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The Print
17 hours ago
- Business
- The Print
Modi govt reduced political interference in PSUs. It's how they became wealth creators
One sector that has seen massive transformation is defence manufacturing. This area was a virtual monopoly of PSUs and Ordnance Factory Board (OFB). They had a captive buyer in the form of Indian defence and paramilitary forces for their low-value and low-tech products, whereas more sophisticated products were imported from all over the world. The Modi Government nudged the armed forces to procure hi-tech platforms from domestic producers without compromising on their operational ability. The armed forces responded positively, and the defence PSUs have been a great beneficiary of this push. According to the defence ministry, 65 per cent of defence equipment is now manufactured domestically, a significant shift from the earlier 65-70 per cent import dependency. In the fiscal year 2023-24, defence public sector undertakings and other PSUs contributed approximately 79.2 per cent of the total production value, while the private sector contributed 20.8 per cent. Restructuring and corporatisation of Ordnance Factory Board into seven PSUs was a major reform that involved using political capital. Gross revenue from operations of PSUs has increased from Rs 20.67 lakh crore in 2013-14 to Rs 37.89 lakh crore in 2022-23, and the overall net profit has increased from Rs 1.28 lakh crore to Rs 2.12 lakh crore during the same period. The total paid-up capital of all PSUs was Rs 1.98 lakh crore in 2013-14 and had increased to Rs 5.04 lakh crore in 2022-23. The jump in investment (equity plus long-term loans) is even more impressive—it has skyrocketed from Rs 9.92 lakh crore in 2013-14 to Rs 25.34 lakh crore in 2022-23. The contribution of PSUs to the exchequer in the form of taxes and dividends has increased from Rs 2.20 lakh crore to Rs 4.58 lakh crore in the same period. These figures have been presented by the Ministry of Heavy Industries and Public Enterprises and the Ministry of Finance. They are not only performing well and contributing to the government exchequer but are also matching the government's push in infrastructure investment with their own Capex of more than Rs 10 lakh crore annually, propelling India's economic growth. India's achievements in various fields over the last 11 years of the Modi Government are being rightly highlighted and celebrated. It fills Indian citizens with pride and generates hope about an even better future that awaits them. One of the areas for which the government deserves special accolades is the performance and revival of public sector undertakings. Public sector units were generally considered a drain on government resources. They were labelled lethargic and inefficient organisations that could survive only as a monopoly or through government patronage in various forms, such as allocation of contracts without competitive bidding, direct and indirect subsidies, implicit sovereign guarantee on their borrowings, etc. They were seen as destroyers of public wealth. However, things have changed dramatically under the Modi Government. This is evident from several metrics. PSUs have also become vehicles for strategic investments to meet India's long-term developmental goals. The massive investment in energy transition is primarily driven by the PSUs, be it NTPC, BPCL or NHPC, which are pouring billions of dollars in solar energy, green hydrogen and the planned nuclear energy projects based on small modular reactors. They are also making foreign investments to plug vulnerabilities in the supply chain of rare earth materials that are critical for India's growth. Also read: India's infrastructure revolution is powering its rise in manufacturing Journey to wealth creation The performance of public sector banks (PSBs) under the Modi Government deserves a special mention. Keen followers of Indian business and finance may still clearly recall that the first term of the Modi government had inherited an economy beset with a twin balance sheet problem. Massive equity infusion and governance reforms by the government led to a revival of the PSBs. Government-owned banks right now have growing loan books and an extremely healthy capital position. Their balance sheet is healthy with strong profitability and improved asset quality, and lower Non-Performing Assets. The gross NPA has reduced from 4.6 per cent in March 2015 to 2.6 per cent in September 2024, and the net NPA has reduced from 2.5 per cent to 0.6 per cent during the same period, according to the RBI's Financial Stability Report. Business per employee (BPE) of PSBs, an indicator of operational efficiency and cost rationalisation, has been increasing steadily. Annual reports of banks show State Bank of India's BPE has increased to Rs 13.23 crore, Punjab National Bank to Rs 26.86 crore, and Bank of Baroda to Rs 32.53 crore in the year 2024-25. The change in the performance of the PSUs has been recognised by the stock market. They have now become wealth creators. There was a time in the not-so-distant past when the public sectors traded at a massive discount to the wider markets, having a low Price to Earnings ratio, just because of government ownership. It's exactly the opposite now, PSUs now trade at a premium to their private sector peers. What has led to this transformation in the performance of PSUs under the Modi Government? The government has given PSUs much more autonomy in their business and operational matters, and political interference has been eliminated. The appointments at the top management level are merit-based, and there is zero tolerance for corruption. The government's approach to disinvestment is not dogmatic either. The disinvestment philosophy has been replaced with value creation and maximisation. There are a few loss-making PSUs on the disinvestment radar of the Government, but the goals are strategic and not revenue alone. Indian citizens now realise that economic growth is never an automatic byproduct of enabling factors. Rather, it is a result of conscious actions of the government that takes vital decisions and then monitors and responds to challenges that emerge along the way. The performance of the public sector in the last 11 years shows the competence of the Modi Government in putting public resources to optimal use, and this fact must be applauded. Gopal Krishna Agarwal is the National Spokesperson of BJP. Views are personal. (Edited by Theres Sudeep)
