IAS MAINS G.S. ECONOMICS Q.10 What is the purpose of proposed ‘Technology Development Fund’ in the defence sector? Also analyse important recommendations of the Kelkar Committee set up by the Government to examine and recommend changes in the acquisition procedures and enabling a greater participation of private sector in defence production. Ans. The Technology development fund has been announced in 2011 budget based on the recommendation by the Kelkar Committee report, however, no amount allocation or plan/ policy announced. This budget has announced Rs. 100 crore to Technology Development Fund. This fund will support the Private, Public companies and SMEs as well as academic and scientific institution to carry on R&D work in defence sector to develop the cutting edge technology. The Kelkar Committee had recommended the following regarding the acquisition procedures and enabling a greater participation of Private sector in defence production Acquisition Procedure 1. Prepare a 15 year long plan as the base of acquisition programme 2. Setting up professional agency for defence acquisitions 3. To promote transparency in decision making Participation of Private Sector 1. Information sharing between Armed forces and Industry 2. Identification of Entry points for Private sector in acquisition process 3. Policy framework for SME participation in defence production 4. Providing funds to Private Companies and SMEs for developing cutting edge technologies 5. Awarding the Private companies for developing technologies The acquisition procedure suggested will certainly help avoid lobbing and futuristic acquisition, however, setting up a separate professional agency for acquisition can be avoided by involving experts in acquisition at MoD level with transparent process in place. The Private participation is already in place, companies like Godrej, L&T, Tata do provide lots of key component to DRDO. However, they should be encouraged to pursue R&D instead of just manufacturing. The Technology development fund does so to some extent but its just meager amount to bring about any big leap in ‘Make’ Policy of India
Posted on: Thu, 30 Oct 2014 15:40:26 +0000
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