The Hindu : Andhra Pradesh News : Coast Guard scouts for exclusive berth

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Sunday, Feb 17, 2008
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Andhra Pradesh

Andhra Pradesh

Coast Guard scouts for exclusive berth

Staff Reporter

It will be significant from security angle

Kakinada has bright prospects, says Pallamraju
Changes being made to Defence Procurement Policy

Kakinada: The Indian Coast Guard (ICG) is scouting for an exclusive berth at Kakinada port for its fleet which will be soon augmented by two speed boats and a patrolling vessel. The ICG has expressed its willingness to pay for the dedicated berth to Kakinada Seaport Limited (KPL). The proposal is pending clearance, according to Kakinada MP and Union Minister of State for Defence MM Pallam Raju.

Mr. Pallam Raju said that the berth would be helpful to Kakinada station of ICG for better monitoring of the activity along Andhra Pradesh coast.

The dedicated berth will be of greater significance from the security point of view once the exploration of oil and natural gas reserves in K-G basin reaches the peak in a few years from now. Besides, the Visakhapatnam-based Eastern Naval Command (ENC) has a long-erm plan to expand its operations to Kakinada region, including the establishment of an Amphibious Warfare Training School.

Mr. Pallam Raju said certain changes were being made to the Defence Procurement Policy (DPP), 2006, like the inclusion of `offset clause’ which makes it mandatory for companies involved in deals of more than Rs 300 crores, to source at least 30 per cent of the value of the contracts from India.

The guidelines of DPP have to be strictly followed in acquiring products/weapon systems from foreign companies. The revised policy is likely to be announced in a few months.

The Minister said that a large number of Small and Medium Enterprises (SME) have developed specializations to meet the requirements of Defence industry. For instance, their (SME’) contribution to the development of missile systems has been commendable. Private companies having annual turnover of more than Rs 1,000 crores are being identified for conferring on them the status of `Raksha Udyog Ratna’.

Mr. Pallam Raju who played an instrumental role in bringing the Software Technology Park of India (STPI) to Kakinada, said the city has bright prospects of further development in the field (information technology). He observed that Kakinada which has good infrastructure facilities, stands in an advantageous position compared to other Tier-II cities at which software majors are looking to cut costs in the wake of declining export earnings.

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