The logistics requirements of the defence forces are a costly affair. It is these requirements that decide how much has to be allocated towards the defence allocations, not only for sustaining the military but also to cater to their modernization and future force projections. As reported by various oversight agencies, such as the Comptroller and Auditor General of India (CAG) and the Parliamentary Standing Committee on Defence, there are glaring capability voids in defence preparedness which need urgent attention of the defence establishment. The question to be answered is whether this gap/void can be covered by the existing defence allocation. After all, the modernization of the forces is not a one-time affair and has, therefore, to be tackled with a long-term perspective.
The Indian MoD announced in 2013 that sourcing of the defence equipment from the Indian companies, either by way of outright purchase, ToT or through indigenous design, development and manufacture, would be the preferred mode of procurement of defence equipment in future. This also opens up opportunities for the foreign companies to look beyond the DRDO or DPSUs and collaborate with the Indian companies for research, design and development activities with a view to meeting the future requirements of the armed forces through indigenous production.
The MGO branch of the IA deals with the requirements of spares, maintenance & sustenance aspects from both the revenue & capital budget, relating to the equipment already in service worth over Rs 30,000 Crores annually. The life cycle costs of the equipment is more than 4-5 times the cost of the original equipment, wherein the MGO branch is facing difficulty in procurement, from PSUs / OFBs / ex-imports.
Confederation of Indian Industry (CII)in association with the MGO branch of the Indian Army is organizing Annual MGO & Industry Cooperation Meeting (AMICOM) on the 16 & 17 Feb 2015. Experts from the Industry, MoD officials, serving Army officers, executives of PSUs, Academia & luminaries from R&D organizations, would assemble to discuss the modalities in depth based on the Make in India Initiatives of the Govt, to ensure that there is self dependency within the country, which is being pioneered by the MGO Branch to clarify to the industry of its requirements, the procedures involved, the initiatives taken towards indigenization etc.
The objective of AMICOM is to give a deep insight of the requirements of maintenance & sustenance of the Armoured Fighting Vehicles (AFVs). An Army- Industry directory would also be released which would list out the parts / spares / major unit assemblies etc that are required by the IA, the contact details of the officials etc& the same would assist the industry to plan their future initiatives. An exhibition is also being catered for, to give the industry an opportunity to showcase their capabilities to the Army &to each other. The event is comprised of four sessions viz
Session I : Requirements of Indian Army
The first session, aims at sharing the long term technological & equipment, to include the latest LTIPP / TPCR, the five year Roll on Plan (ROP) & the budgetary estimates. In this session the MGO branch officials would also list out its expectations, the areas of cooperation with the industry & what are the opportunities for the industry. A brief procedure on how the industry could undertake such contracts would be spelt out, as neither the imports nor the PSUs / OFB are able to meet the sustenance requirements of the MGO.
Session II : Technical Session -1
This is a more specific & detailed session relating to AFVs, wherein the long term perspective plans (including future AFVs planned for induction) & sustenance requirements of AFVs would be informed. A brief of the procurement procedure would be intimated to the audience for the spares & major unit assemblies. A ROP would be shared with the industry, including the indigenization initiatives undertaken by the Army & the expectations required from the industry. Quality assurance aspects would also be explained to the industry, including the ToTs planned to be shared. Eminent speakers from the Industry would intimate the aspects relating to their company & the indigenization aspects undertaken by them.
Session III : Technical Session -2
This session too is a detailed & a specific session, which will also have an open house discussion relating to business & partnership opportunities in MRO. In this session the areas of concern of IA, as relating to AFVs would be discussed & the audience would be informed about the planned indigenisation activities for the industry to plan its future initiatives.
Session IV : Valedictory Session
This is mainly an interactive session to understand the problems faced by the industry, the MGO & finding a common solution, including resolutions that can be taken care of in AMICOM, signing of contracts, interactions during exhibition & closed door, by respective MGO officials with the Industry.
