Lok Sabha Question No. 2622 (UNSTARRED), answered on 2019-12-04
Subject: Defence Startups
Ministry: DEFENCE
Asked by: Pritam Gopinath Munde, P.P. Chaudhary, Chandra Sekhar Sahu

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

## LOK SABHA UNSTARRED QUESTION NO.2622

TO BE ANSWERED ON 4 th  December, 2019

## DEFENCE STARTUPS

2622. DR. PRITAM GOPINATHRAO MUNDE: SHRI P.P. CHAUDHARY: SHRI CHANDRA SEKHAR SAHU:

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

- (a) the number of startups in Defence sector in the country;
- (b) whether the Union Government is planning 250 defence startups over the next five years and if so, the details thereof;
- (c) whether the Union Government has identified the projects to be taken up under startup scheme and if so, the details thereof;
- (d)  whether  there  is  a  need  to  strengthen  research  and  development  in  defence manufacturing and if so, the steps  taken by the Union Government in this regard; and
- (e)  whether  the  Government  is  planning  to  expand  the  innovations  for  Defence Excellence Initiative and earmark at least Rs.500 crore for this initiative and if so, the steps  taken  by  the  Union  Government  to  bring  together  innovators  with  public  and private sector industry and to make India exporter of defence technologies?

## 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 REFERRED TO IN REPLY TO PARTS (a)  TO  (e)  OF  LOK SABHA UNSTARRED QUESTION NO.  2622 FOR ANSWER ON 04.12.2019 REGARDING 'DEFENCE STARTUPS'

- (a)    194  Start-ups  are  currently  registered  with  Start-up  India  operating  in  the Aeronautics, Aerospace & Defence sector

(b) to (e):

- I. Innovations  for  Defence  Excellence  (iDEX)  framework,  was  launched with  the  aim  to  achieve  self-reliance  and  to  foster  innovation  and technology development in Defence and Aerospace Sector by engaging Industries  including  MSMEs,  start-ups,  individual  innovators,  R&D institutes and academia.  44 iDEX winners have so far been identified for  14  problem  statements.    3  new  problem  statements  have  been launched recently to expand the network.
- II. Apart  from  the  above,  DRDO  has  launched  a  program  termed  as Technology Development Fund (TDF) for meeting the requirements of Tri-Services,  Defence  Production  and  DRDO.    The  scheme  has  been established  to  promote  self-reliance  in  Defence  Technology  as  part  of the 'Make in India' initiative by encouraging participation of public/private industries especially MSMEs.
- III. Further,  'Make-II'  procedure  has  been  simplified  to  encourage  wider participation of Indian industry, with impetus for MSME/start-ups sector and  timely  induction  of  equipment  into  Indian  Armed  forces.    The 'Start-ups'  recognized  by  Department  for  Promotion  of  Industry  and Internal  Trade  (DPIIT)  from  time  to  time,  are  eligible  to  participate under 'Make-II' procedure. In addition, the frame work for implementation  of  'Make-II'  at  OFB  and  DPSU  level  has  also  been notified.
- IV. Defence Research & Development Organisation (DRDO) has evolved a new  industry  friendly  ToT  policy  for  transfer  of  DRDO  developed technologies  to  industries.    DRDO  has  also  promulgated  new  patent policy  to  facilitate  Indian  industries  to  get  free  access  to  use  DRDO patents.
- V. Following policy initiatives have been undertaken by the Government to promote Defence Exports:-
- i. Standard Operating Procedure (SOP) for the export of munitions list  items  has  been  simplified  to  reduce  the  processing  time  for export authorizations.

- ii. A completely end-to-end online portal for receiving and processing  authorization  permission  has  been  developed.    The applications submitted on this portal are digitally signed and the digitally signed authorization are issued.
- iii. The Government has notified the Open General Export License (OGEL) - a one time export license, which permits the industry to export specified items to specified destinations, enumerated in the OGEL, without seeking export authorisation on case to case basis during the validity of the OGEL.
- iv. Scheme for Promotion of Defence Exports has been notified to provide an opportunity to the prospective exporters an option to get their product certified by the Government and provides access to  the  testing  infrastructure  of  Ministry  of  Defence  for  initial validation  of  the  product  and  its  subsequent  field  trials.    The certificate  can  be  produced  by  the  prospective  exporter  for marketing their products suitably in the global market.
- v. A separate Cell has been formed in the Department of Defence Production to co-ordinate and follow up on export related action including enquiries received from various countries and facilitate private sector and public sector companies for export promotion.
- vi. Defence  attaches  are    tasked  to  take  up  actions  for  promoting exports  of  Indian  made  defence  products  both  of  public  and private sector in the countries to which they are attached.
- vii. DRDO provides all necessary support to the industries for export of DRDO designed & developed product(s). DRDO has evolved a compendium of 'DRDO Developed Product with Potential for Export',  which  provides  the  necessary  and  handy  information about the products ready for export.

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