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Discussion Forum : Should public sector companies be barred from bidding for defence contracts? | Business Standard
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3yrs 7months 1weeks 3days 2hrs 14mins ago | COMMENTS [17] | National

Should public sector companies be barred from bidding for defence contracts?

Public sector heavyweights, including Hindustan Aeronautics Limited (HAL) and Bharat Earth Movers Limited (BEML), were not invited to bid for a tender to build 56 transport planes for the Indian Air Force. While the Ministry of Defence invited eight foreign aerospace vendors apparently because HAL's order book was full, the move seems to indicate a low level of confidence in the capabilities of public sector enterprises operating in the defence equipment space. Aren't PSUs as competent, if not more, than their private sector counterparts? Do share your views with us.

the move by the ministry is absolutely unacceptable and shall be condemned to the fullest extent. This move presupposes that Indian PSUs are incompetent. The ministry should have given an equal opportunity to PSUs to prove their competence and technically evaluated them without any bias. i'm surprised that the PSUs have not resorted for any action against the concerned ministry yet! I'm sure if the foreign bidders were to face such discrimination everybody would have made a lot of hue and cry.
Wednesday 16th of October 2013 02:41:15 PM
Please shut down BEML in the interest of nation. This company is fit for nothing. Its a waste of public money and unwanted headaches buying products from it.
Tuesday 15th of October 2013 01:56:01 AM
Respected sir If HAL alone not able to execute the project we may create one more public sector company and also Indian private companies for defence manufacturing as in Western world. Yours faithfully suresh
Monday 14th of October 2013 05:31:50 PM
No PSUs should not be allowed to bid. PSUs are white elephants for political reasons these are not being privatized. Government has no business to be in the business, its job is to manage and collect taxes etc.
Monday 14th of October 2013 05:18:01 PM