defence public sector undertaking final

8/11/2019 Defence Public Sector Undertaking Final

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Defence Public Sector Undertaking

The responsibility of Defence Public Sector

Undertakings (DPSUs) is to provide the ArmedForces state-of-the-art equipment's and at thesame time enhance country's self-reliance indefence production.


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The Hindustan Aeronautics Limited (HAL)- It is largest public sector undertakings under the Department

of Defence Production.- Formed in October 1964 with its Corporate Office at Bangalore.- The company has 19 production division and 9 R & D centers

located in six states.- HAL's product range consists of aircrafts, helicopters, aero-

engines, accessories and avionics.- It has diversified into aerospace launch vehicles and satellites,

industrial and marine gas turbine engines. HAL is a major partner

for the space programmes of ISRO.

- It manufacturers structures and assemblies for the launch vehicles andsatellites.

- Recently it has handed over the first "Crew Module Structural Assembly"

for the "Human Spaceflight Program to ISRO for crew support,

navigation, guidance and control systems to experiment in the

forthcoming GSLV-MK3 launch.


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Bharat Electronics Limited (BEL)- The leading professional electronics company in the country

engaged in the design, development and manufacture of

sophisticated state-of-the-art electronic equipments for the

use of defence services.- It has 9 production units and 31 manufacturing divisions

spread across 7 states.- The company focuses on Research and Development to

generate business using the 'state-of-the-art' manufacturingand testing facilities.

- It has earned Governments NAVRATNA status in 2007.- Product range includes Radars, Missiles, Sonars, Tank

electronics, Sound and Vision broadcasting etc


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The Bharat Earth Movers Limited (BEML)

- BEML is Asias second largest manufacturer of earth moving

equipment and controls 70% of Indias market in this sector.

- The earthmoving equipment includes Bulldozers, DumpTrucks, Hydraulic Excavators, Wheel Loaders, Rope Shovels,

Walking Draglines, Motor Graders and Scrapers.- The company also manufactures railway coaches and

wagons for Indian Railways and defence forces.- Recently, BEML has diversified its business by successfully

assembling state-of-the-art stainless metro coaches for

Delhi Metro Rail Corporation(DMRC).


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Goa Shipyard Limited (GSL)

- Implemented the first successful enterprises planning

system amongst the Defence Public Sector Undertakings.

- The product range of the Shipyard comprises of :- 105m Advanced Offshore Patrol Vessels (AOPV)- 105m Naval Offshore Patrol Vessels (NOPV)- Offshore Patrol Vessels (OPV)- Sails Training Ships(STS)- Seaward Defence Boats (SDB)

- Till date it has built 167 vessels, including barges, tugs, landingcraft, offshore patrol vessels and other vessels for the Indian Navy,

Coast Guard and for export to countries like Yemen.

- GSL built INS SUMITRA, the patrol vessel of Indian Navy, on 4

September 2014.


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The Bharat Dynamics Limited (BDL)- It is amongst the few strategic industries in the public sector

that possesses the capability to produce advanced Guided

Missile Systems.

- Produces Konkurs M and Invar (3UBK-20) missiles in

collaboration with Russia.

- BDL is working in close association with DRDO for

technology absorption/assimilation.

- Extending support by providing integrated missiles for

conducting various trials of missiles like AKASH, NAG, Article K-15,

AGNI VARIANTS etc.


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Mishra Dhatu Nigam Limited (MIDHANI)

- It is the prime specialized metals and metal alloys

manufacturing facility in India.

- An ISO certified company with modern metallurgical

facilities and high degree of technical competence inmanufacturing a wide range of Super alloys , Titanium,

Special Purpose Steels and other special metals and alloys.

- Has application in Aerospace, Defence, Navy, Atomic Energy,

Power Generation, Chemical and other hi-tech industries.

- MIDHANI and VSMPO-AVISMA, worlds largest producer of titanium and

titanium products in Russia, have shown interest to collaborate in several

areas and signed a Memorandum of Understanding (MoU) on 22 January

2014 clearing the deck to prepare a proposal for joint business.


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Defence Public Sector Undertakings

Name of the PSUs 2010-2011 2011-12 2012-13(April-Dec 2012)

(Provisional)

Value ofProduction

Value of Sales Value ofProduction

Value of Sales Value ofProduction

Value of Sales

HAL 16450.84 13115.50 12693.19 14204.21 14403.82 14315.68

BEL 5520.80 5529.69 5793.58 5703.63 6290.19 6012.19

BEML 3795.07 3647.07 4077.19 3648.37 3359.70 3289.79

MDL 2611.41 636.56 2523.69 2262.87 1068.51 1063.19

GRSE 1053.30 546.22 1293.80 546.33 1507.21 427.25

GSL 990.32 514.46 676.40 269.70 506.00 749.36BDL 910.92 939.10 992.94 959.12 475.00 475.00

MIDHANI 485.46 417.87 496.00 509.01 2810.00 2424.81

HSL 603.84 652.14 564.04 564.04 553.78 558.59

TOTAL 32421.96 25998.06 29110.83 28667.28 30974.21 29315.86

VALUE OF PRODUCTION AND SALES OF DEFENCE PSUs


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Defence Public Sector Undertakings

Undertakings have not been able to arm the defence forces,resulting in huge arms imports

In last 5 years, India imported nearly three timesas manyweapons imported as by Chinaand Pakistan

Though the volume of production by DPSUs has increasedover the years, the value addition by them has progressivelydecreased

Most of DPSUs are over-dependent on external sources forraw material, components and spare parts, and capital goodsfor the production requirements

The export performance of DPSUs taken together is below thethree per cent of total value of production or total value ofsales


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Need for Private sector undertakings

According to the US War Department, private sector isbetter equipped for defence industry because:1. Defence industry is highly technology driven and it is the

private sector that adapts itself better to rapidlychanging technology

2. The private sector possesses business acumen to spotfleeting opportunities for long term survival andcontinued prosperity of their enterprise.

3. Open and free competition compels companies tomaster frontier technology to beat their rivals for thelimited orders available. It, in turn, helps the nation tobuild a reservoir of latest technology to give it an edgeover its prospective adversaries.


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Governments action plan

Manufacture of components, assemblies and

sub-assemblies was thrown open to the

private sector in 1991

Government opened defence production to

the private sector in January 2002

It allowed 100 percent private equity


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Armed with the knowledge


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Advanced radars


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Partnership between privatecompanies and foreign OEM

Indian Company Foreign OEM Work DomainTATA group EADS Advanced tactical

communication

systems

Thales Optronic solutions for

multi-role combat aircraft

Larsen & Toubro Boeing P-8I reconnaissance planes,

naval systems

EADS Manufacture high-end

defence

electronics

Raytheon Upgrade of T-72 tanks

Fincanteri Fleet refuelling tankers,

naval

systems


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Partnership between privatecompanies and foreign OEM

Indian company Foreign OEM Work Domain

Mahindra group BAES Up-armoured light vehicles,

specialist military vehicles,

mine

protected vehicles, artillery

systems

Telephonic Corporation Radars and electronics

Bharat Forge Elbit Artillery and mortars

systems

solutions

Reliance

Industries Ltd

Dassault

Aviation

Defence and homeland

security

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