February 17, 2016 8:09 AM

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Pvt sector can pick up 25% share of defence production: AK Gupta

Defence Production Secretary AK Gupta has said that private sector manufacturers have an opportunity to pick up a 25 per cent share of defence production in the country. Addressing a seminar on defence at Make in India Week in Mumbai, he said around 25 per cent of the defence Public Sector Unit turnover can be off-loaded to the private sector and the ministry has already de-licensed 60-70 per cent of the production. According to Defence Ministry, 79 units operated by 50 private companies have begun production after the government opened the defence equipment industry to private sector in 2001. Mr Gupta said that out of the 319 licences issued to 190 companies, 79 licences of 50 companies have entered production stage and most of these were operational for the past 18 months or so. On the new Defence Procurement Policy, he said it will be effective from April and will have a new offset clause which will give freedom to change the sourcing model as well as the local partner.

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