New Delhi: The government has given 116
licences since opening up of the defence industry to private
sector in 2001, Minister of State for Defence MM Pallam Raju
told the Rajya Sabha on Wednesday.
"Since 2001, there has been a conscious effort to involve
private sector in defence manufacturing," he said, replying to
supplementary during Question Hour.
The private sector has freedom to get into joint ventures
and collaborations with the public sector undertakings for
defence arms and ammunition manufacturing.
"A lot of supplies (are being made) from private sector,"
he said, adding participation of private sector in defence
supplies was "quite substantial."
The defence industry, he said, was opened up to private
sector by the Government in 2001 as part of an overall policy
to achieve self reliance in the defence sector through
"Government is making continuous efforts to modernise
Ordnance Factories and to improve their functioning. There is
no intention to prevent the entry of the private sector into
defence production," he said.
Ordnance factories manufacture arms and ammunition
strictly in accordance with the laid down quality
"In respect of the large majority of products supplied by
Ordnance Factories, no defect has been brought to notice," he
"The cost of production of products made by the Ordnance
Factories is also reasonable, and continuous efforts are made
by the factories to reduce costs and to improve quality," he