New Delhi: Union Defence Minister Rajnath Singh on Monday said in Rajya Sabha that there is no question of weakening the Defence Public Sector Undertakings (DPSUs) adding that the government was strengthening them with equity support. He also said that the Union government was clearing committed liabilities of the DPSUs apart from giving them high-level orders.
"Our government is strengthening all DPSUs (Defence Public Sector Undertakings) with equity support. We are also clearing their committed liabilities so that our DPSUs does not weaken in any manner," said Singh replying to a question during the Question Hour in Rajya Sabha. The Union Defence Minister also said that nearly 80 percent of orders were being given to DPSUs. "As per my knowledge, about 80 percent of orders are given to DPSUs even today. There is no question of weakening the DPSUs," added Singh.
Minister of State (Mos), Defence Ajay Bhatt pointed out that the defense sector is driven by innovation and high-end technology even though FDI has been allowed in sectors where India does not have expertise and capacity, orders are being given to DPSUs also. Defending the government's decision to open up the defense sector to private organizations, the MoS said that FDI inflow in defense and aerospace was Rs 1382 crore during 14 years from 2001, adding that it went up to Rs. 3343 crore in the seven years of the Narendra Modi government.
He also said that the Union Government has prepared a list of 209 defense items to become self-reliant. The MoS pointed out that in the 2022-23 Union Budget, 68 percent of the capital procurement budget has been set aside by the Government for domestic industries. Bhatt said that the government has set up two defense industrial corridors, one each in Uttar Pradesh and Tamil Nadu.
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