Wednesday, November 10, 2010

Landmark Indian Defence Production Policy In January

India's first ever (and long delayed) Defence Production Policy is to be unveiled and come into use in January 2011, alongside "major changes" to a revamped Defence Procurement Policy (DPP), Indian defence minister AK Antony let out today. India currently has a vast state-owned defence production base, but continues to depend incongruously on imports for much of its weapons and military hardware needs. A skeptical view would be that a new policy for defence production won't change what is a highly controlled sector. Another view would be what the hell have we been doing without a defence production policy so far?

"Our aim is to have a strong defence industrial base in India, because a country like India cannot indefinitely depend on foreign suppliers for majority of our equipments. At the moment 65-70 percent of equipment is imported; we have to reverse this trend," the minister said.

The minister indicated that state-owned companies (like HAL, BEL, BEML etc) alone could not meet the requirements of the armed forces -- the new policy would facilitate the participation of the private sector in more substantive and less regimented way. "Both public sector shipyards will have to compete with the Indian private shipyards to get projects for the Indian Navy. So all the Indian Navy's procurements in future will be from Buy Indian, Make Indian," he said.

Antony paused in his speech at an awards function for excellence this morning to wag his finger at PSU bosses present, informing them that they needed to pull up their socks and brace for heavy competition from the private sector from next year.

Photo Copyright Indian Navy / Firepower on the Indian frigate INS Shivalik


mukut said...

that's really good move... Competition will really bring up the quality..

Gautam said...

Fat chance. The defence PSUs have thrived on government-sanctioned monopoly and favouritism for over 60 years, and people like Antony and his pseudo-Communist crony Pallam Raju are their biggest benefactors.

India will never have a defence industry comparable to even smaller, poorer suppliers like Ukraine, Brazil and South Africa, so long as socialism prevails in defence policy.

Tanmay said...

will this bring to india military SEZs?
or SMZ?
cause we do need more number of military equipment production factories and ports

Mr. Ra said...

I feel it should be considered basically a good news.

Prasun K. Sengupta said...

If the point of departure of this long-overdue Defence Production Policy is going to be "Buy Indian, Make Indian" for the three armed services, then I'm afraid it will truly to a 'landmark hogwash', especially when the country still imports even raw materials like high-strength steel and composite materials. What the GoI needs to spell out are the rules of competitive industrial bidding, which should include contract awards of sub-packages in a way that is also financial beneficial to those OEMs who may have lost the main contract, but are still accommodated to become sub-contractors (like Northrop Grumman and Kaman Aerospace are to Boeing, for instance). But then again, these are all cosmetic changes of short-term value. For in the long run, what matters most is the degree of financial (and consequently, corporate decision-making) autonomy that the MoD acccords to the existing defence PSUs, which in turn is possible only when the MoD undertakes a massive divestment exercise involving each and every existing defence PSU. For instance, if HAL would have been a public limited company, say from the mid-1990s, it would have, by the late 1990s, been able to raise enough funds through the capital markets (instead of begging the MoD for R & D funds) to greatly expand and expedite its in-house R & D activities required for developing the single-engined Light Observation Helicopter (derived from the twin-engined Dhruv) and the HTT-35 advanced turboprop trainer over a six-year period starting 1995.
Similarly, L & T should have been allowed to buy out the Vizag-based Hindustan Shipyards Ltd, instead of being taken over by the MoD from the Ministry of Shipping. But since this was not allowed to happen, L & T had no choice but to despatch all sub-assemblies of India's first locally-assembled SSGN straight to the Vizag-based Shipbuilding Yard (instead of stockpiling them somewhere near to the Yard, thereby exposing them to the vagaries of the weather) for the past two years, and this in turn led to the premature launch of the Arihant ATV on July 26 last year (so that the Yard could be vacated and work on assembling the SSGN could get underway). And we all know now what has happened since then: the Arihant is still floating INSIDE the naval dockyard in Vizag as its nuclear reactor has not yet attained full criticality (and consequently the harbour buoyancy trials have yet to get underway).

Anonymous said...

I hope private participation is encouraged.

Not just by false promises, but with concrete steps.

coolgeek said...

