50% of Rafale deal value will be invested in India

Posted on May 11 2015 - 11:56am by IBC News Bureau

Terrorists, irrespective of wherever they may be operating from, should be neutralised using all types of methods, Defence Minister Manohar Parrikar told ET in an exclusive interview. He elaborated that “neutralisation” doesn’t necessarily mean killing terrorists but making them “ineffective.”

Parrikar also criticised ex-BJP minister Arun Shourie, saying the latter “does not have the full brief on what is happening”. Shourie had recently said the Narendra Modi government was faltering on policymaking and delivery.

Responding to a question on how India should deal with terrorists in foreign territory, the defence minister said: “A terrorist has to be neutralised-…Certain issues cannot be discussed but I feel that for any enemy of the country, all types of methods should be used to neutralise them.”

“Neutralising does not mean just killing…it means any method that makes them non-functional – get him to jail or to make him ineffective in any manner,” Parrikar added.

In his wide-ranging interaction with ET covering several key policy areas, Parrikar also set out the exact figure on India’s manufacturing share of the Rafale fighter jet project – France will need to spend 50% of the contract value, almost four billion dollars, as investments in the Indian defence and aerospace sector. The minister said the Rafale jet project will “unleash Make-in- India”.

Parrikar also said that with India buying around 36 Rafale jets for now, government savings on this project is likely to be up Rs 60,000-65,000 crore.

This money, Parrikar said, will be used to accelerate defence manufacturing in India, including speeding up the long-ingestation Light Combat Aircraft. The minister said LCA will be inducted in large numbers, up to 200 fighters or 10 squadrons.

Parrikar linked low levels infiltration from Pakistan and fewer incidents of cross-border firing this year to Indian forces’ strong retaliation to “misadventures”.

Acknowledging that defence forces face an issue on resources, the minister said all three wings, army, air force and navy, must prioritise spending. All three wings have been asked to make a list of must-have items, Parrikar said. He said Defence Research and Development Organisation (DRDO) would have a new head by May 24.

DRDO will also have a separate Scientific Advisor, who will be attached to the ministry for independent advice. Parrikar said for important projects he will form consortiums of all stakeholders from the government system, it won’t be just DRDO taking all the critical decisions.​If the army has to operate in the Jammu & Kashmir, it needs AFSPA: Defence Minister Manohar Parrikar.

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