Force interview with BEL CMD, V. V. R. Sastry
How was the experience of the Berlin Air Show? What kind of response did you get from global companies?
It was a great experience for BEL to be part of the Berlin Air Show for the first time. BEL showcased its products as well as manufacturing capabilities to undertake offset obligations and contract manufacturing.
Some global companies have shown interest and BEL is addressing this. A German company’s representative has already visited BEL to assess the manufacturing capabilities and a NDA is being signed.
With which companies have you signed agreements at the Berlin Air Show and what do they entail?
BEL has signed a MoU with EADS, Germany, for meeting their offset obligations in the MMRCA programme.
What does it mean being a Navratna company? How has BEL gained from this status?
BEL’s Navratna status is recognition of the company’s inherent strengths in manufacturing, technology, quality and thrust on exports. It is also recognition of the company’s ability to face future competition in the professional electronics segment.
The benefits accruing from Navratna status are as follows:
Can incur capital expenditure on purchase of new items or for replacement without any monetary ceiling
Ceiling on equity investment to establish financial joint ventures and wholly owned subsidiaries in India or abroad shall be 15 per cent of the net worth of the PSE in one project limited to Rs 1,000 crore. The overall ceiling on such investment in all projects put together shall be 30 per cent of the net worth of the PSE.
Full powers to enter into technology joint ventures, strategic alliances and to obtain technology know-how by purchase or other arrangements.
Full power to effect organisational restructuring including establishment of profit centers, opening of offices in India and abroad, creating new activity centers.
Full power for creation & winding up of all posts including and up to those of non-Board level Directors, that is, Functional Directors, who may have the same pay scales as that of Board-level Directors but who would not be members of the Board. Power includes appointment to these posts and internal transfers, redesignation of posts.
As you are aware, BEL signed a term sheet with Rafael Advanced Defense Systems Ltd, Israel, in February 2008, which is to lead to the formation of a strategic joint partnership. This will encourage indigenous advanced technology capabilities of missile electronics and guidance technologies within India and enable Rafael to meet offset requirements. We are also exploring some more joint partnerships with other major European and Israeli companies.
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