DRDO for import reduction

Favours policy change to encourage indigenisation

April 25, 2015 12:00 am | Updated 05:48 am IST - Hyderabad:

FTAPCCI president Shiv Kumar Rungta and Minister of Industries, Handlooms & Textiles Jupally Krishna Rao, at the ‘Make in India’ seminar in Hyderabad on Friday.- Photo: G. Ramakrishna

FTAPCCI president Shiv Kumar Rungta and Minister of Industries, Handlooms & Textiles Jupally Krishna Rao, at the ‘Make in India’ seminar in Hyderabad on Friday.- Photo: G. Ramakrishna

Defence Research and Development Organisation (DRDO) favours substantial import substitution and policy change to enhance engagement with home-grown companies, starting with the integration of missiles.

From BTP, which stands for built-to-print, it wants Indian companies to graduate to BTS (built to specification) in the sphere of component development. “We want to offload 70-75 per cent [of the work] to industry,” Director of DRDO’s Research Centre, Imarat G. Satheesh Reddy, said on Friday.

Addressing a ‘Make in India’ seminar organised by FTAPCCI, he said DRDO had almost outsourced production and favoured the approach in view of the maturity levels of the industry. It has recommended policy changes permitting Indian companies to integrate missiles. At present, they remain component suppliers as “missiles cannot be integrated outside”.

Dr. Reddy, who estimated the value of imported components to be around Rs.1 lakh crore, said the industry, however, needed to improve on manpower, skills and infrastructure fronts to seize opportunities. This approach would allow the premier defence organisation “to do research and take the lead [globally] in futuristic areas”.

Senior officials, speaking to presspersons on the sidelines, said the share of imported components in missiles was already coming down. It will be brought down substantially in three years. This process has been set in motion in the area of Imaging infrared seekers, he said. Import of navigation systems is also expected to be stopped in two years, he added.

The Telangana government, Dr. Reddy said, is keen on housing more DRDO facilities. It had allotted over 100 acres near Nagarjunasagar for a systems and components testing facility and set aside 500 acres for more projects. On the projects likely in the State, he said, “We are looking for a radar test facility … the final decision will be taken by the Centre.”

Telangana Industry Secretary Arvind Kumar, highlighting the industrial policy, particularly its emphasis on ease of doing business, said the mobile (phone) manufacturing association had expressed interest in setting up units. Industries Minister Jupally Krishna Rao and Member of Parliament Jitender participated in the inaugural session.

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