labels: economy - general
Fernandes seeks private participation news
Our Economy Bureau
08 January 2002

Bangalore: Defence Minister George Fernandes, who was speaking at the Partnership Summit 2002, organised by the Confederation of Indian Industry (CII) here, said: "Our defense forces are so strong that we need not worry about security at all."

Speaking at a session on Indian Security: Dangers and Challenges to the Nation, he said: "There is, however, just one weakness of our defense system our indigenous defense production needs to meet the world-class requirements of modern, state-of-the-art technology while reducing dependence on foreign supply of arms and armaments. There is a need for increasing private participation in defense production."

Fernandes said in the last two days, he had travelled extensively to all border posts, covering posts from Kargil to Drass to Rajasthan, Punjab and Gujarat areas where India might have to face many challenges. "The popular notion is that India has not paid enough attention to national security, is unmindful and careless towards national defense and security. this has been proved on many occasions."

"This, however, is not because of the defense forces, which are strong and responsible. Rather, the problems crop up due to Indias dependence on foreign supply of defense production. It is to strengthen our defense system that the government has come up with an agenda, which includes use of nuclear power for security, restructuring of the armed forces and creating awareness among people about defense issues," he said.

Fernandes said privatisation of defense production will improve the quality of indigenously-produced arms and armaments and will also save a lot of foreign exchange. "It is a serious issue that over the last one year, only 20 per cent of the budget allocation for defense production has been utilised." He invited the private sector to participate in defense production. "We must not let India remain a second- or third-level nation in defense production we must become competitive."

Fernandes said today there are two very important issues that face the Indian defense sector. "Firstly the issue of a lack of integrity, and the other of rising corruption. Corruption stalls development and hence must be done away with. It is very important to build a strong national character. In the matters of national security, we must act in a responsible manner, and must encourage our defense sector and build up the morale of the armed forces."

CII director-general Tarun Das thanked Fernandes and said CII has been working with the ministry of defense for the last four years. Das said CII will soon set up an association of defense industries with companies involved in defense production. "We are happy that the guidelines for privatisation of defense production have been announced. CII has taken defense sector missions to the UK and South Africa and will soon be taking more defense business missions to Israel, France, Russia and the US, as the private sector in these countries have shown interest in investing in India."

Referring to the case of aluminum caskets, Das said: "We need to move from a system of mistrust to a system of trust from one of assuming dishonesty to assuming honesty. Here, we must start by trusting our armed forces. Let us start by trusting people who guard our frontiers; lets start by trusting George Fernandes."




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Fernandes seeks private participation