New Delhi: Looking for opportunities in UK defence supply chain and enhance business to business (B2B) engagements, a 19-member Indian defence industry delegation will visit London for three days from September 11. The delegation will have working group meeting on September 13.
The Indian defence industry delegation will be led by Neeraj Gupta, Chairman, Society for Indian Defence Manufacturer (SIDM) International and Exports Committee and MD of MKU Ltd and will participate in UK Defence & Security Exports International exhibition at London. The delegation will have interaction with UK defence minister after British Prime Minister Rishi Sunak concludes his G20 summit in Delhi. The Indian delegation includes Sachin Agarwal, Chairman SIDM Uttar Pradesh state chapter and CMD of PTC Industries Ltd, Avnish Patnaik, Lead-International, SIDM, Anant Defence Systems Pvt Ltd’s Director Mohan Chetan Dharia and Shanmugam Madhiyan, MD of Aerosky System Pvt Ltd.
According to industry sources, the Central government is trying to allay British concerns over certain aspects of Defence Acquisition Policy (DAP) 2020 that were brought up during the second meeting of UK-India Joint Working Group (JWG), held in March in London, to enhance defence industrial collaboration. During the JWG, some of the UK companies representatives had flagged DAP issues such as such as on indigenous content under Indian Indigenously Designed Developed and Manufactured (Indian-IDDM), the most preferred category to process defence procurement. In addition, they also showed reservation over 49 per cent Foreign Direct Investment (FDI) in case of IDDM procurements and Strategic Partnership (SP), supposed to be the route for manufacture of large platforms like aircraft, tanks and submarines. According to them, this was the biggest hindrance to investments by British origin original equipment manufacturers. Similarly, their articulation was also around IP protection and “March-in-Rights” of government of India.
After the joint working group meeting, the UK India Business Council (UKIBC) had submitted “advocacy paper” to Ministry of Defence but a “representation” from them on the same issue, sought by the government, is still to come despite the next joint working group will be held in London again next month.
The apprehensions of the UK companies to a large extent are unfounded, stated people aware of these negotiations. The UK industry has been told that countries like France, US and Russia have participated in the defence sector here without much policy hassle, be it on transfer of technology or any other investment aspects fostering self-reliance in military domain. Elaborating further, sources said that the MoD’s DDG (Exports) Sanjay Mehrishi assured assistance and advised it would be easier for foreign original equipment manufacturers (FOEMs) to first setup manufacturing in India for their global supply chain and once established, they can consider catering to the Indian demand as well. Some of them, it is learnt, had shown interest in knowing the process for manufacture of 123 mm guns and hovercrafts.
While exhibiting keenness in exploring opportunities in Aatmanirbharta in defence sector, UKIBC Chief Executive Richard McCallum stated in April that eleven UK defence and aerospace companies such as Rolls Royce, BAE Systems and MBDA, have presence here. The Indian industry is looking for opportunities in UK defence supply chain through such openings.
