Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Hindu
The Hindu
National
Special Correspondent

Senior Cong. leaders slam changes to defence acquisition policy

Senior Congress leaders Ghulam Nabi Azad and Anand Sharma. File (Source: The Hindu)

Senior Congress leaders have termed the new defence Acquisition policy deeply disturbing, warning that it will compromise national security interests and have long term implications for the country’s defence preparedness.

The joint statement was issued by Leader of Opposition in Rajya Sabha Ghulam Nabi Azad, deputy leader of Congress in Rajya Sabha Anand Sharma, Rajya Sabha MPs Kapil Sibal and Vivek Tankha, and Lok Sabha MPs Manish Tewari and Shashi Tharoor.

Also read: Defence Ministry removes offset requirements for IGAs

As part of the next step, the leaders will plan to move the Supreme Court against the new policy, sources said.

The six law makers, incidentally, were also signatories of the letter to Congress president Sonia Gandhi in August that flagged the need for systemic changes in the working of the party. The leaders, however, maintained that the statement on defence acquisition has been issued in their capacities as parliamentarians.

Also read: In new Defence Procurement Procedure, MoD creates category for leasing equipment

Caught up in the agitation against the new farm laws and the Hathras gangrape incident, the Congress is yet to formally react on the statement.

IGA clauses

In recent changes, the Defence Ministry has removed the offset clause requirement in Inter-Governmental Agreements (IGA) in the new Defence Acquisition Procedure (DAC) 2020 issued on September 28. Under the offset clause, foreign companies are required to invest part of their deal value in the country and to improve the domestic defence manufacturing.

Also read: Defence Ministry strengthens its new procurement policy

The statement said the proposed privatisation of the 41 Ordinance Factories, changes in the FDI Policy and diluting the Defence Offsets Policy including dispensing with the condition of transfer of technology in acquisition of weapons and equipment for the armed forces, are deeply disturbing.

“These decisions compromise national security interests and will have long term implications for India’s defence preparedness and in becoming a self-reliant nation. Decisions are also in conflict with the Government’s Make in India campaign and Atmanirbhar Bharat Mission,” the leaders said.

Also read: Draft Defence Production & Export Promotion Policy issued

Stating that these changes are unwarranted, the Congress leaders said, the offset policy and transfer of technology have been an integral part of the defence acquisition policy. “Accessing, acquiring and assimilating high end technologies for domestic production of weapon platforms and systems has been and must remain a national priority to reduce India’s dependence on defence imports,” they added.

Long term investments

41 ordinance factories across India are on a month long strike against this decision. “The OFB is accountable to the people of the country through Parliament and also to the Comptroller and Auditor General (CAG). The ordinance factories are subjected to periodical review by the Defence Ministry and the Parliamentary standing committee as well. The government must explain in what way the OFB has failed in transparency and accountability in a democratic system with checks and balances,” the statement said.

The Ordinance Factories have huge infrastructure, production capacities and real estate at strategic locations across the country, the leaders said, adding that these valuable national assets must not be squandered away.

“What is needed today is an infusion of technology, manpower training and acquisition orders by the armed forces. Handing over the factories and assets to the private sector is bereft of any justification and against India’s national interest,” the leaders said.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.