The factory inaugurated by Prime Minister Narendra Modi to manufacture field guns for the Army would be shut by September 2020 as they have delivered ahead of schedule and have no further orders, Larsen & Toubro Chairman AM Naik said in an interview to CNBC TV 18. “According to me, not much has happened,” he said when asked how the defence sector has opened up for private industry in the last six years.
Elaborating on the order for 100 K9 Vajra-T self-propelled artillery guns that the L&T is manufacturing under technology transfer from Hanwha Defence of South Korea, he said there were four types of which one was cancelled because it did not not succeed and nobody could really clear the requirements.
“Now they said we will add that 180 guns to this 100 guns [K9s] when you come and deliver 50 guns. Now we are ahead of schedule. The PM had inaugurated the gun factory... but in less than one year, recently Defence Minister came to accept the 51st gun. By then the 180 guns should have been ordered... Again there is no money,” Mr. Naik said.
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This September we will close the factory which was opened 12 months ago and we are delivering the guns ahead of time, he said. Asked if it was a financing and policy issue, Mr. Naik said, “It is really that.”