Thursday, September 20, 2012

Exclusive! Liabilities may hold up defense payments in future?

Neelam Mathews
Sept 20, 2012

Those worried that projects are being delayed as a result of less money in the defense kitty, might be partially right – more so in the future.

Related to the overall economic situation in the country and the economy slowing down, revenue generation is poor, says Amit Cowshish, former advisor finance(Acquisitions) and additional secretary to the ministry of defense, to Aerospace Diary. “If subsidies and interest payments continue to rise, where will the money come from,” he queries. Liabilities of defense procurement are likely to build up in a few years…lets not forget, when you buy equipment, you have to retain it.”

“The MMRCA will be a game changer as the initial payment is very high…(I) don’t know how the program will be sustained,” he adds. A reality check?

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