I would keep my fingers crossed until something concrete happens... Out babus and netas would not get their military kick backs from foreign companies if our private sector takes the defence industry... so... Lets c...

Anonymous said...

Fat Chance. A complete hogwash. These politicians thrive on unions of PSUs and they will NEVER hurt their own vote bank.

Anonymous said...

Allowing unrestricted entry to Indian Pvt sector will lead to lowering the quality of the systems that goes into high tech defense eqps. Indian cos are hardly anywhere close to global stds. Therefore there must be 100% competition which means allowing MNCs to compete alongwith PSUs and Pvt Cos.We must allow more than 50% FDI in this critical area. Forcing MNCs to invest via incompetent and corrupt Pvt sector companies will lead to massive corruption and inflation of cost of the final product.
HAL and DRDO cannot be privatized for the simple reason that you cannot privatize NASA or ISRO. These are institutions which enable the nation to gain capabilities and self reliance in technologies which are restricted to both Govt and business entities.
India must remove restrictions to Pvt sector to develop capabilities in these areas of cutting edge defense technologies. But we must bear in mind that doing so must not result in license production of foreign eqps thinly disguised as fruits of indigenous R&D. Hence, it is essential to raise FDI limit beyond 50% in the defense sector, failing which, this set up will be another channel for multi billion dollar scams and means for siphoning off India's scarce resources in the name of "defense". We all know that there are multi million $ kickbacks in all defense deals. Allowing corrupt Pvt sector in this area will only add fuel to the fire. Hence, we need to be very careful with whatever policies we are formulating in this matter.

Anonymous said...

Finally, starting to pull your finger out Anthony and scare your base....Nice, my view of you is changing (although you need to dress a little better being a minister and all).

Now with America starting to loosen tecnology restrictions, the economy starting to reach critial mass before the big sustained average breaking upswing, the soon to be generational change in leadership and a more confident / robust soft and hard power projecting India emerging. It's only a matter of time before the neighbours start to see a real major cost of conflict with India (best to just get along china and settle the boarder, me thinks).


Anonymous said...

So, we talked the walk!

Time to reverse the engineering (in earnest)!!

- Nanovacuum (US)

Anonymous said...

Hi all,
which ship and missile is shown in the picture?
Thank you,

Gautam said...

The funny thing is defence MNCs like Boeing, Raytheon and EADS do have Indian branches, only lacking incentive to do anything else they are limited to sales representatives and some software R & D.

Countries like Australia and Canada have most of their defence research done by local divisions of MNCs, like Thales Australia and Raytheon Systems Canada. However in order to have a truly independent indigenous capability we must have Indian involvement as well; that's why FDI of 50% is enough, with foreign firms actively encouraged to form 50-50 joint ventures with Indian ones.

This is the approach the Chinese are going to be taking for their non-militariy manufacturing(since they are forbidden from buying Western military gear by embargos) in future to ensure technology transfer with domestic ownership of proprietary rights.

Anonymous said...

@Anon 7:07 AM,

The Image file is mentions Shivalik, ie the Shvalik class frigates.

Going by the position,launcher and the bulge of the warhead,the missile would be the RBU-6000 depth -charge anti-submarine rocket .

Anonymous said...

50-50 joint ventures must only be allowed if it results in reduction of cost and not the other way around. If Indian Pvt Cos bring nothing to the table, then such joint ventures will lead to massive spike in the price of the final product by way of ToT and cobranding. In other words Indian Pvt companies will simple be acting as another middlemen who add nothing tangible but get a "commission" in such kickbacks ridden multi million/billion $ defense deals, thereby raising the cost of the final product.

Anonymous said...

I doubt things will change.

Babus and Ministers don't like it if they are not the ones calling the shots.

So any change will be resisted.

Also, we have been hearing of boosting private participation, but on the other hand, the government does everything to stop privatization.


Anonymous said...

It is funny, how our government feels comfortable dealing with foreign private companies, but does not want our own companies to get into defense production.

Gautam said...

The morons who ignorantly spout lines here about corruption with the preconceived notion that all private sector firms are corrupt illustrate the mentality of our babudom and the reason why this won't succeed.

Gautam said...

