Defence Reporter

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Government considering putting PSUs out of Defence Ministry range

New Delhi, Juen 25, 219: The government is examining recommendations by top two advisory bodies to move public sector units out of the supervision of the defence ministry, pointing out that there is an inherent conflict of interest that prevents full unlocking of the ‘Make in India’ initiative.

Updated:Tuesday, June 25, 2019, 09:57

Government considering putting PSUs out of Defence Ministry range New Delhi, Juen 25, 219: The government is examining recommendations by top two advisory bodies to move public sector units out of the supervision of the defence ministry, pointing out that there is an inherent conflict of interest that prevents full unlocking of the ‘Make in India’ initiative.

While defence PSUs are fairly autonomous, they come under the authority of the Department of Defence Production and there have been frequent complaints that they are given undue preference by the ministry for large orders.

Both the Niti Aayog, which advises the government on economic policy, and the National Security Advisory Board (NSAB), which is tasked with special projects by the top echelons of the government, have recommended a restructuring of the defence ministry to promote Make in India.

One of the proposals being considered is to bring all defence PSUs — nine of which are under the administrative control of the ministry — under a single body that can be governed by a different ministry, like the ministry of heavy industries and public enterprises.

Source: Economic Times

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