NDTV
27-05-2025
- Business
- NDTV
Akash System, AI Drones, And Why India Can't 'Outsource' Security
Strategic autonomy remains an illusion in the absence of technological sovereignty. A nation that lacks the capacity to manufacture its own armaments finds itself vulnerable to the whims of key defence exporting countries. Its military strategies are contingent upon supply chains beyond its influence, and its ability to deter adversaries is compromised by reliance on others. Theoretical frameworks derived from realist international relations, especially structural realism, indicate that in an anarchic world system, the primary imperative for the state is survival. Survival is an endeavour that cannot be delegated to others. When the integrity of national security relies on external validation, even the most formidable diplomatic efforts become ineffective against embargoes, export restrictions, or the unpredictable nature of geopolitical dynamics. Learning From The Past History presents stark reminders. In 1965, India's military endeavours were significantly hindered by a US arms embargo. In 1991, amidst the Gulf War, Saudi Arabia, despite possessing an abundance of Western armaments, depended wholly on the United States for the protection of its oil fields. In stark contrast, Israel has not only endured but flourished, and through strategic alliances and a steadfast commitment has developed its own capabilities. Therefore, countries that delegate their defence industrial capabilities relinquish control over their strategic destiny. Atmanirbharta, or self-reliance, in defence transcends mere rhetoric. This strategic realisation is beginning to pay dividends for India. Despite still being the world's second-largest arms importer, accounting for 8.3% of global imports, just behind Ukraine's 8.4% according to SIPRI, India has shifted course since 2014. The focus has moved beyond mere procurement towards co-development, co-production, and indigenous innovation. The aim is no longer just to acquire weapons but to build the capacity to design and produce them domestically. Initiatives such as the Defence Industrial Corridors in Tamil Nadu and Uttar Pradesh, the corporatisation of the Ordnance Factory Board, and the launch of Innovations for Defence Excellence (iDEX) signal a structural push towards developing in-house defence R&D. Successes like the Tejas fighter jet, the DRDO-developed anti-satellite missile (ASAT), and the Agni-V intercontinental ballistic missile are no longer isolated achievements, they reflect the emergence of a broader, self-sustaining military-industrial ecosystem. Simultaneously, technology transfer agreements and licensed production under the Strategic Partnership Model are enabling Indian firms to move up the value chain. India is no longer content being a passive buyer, it is steadily becoming a sovereign producer. Atmanirbharta in defence is not a distant goal. It is fast becoming the country's strategic posture. All That Was Used In Op Sindoor Operation Sindoor has given us the clearest evidence of how far India has come as far as innovation in defence tech is concerned. The mission, launched in retaliation to the April 2025 Pahalgam terror attack, was conducted entirely without crossing the Line of Control, relying on high-precision, domestically engineered strike and surveillance systems. Among the most crucial was the Akash Surface-to-Air Missile System, which provided short-range protection against incoming aerial threats. Backed by the Akashteer Air Defence Control and Reporting System, Indian forces intercepted all hostile drones and missiles with 100% success, demonstrating real-time net-centric warfare capabilities powered by domestic radar, telemetry, and sensor integration. The Integrated Air Command and Control System (IACCS) served as the backbone of coordination, linking airbases, radar units, and weapon platforms across the services under a single digital command structure. For offensive capabilities, SkyStriker loitering munitions, manufactured domestically under technology transfer from Israel's Elbit Systems, enabled deep penetration and destruction of enemy radar and missile installations. These AI-enabled kamikaze drones hovered over target zones, identified high-value assets, and struck with zero collateral damage. The Indian Air Force also deployed long-range drones for real-time ISR (Intelligence, Surveillance, and Reconnaissance), while DRDO-developed electronic warfare systems successfully jammed Pakistan's Chinese-supplied radar and missile infrastructure, completing the mission in under 23 minutes, without any loss of Indian assets. Ground forces remained on high alert using a layered defensive posture comprising legacy systems like Pechora and OSA-AK, and new-generation assets like Akash-NG and LLQRM (Low-Level Quick Reaction Missiles). The Indian Army's Counter-Unmanned Aerial Systems (C-UAS) grid and shoulder-fired missiles formed the first layer of protection, reinforced by low-level air defence (LLAD) guns and electro-optical tracking systems. Notably, India's indigenous satellite assets, including those from ISRO, provided 24x7 strategic situational awareness. More than 10 satellites were operational in monitoring India's 7,000-km coastline and the northern theatre during the