The Defence Minister A.K. Antony has said that the defence public sector undertakings (DPSUs) need to compete not just with private organisations but also with global companies, to get orders.

Addressing a meeting of the Consultative Committee attached to his Ministry, Antony said where we need to be globally competitive, we need to take a long-term view about the current levels of productivity and how the present production levels can be enhanced.

“If the DPSUs want to be truly competitive, they must enhance productivity, reduce costs, increase product quality and align production processes to meet the increasing demands of the defence forces…. The emphasis must be on working harder and more importantly, in the right direction,” he said.

Referring to the Defence Procurement Procedure (DPP), which was amended recently, Antony said it has undergone a sea change and it has been revised with a view to bring about further improvements in the procurement process and to strengthen defence manufacturing infrastructure within the country. Hoping that the recent amendments in the DPP would bring in greater participation of Indian industries, Antony said, the only way forward in the current environment is to meet the increasing defence requirements through indigenous products. He said the Ministry of Defence (MoD) is gradually reducing the quantum of orders with the DPSUs through nomination.

The MoD places great emphasis on transparency and probity not only in procurement but in every aspect of the working of organisations under the MoD. The DPSUs are no exception, he said.

Taking part in the discussion, Members of Parliament (MPs) wanted the DPSUs to be more competitive. They also sought greater participation of the private sector in meeting the requirements of the Services. One member suggested that the DPSUs should try to get third party certification for modernising their production facilities. The MPs expressed their appreciation for the outstanding service rendered by the armed forces in the floodravaged Uttarakhand.