For the psuedo-Commie morons who look for excuses to dismiss each and every possible scheme involving private sector, why do you think the government and armed forces won't monitor/audit the progress and the level of indigenous content, as they do for DRDO research and for private research in Western countries? Shift your concerns about middlemen to our netas and babudom instead.

Anonymous said...

Anon 3.38/3.40 PM/Gautam

We have seen what quality of "audit" our army was conducting during Arjun trials. Like a thief, in order to protect their kickbacks from foreign firms, they went so far so as to sabotage the tank during it's trials. This incident in itself is nothing short of treason. We know the typical castist mentality of Indians, where for the netas, babus and top brass; the lives of junior officers and jawans means nothing as long as their pockets are kept warm. Our top brass has even resorted to mafia like death threats to builders and accused in sexual harassment of their female colleagues and wives of junior officers.
Our Govt is dealing with foreign firms which specialize in manufacturing weapons, unlike Indian companies( run by few corrupt biz families) which want to have all their fingers in the pie i.e. from atta chakki to jets by keeping away foreign competition.
The Indian Pvt Cos can be allowed to develop weapons systems but with their own funds, R&D and technology. No "joint ventures" with MNCs where they will just charge a hefty commission to stick Mahendra or Punj Lloyd label on the product without contributing anything. This is another big scam in the unfolding and these corrupt Indian companies have greased the palms of babus and netas big time to get their paws in the lucrative and secretive defense contracts. Such contracts will also act as a buffer against losses in the civilian mkt. It is high time these thieves are exposed and the taxpayer stopped funding the excesses of few unscrupulous elements.

Gautam said...

To anon @ 7:51PM,

Arguing with your kind, as I have discovered here, is like arguing with a tape recorder. You'll keep looping the same comments again and again. If DRDO and the DPSUs deserve taxpayer funding for their R & D, then so do private firms. Government is as corrupt, if not more than, any private business family, and a lot of shady dealings and corruption do go on in PSUs as many here have attested in the past, though people like you like to keep themselves ignorant of the same.

BTW what is your opinion of the many JVs our great PSUs have gotten into like BrahMos(engine, seeker and fuel supplied by Russia) and FGFA(engine, radar, stealth design, weapon systems all supplied by Russia)? Are HAL and BDL just charging commission for foreign warez?

The only clear fact emerging from your arguments is that you despise the private sector with a passion and believe that whenever they are making profit it is a bad thing. Make sure to destroy that private -built PC, modem, chair, table and apartment after this, Commie. After all someone made a profit on those. Bad, right?

The first apparent advantage of 50% indegisation would be reduction is cost, which is something private companies have a clear interest in because THAT'S HOW COMPETITION WORKS. So obviously indigenisation will happen, whether you like it or not. If profit is made then what's wrong with that?

Anonymous said...


Kindly refrain from abusive comments.Also please don't get personal as we hardly know each other. Kindly debate on the subject matter.

DRDO is like NASA and it is not like TISCO or TELCO. Can you compare Maggie noodles to GSLV? Can Bajaj Scooters demand funding because ISRO is receiving Govt funding? Btw, PSUs are no longer being bailed out by the Govt (Air India is the rare exception and it may be privatized if things continue as they are).
All these DPSUs are profitable and they have high share value which denotes the confidence reposed by their investors.

When HAL or BHEL manufactures a product, it leads to lowering of cost, not an increase. Read my earlier comment, where I have clearly mentioned that such JVs can be allowed when there are synergies between both the biz entities. If a JV with Mahendra and BAE leads to lowering of cost, then sure, such partnerships must be encouraged. If it leads to a spike in cost of the final product, then it means that there are no synergies and the Indian partner is acting merely as another middleman whose illegal "commission" is being borne by the gullible taxpayer who has no idea how this babu-neta-baniya nexus is keeping him in poverty.
Allowing 100% FDI in this sector and other sectors as well will lead to employment of huge talent pool which is available in India. This is the growth path adopted by China. Later on employees from such companies will start their own ventures. We need to encourage entrepreneurship among the masses which can happen only by gaining world class experience and exposure. This won't happen if these Pvt sector baniyas continue to rule the roost in collusion with the equally corrupt babus and netas.

Anonymous said...

Guys, the private sector has the ability to attract and retain good talent.

Let's face it, most people work in the public sector because they don't get jobs in the private sector.