mission, highlighting the seamless integration of space-based sensors into real-time tactical decision-making. The operation also exposed and neutralised advanced foreign-origin platforms deployed by Pakistan, including PL-15 air-to-air missiles, Turkish-origin UAVs, and Chinese-made quadcopters, all of which were rendered ineffective by India's domestic air defence ecosystem. A Decade Of Work Behind the success of Operation Sindoor lies a decade of focused investment in building indigenous capacity. The iDEX platform, Strategic Partnership Model, Defence Industrial Corridors in Tamil Nadu and Uttar Pradesh, and the ban on imported drones in 2021 catalysed the rise of Indian firms in the UAV and defence electronics space. Firms like Alpha Design Technologies, Paras Defence, and Tata Advanced Systems are now core contributors to India's tactical autonomy. India's drone market, projected to reach $11 billion by 2030, is rapidly emerging as a key pillar of national security. Let The Momentum Remain To consolidate Operation Sindoor's gains and realise full-spectrum strategic autonomy, India must urgently address key gaps across its defence ecosystem. The most pressing is the development of indigenous jet engines. Despite progress in airframe design, India remains reliant on foreign propulsion systems, which is a critical vulnerability. We still rely on GE engines for Tejas, and deliveries are behind schedule. Reviving the Kaveri engine programme, backed by a National Aero-Engine Mission with global partnerships and IP retention, is imperative. Equally important is scaling the indigenous drone ecosystem. India must accelerate the development of HALE/MALE drones, autonomous loitering munitions, and AI-powered drone swarms. The CATS Warrior and TAPAS-BH platforms must be supported with robust R&D funding, domestic payload production, and regulatory clarity. In parallel, India must localise avionics, AESA radars, mission computers, and electronic warfare (EW) suites. Modern warfare is increasingly software-defined, and foreign dependence for these components creates the risk of supply chain disruption or strategic denial. DRDO's Uttam radar and integrated EW systems must be expanded across all military platforms. On the missile front, India must invest in hypersonic glide vehicles, scramjet propulsion, and advanced seekers. While systems like Agni-V and BrahMos have established deterrence, the next phase requires indigenising guidance, propulsion, and warhead technologies to reduce exposure to sanctions. Don't Forget Navy Naval self-reliance is equally essential. India must develop indigenous nuclear propulsion, air-independent systems for submarines, and sonar suites for warships. The strategic shipbuilding base, strengthened by projects like INS Vikrant, needs technological depth and private-sector integration to meet future maritime threats. Space-based defence infrastructure must be hardened and expanded, especially satellite surveillance, communication, and navigation systems. ISRO's constellation of military satellites proved effective in Operation Sindoor, but micro-satellite swarms, missile early-warning sensors, and secure relay networks are the next frontier. India must also invest in cyber and AI warfare. A dedicated Defence Cyber Command is needed to build offensive and defensive capabilities, alongside AI tools for battlefield management, autonomous weapons, and predictive logistics. Finally, defence-grade electronics, semiconductors, embedded systems, and secure microcontrollers must be domestically produced. India's semiconductor mission must explicitly include military applications to secure its electronic backbone. The next decade will determine whether India merely reduces dependence or truly rewires its defence ecosystem for self-sufficiency. The challenge now is not one of intent but of scale, speed, and strategic discipline. As defence technology becomes increasingly complex, interdisciplinary, and software-defined, India must foster deep integration between research labs, private industry, and operational commands. This will require not just funding or policy reform, but a cultural shift, one that values iterative innovation, tolerates risk, and treats defence R&D as a national strategic asset rather than a budget line.
Time of India
09-05-2025
- Business
- Time of India
Defence PSUs black out websites for security reasons
Nagpur: The websites of all the major defence public sector undertakings (PSUs) carved out of the erstwhile Ordnance Factory Board (OFB) were blacked out on Thursday. This is an impact of Operation Sindoor , as the management does not want to take any chances with security, said sources. The websites contained details of the units, their locations, and the products manufactured by each of the is the headquarters of Yantra India Limited , a major producer of mechanical items. The TOI checked its website, and it could not be opened. Similarly, the websites belonging to Munitions India Limited (MIL), Advanced Weapons and Equipment Limited (AWEL), and Armoured Vehicles Nigam Limited (AVNL) were also not accessible from personal public sector undertakings were formed in 2021 out of the 41 ordnance factories. As PSUs, the corporations are required to maintain their financial self-sufficiency. Operation Sindoor 'Did not want to...': Pak def min gives absurd excuse for army's failure to withstand Op Sindoor Blackouts, sirens & Pak's failed attacks: 10 things that happened in the last 36 hrs '1971 war was not remotely as terrifying': Residents of border areas shell-shocked Each of the companies built their own websites, also showcasing their products. The companies were also eyeing export PSUS have been formed on the basis of items made by the factories. As public corporation the factories must maintain profitability which can come from orders by Indian defence forces as well as friendly countries, said sources.
