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THE 'MAKE IN INDIA' IMPACT
* There is nothing alarming and there is only a change in the policy by the government, says a Ministry of Defence source
* According to the source all imports are subject to customs duty and the department concerned will seek reimbursement
* With the 'Make in India' policy, the government wants everyone to pay taxes to create a level playing field, says the source
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28 IN, 17 JETS
YET TO ARRIVE
* The defence ministry has ordered 45 MiG 29K aircraft and has received 28 of them
* 17 aircraft are yet to arrive. These arrive boxed up in knocked down kits from Russia and will then be assembled
* These consignments will keep coming till 2018, says a MoD source
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Barely a day after the Navy inducted MiG 29K fighters into the Indian Naval Air Squadron (INAS 300) at an impressive ceremony at the INS Hansa in Vasco, another MiG 29K fighter has been reportedly languishing at the Goa port.
According to reports, this brand new MiG 29K fighter plane, which has been acquired from Russia, has been grounded for over a week till the defence ministry pays an estimated Rs 160 crore as customs duty.
“The issue should be sorted out within the next 2-3 days,” a Ministry of Defence (MoD) source told The Goan.
According to media reports, the MiG 29K that arrived from Russia on May 2 and a recent change in government's policy has left the fighter plane grounded till the customs duty is cleared.
Seeking to explain the delay in clearing the MiG 29K fighter plane from the customs, the MoD source said: “This is a non-issue and mechanism has already been put in place to get over the problem.”
“What has been described in the media are initial teething problems. In this year's budget, customs duty exemption has been withdrawn to create a level playing field for foreign and Indian defence manufacturers,” the MoD source added.
Speaking to The Goan from New Delhi, the MoD source sought to throw more light on this development.
“There have been some changes in the customs and excise regulations, where in the finance ministry has said that all imports are subject to upfront customs duty and the department concerned will seek reimbursement by producing the papers.
“There is nothing alarming and there is only a change in the policy by the government,” the MoD source said.
“Earlier, the MoD would get (its equipment) cleared without paying any taxes. But now, with the 'Make in India' policy and with the impetus of making everything here, the government wants everyone to pay taxes to create a level playing field.”
“They will then seek reimbursements and the money will come back to the departments concerned. This procedural changes have had some teething problems and it will be sorted out in 2-3 days,” the MoD source added.
According to MoD sources, the defence ministry has ordered 45 MiG 29K aircraft and has received 28 aircraft.
“While the 28 aircraft are already flying, 17 aircraft are yet to arrive. These aircraft arrive boxed up in knocked down kits from Russia and will then assembled here. These consignments will keep coming till 2018,” the MoD source added.
When the 45 MiG 29K aircraft was ordered by the MoD, the Sea Harriers were flying in the INAS 300 squadron at the time. These 45 MiG 29K aircraft started coming in 2010 onwards and some of the 45 MiG 29K aircraft were inducted in 2011.
In 2013, then defence minister A K Antony commissioned the Indian Naval Air Squadron (INAS 303) 'Black Panther squadron', the first MiG 29K squadron of the Indian Navy at INS Hansa in Goa.
Recently, when the Sea Harriers (which were inducted in 1983) were being phased out from the (INAS 300) 'White Tiger squadron', a decision was taken not to decommission the INAS 300 squadron, but to give a few MiG 29K aircraft to that squadron, to keep the legacy of 'White Tigers' alive.
The ceremony at INS Hansa on Wednesday was the de-induction of the Sea Harriers and the induction of the MiG 29K aircraft to the INAS 300 squadron.
