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Technology transfer in India to be linked to defense deals

IRNA - Islamic Republic News Agency

New Delhi June 24, IRNA -- The Congress-led United Progressive 
Alliance government at the Center will try to link the transfer of 
technology to defense procurement deals. 
According to the Business Standard, a New Delhi-based English 
daily, "This is going to be the thrust area of our policy," Defense 
Minister Pranab Mukherjee said. 
`Modernization` is at the top of Mukherjee`s priority list. 
Mukherjee is also in favor of private participation in research 
and development (R&D) for defense equipment. 
"A panel, headed by Vijay Kelkar, is looking into the issue of 
private participation in the research and development of defense 
equipment. We are open to the idea of private participation in this 
area," the minister pointed out. 
"Traditionally, there have been delays in procuring defense 
equipment, leading to cost overruns. As technology changes fast, 
specifications (for procurement) too change. Since there cannot be 
any compromise on quality, the delays are unavoidable. But now we 
will try to shorten the process. We will also link technology transfer
to procurement deals," Mukherjee said. 
This essentially means that once the procurement is over, at the 
second stage equipment can be developed in India because of technology
transfer. To make procurement deals transparent, the defense minister 
wants to put up the details of all deals for procuring non-lethal 
weapons on the ministry`s website. 
"Let there be a level playing field for all vendors (of defense 
equipment). We want to be completely transparent in our deals," he 
said. 
The minister added, "Let the public judge the procedures as there 
is nothing to hide. However, this will not be possible for hi-tech 
government to government contracts." 
"There we have to be discreet and cannot divulge the details to 
the public," he said. The new government may review the policy on 
defense procurements in due course. 
"The 1992 policy was reviewed by the NDA government in 2002. It is
due for review in two years. We may do this as we are for a 
procurement policy that is transparent, with clear-cut rules laid 
down," Mukherjee said. 
He refused to say whether the expenditure on defense would be 
raised in the forthcoming Budget but said the "important thing" is the
use of funds. 
"The Budget allocation (for defense) may by and large remain the 
same, factoring in the inflation rate. But the point to make is that 
we must use the maximum budgeted amount. Otherwise, the Budget figures
do not make sense," he said. In the past two years, the budgetary 
allocation for defense has not increased. 
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