Lok Sabha Question No. 3322 (UNSTARRED), answered on 2017-08-04
Subject: Progress of Make in India Initiative
Ministry: DEFENCE
Asked by: MANOJ KUMAR TIWARI

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE PRODUCTION

## LOK  SABHA UNSTARRED QUESTION NO.3322

TO BE ANSWERED ON THE 4 TH  AUGUST, 2017

## PROGRESS OF MAKE IN INDIA INITIATIVE

## 3322.  SHRI  MANOJ TIWARI:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a) the  details  of  progress  made under  the  'Make  in  India'  initiative  in  the  defence sector so far;
- (b) the details of foreign and domestic companies setting up plants for manufacturing fighter aircraft in the country under the said initiative;
- (c) the details of defence equipment which are likely to be manufactured by foreign companies under the said initiative; and
- (d) the  extent  to  which  the  manufacturing  cost  is  likely  to  be  reduced  after  the implementation of the said initiative?

## A    N    S    W    E    R

MINISTER OF STATE

(DR. SUBHASH BHAMRE)

IN THE MINISTRY OF DEFENCE

र  ा रा य मं ी

(डा. सुभाष भामरे)

(a) to (d): A statement is attached.

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## STATEMENT  REFERRED TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA UNSTARRED QUESTION NO. 3322 FOR ANSWER ON 4.8.2017

1.  'Make  in  India'  in  defence  manufacturing  is  primarily  driven  by  capital acquisition  of  defence  equipment  and  other  policy  measures taken  to  promote indigenous design,  development  and manufacture  of  defence  equipment  in  the country by harnessing the capabilities of the public and  private sector.  These measures include according priority and preference to procurement from Indian vendors under the Defence Procurement Procedure (DPP) 2016, liberalization of the  licensing  regime  and  FDI  policy  by  raising  the  cap  on  FDI  in  the  defence sector, simplification of export procedure, streamlining of defence offset guidelines etc.  Recently, the Government has notified the 'Strategic Partnership (SP)'  Model  which  envisages  establishment  of  long-term  strategic  partnerships with  Indian  Private  entities  through  a  transparent  and  competitive  process, wherein they would tie up with global OEMs to seek technology transfers to set up domestic manufacturing infrastructure and supply chains. 2. The  Capital  expenditure  on  procurement  of  defence  equipment  by  three Services, from Indian vendors has increased from Rs.31575 Crore (47% of total Procurement  value)  in  2013-14  to  Rs.41873  Crore  (60.5%  of  total  Procurement value)  in  2016-17.  In  last  three  financial  years  i.e.  2014-15  to  2016-17,  the Government  has  accorded  Acceptance  of  Necessity  (AoN)  for  145  proposals worth Rs.399800  Crore approximately, out of  which  103 proposals  worth Rs.2,46,400 Crore approximately have been approved under 'Buy (Indian-IDDM)', 'Buy (Indian)', 'Buy and Make  (Indian)' and 'Make' categories of capital acquisition. 3. After  opening  up  of  the  Defence  Industry  Sector  for  private  Sector participation in 2001, so far 342 Letters of Intents (LOIs) / Industrial Licences (ILs) have been issued to 205 Indian  companies for  manufacture of a wide range of defence items to public / private companies.  13 ILs have been issued to 12 Indian companies  for  manufacture  of  fighter  aircrafts,  helicopter,  or  their  parts  / components / assemblies etc in the country. 4. Foreign  companies  are  allowed  to  have  tie-ups  with  Indian  vendors  for indigenous production involving Transfer of technology (ToT) under 'Buy & Make (Indian)' and 'Buy & Make' categories of capital acquisition.  Some of the major projects approved under these categories in the past three years include 155mm / 52 caliber Mounted Gun system, Extended Range (ER) Rockets for 122mm GRAD Multi  Barrel  Rocket Launcher, Successor to Air Defence Guns, New Generation Ammunition for 84mm Rocket Launcher, Mine Ploughs Sets etc. 5. One  of  the  objectives  of  'Make  in  India'  initiative  is  to  build  world  class manufacturing  infrastructure  in  the  country  so  as  to  reduce  dependence  on imports and to reduce the cost in the long run.  However, this being a long term activity, it is premature to assess its impact on reduction in manufacturing cost at this stage.
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