Private sector drives a quarter of defence output: Rajnath Singh

Vemgal, Kolar: In a major shift from the country’s historically public sector-dominated defence equipment manufacturing model, the private sector in India today accounts for a quarter of total defence production, Defence Minister Rajnath Singh said on Tuesday. 

Speaking after inaugurating the Tata Advanced Systems’ Final Assembly Line for the Airbus H125 Helicopter in India at Vemagal in Kolar district, Singh said India’s defence manufacturing ecosystem has undergone a structural transformation over the past decade following reforms initiated by the Narendra Modi government. This resulted in the private sector entering defence production. “The government is committed to supporting the Indian industry to meet local demand and export to overseas markets,” Singh said.

“Historically, the defence production was in the hands of the public sector companies in India. After the reforms carried out by the Modi government, such as corporatisation of ordnance factories, liberalised industrial licensing, and policy support, the private sector now accounts for one-fourth of the defence production,” Singh added.

The government has also supported micro, small and medium enterprises, and over 16,000 units are now supplying components to foreign companies, he said.

The defence minister said that the setting up of a final assembly line for H125 helicopters by Tata Advanced Systems jointly with Airbus is a classic example of India-France defence cooperation.

Referring to the H125 helicopter programme, he said the investment into the facility exceeds Rs 1,000 crore (Euro 100 million) and generates substantial direct and indirect employment opportunities for India’s skilled workers. The H125 helicopter is globally recognised for its reliability, versatility and performance in diverse operating conditions. 

Speaking on the occasion, French Minister of the Armed Forces and Veterans Affairs, Catherine Vautrin, said the project between Tata and Airbus demonstrates how France’s technological excellence and India’s strength can come together to build advanced aerospace capabilities. 

Union Minister of Civil Aviation Ram Mohan Naidu and Karnataka Large and Medium Industries Minister MB Patil were present on the occasion.

Facility to build 500 H125 helicopters 

The H125 helicopter Final Assembly Line facility was jointly inaugurated virtually by PM Narendra Modi and French President Emmanuel Macron. 

The facility will manufacture 500 helicopters over the next 20 years. To begin with, it will assemble the civilian variant, the H125. The military version, the H125M, will also be assembled as and when orders are received from defence or government establishments, said Sukaran Singh, CEO & MD of Tata Advanced Systems.

The partnership marks the first time the Indian private sector will undertake the manufacturing, integration, testing and maintenance of a sophisticated rotary-wing platform in India.

The H125 is the only helicopter to have landed on the summit of Mount Everest, giving it a performance ceiling that exceeds existing light utility fleets.