CII Communique - February, 2010

defence
growth and achievement of self-sufficiency”, said Mr
Richard Rekhy, Deputy Chief Executive Officer, KPMG
in India.
Mr Gurpal Singh, Deputy Director General, CII, pointed
out that Defence production is an opportunity not only
for industrial majors in India, but also for a large number
of MSMEs, to help the nation achieve the aim of selfreliance
in defence production.
The Report cites a few key initiatives that Industry requires
ito be adopted. These include improving the visibility
of the Government’s defence order book, increasing
industry’s input and feedback into the RFP process,
better predictably and flexibility of the procurement
process and reduced bidders’ costs.
The Report also identifies the need for a comprehensive
industrialisation strategy for defence, and within this,
a holistic approach to the roles of offsets, transfer of
technology, FDI and the various public and private
industry players. There is also strong support for
extending the use of offset credit banking, allowing
offset credit trading, and introducing the use of
multipliers. Offset investment requires greater direction
by Government, targeting to ensure its full potential
benefit is realised.
Transfer of foreign technologies to India is essential
for realising the goal of self-sufficiency. Receipt of
technology assets under major procurements is
currently the exclusive remit of the Defence Public
Sector Units. Industry is hopeful that with the DPP
Amendment 2009 and its introduction of the Buy and
Make (Indian) category, private sector companies
will start competing with the DPSUs for technology
assets.
The taxation regime is also highlighted for the critical
role it can play in developing an environment that
incentivises and supports the long term risk taking,
investment and R&D required for a nascent defence
industry. The report highlights a number of areas for
additional exemptions or concessions which could be
used for the development of the industry.
India - Italy Defence Industry Roundtable
CII, in association with the Ministry of Defence,
and FICCI, organised an ‘India Italy Defence
Industry Roundtable’ on 15 January in New
Delhi.
The meeting was co-chaired by Mr Satyajeet Rajan, Joint
Secretary, Exports, Ministry of Defence, and Maj Gen
Claudio TOZZI, Chief of 3rd Department, Armaments
Policy, Italian Secretariat General of Defence, National
Armaments Directorate. A series of presentations were
made by both Indian and Italian defence and aerospace
companies.
Regarding the issue that Italian companies insist on
security certification from the Government of India
for Indian companies before permitting any transfer
of technical details or transfer of technology, (which,
it was explained, is a security requirement of the
Italian government, and not a condition put forth by
Italian companies) Maj Gen Tozzi suggested that the
issue can be taken up by the industry organisations
of India and Italy for the consideration of the Italian
government.
Satyajeet Rajan, Jt Secretary (Exports), Ministry of Defence, Maj Gen Claudio Tozzi, Chief of 3rd Dept Armaments Policy, Italian Secretariat
General of Defence, and Gurpal Singh, Deputy Director General, CII, with representatives of Indian and Italian defence companies
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