Defence order book worth up to Rs 1400 crore: Tata Motors

Tata Motors has just completed an order book worth Rs 450 crore, raising their tally in defence deals to Rs 1,400 crore, said Vernon Noronha, VP-Defence & Government Business, Tata Motors in an interview to CNBC-TV18's Alex Mathew at the Defence Expo 2016 being held in Goa. Noronha also added that the Defence Procurement Policy (DPP) has made it easier for Indian companies to operate in the defence space. He believes that this year's DPP will encourage companies like Tata Motors to invest and win more international business. Noronha mentioned that the company would also be looking at taking on technology partners.Below is the transcript of Vernon Noronha’s interview with CNBC-TV18's Alexander Mathew.A: (starts in the middle of an answer..) we just collected an order for Rs 450 crore for a repeat supply of 619 numbers. That takes our order book to about Rs 1,400 crore for the next year but we are taking part in a lot of programs where request for proposals (RFPs) are due and envelopes are to be opened. So, we see a very good future for Tata Motors in the defence space.Q: I want to take this opportunity to ask about the Defence Procurement Procedure (DPP). They are going to speak about it today. But what really are you cheering. Are they positive, will there be more orders for the Indian companies now?A: Year after year the Indian companies are making it easier for private sector companies to operate in the defence space and I am sure this year's DPP which is about to be announced will also be in the direction which encourages companies like Tata Motors to invest and to expect a lot of business from defence sector.Q: But as far as searching for joint venture companies is concerned I believe that there is a clause that says that companies partnering with Indian companies will be preferred. So, is that something that you are taking into consideration when you are looking out or you are scouting for joint venture partners?A: Yes, surely because we don't want to reinvent the wheel. So, if there is technology abroad available with somebody we will collaborate with them, I am not sure it can be only a joint venture but collaboration in some form will take place to bring the technology and to have an Indian designed and developed product for our own defence forces which gives you benefits in terms of costs, in terms of life maintenance of the vehicle, that is the important thing. These types of equipments like the Kestrel will be around for 35 years. So, for 35 years giving it lifetime support by an Indian company is much more cost effective than an imported vehicle.Q: What JV partners are on the cards?A: I wouldn't like to comment with JVs but we have a whole bunch of good technology partners and any of them could be a JV depending on the viability.