Lok Sabha Question No. 2398 (UNSTARRED), answered on 2018-08-01
Subject: Indigenous Defence Products
Ministry: DEFENCE
Asked by: SUSHIL KUMAR SINGH

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK  SABHA

## UNSTARRED QUESTION NO.2398

TO BE ANSWERED ON THE 1 ST  AUGUST, 2018

## INDIGENOUS DEFENCE PRODUCTS

## 2398.  SHRI  SUSHIL KUMAR SINGH:

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

- (a) the details of the ongoing and pending projects to promote the indigenisation of defence equipments under 'Make in India';
- (b) the details of the funds allocated and utilized for the purpose during the last three years and the current year, State and Union Territory-wise; and
- (c) whether  as  per  the  defence  report  25  projects  identified  for  defence  production under 'Make in India' are on the verge of closing down due to non-availability of funds and if so, the details thereof?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

र  ा रा य मं ी

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

*******

(DR. SUBHASH BHAMRE)

(डा. सुभाष भामरे)

## STATEMENT  REFERRED TO IN REPLY TO  PARTS  (a)  TO  (c) OF  LOK SABHA UNSTARRED QUESTION NO. 2398 FOR ANSWER ON 1.8.2018

- ( a) 'Make  in  India'  in  defence  sector,  is  primarily  driven  by  capital acquisition of defence equipment and other policy measures.  In the last four  financial  years  i.e.  from  2014-15  to  2017-18,  Government  has accorded  Acceptance  of  Necessity  (AoN)  to151  proposals,  worth  Rs. 2,66,700  Crore  approximately  under  'Buy  (Indian-IDDM)',  'Buy  (Indian)', 'Buy and Make (Indian)' or 'Make' categories of capital procurement as per  Defence  Procurement  Procedure  (DPP),  which  means  Request  for Proposal (RFP) shall be issued only to Indian Vendors. In the last four financial  years  i.e.  from  2014-15  to  2017-18, 128 contracts  worth about Rs.  1,19,000  Crore  have  been  signed  with  Indian  vendors  for  capital procurement of defence equipment.
- (b) Details  of  Budget  Allocation  and  Expenditure  incurred  under Capital  Acquisition  Head  under  Defence  Services  Estimates  (DSE)  for the last three years is tabulated below: -

(Rs. in Crore)

| Year    | Budget Estimate   | Expenditure   |
|---------|-------------------|---------------|
| 2015-16 | 77,406,.69        | 62,235.54     |
| 2016-17 | 69,898.51         | 69,280.16     |
| 2017-18 | 69,473.41         | 72,732.28     |

- (c) With  the  objective  to  facilitate  participation  of  Indian  industry  in design, development and manufacture of defence products, Government has  notified  a  separate  procedure  for  'Make-II'  sub-category  of  'Make' procedure  in  February  2018,  wherein  a  number  of  industry  friendly provisions such as relaxation of eligibility criterion, minimal documentation,  provision  for  considering  proposals  suggested  Suomoto,  by  industry  /  individual  etc.,  have  been  introduced.    So  far,  26 Proposals have been accorded 'Approval in Principle' (AIP) under 'MakeII'  sub  category,  out  of  which  06  Proposals  have  been  accorded Acceptance of Necessity (AoN).

## STATEMENT  REFERRED TO IN REPLY TO  PARTS  (a)  TO  (c) OF  LOK SABHA UNSTARRED QUESTION NO. 2398 FOR ANSWER ON 1.8.2018

( a) 'Make  in  India'  in  defence  sector,  is  primarily  driven  by  capital acquisition of defence equipment and other policy measures.  In the last four  financial  years  i.e.  from  2014-15  to  2017-18,  Government  has accorded  Acceptance  of  Necessity  (AoN)  to151  proposals,  worth  Rs. 2,66,700  Crore  approximately  under  'Buy  (Indian-IDDM)',  'Buy  (Indian)', 'Buy and Make (Indian)' or 'Make' categories of capital procurement as per  Defence  Procurement  Procedure  (DPP),  which  means  Request  for Proposal (RFP) shall be issued only to Indian Vendors. In the last four financial  years  i.e.  from  2014-15  to  2017-18, 128 contracts  worth about Rs.  1,19,000  Crore  have  been  signed  with  Indian  vendors  for  capital procurement of defence equipment. b) Details  of  Budget  Allocation  and  Expenditure  incurred  under Capital  Acquisition  Head  under  Defence  Services  Estimates  (DSE)  for

- the last three years is tabulated below: -

(Rs. in Crore)

| Year    | Budget Estimate   | Expenditure   |
|---------|-------------------|---------------|
| 2015-16 | 77,406,.69        | 62,235.54     |
| 2016-17 | 69,898.51         | 69,280.16     |
| 2017-18 | 69,473.41         | 72,732.28     |

(c) With  the  objective  to  facilitate  participation  of  Indian  industry  in design, development and manufacture of defence products, Government has  notified  a  separate  procedure  for  'Make-II'  sub-category  of  'Make' procedure  in  February  2018,  wherein  a  number  of  industry  friendly provisions such as relaxation of eligibility criterion, minimal documentation,  provision  for  considering  proposals  suggested  Suomoto,  by  industry  /  individual  etc.,  have  been  introduced.    So  far,  26 Proposals have been accorded 'Approval in Principle' (AIP) under 'MakeII'  sub  category,  out  of  which  06  Proposals  have  been  accorded Acceptance of Necessity (AoN).

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