Pallam Raju predicts tremendous potential for India-Italy defence industry

New Delhi, Nov 1 (ANI): Minister of State for Defence Dr. MM Pallam Raju today said that there is tremendous potential for defence industry cooperation with Italy.

Addressing a roundtable on 'Indo-Italian Defence Cooperation: Opportunities for Partnership and Co-Development' here, he said that with the reforms introduced in our Defence Offset Policy, the opportunities have grown manifold.

"There is tremendous potential for enhancing the defence industry cooperation between the two sides, particularly in the context of defence offset policy, the scope of which has recently been increased to include "Civil Aviation" and "Internal Security" and "Training" within the ambit of defence products and services. This will give foreign OEMs wider range of opportunities for meeting their offset obligations," he added.

Pallam Raju further invited both domestic and foreign companies to forge new alliances and partnerships in the form of joint ventures for co-development and co-production in the defence sector.

"Our Defence Procurement Procedure is also being subjected to periodic review by the Government. The recent introduction of "Buy and Make (Indian)" category in the defence acquisition process has been designed to enhance participation by the Indian Industry for meeting our requirements for State-of-the-Art defence systems and platforms by getting into tie-ups with technology providers through mechanism of technology transfer and joint ventures," he said.

"Since the introduction of the offset clause in our Defence Procurement Procedures, offset contracts worth nearly Rs.15,000 crores have been concluded so far and, I am told, that the total value of the offset contracts which are in the pipeline is estimated to be over Rs.41,000 crores", he added.

Italian Minister for Economic Development Paolo Romani and the Italian Ambassador to India Giacomo Sanfelice di Monteforte also addressed the roundtable.

The two countries have signed an MOU on defence cooperation in November 1994, which was renewed in 2003. The eighth meeting of the India-Italy Joint Defence Committee was held in New Delhi in January last year. (ANI)