Thursday, March 4, 2010

TCS to BEL?

There is a report in the Business Standard today captioned 'MOD Sidelines Pvt Sector in Crucial Defence Project'. There is a logic in engaging DPSUs, or OFB for sensitive projects though the defence sector participation is open to the Private Sector. Reasons are not difficult to understand. The MOD on case-to-case basis could decide the project clearance. It is therefore not very difficult to appreciate why should BEL be in the lead for getting the TCS project.

BEL can be the main integrator with technology taken from the DRDO and Others incl from abroad. Also MSMEs get their share as vendors of components and subsystems. BEL as a DPSU is best placed to evaluate security needs of our main stay comn system like TCS, and monitor in various stages of its integration.

In fact in EW-intensive battle environments, TCS procurement ‘must’ be categorised as, “Make — Strategic, Complex and Security Sensitive Systems”, and funded accordingly.

If the decision comes through the way it is being reported in the Press, it would be highly pragmatic – no one should be very ‘doubtful’ of the DPSUs and the DRDO in certain abilities, or technologies.

Defence Projects, as I have said elsewhere on this Blog, are 'not a purely business decision’.

Sukhwindar

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