``In India, the army's commitment has been growing with each year. They have been fighting in the North-East, Punjab and J&K. Yet, the government makes no effort to improve the budgetary allocation for the forces. With the rising cost of weaponry, the defence budget has actually shrunk in real terms,'' he says.

Khurana feels the time has come for the government to divert resources for the development of the defence forces. ``In the short run, industry will be affected by this reallocation of funds. But in the long run, a strongnational security machinery will ensure a favourable climate for industry to grow. After all, security matters do influence the flow of foreign investment funds,'' he says.

Khurana feels industry will be prepared to meet these short-term exigencies, provided the government takes the domestic business leaders into confidence on such matters of national importance. ``Captains of industry must be briefed on security matters. The army headquarters should be open to the business leaders for consultations. Besides, the government itself should conduct formal and informal meetings with domestic industrial houses on these issues,'' he says.

``Industry today has no idea about when the Kargil conflict will get resolved, or which way the national security is headed. It is essential to broaden the nation's security consultative machinery,'' says Khurana.``Apex bodies like CII and FICCI should come together and discuss the role of security and industrial development,'' he says.

``Today, when the cost of mobilisationfor Kargil is being calculated, the hidden costs are not being accounted for. The conflict will have a major bearing on the national economy. Industry will realise that a strong defence force is essential for their own development,'' says Khurana.

``Kargil has been thrust on us because the enemy felt we don't have the deterrence. It is an outright attack by a regular army in a sensitive area. If this is the price the nation has to pay for Kargil, what would be the cost in the instance of a general war?'' he asks. ``The cost of this conflict alone will push us back by five years.''

Khurana, who was director-general (operational logistics) with the Indian Army at the time of his retirement from the services, says industry has a key role in modernising the army's defence equipment. ``How do we explain the fact that the army is now short on spares, there are no snow scooters, etc?'' he asks. ``Industry should have been supplying many of these equipment and spares to the army,'' he says.

Khurana has beenadvocating the development of a military industrial complex (MIC) In India. ``Materials produced by the defence ordnance factories are supplied only to the services. Ordnance factories are not modernised and they have no productivity norms. The captive market has blunted their drive to improve quality. As a result, the services pay a high cost for low quality products,'' he says.

``Isnt it time the non-strategic products made by these ordnance factories were passed on to industry?'' he asks.

``The government must hand over to industry R&D, prototypes and blueprints for manufacture of non-strategic goods that are required by the army. Right now, the army needs ammunition, vehicles, spare-parts, special equipment for high altitudes, etc. Industry could have provided most of these if the MIC was in place,'' he says.

In case of a conflagration, Khurana says the automobile industry can help in a big way by extending workshop facilities and vehicles. ``Food supply chains can be strengthened and extended tothe army. Clothing is another area,'' he adds.

``Industry can provide both quick support and long-term support to the army. Business houses can step in to correct the imbalances that creep in after a conflict or war,'' he says.

``The army gears up for only a certain period. Thereafter, it is industry that has to replenish the army reserves. But that will happen only when the government shares the strategic thinking with industry.''

To cite an example of corporate support, Khurana says that sophisticated hospitals like Apollo Hospital can extend treatment to army personnel for complex medical cases.

``MTNL is providing 200 mobile satellite links for soldiers. Why can't private cellular operators, too, extend similar help?'' he asks.He feels that the concept of an MIC can develop provided there is a single window system for industry to get all information, orders, queries, tenders regarding army requirements.

Once industry is given the responsibility to do R&D on army equipment, all defenceexpenditure can be diverted to replenish the `teeth' of the army, he says.