Lt Gen Aujla emphasises on need to look at Industry as strategic allies

Mumbai, Apr 21: The strength of a nation lies in its industry and how robust and powerful its manufacturing system is. We, at Indian Army, are not looking for vendors, but for partners and strategic allies those who stay with us during peace and war. We are working towards developing an ecosystem where designing, R&D, manufacturing, distribution and transportation are all part of a single streamlined procedure, said Lt Gen Amardeep Singh Aujla, PVSM, UYSM, YSM, SM, VSM, Master General Sustenance (MGS), Indian Army at Industry Interactive Session on Revenue Requirements of Indian Army Opportunities for Indian Defence Industry held today at PHD House, New Delhi.

He added, when we talk about revenue procurement, what we are looking for from the industry is state of the art solutions which are smart and sustainable. The pulse of the Indian Army is driven by revenue requirements and around 25,000 to 30,000 crores are spent every year on this.

On the sustenance part, he said, if we are looking at a resilient and tech-enabled Indian Army, then sustainability in terms of manufacturing capacity, technology, cutting-edge logistics, and supply chain has to be the foremost factor. The global landscape is changing at a fast pace, driven by a technology-led environment and when we look at our industry, we expect them to deploy next-gen technology.

He added, convergence is an essential parameter and is based on four pillars- First is the user as in what is the problem statement and what are the procedures and policies associated with it; Second is R&D; Third is the manufacturing sector; And lastly the policymakers, we need to have policies aligned with the industry. Along with this the DPM also needs to be revised to support the indigenous component.

Further he emphasised that ammunition has revolutionised warfare and that the Army is looking for new generation ammunition, but currently, the investment in this area remains minimal. He emphasised that R&D is crucial for performance enhancement and for providing customised, tailor-made solutions. So, the industry must have the capability to deliver solutions during critical situations within the shortest possible timeframe, and should always be prepared through robust and proactive research and development, added the Lt. Gen Aujla.

Rudra Shriram, Chair, PHDCCI Defence & HLS Committee & President, DCM Shriram Industries said that the Indian defence sector is undergoing a profound transformation. While capital procurement often dominates discussions around indigenisation and modernisation, today’s theme wisely shifts our attention to an equally vital domain that is Revenue Procurement, which is the backbone of sustenance, readiness and resilience of our armed forces.

This session is in many ways a recognition of the fact that India’s defence preparedness is not just about acquiring new platforms but also about maintaining and supporting them with timely supplies, repairs, upgradations, and reliable lifecycle support. And in this space, the Indian industry, particularly MSMEs, Tier 1 and Tier 2 players, can play a decisive and enabling role.

Vaibhav Gupta, Co-Chair, PHDCCI Defence & HLS Committee & Director, MKU Ltd. speaking on the DPM informed that despite a draft revision in 2021, it still carries few challenges that hinder private sector participation in revenue procurement. The system’s historical bias towards DPSUs and rigid procurement norms such as nomination-based sourcing, opaque vendor development, and the inflexible L1 criterion have long discouraged innovation and competition. He stressed that unless the DPM is revised and formally released with provisions that treat private industry on par with DPSUs, the defence ecosystem cannot fully align with the vision of Make in India or the Strategic Partnership model.

He further recommended a multilayered approach to reform and the way forward is to make the system more open, faster, and friendlier for private companies especially startups and MSMEs. This includes allowing rate contracts with trusted private vendors, simplifying paperwork and inspections for smaller, low-risk items, and setting up faster approval routes for new-age tech solutions. He also called for regular workshops to help vendors understand the Army’s needs, early-stage consultations before tenders are floated, and support cells to guide smaller companies through the process. Dedicated spaces for MSME procurement and a fund to try out new technologies like AI tools or smarter maintenance systems that would go a long way in building a stronger and more responsive defence supply chain.

Vote of thanks was extended by MK Gupta, Co-Chair, PHDCCI Defence & HLS Committee & Managing Director, Starwire India, where he remarked that today’s session marks another important step in strengthening the synergy between the Indian Army and the Indian defence industry. Let us carry forward this momentum to create more robust, self-reliant, and responsive supply chains that truly serve the nation. The Inaugural Session was moderated by Dr. Nasir Jamal, Director (Defence & HLS), PHDCCI.

There was also a dedicated Session with the Senior Officials of the MGS Branch of Indian Army which discussed about the various avenues of revenue procurement and the insight into the current and future revenue procurement of the Indian Army and the underlying opportunities for the Indian defence industry. The key panellists in the Session were Maj. Gen. H P S Hansi, SM, VSM, Additional Director General, MGS Branch, Brig. Bhupendra Rekhi, Bri (Import & PCM), MGS Branch, Brig Pradeep Godara, MGS Branch, Arjun Alturi, Co-Chair, PHDCCI Defence & HLS Committee & VP, Zen Technologies and Mr. Dhruv Agarwal, Executive Director, IDP Industries. The Session was well moderated by Col KV Kuber, Indian Army Veteran & Director (Aerospace & Defence), EY LLP.

It was well attended by more than 100 defence industry members.