New Delhi: Confederation of Indian Industry welcomes the landmark announcement of Ministry of Defence of down selecting two Indian Development Agencies (DA) for design and development phase for Tactical Communication Systems (TCS) project. The decision is perfectly in line with the Defence Production Policy which was announced early last year. Mr Chandrajit Banerjee, DG, CII said that such projects have the potential of augmenting the manufacturing and technological base of the country. Self-reliance and indigenization are the prime objectives of the defence production policy.

In a path breaking development, Indian Army has selected a private sector Special Purpose Company consisting of Larsen & Toubro, Tata Power SED and M/s HCL Infosys Ltd as a DA for the prestigious TCS project. TCS also has the distinction of becoming first "Make" programme as per the Defence Procurement Procedures. Under the "Make" programme Govt will provide 80% funding for the development phase and rest 20% funding will come from the industry. A Defence Public Sector Undertaking, Bharat Electronics Limited has also been selected as the DA. Both DAs are supposed to make the prototype and out of two the L1 will be given the final project.  This selection is an outcome of rigorous rounds of scrutiny and years of concerted efforts put in by the Corps of Signals, Indian Army, MOD and Indian Industry together. 

DG CII also said that "Given the size of the project, as entire tactical communication of the Indian Army has to be catered to, the project has the potential to change the face of Indian defence industry in general and defence electronics in particular." The idea of "Make" projects was conceived several years ago. Kelkar Committee was instrumental in pushing forward the idea and finally in 2006 it was introduced in the Defence Procurement Procedure.  

Mr Banerjee further stated that Industry is very keen to know the outcome of the second Make project, Futuristic Infantry Combat Vehicle (FICV).