Govt strengthening defence PSUs, no question of weakening them: Def Min in RS

Defence Minister Rajnath Singh said on Monday that there is no question of weakening state-owned companies operating in the defence sector and asserted that the government is taking all steps to strengthen them with equity support, clearing liabilities besides giving high-level orders. Replying to a query during the Question Hour in the Upper House, the Defence Minister said, ”Our government is strengthening all DPSUs (Defence Public Sector Undertakings) with equity support. We are also clearing their committed liabilities so that our DPSUs do not weaken in any manner.”

That apart, the government is providing high level orders to DPSUs. ”As per my knowledge, about 80 per cent orders are given to DPSUs even today. There is no question of weakening the DPSUs,” he added.

Noting that the defence sector is driven by high-end technology and innovation, Minister of State for Defence Ajay Bhat said production orders are given to DPSUs too, even as FDI has been allowed in areas where the country does not have expertise and capacity.

The government is taking steps to make the country self-reliant in defence sector. Therefore, the government has split the Ordnance Factory Board into seven new public sector units, he said.

The minister further said that the country is benefitting from the opening of the defence sector to private firms. The FDI inflow in defence and aerospace, which stood at Rs 1,382 crore during 14 years from 2001, rose to Rs 3,343 crore in the ongoing seven years of the Modi government. Responding to a supplementary query on lower investment after the FDI was opened in defence, the Minister said, the government has made a list of 209 defence items to become self reliant.

In the 2022-23 Union Budget, 68 per cent of capital procurement budget has been set aside for domestic industries, he added. Responding to another query on protecting contractual workers, Bhatt said the government has not cut any staff. On steps taken to boost domestic production, Bhatt said the government has formed two defence industrial corridors, one each in Uttar Pradesh and Tamil Nadu. India is exporting to 72 countries and figures in top 35 defense exporting nations in the world.