Lok Sabha Question No. 4945 (UNSTARRED), answered on 2017-03-31
Subject: Projects under Make in India Programme
Ministry: DEFENCE
Asked by: MOHAMMAD SALIM, MD. BADARIDDOZA KHAN

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

## LOK  SABHA UNSTARRED QUESTION NO.4945

TO BE ANSWERED ON THE 31 ST  MARCH, 2017

## PROJECTS UNDER MAKE IN INDIA PROGRAMME

4945.  SHRI MOHD. SALIM: SHRI  MD. BADARUDDOZA KHAN:

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

- (a) whether  Make in India programme has been delayed for the defence sector and various projects under the said programme are pending at present;
- (b) if so, the details thereof and the reasons therefor and measures proposed for their speedy clearance;
- (c) the  projects  that  have  been  allocated  to  private  players,  Defence  Research  and Development  Organisation  (DRDO)  and  Defence  PSUs  by  the  Government  in  the Defence Sector;
- (d) whether the entry of the private companies in defence affect the role of DRDO and Defence PSUs in defence sector; and
- (e) if so, the details thereof and the corrective steps taken by the Government in this regard?

## A    N    S    W    E    R

| MINISTER OF STATE IN THE MINISTRY OF DEFENCE र ा रा य मं ी   | (DR. SUBHASH BHAMRE) (डा. सुभाष भामरे)   |
|--------------------------------------------------------------|------------------------------------------|

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

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK SABHA UNSTARRED QUESTION NO. 4945 FOR ANSWER ON 31.3.2017

(a) & (b): 'Make  in  India'  initiative  in  defence  production,  is  primarily driven  by  capital  acquisition  of  defence  equipment  and  other  policy initiatives of the Government.  Capital acquisition of defence equipment is carried  out  as  per  the  Defence  Procurement  Procedure  (DPP),  which stipulates  a  time  schedule  for  completion  of  the  procurement  cycle. However,  the  time  taken  to  undertake  capital  procurement  of  defence equipment depends on the nature and complexity of the equipment being procured.  Nonetheless, under the DPP-2016.  Government has laid down provisions for ensuring swift decision making and effective implementation of the procurement process. (c) Defence Research and Development Organisation (DRDO), a Research & Development wing of Ministry, is primarily involved in design & development of strategic, complex and security sensitive systems in the field of armament, missiles, combat vehicles, combat aircrafts, radars, etc for the Armed Forces. Procurement of capital equipment from Indian companies, is carried out  under  the  ambit  of  'Buy  (Indian-IDDM)',  'Buy  (Indian)',  'Buy  &  Make (Indian)', 'Make' and the Make phase of 'Buy & Make' categories of capital acquisition.  Projects are awarded to Defence Public Sector Undertakings (DPSUs),  Ordnance  Factory  Board  (OFB)  and  private  players  as  per  the provisions of Defence Procurement Procedure (DPP).  During the last two financial years (2014-15 & 2015-16), 85 cases involving Rs. 1,60,362 crore have been accorded Acceptance of Necessity (AON) by Defence Acquisition Council under these categories. (d) & (e): The  entry  of  private  companies  in  defence  is  not  likely  to adversely affect the role of DRDO and DPSUs; as role of these segments are complimentary and supplementary in nature.  The wider participation of defence  industry,  including  private  sector,  is  beneficial  for  the  overall objective  of  self-reliance  and  indigenisation  in  the  defence  sector.    The Government has taken several steps to encourage participation of private sector including foreign investment in the sector.

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