Lok Sabha Question No. 3354 (UNSTARRED), answered on 2017-08-04
Subject: Defence Equipment
Ministry: DEFENCE
Asked by: DEVUSINH JESINGBHAI CHAUHAN, VINOD KUMAR BOIANAPALLI, ADVOCATE NARENDRA KESHAV SAWAIKAR, R. VANAROJA, JAYADEV GALLA

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## UNSTARRED QUESTION NO.3354

TO BE ANSWERED ON THE 4 TH  AUGUST, 2017

## DEFENCE  EQUIPMENT

3354.  SHRI  DEVUSINH CHAUHAN: SHRI  B. VINOD KUMAR: ADV. NARENDRA KESHAV SAWAIKAR: SHRIMATI VANAROJA  R.: SHRI  JAYADEV GALLA:

Will the Minister of DEFENCE

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be pleased to state:

- (a) the details of policy regarding engagement of private sector in manufacturing of high-tech defence equipment in the country;
- (b) whether Defence Acquisition Council (DAC) has framed a policy to engage the Indian private  sector  in  manufacturing  of  high-tech  defence  equipment  and  to develop defence  industrial  eco-system  in  the  country  through  the  involvement  of  both  major Indian corporates as well as Micro, Small and Medium Enterprises Sector and if so, the details thereof;
- (c) whether the Government has finalized the strategic partnership policy for private sector  participation  in  defence  production  and  if  so,  details  thereof  and  the  sectors identified  for  private  sector  manufacturing  along  with  the  details  of  proposals  of  the Government to comply the Indian armament companies with Global partnership;
- (d) whether the strategic partnership policy is likely to reduce dependence on imports of  defence  equipment  and  encourage  'Make  in  India'  initiative  and  if  so,  the  details thereof; and
- (e) whether the approval of the Cabinet Committee on Security has been taken for the new policy,  if  so,  the  details  thereof  and  the  other  steps  taken  by  the  Government  in respect  of  transparency  and  competitiveness as  part  of  defence  procurement procedure and production of ammunitions?

## 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 (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. 3354 FOR ANSWER ON 4.8.2017

1. Government  is  committed  to  the  goal  of  achieving  self  reliance  in meeting  national  security  objectives.    The  'Make  in  India'  initiative  is  the focal point of the current  defence procurement policy and procedure and aims  to  promote  indigenous  design,  development  and  manufacturing  of defence  equipment,  platforms  and  systems,  involving  the  public  and

private sector in the country.

2. As  an  important  step  towards  meeting  broader  national  objectives, Government has recently promulgated the Strategic Partnership Policy to facilitate broader participation of the private sector, in addition to DPSUs / OFB, in  manufacture  of  major  defence  platforms  and  equipment  such  as aircraft, submarines, helicopters and armoured vehicles.  It is expected that the  implementation  of the  Policy  will  enhance  competition,  increase efficiencies, facilitate faster and more significant absorption of technology and  create  a  tiered  industrial  ecosystem  in  the  country,  including  in  the MSME  Sector.    The  award  of  contracts  in  such  cases  will  be  through a transparent  and  competitive process. The  policy is expected  to contribute to building indigenous capabilities within the country in respect of the identified segments.

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