Lok Sabha Question No. 940 (UNSTARRED), answered on 2017-07-21
Subject: Defence Manufacturing Projects
Ministry: DEFENCE
Asked by: S.P. MUDDAHANUMEGOWDA, B.V. NAYAK

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK  SABHA UNSTARRED QUESTION NO.940

TO BE ANSWERED ON THE 21 ST  JULY, 2017

## DEFENCE MANUFACTURING PROJECTS

## 940. SHRI S.P. MUDDAHANUME GOWDA:

SHRI  B.V. NAIK:

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

- (a) whether  the  Government  has  listed  out  defence  manufacturing  projects  of  the armed forces for execution through private industries of the country;
- (b) if so, the details thereof  and the reasons therefor; and
- (c) the  steps  taken  /  being  taken  by  the  Government  to  provide  assistance  such  as indigenous technology or acquisition of the same from other countries, to the domestic private industries showing interest in defence projects?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(DR. SUBHASH BHAMRE)

र  ा रा य मं ी

(डा. सुभाष भामरे)

(a) to (c):

A statement is attached.

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## STATEMENT  REFERRED TO IN REPLY TO  PARTS  (a)  TO  (c) OF  LOK SABHA UNSTARRED QUESTION NO. 940 FOR ANSWER ON 21.7.2017

Defence  capital  acquisitions are  carried  out  as  per  Defence Procurement  Procedure  (DPP)  wherein  emphasis  has  been  given  to procurement from domestic defence industry by according preference to 'Buy  [Indigenously  Designed,  Developed  and  Manufactured  (IDDM)]', 'Buy  (Indian)',  'Buy  &  Make  (Indian)'  and  'Make'  categories  of  capital acquisition over 'Buy (Global)' category. Any Indian company, including private company, can participate in the procurement process as per the guidelines of Defence Procurement Procedure. In the last three financial years i.e. 2014-15 to 2016-17, the Government has accorded Acceptance of Necessity (AoN) for 103 proposals worth Rs. 2,46,400 Crore approximately,  in  'Buy  (Indian-IDDM)',  'Buy  (Indian)',  'Buy  and  Make (Indian)' and 'Make' categories of capital acquisition.

2. Some of the major  policy  initiatives  taken  by  the  Government  to assist  the  domestic  private  sector  towards  acquisition  of  indigenous technology or from other countries are as follows:
2. v Indian  companies  are  allowed  for  tie-ups  with  a  foreign  Original Equipment Manufacturer  (OEM)  for  Transfer  of  Technology (ToT) under 'Buy & Make (Indian)' category.
3. v Under  'Buy  &Make'  Category  of  Capital  Acquisition,  the  foreign vendor is required to transfer the Technology to Indian Production agency  for  indigenous  production  of  the  items.  Provisions  have also been made to allow Foreign OEM to select Indian Production agency of its choice for transfer of technology.
4. v Under chapter VII of the DPP - 2016, the Government will facilitate the selected Strategic Partners (SPs) in acquisition of technology from foreign OEMs, which will be shortlisted through a transparent process.
5. v Defence Offset Guidelines provides for ToT to Indian Companies as one of the eligible avenues for discharge of offsets.
6. v Defence  Research  and  Development  Organization  (DRDO)  has issued  Guidelines  for  ToT  which  provide  for  an  institutional mechanism  for  transfer  of  technology  developed  by  DRDO  to public and private sector industry.
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