Amit Cowshish replies: As the first step, the Ministry of Defence (MoD) needs to formulate a composite policy that focuses on the indigenisation of high priority technology areas, shedding the notion that it must necessarily result in savings. The commercial viability of the identified projects and institutional arrangement for financing them, apart from a mechanism to accommodate the cost of failed efforts, must form the bedrock of the policy.

Amit Cowshish replies: Broadly speaking, there are four reasons for the low level of indigenisation in defence products. The primary reason is the absence of a pragmatic overarching policy which, apart from defining the term ‘indigenisation’ which is presently interpreted in different ways, also recognises that indigenisation cannot always result in savings, especially in areas like development of special alloys and critical technologies which do not offer economy of scales.

Kishore Kumar Khera replies: A contract for procurement of 62 C295 aircraft is under consideration for replacement of 56 HS748 Avro for the Indian Air Force (IAF) and the balance six aircraft for the Indian Coast Guard. Of these, 16 aircraft are to be built by the original equipment manufacturer (OEM) and the balance aircraft will be manufactured in India. To facilitate aircraft manufacturing in India, certain Transfer of technology (ToT) is inevitable.