A high-level committee, the Defence Expenditure Review Committee (DERC), looking into defence expenditure has recommended a host of sweeping reforms, including a hike in the foreign direct investment (FDI) limit in the defence sector to 49%, and divestment of defence public sector units (PSUs).
The DERC has made far reaching recommendations in our Acquisition System, such as:
The DERC has made far reaching recommendations in our Acquisition System, such as:
The Govt should encourage the private sector to take over foreign defence firms.Consider setting up a sovereign wealth fund to assist this activity.
A five-fold increase in the financial powers of the defence minister -- up to Rs 500 Crores.
For accountability, transparency and efficiency, time-bound disinvestment plans should be worked out for each PSU.
Across the board increase in FDI limit to 49% with the provision for a case by case enhancement to 74%-100%.
Extensive use of ICT in the defence procurement processes.
Compress the time between RFI and actual procurement.
Read the full Report: DERC Panel Proposals
Brigadier (Retired) Sukhwindar Singh
http://www.defenceoffsetsindia.com/
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