N. Neihsial

Ordnance factories are the oldest and largest single organisation in India's defence industrial set up. The organisation is found to be inefficient and uncompetitive from the angles of market share, capacity utilisation, timely delivery of demands, cost of equipment produced, level of technology handled and the volume of exports. While the organisation may retain its structure, it could significantly improve its efficiency and competitiveness by selective use of 'outsourcing' of its production activities in an organised manner.

• Published: July 2009
• Journal of Defence Studies

It has been reported that Russia has demanded US $3.5 billion from India for the aircraft carrier, Gorshkov, which is currently undergoing repairs. This is the second time that Russia has sought a price increase from the original contracted amount of $1.5 billion. Given the hike in its price and the further delay in the date of delivery, the deal has naturally attracted comment, with some people even questioning the very wisdom of having gone for the ship.

• Published: November 21, 2008
• IDSA Comments

What does it take to be ‘a vibrant industry’ or more specifically ‘vibrant defence industry’? Broadly, it would demand that the industry should be innovative in terms of processes and products, its base and structure should have large dimensions horizontally, vertically, and technologically to be responsive enough to keep pace with the changing strategic expectations of the nation. Defence exports and imports should be a matter of deliberate political or commercial policy choices and not a result of security compulsions.

• Published: October 08, 2008
• IDSA Comments

The above question arises in the context of publicly known government plans of arms procurement amounting to over $64 billion1 as part of the modernisation programme of the armed forces. The majority of these acquisitions will obviously be from abroad and will be concluded in the next five years or more.

• Published: August 22, 2008
• IDSA Comments

Ordnance Factories constitute a major segment of India’s defence industrial set- up, whose other constituents are the Defence Public Sector Undertakings (DPSUs), the Defence Research and Development Organisation (DRDO) and varied Service-specific workshops, repair and maintenance establishments. The gross production of ordnance factories during the year 2005-06 was Rs. 8811.59 crores. Total sales including issues to armed forces and other agencies and civil trade in the same year was Rs. 6891.68 crores. This constitutes approximately 40 per cent of domestic supplies to the armed forces.

• Published: July 17, 2008
• IDSA Comments

Recent announcements of major arms acquisition programmes by the Indian government must have given a sense of elation to the armed forces, which have been waiting for long for some of this equipment. These announcements also give greater confidence to the nation about the military’s capability to tackle national security challenges. But there are other long term implications of arms procurement largely through import.

• Published: June 03, 2008
• IDSA Comments

The practice of converting defence plans into publicly known defence budget is essentially a practice of democratic governments. One reason for public disclosure of defence spending could be that tax payers expect to know directly or through their representative how much is being spent on national defence and on other sectors of economy which affects their security and welfare. Disclosing the defence budget even to the domestic audience was rarely done in the past. In fact, even today, some major powers do not disclose their defence spending to the world.

• Published: May 30, 2008
• IDSA Comments

The recent public protests against the general price rise in Myanmar and the government crack down once again drew the world’s attention to the plight of the Myanmarese. But the focus has generally been on the political aspects, particularly the possibility of peaceful reconciliation and subsequent installation of a democratic government. In contrast, this paper attempts to peep into the economic aspects of military rule and its impact on the general public and concludes with certain possible implications for neighbouring countries like India.

• Published: January 28, 2008
• IDSA Comments

“It’s about time that the bureaucrats in the MOD and the military leadership in the Service Headquarters opted not only to do ‘the right things’ but also to do ‘the things right’ in as far as the procurement process is concerned.”
- Defence & Technology, July/August 2007, p. 13.

• Published: January 25, 2008
• IDSA Comments