Lok Sabha Question No. 528 (STARRED), answered on 2018-04-04
Subject: Production of Equipment
Ministry: DEFENCE
Asked by: VIJAY KUMAR S.R., T. RADHAKRISHNAN

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

## LOK  SABHA STARRED QUESTION NO.528

TO BE ANSWERED ON THE 4 TH  APRIL, 2018

## PRODUCTION OF EQUIPMENT

*528.  SHRI S.R. VIJAYAKUMAR: SHRI T. RADHAKRISHNAN:

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

- (a) the  details  of  the  Public  Sector  Undertakings  (PSUs)  under  the  administrative control of her Ministry;
- (b) the details of the production of equipment by the defence PSUs along with their value during each of the last three years and the current year;
- (c) whether  the  Government  has  signed  a  Memorandum  of  Understanding  with foreign  countries  for  production  of  equipment  and  if  so,  the  details  thereof,  companywise;
- (d) whether the Government has any plan to revitalize and make Defence PSUs and Ordnance  factories  more  dynamic  and  if  so,  the  details  thereof  along  with  the  action taken by the Government so far; and
- (e) the steps taken / being taken by the Government to modernize their infrastructure and enhance defence production in order to meet the requirements of the Indian armed forces?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                    (SMT. NIRMALA SITHARAMAN)

j{kk ea=h

¼Jherh  fueZyk lhrkje.k )

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(a) to (e): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 528 FOR ANSWER ON 4.4.2018

- (a) There  are  9  Public  Sector  Undertakings  (PSUs)  under  Ministry  of Defence as per following details:

- (1) Hindustan Aeronautics Limited, HAL.

- (2) Bharat Electronics Limited, BEL.

- (3) Bharat Earth Movers Limited, BEML.

- (4) Bharat Dynamics Limited, BDL.

- (5) Garden Reach Shipbuilders & Engineers Limited, GRSE.

- (6) Goa Shipyard Limited, GSL.

- (7) Hindustan Shipyard Limited, HSL.

- (8) Mishra Dhatu Nigam Limited, MIDHANI.

- (9) Mazagon Dock Shipbuilders Limited, MDL.

- (b) The details of Major products and their value of production are given below:

| S. No.   | Name of DPSUs   | Major Products                                                                                                                                                                                                                               | Value of Production ( Rs. in Crore)   | Value of Production ( Rs. in Crore)   | Value of Production ( Rs. in Crore)   | Value of Production ( Rs. in Crore)   |
|----------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
|          |                 |                                                                                                                                                                                                                                              | 2014-15                               | 2015-16                               | 2016-17                               | 2017-18 (upto March, 2018- prov.)     |
| 1.       | HAL             | SU-30MKI, Hawk, Dornier Do-228, Light Combat Aircraft (LCA), ALH, Cheetal helicopters, PTA Lakshya Platforms, AL-31FP, Adour 871, Garrett, RD-33, Artouste IIIB, Shakti Engine, PTAE, Jaguar, Mirage, MiG 21, Kiran, AN 32, HS 748, Cheetah, | 15621                                 | 16586                                 | 17605                                 | 18207                                 |

|    |      | Chetakand Gnome engine, Dart, Orpheus, Structure of PSLV, GSLV, MKII, MKIII, IRS, Mass Orbiter Mission, Human Space program etc.                                                                                                                                                 |         |         |         |       |
|----|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------|---------|-------|
|  2 | BEL  | Radars, Electronic warfare & Avionics, Communications, Sonars, Network Centric Systems, Missile Systems, Electro-Optics , Tank Electronics, Homeland Security etc.                                                                                                               | 6659    | 7775    | 9244    | 10667 |
|  3 | BEML | Dozers, Excavators, Loaders, BEML HMV 12x12, BEML HMV 8x8 & Variants, BEML HMV 6x6, ARRV, TRAWL for T-72, Sarvatra Modification. (Ministry of Defence), All Terrain Vehicle, BMP TRANS & Aggre, E&AC Assy, Air Craft Towing Tractor, Akash Missile Sec IV & V, AIRCRAFT JIGS etc | 2809    | 2981    | 2499    |  3196 |
|  4 | BDL  | Missiles and allied equipment                                                                                                                                                                                                                                                    | 2799.68 | 4159.97 | 4886.62 |  4542 |

……3/-

:  3  :

|   5. | GRSE    | Water Jet Fast attack Crafts, Landing Craft Utility, ASW(Corvette), and Offshore Patrol Vessel etc.                                                               | 1612.66   |   1660.75 |   927.85 |   1343.08 |
|------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|-----------|----------|-----------|
|    6 | GSL     | 105M Naval Offshore Patrol Vessel, 105M Offshore Patrol Vessel, Fast Interceptor Boats, Damage Control Simulator, 1000T Fuel Barge and50M Fast Patrol Vessel etc. | 543.86    |    721.42 |   791.31 |      1361 |
|    7 | HSL     | Inshore Patrol Vessel (IPV), 25 Ton Bollard Pull Tug, 10 Ton Tugs and Pontoon, berthing pontoon                                                                   | Nil       |    121.64 |   129.43 |       600 |
|    8 | MDL     | Warships & Submarines                                                                                                                                             | 3592.60   |   4106.22 |  3523.67 |      4250 |
|    9 | MIDHANI | Nickel Base, Cobalt Base and Chromium Superalloys, Special purpose steels, Titanium & Titanium alloys and soft magnetic alloys etc.                               | 648.37    |    723.48 |   732.06 |       735 |

