giant like the Hindustan Aeronautics Limited (HAL) and task it for increasing capacity to produce more helicopters.
The three services – The Army, the IAF and the Navy – collectively need some 1,000 helicopters over the next 10 years and HAL has a capacity to make only 20 per annum.