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Defence production in private sector
NO LAUDABLE objective is evident in the decision of the Defence Ministry in entrusting to the private sector the production of lethal munitions including missiles, torpedoes, guns and ammunition which are being produced directly in defence factories under the ownership and control of the Ministry. The decision raises many complex issues. Production of armaments ranging from a mine or mortar to missiles and torpedoes requires the government to hand over drawings and detailed specifications. It is hard to expect the private sector to bear the heavy cost of defence research. Defence production needs constant change of specifications to ensure high standards of quality. Will there be any takers for licensed production of armament items without government support? Can private sector embark on defence production with no assurance regarding profit margin? Can technical personnel involved in the production of sensitive items cope with Defence Ministry's stringent secrecy clause of licence agreements?
It is obvious that the government would continue to bear the heavy cost of research, design and development, while the private sector is inducted to share the booty by way of assured returns on investment. The utmost danger is that the national security will be jeopardised, as defence secrets tend to be far more accessible.
A crucial question is why Indian industrialists could not manufacture arms and ammunition that are extensively under import at present. The fact is that the Indian private sector would not be able to bear the cost of research, design and development of arms and ammunition of the quality and standards that are under import. That is why domestic industry is about to embark on defence production only with the participation of foreign companies. In other words, whatever defence production that is being done by the state in this country is about to end and in its place, foreign private sector is about to encroach as participants. One significant aspect is that none of the foreign companies, which are suppliers of arms and ammunition, would be willing to take into partnership any Indian company. In short, this type of privatisation would cause the country to lose whatever minimum controls the state has in various aspects concerning our defence.
The loss of control of the government in defence production is not the sole issue. Big business deals and defence contracts would become the driving force in shaping the government policy on foreign affairs and national security. The evidence for this state of affairs already exists in the United States. Arms lobby has unsurpassable political clout in shaping the U.S. Government policy irrespective of the political party in power. M.M. LAWRENCE
M.M. LAWRENCE
Vice-president, CITU
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