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Thursday, 12 May 2016

Defence PSUs on ‘outsourcing’ course to trim expenditure

Defence public sector undertakings (DPSUs) in India are on a new course of outsourcing their non-critical workload in a bid to keep pace with the Make in India thrust, the buzzword for defence procurement under Modi government.Official documents at the Ministry of Defence (MoD), accessed and reviewed by dna suggest that all the nine DPSUs in India have drawn out an outsourcing policy and have been effecting substantial savings through it lately. Hindustan Aeronautics Limited (HAL), whose current major production programmes include SU-30 MKI Aircraft, Hawk- Advanced Jet Trainers, LCA Tejas, Dhruv — ALH helicopters, among others has outsourced over 25 percent of its workload and as a result, saved close to Rs 1300 crore over the past three years , according to a paper prepared by the Department of Defence Production ( DDP) under MoD. Similarly, Bharat Electronics Limited (BEL), whose major R&D products include , to name a few, Akash Missile Systems, Surveillance radars, anti-submarine warfare systems and avionics saved Rs 134 crore by outsourcing its work to vendors. While Bharat Earth Movers Limited (BEML) that makes products like Pontoon Bridge Systems, Aircraft towing tractor and others saved Rs 18 crore, Bharat Dynamics Limited (BDL) which is going to take up production of Longe Range Surface to Air Missile and and Medium range Surface to Air Missile saved Rs 873 crore. Major shipbuilding DPSUs Garden Reach Shipbuilders and Engineers Limited, Goa Shipyard Limited (GSL), Hindustan Shipyard Limited, Mazgaon Dock Shipbuilders Limited together cut cost to the tune of close to Rs 1419 crores. Mishra Dhatu Nigam Limited that specialises in metal alloys made similar savings of Rs 11.16 crore.

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