Tag Archives: Defence

FDI to 76 % or 100% for Defence units in SEZ

03 Wednesday Jul 2013

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Maximum expenditure of the government goes to defending the country. Lakhs of crore rupees are spent on purchasing defence equipment  from US, Israel and other countries. Not much publicity is not given to these deals, since they are connected with defence. Any government in the world will like defence equipment manufactured in their own countries due to the security concern. The position of India can not be otherwise.

But what is happening in India is curious. Defence equipment were being manufactured in the Defence Factories. These are being reduced. MNCs are private companies are allowed to produce them in the Special Economic Zones where many labour and tax conditions are waived or reduced. But now the government is going much more in support of the private capital to maximise their profit. It is proposing to increase the FDI in this sector which at present is 26%. While the Arvind Mayaram Committee which looked in the matter has recommended increase to 49%, the Commerce Minister Anand Sharma is battling for more, at least to 74%. A lobby in the government is trying to make it 100%.

IN the present situation when increasing the FDI in every sector is one of the most important policy of the government to please the imperialist countries headed by US and the MNCs, anything can happen! FDI seems to be more important than defence and security of the country.

Roll out of Optic Fibre Cable Network for Defence

29 Saturday Jun 2013

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It has been reported in the press that the Defence Forces are having difficulty due to the non-roll-out of the OFC network, which has been entrusted to DOT, who in turn has allotted the project to BSNL. It was to have been completed by now, for compensating for the release of important spectrum by the Defence to DOT.

BSNL is reported to have floated tender for the OFC in 2010 which was cancelled. Another tender in 2012 was also cancelled. The result is that the network is not rolled out so far.

It is necessary to find out why this important work is not done and who is responsible. The report puts the blame on BSNL. But what is the reason is to be found out. Further the BSNL Management should take immediate action for finalising the same, since it is concerned with Defence.

Forum of BSNL Unions/Associations has written to CMD BSNL with copy to Secretary DOT in the matter.

Spectrum for whom, Defence or telcos?

28 Friday Jun 2013

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While the Defence Department has insisted on keeping some of the important spectrum for defence purposes with it, the private telcos are pressurising the government to transfer the same for being auctioned for providing services. The spectrum is with the defence  as per an earlier agreement with the Telecom and Defence departments.

While it is necessary that spectrum is required for providing service to the people, it is also necessary that the defence should have sufficient spectrum for  defence purposes. Getting more money in the auction alone can not be the criteria for deciding the issue.

Protest Government move to increase FDI in Defence

05 Wednesday Jun 2013

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According to the Chief Economic Advisor to the government, Raghuram Rajan, the government is proposing to increase Foreign Direct Investment (FDI) in some sectors including Defence. At present FDI in Defence is 26%. FDI was implemented in defence despite protest from the Employees’ Unions.

In a very strategic and security sector like Defence, increasing the FDI has to be strongly protested not only by the employees but by the political parties. The scams and corrupt practices in Defence sector is going to further increase if the FDI increases.