Thursday, June 21, 2012

India shortlists first 'MAKE' program

Posted by- Neelam Mathews
June 21, 2012

India’s first “MAKE Program has been approved by the Ministry of Defense as part of its impetus to indigenisation by finalizing two development partners for Tactical Communication Systems (TCS). Alongside, Bharat Electronics in the public sector, MoD has selected a Special Purpose Vehicle (SPV) Company formed by three private sector defence majors. Led by L&T, the SPV includes Tata Power SED and HCL Infosystems Limited.

Among the few programs currently classified in the "Make" category, TCS is the first one to have reached this stage of finalisation of development partners and also the first-ever program where three major private sector companies have come together to form a consortium, under the leadership of one company, setting aside individual interests to synergize their capabilities, with a common goal of developing an Indian solution for this strategically important program. FICCI says it believes that this approach demonstrates the maturity of the Indian private Industries in the defense sector and their willingness to go the extra mile towards achieving self reliance in defense.
FICCI has been advocating that competition and merit-based selection in the defence sector will usher in new partnerships and business models which will help India’s Defense Industry. "The "Make" programmes envisaged in the DPP, provide a new opportunity to build on the engineering and  manufacturing capabilities as well as agility of private industry to complement the R&D base in the defense sector. They would serve as catalysts in establishing India-specific, secure and customized solutions for our armed forces and contribute to national security while ensuring the much needed indigenous life-cycle support," says FICCI, a chamber of commerce.

Encouraging competition and collaboration in the domestic defence industry will go a long way in accomplishing the goal to drastically reduce imports and to create a robust, competitive, indigenous defense manufacturing base, a statement by FICCI says.

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