new delhi

The Indian government announced last week that it will allow private companies to become more closely involved in defence research and development, as well as in the production of military hardware.

The move is being widely interpreted as an attempt by the government to overcome the impact of the sanctions announced by the Clinton administration in the aftermath of the nuclear tests conducted by India last month (see Nature 393, 197; 1998).

According to defence minister George Fernandez, some of the nation's secret defence laboratories will be opened to the private sector, and private companies have been invited to become ‘partners’ in defence research. At present, the private sector has no role in defence research, and almost all of India's military hardware is produced in factories which are under the control of the defence ministry.

Fernandez announced the new policy at a meeting with leading industrial companies that are members of the confederation of Indian industry (CII). Rajesh Shah, CII's president, assured the government that the private sector would be able to play a big part in defence projects.

In spite of official claims that the US sanctions will not harm India's defence efforts, defence scientists privately admit that most of the projects run by the Defence Research Development Organization (DRDO) involve many imported components to which India may no longer have access.

It is also feared that the sanctions may hamper DRDO's plan to increase the indigenous content of military hardware to 70 per cent by the year 2005, from its current 30 per cent. The only way of achieving this goal now is by increasing the involvement of Indian industry.

Besides working with DRDO as partners in research, private companies will, under the new policy, be allowed access to technology developed by DRDO with potential civilian use. According to DRDO chief Abdul Kalam, for example, techniques for making carbon composite material used in missile nose cones will be available to a company that wants to produce this material to make lightweight calipers for polio victims.

A special committee will choose the DRDO technologies with potential civilian applications. Other committees will identify research areas for partnership between DRDO and CII companies, and possible joint ventures for producing and exporting military hardware.