We must face it, private sector will give us better equipment than the government enterprises like HAL/DRDO.

Also, if equipment does not perform, the government will have someone to hold responsible. Today, the government can do nothing but watch with frustration when certain indigenous equipment developed by HAL/DRDO does not perform. With the private sector, they can hold people responsible.

Also, the private sector has better professionalism.

Anonymous said...

Anon 7.14 PM

I have worked in both the setups and I know how much "professional" Indian Pvt companies are where majority of them don't even have proper job descriptions or proper performance management.

If equipment does not perform, then even institutions like DRDO are hauled up.Btw, DRDO has a track record far better than even the best Indian Pvt sector companies. It has done much better than Tatas, Mahendras or Birlas (whose mkt is restricted to India).
It takes time and plenty of resources to develop capabilities in products which are not mean't for mass consumption (this should be the forte of the Pvt sector). Defense requires huge investments and no assured returns.

Regarding attracting and retaining the best talent, attrition is far higher in Pvt companies than PSUs. In some Pvt sector companies attrition is as high as 140%!
The best and the brightest don't work for PSUs or Indian Cos, they work for the MNCs or Investment banks. Even with 2nd or 3rd best talent, PSUs are miles ahead in R&D in comparison to Indian Pvt Cos which are still making 1950s vintage vehicles or known for making the "cheapest car" which can also pass as a very expensive Diwali cracker.

Gautam said...

You say that, Anon, but the fact is DRDO sheds hundreds of scientists every year, and these people all go either to Indian or foreign private sector. With privatisation in defence these same ex-DRDO talent you praise so highly can still benefit the nation's defence instead of wasting their brains on non-defence jobs or foreign defence firms.

Obviously you can't compare Maggi with GSLV. What's the point of making such idiotic comparisons? Compare a private defence product with a PSU defence product, and you'll find in the few small instances where private sector was actually allowed to develop(fuses for missiles, night vision devices, bulletproof armor, MPVs from Tata, Mahindra and Ashok Leyland, INS Arihant from L & T) their products were actually better than comparable work done by DRDO or the Ordinance Factories.

BTW you speak of '50s vintage cars' while knowing fully well that your great PSUs don't make so much as a bicycle. And you make tired old jokes on the bestseller Nano quoting a few isolated examples and closing your mind to the existence of the likes of Sumo, Safari, Indica, and Indigo. My 'abusive comments' just serve to bluntly illustrate your bias.

And you were the one assuming that JVs with private sector would result in increase in cost and profiteering. 100% FDI would only create problems with TOT and sanctions given the proprietary rights would ultimately be owned by Western firms and subject to Western government policies and embargos.

Anonymous said...


Usually PSUs, let alone DRDO, don't face the problem of high attrition. In case those who choose to quit PSUs for more lucrative jobs, it's their call, who are we to judge whether they are "wasting their brains"?

Well you have come to realize how idiotic it is to compare PSUs with Pvt sector. Fact is none of our Pvt sector companies can even manufacture a quality night vision or bullet proof jacket. Those MPVs that you are talking about are all foreign vehicles/tech, none of them are the fruits of indigenous R&D.Wrt Arihant, the Navy had such a negative experience that they have completely shut L&T out from similar projects in future.Let the Tata's build an anti tank missile better than Nag.
Sumo is highly unstable Tata 407 truck, Safari has to resort to ads like "now it's only 799,999; surely you can afford your dream?",the other two are the favorite of cabbies.
No company will part with their technology for free. Why should the Indian taxpayers pay the price for Tatas and Mahendras gaining access to technologies? They want to enter this business, let them fund their own enterprise.
MNCs will give access to all their technologies free of cost to their Indian subsidiaries. Such outfits will also source vital components from Indian companies as part of offset clause.
This will be the 1st step for our Indian companies to evolve to truly world class companies. Over a period of time they may acquire such subsidiaries and start developing advanced technologies on their own.

Gautam said...


The most exasperating truth about you people is how you bend and twist the facts to your own liking and treat borderline propaganda as legitimate information.

All bulletproof vests used by army are supplied by private suppliers, whether you like it or not. Like the MPVs they may be developed with foreign assistance, but so are any comparable products(if they exist) from the Ordinace factories, yet people like you single out the private sector for foreign tie-ups and bend their brains around the fact that PSUs have been doing it for decades.

