MOSCOW. Feb 3 (Interfax-AVN) - The state defense order, issued to enterprises of the Russian Control Systems Agency, does not meet real requirements of the Russian Armed Forces, Gennady Kozlov, the agency's director general, has said.
"The state defense order has become more stable. The Defense Ministry and other state customers pay on time for their orders. However, the state defense order is considerably below current requirements of the Russian Armed Forces," Kozlov said in an interview with the Vedomosti newspaper, published on Tuesday.
"The Russian Armed Forces face considerable transformation. At the present time new systems are being developed, while some time later they will be procured. There are many systems, which may be procured even now, but limited capabilities of the state budget do not allow them to be mass produced," Kozlov said.
Kozlov emphasized that it was mass production that allowed the cost to be reduced, and the quality to be increased.
According to him, market mechanisms, which hold true in other branches, cannot be applied in this particular field to the full extent, as they will not facilitate the required output in the future. "If there is no demand for products, manufactured by an enterprise, right now, such enterprise simply goes under," he said.
In this environment the objective of the agency is to preserve strategic enterprises, until their potential is fully in demand, Kozlov said.
With this end in view the Russian Control Systems Agency is looking for new ways of cooperation. "We have recently established a new horizontal structure, namely the board of directors general of 50 largest enterprises," Kozlov said.
According to him, cooperation between enterprises, manufacturing radio electronics, have improved considerably since the board started working a year ago. This cooperation resulted in a 25% increase in output. The next objective is to increase wages by 30% within a year.