……4/-

- (c)    The Defence Public Sector Undertakings-wise details of Memorandum of Understanding (MoU) with Foreign Countries for production of equipments are as under:
- i. OFB:     OFB has signed MoU with M/s BAE systems SWS, Sweden for development in production of 155mm Mounted Gun system to meet the requirement of Indian Army.
- ii. HAL: To implement Inter Government Agreement (IGA) for manufacture  of  Kamov  Ka-226T  helicopters  in  India,  a  Joint  Venture Company (JVC) between HAL, Russian Helicopters and Rosoboronexport has been incorporated in May 2017, as Indo Russian Helicopters Ltd (IRHL). The JV has 50.5% shareholding by HAL, 42.5% by Russian Helicopters and 7% by Rosoboronexport.
- iii. BDL:        BDL  has  signed  MoU  with  Thales  UK  Limited  for  very  short Range Surface to  Air  Missile  for  their  export  production  of  Business under Make In India concept.
- iv. BEL:        Details  of  major  Transfer  of  Technology (ToT)  agreements signed with foreign companies in the defence sector for production of equipment are given below:

| Company                                       | Project                                                              |
|-----------------------------------------------|----------------------------------------------------------------------|
| Elbit Systems Electro-Optics ELOP Ltd, Israel | Compact Multi-purpose Advanced Stabilized system (COMPASS)           |
| Reshef Technologies Israel                    | Percussion, Time and Proximity Fuzes Setter for Artillery Ammunition |
| INDRA Sistemas, Spain                         | Mobile Ground Based ELINT System (MGBES)                             |
| Thales Air Systems, France                    | Low Level Transportable Radar (LLTR).                                |

……5/-

- v. GSL:       GSL has signed following MoU with Foreign Countries:
2. MoU  with  M/S  NAIAD,  UK  for  Indigenous  manufacturing  of Steering Gear and Fin/Roll Stabilisers.
3. MoU  with  M/S  FHS,  Germany  for  Indigenous  manufacturing  of Helicopter Landing Grid, Traversing System and Hanger Doors.
4. MoU with M/S Griffon, UK for range  of Amphibious hovercrafts for Indian Army, Indian Navy & Coast Guard.
5. MoU  with  M/s  DCNS,  France  (  Now  Naval  Group,  France)  for setting  up  of  advanced  submarine  escape  training  tower(Sett), IPMS Simulator and Combat Management Simulator for Submarine of Indian Navy.
- vi. GRSE:  GRSE has licence agreement with MTU Fridrichshafen GmbH, Germany  for  assembly,  Testing  and  Indigenisation  of  Marine  Diesel Engines.    By  this  agreement,  the  Diesel  Engine  Plant  of  GRSE  at Ranchi  has  planned to indigenise manufacturing to an extent of 40% engine parts progressively over next  4  to 5 years.

GRSE  has  also  an  agreement  on  collaboration  with  M/s  Mac Teggart,  Scott  &  Co.  Ltd  UK  for  Indigenisation  of  Rail  Less  Helo Traversing System (RLHTS) for warships and other ships.

- vii. HSL:   HSL has entered an MoU with Joint Stock Company United Ship building Corporation, Russian for cooperation in construction  of Civil Vessels & Craft for Inland Waterways of Andhra Pradesh and cooperation in the areas of military & technical cooperation.
2. (d)        DPSUs  have  been  instrumental  in  developing  a  robust  Defence manufacturing eco-system in the country. DPSUs aim to be lead integrators, primarily through robust private partnership, while retaining its core competencies, thus ensuring availability of a vibrant defence manufacturing system  in  the country.  To strengthen and  consolidate  Research  and development  functions,  DPSUs  /  Ordnance  factories  are  taking  research assistance from academic institutes like IIT, NITs etc. The Government has also  been  encouraging  all  DPSUs  for  their  meritorious  performance  by conferring Raksha Mantri awards.

......6/-

:  6  :

Moreover,  DPSUs  and  Ordnance  Factories  have  been  permitted  to export  up  to  10%  of  their  annual  production.  For  items  where  there  is a capacity constraint, in DPSUs export, they would be required to ramp up their  capacity  accordingly  in  subsequent  years.  The  strategy  provides  for creation of an Export Promotion Body, engaging Indian Missions / Embassies abroad in export promotion, better use of offset policy, export of indigenously  developed  defence  systems  and  streamlining  of  the  export regulation process.  Standard  Operating Procedure  (SOP)  for issue of 'Authorisation' for export has been simplified and put in public domain and requirement of Government signed End User Certificate (EUC) for export of parts and components and other non-sensitive military store, subassemblies, sub-systems has been done away with. (e)     Modernizing the existing Production facilities is a continuous process of DPSUs.  Modernization is taken up to enhance capability and capacity. This includes up-gradation of technology through establishment of new processes, state-of-the art manufacturing and design facilities with an aim of increased productivity efficiency and improved work condition. DPSUs have modernized its infrastructure by increasing capital expenditure to meet the requirements of Indian Armed forces. ******