Lok Sabha Question No. 5047 (UNSTARRED), answered on 2016-12-16
Subject: Make in India Initiative
Ministry: DEFENCE
Asked by: RABINDRA KUMAR JENA, CHANDU LAL SAHU

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

## LOK  SABHA UNSTARRED QUESTION NO.5047

TO BE ANSWERED ON THE 16 TH  DECEMBER, 2016

## MAKE IN INDIA INITIATIVE

5047.  SHRI  RABINDRA KUMAR JENA: SHRI CHANDU LAL SAHU:

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

- (a) the details of enhancement in defence production and exports after implementation of Make in India initiative in the defence sector;
- (b) whether  the  Government  has  received  any  representation  from  Indian  defence manufacturers or any company for reviewing certain clause of the Defence Procurement Procedure 2016; and
- (c) if so, the details thereof and the action taken by the Government thereon?

## 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. 5047 FOR ANSWER ON 16.12.2016

After  the  launch  of  'Make  in  India'  initiative  by  the  Government  in September,  2014,  so  far,  116  Industrial  Licenses  have  been  issued  for manufacture of various licensable defence items to Indian companies.  The expenditure on purchase of defence equipment for the three services in the last  two  years  and  current  financial  year  from  the  foreign  vendors  and Indian vendors is given below:

(Rs. in Crores)

|                              |   Total Procurement |   Procurement from foreign vendors |   Procurement from Indian vendors |
|------------------------------|---------------------|------------------------------------|-----------------------------------|
| 2014-15                      |             77986.3 |                           29159.7  |                           48826.6 |
| 2015-16                      |             76178.8 |                           26190.5  |                           49988.3 |
| 2016-17 (upto October, 2016) |             32073.2 |                            9278.26 |                           22794.9 |

2. Detail  of  defence  export  based  on  export  by  Defence  Public  Sector Undertakings  (DPSUs)  /  Ordnance  Factory  Board  (OFB)  and  the  No Objection  Certificates (NOCs)  issued  to  private  sector  companies  by Department of

……2/-

:  2  :

## Defence Production (DDP) during the last three years is as under:

| Year    |   Total value of export (Rs. in Crores) |   No. of NOCs issued |
|---------|-----------------------------------------|----------------------|
| 2013-14 |                                 1153.35 |                   39 |
| 2014-15 |                                 1940.64 |                   42 |
| 2015-16 |                                 2059.18 |                  241 |

is

3. The  Government  has  received  suggestions  from  Indian  industry chambers for reviewing certain clauses of Defence Procurement Procedure (DPP) 2016.  These suggestions include reduction in time from Request for Information  (RFI)  to  procurement,  assessment  of  combined  financial  and technical  bids  of  the  partners  in  consortium,  Government  to  bear  the development  and  prototype  cost  of  the  equipment  offered  in  case  of retraction  of  Request  for  Proposal  (RFP),  Purchase  price  preference  for higher  indigenous  content,  providing  price  indexation  for  Long  Term Contracts due to high cost of capital and inflation vis-à-vis foreign original equipment  manufacturer  (OEM),  fixing  of  timeline  for  inspection  etc.    All such suggestions are examined and considered by the Government while reviewing the Defence Procurement Procedure (DPP), which a continuous exercise.

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