Business Daily from THE HINDU group of publications
Saturday, Jan 08, 2011
ePaper | Mobile/PDA Version | Audio | Blogs

Foreign Exchange

Group Sites

Industry & Economy - Security
DRDO, industry to promote national design houses

Defence research organisation plans commercial arm to market technologies.

Dr V.K. Saraswat

Vinson Kurian

Chennai, Jan. 7

The partnership between the Defence Research and Development Organisation (DRDO) and the industry seeks to create National Design Houses in the areas of aeronautics, propulsion systems, long-range radars, advanced control systems and advanced materials/composites.

In this context, the DRDO will explore the option of creating a commercial arm for commercialisation and marketing of DRDO technologies, products and services.

This was stated here by Dr V. K. Saraswat, Secretary, Department of Defence Research and Development, and Director-General, DRDO, while addressing a session at the 98th Indian Science Congress at SRM University here.

Technology fund

The DRDO is also looking at operationalising the Defence Technology Development Fund (DTDF) targeted at small and medium enterprises (SMEs) and the private sector to ‘hand-hold' SMEs in high-risk development tasks.

New capacities, and in some cases parallel capacities, are created in the private sector so that the requisite numbers are built faster, better and even cheaper, Dr Saraswat said.

This would enable the private sector to participate in all future indigenous development.

Through their involvement in the development stage and subsequent acceptance of these systems, these industries have demonstrated their ability to absorb and produce high-end Defence technology systems.

These industries would be given licenses to manufacture through the automatic route and could also be recognised for the manufacture of a similar class of Defence equipment.

Since critical technologies from abroad can accelerate the development of systems, the DRDO will look to identify technologies that could be sought through an ‘offset' programme.

Offset credits

A uniform offset of 30 per cent of the estimated cost of acquisition in ‘buy (global)' category acquisitions and 30 per cent of the foreign exchange component in the ‘buy and make' category acquisitions is the minimum required value of the offset.

Foreign vendors could consider creation of offset programmes in anticipation of further obligations. Offset credits so acquired can be banked and discharged against future contracts.

It is estimated that in the 11th Plan period, business worth $10 billion would be generated through the offset route.

Leveraging offset provisions to achieve the national aim of self-reliance in design, development and production of Defence systems is a challenge for the entire country.

Based on the analysis of the Long-term Integrated Perspective Plan (LTIPP) and its own roadmap, the DRDO will consult with the Headquarters Integrated Defence Staff (HQIDS), the three services and the Department of Defence Production and identify the list of critical technologies that would need to be acquired through the offset route, Dr Saraswat said.

More Stories on : Security | Real Estate & Construction | Research & Development

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Corporation Bank launches housing loan scheme for NRIs

Scrap Reddy brothers' mining lease, says apex court panel
India could be fastest growing economy by 2050: PwC
Crisil sees GDP growth slowing to 8.3% in second half
Infrastructure growth high on TN Govt agenda
Sensex tanks 493 points on inflation worry, rate-hike fears
85 projects registered for green certification
Moving restaurant
2 engineering cos take space at Synefra hi-tech SEZ in Vadodara
Spent fuel reuse, key to n-power plans: PM
NPCIL offers to pay more for Jaitapur project-affected
Net direct tax collections up 19.47% in April-Dec
Srikrishna panel calls for water management in Telangana
Sibal asks diaspora to invest in domestic education sector
Give merit its due
S. Krishnamoorthy, Consultant, Alphabetics Inc.; Thirumalai Engineering College
Jewellery expo
BuildMat seen attracting huge participation
ISRO left poorer by transponder crunch, foreign leases
India needs 25 university research parks, says IIT-M chief
Governor lists plans to provide housing for all sections
DRDO, industry to promote national design houses
MDIS, Accurate Group hold workshop
Kochi to host 7-day Adivasi mela
Meet on quality concepts
Utensla to be held in Hubli
Workshop on career awareness
Rs 1,497 cr for cyclone risk mitigation in AP, Orissa
TN food production not impacted by floods
Sibal has got it wrong, say experts
SEBI mulls whether Citi scam victims can be paid back
Delhi court says petition against Raja ‘maintainable'

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2011, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line