The ‘Offsets Policy’, combined with the anticipated growth in Indian aerospace power, make us a very valuable customer. We must extract the many dividends and obtain the necessary technology. We must also be ready to receive and assimilate it; with areas of infusion identified, business plans worked out, local partners identified. Or else the offsets may get frittered away.
Industry
60 years after independence, 70% of our defence hardware is imported. What is produced is mainly by PSUs – HAL, BEL and BDL, for us. There have been cost and time overruns and unmet ORs. Despite that, our PSUs have a fair record. I must mention that production is not only about making aircrafts, but also providing a life-cycle and product support. This is another area I feel we must devote more attention to.
There are many business models the World over, Govt controlled ones, private contractor driven ones and combinations of the two. We do not as yet have industrial players with deep enough pockets, infrastructure, or clout to swim the oceans of aerospace R&D&I on their own.
In recent years, a number of private players have emerged, but lack of competition and a readiness to import, dulls the edge of competence. They must not be merely business partners of foreign vendors. I am aware that PSUs are outsourcing many of their current production requirements. Outsourcing to indigenous industry should be increased to the maximum possible; of course with a built-in quality control mechanism. Software is another area for outsourcing. But the proposition needs to be attractive – a tax holiday perhaps?
D&D, production agencies and private players are all interdependent. There is definitely a need for greater Governmental and user support. PSUs in turn must groom the smaller private players. There are many business models the World over, Govt controlled ones, private contractor driven ones and combinations of the two. We do not as yet have industrial players with deep enough pockets, infrastructure, or clout to swim the oceans of aerospace R&D&I on their own. We must evolve our own model and it will have to be a combination type – a collaborative and participative one.
As in some of our recent projects, we need multiple partnerships that bring together all stake-holders. But in multi-horse chariots, ‘programme management’ and accountability is a huge challenge. Each project must be semi-autonomous and one team. But since players are many, the user must always be the Captain.
Human Resource
A technological discussion invariably veers around human resource development. Quality people are the most essential energisers. This is another of our weak areas. All stake-holders must have a deep, comprehensive, multi-disciplinary understanding. R&D&I needs the best people, world-class education and most importantly, they need to be retained. I am aware that the retention of organisational expertise is a major concern of our PSUs. The Govt must take suitable measures to attract people and make it worth their while to stay.
Conclusion
It is indeed an exciting phase. We do have reason to be satisfied; but the journey is long and requires dedication, motivation, teamwork.
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