Defence Minister AK Antony on Tuesday said the government wants to provide a level playing field to both the public and private undertakings in defence sector.
"We have thrown open the defence sector to the Indian private industry along with PSUs and foreign Original Equipment Manufacturers (OEMs). We want to provide a level playing field to all participants -- be they in the public sector, or the private sector," he said.
He said it was imperative for defence PSUs to try and excel in a competitive environment, now that the defence sector has been thrown open to private industry, along with public sector units and foreign OEMs.
"The latest Defence Procurement Procedure has made defence acquisition process dynamic and competitive. It has also thrown up fresh challenges to defence PSUs," Antony said.
He was speaking at a function at public sector undertaking BEL to hand over the advanced Naval Gun Fire Control System for the Navy and inaugurate a modern facility of the Digital Flight Control Computer.
"Our government is committed to ensure the well-being of Defence PSUs, but the onus lies on them too to excel in a competitive environment," he said.
"We want modern, state-of-the-art equipment for our armed forces. However, we cannot afford to import our requirements endlessly," Antony said.
Ever-growing defence demands would make it difficult for private and PSUs to meet all needs in near future, he said.