Shadow of 3 Cs stalling decisions at all levels of Govt.including Defence sector : Anil Ambani

18 Feb,Bengaluru

Reliance Group Chairman Anil Ambani Wednesday lamented that decision-making in the defence sector was hamstrung by sheer regulatory censure and investigative over-reach, saying the long shadow of three Cs – CBI, CVC and CAG – were stalling decisions at all levels of the government.
“This needs to be changed and we need to have two new Cs added — courage and conviction,” Ambani said at the meeting, presided over by Defence Minister Manohar Parrikar on the margins of the 10th edition of the air show at the Yelahanka base of the Indian Air Force (IAF) on the city’s outskirts.
Ambani Wednesday sought infrastructure status for the aerospace industry for realising the government’s Make in India initiative, adding that the group was readying to foray into the defence lanscape.
“We need to accord infrastructure industry status to aerospace, paving way for easier credit and greater role and opportunity for the private sector,” Ambani said at a global investors’ meet held as part of the Aero India 2015 trade expo here.
“My presence here today demonstrates our commitment as a Group to the development of India’s defence industry – our desire to be part of the prime minister’s Make in India initiative, Ambani said, adding: “As you know, we didn’t have a footprint in India’s defence landscape. But we are now ready to change that – in a big way.”
Speaking of the “many policy changes” that the government has announced – starting with the raise in FDI cap in defence from 26 to 49 percent and, with cabinet approval, even to 100 percent in identified areas of critical technologies, Ambani said: “There is recognition that what we need is a 180 degree change in mindset”.
“There is need to acknowledge at every level of government that the private sector in India can be trusted to play as important a role in India’s defence up gradation as the government sector.
“We need a common framework for defence procurement across research establishments, ordinance factories, defence PSUs and private sector. Decision making needs to be simpler, faster and transparent.
“We need to set up a sovereign defence fund (SDF), on a PPP model, in which the government holds 49 percent while private defence sector players make up the balance, with no player contributing more thanfive percent of the total,” Ambani said.
“Professionally managed, such a fund can help invest in long-gestation R&D projects and facilitate strategic global acquisitions in key technology areas of defence and national security,” he added.