And again, you are going absolutely nowhere by dissing the same private vehicles that you probably have driven yourself knowing fully well there isn't even a tricycle from your great PSUs. You have no argument here; just propaganda.

And MNCs will only want to sell Indian licence-built versions of their internationally developed products. The IP and R & D still belongs mostly abroad. In other words it'll be the same as the Mahindra-BAE artillery partnership to sell foreign-design BAE howitzers except with only BAE and no Mahindra. If you seriously think this kind of arrangement is any better than partly Indian-owned and built systems then you are deluded.

Anonymous said...


We have seen the usefulness of those Indian bullet proof jackets during 26/11.
Mahendra Axe is an Israeli vehicle and Tatas are building the South African Cassipir.None of these MPVs are their own product.

PSUs won't add a hefty profit to the same product. Now defense acquisitions are becoming the biggest scams of this country. Such schemes are just ways and means to mint and launder that illegal money. Our janata is so illiterate that they are not aware how they are being robbed by this babu-neta-baniya-sipahi nexus.
If BAE sells those howitzers directly then their cost will be significantly lower. Mahendra's role in this JV is to assemble the stuff and cobrand it with BAE. Just for this the cost of the howitzer will be jacked up as Mahendra will want it's share. Mahendra will also ensure that all other competitors are black listed while ensuring that they remain the sole competitor in the fray. This reminds me of the Arjun fiasco.
Regarding making tricycles that's the job of Pvt sector. I guess they are getting stiff competition from Chinese tricycles hence they are so desperate to enter the highly corrupt, monopolistic and secretive defense acquisitions.
PSUs makes dams, bridges, rockets and satellites not tricycles.

Gautam said...

No, we have not. The only problem is that there weren't enough jackets. Don't spout cheap slander based on half-truths.

And why are your kind so intent to play up whatever they can slander and underplay whatever doesn't suit their arguments? Whether you want to acknowledge it or not(you don't) the Mahindra Axe does have a fair amount of indigenous R & D and is manufactured in India. And Tata Casspir? It's your great Ordinance Factories that were assembling them under licence before. BTW Denel is banned from having ANY defence deals with India. Realise your ignorance.

HAL and BEL bragged last year about the thousands of crores of crores of profit they've made. They are not non-profit institutions. But nevertheless their products are inferior and more expensive in every field where they compete with private sector. Your Socialist pride will never acknowledge this, but you can see the sad proof right in front of you.

Again, having brainwashed yourself you are reverting to blind propaganda-frothing and ignoring logic and facts to focus your brain on your vendetta. If howitzers are assembled/produced locally their cost will decrease. That is common sense. If cost is decreased they will compete favourably with rivals' products; that too is common sense.

And blacklisting is the fault of our incompetent corruption-ridden MoD that can't carry out a single deal without scam. To lay the blame for everything on Mahindra is the epitome of dishonesty and brainwashing. You disgust me.

Gautam said...

And the part about the Navy kicking L & T off the submarine program because they were unhappy with Arihant is 100% unadulterated Commie bullshit. You probably already know this(and will continue ignoring it for your opinionated memory) but the Navy only wanted private shipyards at first. With delays in Scorpene they decided to have 2 foreign deliverd + 4 private built. Ultimately it was your Communist MoD, terrified of private competition, that awarded those 4 orders to MDL(despite their past history of delays, in contrast the Arihant class are actually being built on time you liar).

Anonymous said...


How did Hemant Karkare lost his life during 26/11 attacks even though he was wearing an Indian bullet proof jacket? Why Vijay Salaskar, didn't bother to wear these same bullet proof jackets?

Fyi Casspir is today owned by BAE not Denel.LOL. Look at yourself before you accuse others of ignorance. Mahendra label might be the only indigenous component of Mahendra Axe.

