Lok Sabha Question No. 1475 (UNSTARRED), answered on 2019-11-27
Subject: Joint Manufacturing Defence Platforms
Ministry: DEFENCE
Asked by: Sanjay Sadashivrao Mandlik, Gajanan Chandrakant Kirtikar, Sudheer Gupta, Prataprao  Jadhav, Bidyut Baran Mahato

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

## LOK SABHA UNSTARRED QUESTION NO.1475

TO BE ANSWERED ON 27 th  November, 2019

## JOINT MANUFACTURING DEFENCE PLATFORMS

1475. SHRI SANJAY SADASHIV RAO MANDLIK:

SHRI GAJANAN KIRTIKAR:

SHRI SUDHEER GUPTA:

SHRI PRATAPRAO JADHAV:

SHRI BIDYUT BARAN MAHATO:

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

- (a) the details of the foreign defence industries who jointly manufacture defence platforms with Indian defence industries;
- (b)  whether  the  Government  proposes  to  jointly  manufacture  defence platforms  and equipment with the Russian defence industry to give boost to the two nations export to third countries and if so, the details thereof;
- (c)  whether  the  Government  has  urged  the  Original  Equipment  Manufacturers  (OEM)  to partner with Indian entities making the use of Make-in-India initiative and if so, the details thereof and the response of OEM in this regard;
- (d) whether India has set up defence corridors in the State of Uttar Pradesh and Tamil Nadu and offered attractive terms for investment in the defence sector in the country and if so, the details thereof;
- (e) whether the manufacturing under the agreement in India would lead to reduction in cost, reduction in timelines of the supplies and progressive indigenisation of spares and if so, the details thereof; and
- (f)  whether  India  has  also  signed  an  Inter-governmental  Agreement  (IGA)  with  Russia  on mutual  cooperation  in  joint  manufacturing  of  spares,  components,  aggregates  and  other materials  related  to  Russian  origin  arms  and  defence  equipments  and  if  so,  the  details thereof?

| A N S W MINISTER OF STATE IN THE MINISTRY OF DEFENCE   |               |
|--------------------------------------------------------|---------------|
| रक्षा राज्य मंत्री statement is attached.              | (a) to (f): A |

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (f)  OF  LOK SABHA UNSTARRED QUESTION NO. 1475 FOR ANSWER ON 27.11.2019

(a)  to  (  f):  Government  policies  and  initiatives  encourage  all  foreign  companies including  Russian  companies  to  set  up  their  manufacturing  facilities  in  the  country through partnerships/joint ventures with Indian companies. So far, 42 FDI proposals/Joint Ventures (JVs) have been approved for manufacture of various defence equipments, both in public and private sector which include 3 JVs with Russia viz. M/s Multirole  Transport  Aircraft  Ltd,  M/s  Indo-Russian  Helicopters  Ltd  and  M/s  Indo Russian Rifles Pvt Ltd. Recently, an Inter - Governmental Agreement (IGA) on Joint manufacturing of Spares, Components, Aggregates and other material related to Russian/ Soviet origin Arms  and  Defence  Equipment  was  signed  during  the  20 th India-Russia  Bilateral Summit held at Vladivostok on 04.01.2019. The objective of the IGA is to enhance the  After  Sales  Support  of  Russian  origin  equipment  currently  in  service  in  Indian Armed Forces through partnership of Russian OEMs with the Indian industry under the framework of 'Make in India' initiative. The IGA stipulates assurance of orders for  minimum  five  years  to  manufacturing  facilities  created  under  the  agreement subject  to  reduction  in  cost,  reduction  in  time  frame  of  supplies  and  ensuring progressive indigenisation of products in India. Government has decided to set up one corridor each in Uttar Pradesh and Tamil Nadu.  During the Aligarh meet on UP  Defence  Industrial Corridor held on 11.08.2018, investments of over Rs. 3700 Crore were announced by OFB/DPSUs/private industries for Uttar Pradesh Defence corridor. Similarly, during the  launch  of  Tamil  Nadu  Defence  Industrial  Corridor  held  at  Tiruchirappalli  on 20.01.2019, an investment of over Rs. 3100 crore was announced by OFB/DPSUs/private industries for Tamil Nadu Defence corridor.

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## ANNEXURE-I REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO 1475 FOR ANSWER ON 27.11.2019

## List of Agreements including IGA signed/proposed to be signed with Russia

- a) As  part  of  IGA  with  Russia,  Indian  Govt  is  procuring  04  Missile  Frigates  of Project 1135.6. While 02 Frigates will be constructed at Russia and 02 Frigates are scheduled to be constructed at GSL under collaboration with the Russian Side. GSL is interacting  with the following Russian agencies for this project through Rosoboronexport:
- i. Sovernoye Design Bureau - Project Documentation
- ii. Yantar Shipyard - Build Material Package
- iii. SSTC - Principle Technology Document
- b) BEL  is  in  discussions  with  M/s  Electropribor  Russia  with  regard  to  ToT  for Arrays for Doppler Velocity Log (DVL).
- c) MDL is involved in Ship and Submarine construction for Indian Navy. The major equipment are generally nominated by the customer i.e. IN. Long term requirement  of  spares  i.e.  Base  &  Depot  spares  is  decided  by  IN  and  same  is required to be procured from the OEMs. Further, MDL has tied up with following parties -
- i. Naval Group, France for Submarine construction
- ii. Thyssenkrupp Marine system, Germany for Submarine Refit/Repair
- d) BEML is in discussion for indigenous manufacture of components/aggregates for Russian origin Defence equipments.

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