Lok Sabha Question No. 598 (UNSTARRED), answered on 2020-02-05
Subject: Project under ‘Make in India’
Ministry: DEFENCE
Asked by: Ashok Mahadeorao Nete

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

## LOK SABHA UNSTARRED QUESTION NO.598

TO BE ANSWERED ON 5 th  February, 2020

## PROJECT UNDER 'MAKE IN INDIA'

598. SHRI ASHOK MAHADEORAO NETE:

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

- (a) whether 'Make in India' programme for Defence sector has been delayed and the projects are pending under the said programme;
- (b) if so, the details thereof along with the reasons therefor and the measures proposed to be taken for their immediate approval;
- (c) the names of the projects allotted to DRDO, Public Sector Undertakings (PSUs) and private companies in Defence sector;
- (d) whether the role of DRDO and Defence PSUs in this sector has been affected with the entry of private companies in Defence Sector; and
- (e) if so, the details thereof and the steps taken by the Government in this regard?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI SHRIPAD NAIK)

रक्षा राज्य मंत्री

( श्री श्रीपाद नाईक )

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

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## STATEMENT IN RESPECT OF PART (a) TO (e) OF LOK SABHA UNSTARRED QUESTION  NO.  598    FOR  ANSWER  ON  05.02.2020  REGARDING  'PROJECT UNDER 'MAKE IN INDIA''

(a) to (e):  Capital procurement of defence equipment is undertaken from various domestic as well as foreign vendors as per extant Defence Procurement Procedure (DPP) based on threat perception, operational challenges and technological change and to keep the Armed Forces in a  state  of  readiness  to  meet  the  entire  spectrum  of  Security  Challenges.    Details  of  Capital Procurement through Indigenous and Foreign sources for the period 2014-15 to 2018-19 are appended below:- (figures are in Rs. Crores)

| Year      | Total Procurement   | Procurement from Indian Vendors   | Procurement from Foreign Vendors   |
|-----------|---------------------|-----------------------------------|------------------------------------|
| 65,589.98 | 39,879.00           | 25,980.98                         | 2014-15                            |
| 62,341.86 | 39,149.63           | 23,192.23                         | 2015-16                            |
| 69,150.12 |                     | 41,872.03 27,278.09               | 2016-17                            |
| 72,732.29 |                     | 43,696.87 29,035.42               | 2017-18                            |
| 75,920.75 |                     | 38,963.69 39,957.06               | 2018-19                            |

Specific provisions have been introduced in Defence Procurement Procedure (DPP)2016  for  stimulating  growth  of  the  domestic  defence  industry.    A  new  category  of procurement 'Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)}' has been introduced in DPP-2016 to promote indigenous design and development of defence equipments.  This category has been accorded top most priority for procurement of capital equipment.   Besides  this,  preference  is  being  given  to  'Buy  (Indian)'  and  'Buy  and  Make (Indian)'  categories  of  capital  acquisition  over  'Buy  (Global)'  &  'Buy  &  Make  (Global)' categories.

Government  has  notified  the  'Strategic  Partnership  (SP)'  Model  which  envisages establishment  of  long-term  strategic  partnerships  with  Indian  entities  through  a  transparent and  competitive  process,  wherein  they  would  tie  up  with  global  Original  Equipment Manufacturers  (OEMs)  to  seek  technology  transfers  to  set  up  domestic  manufacturing infrastructure and supply chains.

As a result of all  the  above  efforts,  during  the  last  5  years  i.e.  2014-15  to  2018-19 Government  has  accorded Acceptance of Necessity (AoN)  to 204 proposals, worth Rs.4,04,949.24 Crore approximately under 'Buy (Indian-IDDM)', 'Buy (Indian)', 'Buy and Make (Indian)', 'Buy and make', Strategic Partnership Model or 'Make' categories of capital procurement  as  per  Defence  Procurement  Procedure  (DPP).    In  all  the  above  categories Indian Industry including PSUs and private sector would be engaged in defence manufacturing either through direct recipient of RFP or in collaboration with foreign OEMs and all  these  projects  are  in  different  stages  of  execution.    Besides,  DRDO  is  contributing immensely  towards  indigenous  R&D  and  technology  capability  building  and  has  a  strong partnership with about 1800 private sector industries.

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