Even though HAL and BEL are non profit institutions yet they are making 1000s crores of profit unlike Indian Pvt sector companies which are supposed to make profits but are always in the red and BIFR cases.
If products are made in India, then the foreign partner will charge a hefty amount towards ToT and Indian outfit will add that amount to the cost of the product apart from their own hefty profits, thereby raising the cost several times more than what the product would cost in case we procured it directly from the vendor or made it in a Govt outfit.
BAE is known all over the world for it's shady business deals and kickbacks. Their partnering with Mahendra only proves who is the "slim shady" here.
Your last comment just shows how desperate you are. Are you being paid by these shady baniyas to cover their backs?? Navy wants 2 subs to be built abroad and 4 in MDL, although MoD wanted some of those subs to be built in Pvt docks. Check this out in Livefist.Proof of the pudding is in eating it mate. Navy has tasted Baniya pudding and spat it out. They would rather eat sarkari pudding. :)

Gautam said...

Because Hemant Karkare had taken off his jacket at the time, as you have forced yourself to forget. And even if he had been wearing it no jacket in the world(not even the stuff worn by American soldiers) can provide protection from a bullet fired from a few feet away.

How do you know Mahindra only put label on it? Do you have priviledged information about it? Have you asked any of the people who do? That's 100% your own propaganda. The fact that there are prototypes being tested, modified and fine-tuned alone should be enough to say, but of course you have forced yourself to forget any such details in the articles you read. Your brain supplies its own 'facts' to suit its views.

HAL and BEL make profit solely because of monopoly. My god, even when your shitty arguments are soundly shattered you just change the subject and twist my replies into some other context.

Using cost of ToT to praise buying imported goods instead... are you crazy? Don't you get the point of indegensation? That cost is well worth it if we can obtain spares and upgrades domestically and be independent of embragos; heck that's the very reason for technology transfer in defence acquisitions!

And every major arms company in the world, whether government-owned like Russia and China, or private like in Western countries, has had suspicscions of bribery or political lobbying at some point or another. Same is true in India. That's a pathetic argument to use.

And brain-twister boy, I've posted links right here showing the history of the submarine deal: The Navy originally wanted only private submarines, the MoD went against them to give contracts to MDL and HSL instead. The remaining two subs had to go to foreign because the Navy had asked for at least two to be bought directly to save delivery time. Thus it was your Commie MoD that shut out the private sector.

You Commies are all the same, on one hand you will unfairly lobby for monopoly and favouritism in deals for your great unions and PSUs, then you'll gloat about how private sector is inferior because (thanks to your unfair means) it was unable to get those deals. Two-faced liars.

And since you hate 'baniyas' so much, when are you going to smash that baniya PC, furniture, apartment, car and shred your baniya clothes and wallow in government mud, you ingrate?

Gautam said...

Hemant Karkare died because he didn't have his jacket on, which I'm sure you've read and disregarded to fuel your hate. And even so no bulletproof jacket in the world(not even the stuff worn by US soldiers) can protect you from a bullet fired from a few feet away.

How do you know Mahindra is just putting label? Did you read about it in a defence source? Did someone working at Mahindra tell you? That's 1000% your own hatred-filled propaganda. The fact that they were and are testing, modifying and tweaking multiple prototypes(which you probably never read about) should be enough evidence of the toil they put into it.

HAL and BEL make profit solely because they have monopoly in orders. Dear God, even when your allegations are soundly trashed you just change the subject and twist my replies into another context.

Gautam said...

Every major defence supplier in the world including government-owned ones like Russian and Chinese ones has been accused of shady dealings, bribery and lobbying at some point or the other. In fact the Russian PSUs firms are notorious for this. So that's a shitty excuse to use against BAE. Their products are top-notch and that's what matters.

Are you being paid by union bosses, Commieboy? Or are you a PSU employee or relative of one? You know perfectly well the Indian Navy wanted private shipyards TO BEGIN WITH. They were shut out only because of dadagiri from your Commie politicos and unions.
"For P-75I, the second line of submarines, the navy was keen on a private domestic shipyard to tie-up with the foreign vendor since it felt MDL was already "overloaded" with orders and quick delivery schedules were "critical".

But the DAC has decided otherwise, holding that the infrastructure and capabilities acquired by MDL in the Scorpene project could not be allowed to go waste."

You Commies are just like that. First you will use every unfair means to argue for monopoly or favouritism for PSUs, then you will gloat how private sector was unable to get the contract even though it had nothing to do with their capability.

