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The committee set up by the Government under the Chairmanship of Dr Vijay Kelkar to examine and recommend changes in the acquisition procedures and enabling a greater participation of private sector in defence production is likely to submit its report by the end of this month. This was disclosed by the Defence Minister Shri Pranab Mukherjee here today while addressing the meeting of the Parliamentary Consultative Committee attached to his ministry. Shri Mukherjee said that this committee is also expected to look at the measures to be taken to increase defence exports and changes required to be made in Defence Public Sector Units (PSUs). The Minister gave a brief account of the functioning of Department of Defence Production, and said that a special thrust is being given to exports from the Ordinance Factories and Defence PSUs.
Referring to the modernisation and automation of the infrastructure in Ordinance Factories, the Defence Minister informed the members that Rs. 245.92 crore has been spent on modernisation of Defence Production Units during the year 2003-04 and further investment of Rs. 300 crore has been planned for the current financial year.
While appreciating the performance of the Defence PSUs and the Ordinance Factories, the Members wanted more funds to be spent on the modernisation projects. One member expressed concern over the poor quality of small arms and its ammunitions produced by Ordinance Factories. Another member wanted to know the status of private sector participation in defence production. One member was of the view that more financial support should be given to Bharat Earth Movers Ltd. It was also suggested by a member that Bharat Electronics Limited has more potential for producing semi conductor devices, which should be utilized to its maximum.
Shri Naveen Jindal, Shri MA Kharabela Swain, Shri Brij Bhushan Sharan Singh, Shri Kailash Nath Singh Yadav and Shri A Shivajirao Patil from Lok Sabha and Dr. Karan Singh, Smt Sushma Swaraj, Shri K Jana Krishnamurty and Shri Robert Kharshiing from Rajya Sabha attended the meeting.
The Minister of State for Defence Production Shri BK Handique, Defence Secretary Shri Ajai Vikram Singh, Defence Production Secretary Shri Shekhar Dutt, Secretary Defence Finance Ms Somi Tandon and Secretary Defence Research and Development Organisation Shri M Natarajan were present on the occasion.
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