The Hindu Business Line : Bharat Forge set to enter defence; awaits Govt nod

Bharat Forge Ltd is all set to foray into manufacture of defence equipment for the country in the lucrative Rs 10,000-crore defence contract business.

Top defence sources told Business Line that the company's application for licence to manufacture defence equipment received the green signal from the defence department of the previous Government a couple of months ago. But the file is now pending with the industry department.

The Bharat Forge Executive Director, Mr Amit Kalyani, when contacted, said the project is at a very basic stage to talk about.

Sources said the company plans to manufacture armoured personnel carriers, arms and ammunition such as shells and mortars and other weapons and weapon launchers. The Defence Ministry sources said Bharat Forge, led by the honcho Mr B.N. Kalyani, had made a presentation to a committee of senior Defence Ministry officials two to three months ago detailing the company's capabilities in the field and its intention to become a serious player in defence space.

The company will join a host of India Inc's leading lights, including L&T, Mahindra and Mahindra, Tata Motors and Ashok Leyland, which are implementing large projects for the country's defence establishments, after the segment was thrown open for the private sector by the previous Government.

Bharat Forge supplies forgings to the country's ordnance factories. But its current supplies do not include finished products, and, therefore, do not require special licence.

Sources said that while the company has top-class forging capabilities, it proposes to enter the new project with a technology partner which has proven specialised capabilities in defence.

Other private players have jumped onto the defence bandwagon with in-house knowledge in their line of business.

M&M and Tata Motors, for instance, have been awarded contracts for manufacturing specialised light armoured multi-role vehicles, high mobility vehicles and troop carriers, which are an extension of their core vehicle manufacturing business.

Sources said that while the company's application has won the approval of the earlier defence department, it is yet to receive a formal order.

With a new Government in place, it is not clear if there will be new policy guidelines on private entrepreneurs, given the sensitive nature of the defence business.

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Bharat Forge set to enter defence; awaits Govt nod