And you accuse me of desperation when you are reverting to endlessly repeating lies and crude insults like 'baniya' lol.

Anonymous said...


It's clear that you are not only ignorant but stupid as well.Hemant was wearing the bulletproof jacket and was inside the Police Toyota Qualis when those bullets struck him.These jackets are of such poor quality that even after the bullets had passed the metal body of the vehicle they were still able to penetrate the so called Indian bullet proof jackets.
Navy will go for only Pvt subs? You mean foreign or Indian Pvt subs? Which Indian Co will supply subs to IN?
Fyi, those days of monopoly are over. Indian PSUs have to bid not only with Indian Cos but also with Global Cos. The Govt has stopped bailing out sick PSUs.Only AI is the rare exception as it is the national carrier.

Anonymous said...

Who is the commie here? I am an advocate of 100% open competition which means allowing 100% FDI in all the sectors of our economy which Bhajpa and commies oppose with tooth and nail like you are doing here. So who is the commieboy???
Those MNC companies pay bribes to sell their stuff to foreign countries. Whereas, Indian Pvt Cos. are helping these very same cos. to sell their stuff in India. In other words they are assisting these cos. in the loot of India. Hope you know the difference.
Regarding Mahendra's just putting a label you only have to check how much is their investment in this area. It is not more than few hundred crores. WHich means it is the cost of the land and shed where they are simply going to assemble and stick their label on the product.
Since when fat Baniyas made PCs, cars, furnitures etc.? Their forte lies in taking other people's money, labor, brains, talent, resources etc. and make huge profits out of that by keeping out any kind of competition with the aid of corrupt babus and netas. This is the key to their wealth and their modus operandi.This is also how a class 10th pass jumps from the chawls of kabutarkhana to one of the most expensive residential complex in the world. Since independence India has been at the mercy of one political family and few business families that have kept India tied to medieval times. I am dead against such typical Indian crony capitalism.

They have set their legions to work in the media to fool the masses into believing that there presence in defense will be for the good of India. Whereas it is an excellent tool to steal and launder India's wealth.Indians have stashed away 1.4 trillion $ in Swiss banks alone (there are several such banks all over the world). Our govt is of course doing nothing as this black money belongs to the babu-baniya-netas who run/loot the country.

Anonymous said...


Who is paying for that ToT? L&T, Mahendra, Tatas or Indian taxpayer??? If Indian taxpayers are paying for ToT, then shouldn't they be the owners of that technology instead of a corrupt incompetent company that wants to have everything without paying anything?
We have seen how much indigenisation happened with Ambassador and Fiat aka PP.Fact is indigenisation can happen in a company that is competent and innovative. Innovation and Quality are the Achilles heel of Indian Pvt Sector.

Gautam said...

If you are not a Commie then you are just another loud-mouthed moron. Can you believe the logic of what you're spouting, kiddo? Since when do Indian taxpayers own PSUs? No they don't own the government either.

And bailout of sick PSUs happens every day. How else can so many loss-making PSUs be kept running without privatisation(with the Disinvesment ministry dissolved immediately after your UPA conglomerate of scamsters came to power?)? Air India is the rule, not the exception.

You are a biased moron and there is no point wasting facts on you. Continue saying 'PSU monopoly jai ho!' and spewing allegations and childish insults for eternity.

Anonymous said...


Good you have thrown the towel after being severely thrashed.
Tell me the name of even one PSU except AI that has been bailed out by Govt?
The "Privatization" that happened was another mega theft (like 2G) of India's wealth by these baniyas in collusion with Bhajpa baniya party. They sold these profit making PSUs at throw away prices to these few utterly corrupt baniya companies by way of "strategic partnership" instead of offloading Govt's stake in the market. This is the way the highly successful Brazilian Embraer was privatized.
India's biggest enemy is this babu-neta-baniya nexus.
No one wants PSU monopoly. We all want perfect competition. Hence, FDIs in all sectors of economy. Down with this license Permit Raj, corrupt Central rule and Babu-neta-baniya nexus. Free India from their tyranny.

Gautam said...

Thrashed?! Looks like you are the breed who thinks getting the last word equals winning an argument. You then top it with more utterly brainless insults. I know a wasted cause when I see one. Continue living your hypocritical and brainwashed existence.