Lok Sabha Question No. 1531 (UNSTARRED), answered on 2018-12-19
Subject: New and Innovative Defence Production Projects
Ministry: DEFENCE
Asked by: POONAMBEN HEMATBHAI MAADAM

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

## LOK  SABHA UNSTARRED QUESTION NO.1531

TO BE ANSWERED ON THE 19 TH  DECEMBER, 2018

## NEW AND INNOVATIVE DEFENCE PRODUCTION PROJECTS

## 1531.  SHRIMATI POONAMBEN MAADAM:

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

- (a) whether  the  Government  proposes  to  promote  new  and  innovative  defence production projects under Make in India programme;
- (b) if so, the details thereof  and the details of projects given approval during the last three years;
- (c) whether  certain  projects  particularly  manufacturing  of  small  arms  are  not  given approval  even  though  the  Ordnance  Factory  Board  had  given  its  approval  and  the company validation was done;
- (d) the details  of  the projects  lying  pending during each of the last three  years; and
- (e) the decision taken by the Government and the Ordnance Factory Board (OFB) in this regard and to expedite the process of approval?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

र  ा रा य मं ी

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

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(DR. SUBHASH BHAMRE)

(डा. सुभाष भामरे)

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK SABHA UNSTARRRED QUESTION NO. 1531 FOR ANSWER ON 19.12.2018

1. Government  has  taken  several  initiatives  to  promote  new  and innovative  defence  production  projects  under  'Make  in  India'  in  the  past four  years  such  as  introduction  of  Buy  (Indian-IDDM)  category  of  capital acquisition, promulgation of separate 'Make-II' procedure , launch of iDEX (Innovations in Defence Excellence) scheme, launch of Technology Development Fund (TDF) Scheme, etc.

In the last three financial years i.e. from  2015-16 to 2017-18, Government has accorded Acceptance of Necessity (AoN) to 111 proposals,  worth  Rs.1,78,900  Crore  approximately  under  'Buy  (IndianIDDM)',  'Buy  (Indian)',  'Buy  and  Make  (Indian)'  or  'Make'  categories  of capital procurement as per Defence Procurement Procedure (DPP), which means Request for Proposal (RFP) is issued only to Indian Vendors. These proposals  are  progressed  as  per  the  guidelines  stipulated  in  DPP.  In addition, all the procurement schemes are regularly reviewed and prioritized on the basis of critical operational needs of the Armed Forces.

2. With  regard  to  manufacturing  of  small  arms,  the  Expression  of Interest (EoI) for identifying / shortlisting Original Equipment Manufacturer (OEM) for collaboration in the production of small arms for civilian market was issued by Ordnance Factory Board (OFB) in 2015. Meanwhile, in the changed  scenario,  OFB  shifted  its  focus  from  manufacturing  of  civilian weapon  to  manufacturing  weapons  for  Services  and  Ministry  of  Home Affairs  (MHA).  The  proposal  for  selection  of  partner  for  co-production  of Non-Prohibited Bore (NPB) weapons has been dropped by OFB.

:  2  :

In the last three years, seven global EoIs including small arms, have been floated by OFB. The status of the same is as under:

|   Sr. No. | Item                             | Status                                                                                                                                                                                                                                                                                                 |
|-----------|----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | Air Defence Gun Ammunition       | & Closed                                                                                                                                                                                                                                                                                               |
|         2 | 70mm Rocket                      | Closed                                                                                                                                                                                                                                                                                                 |
|         3 | Assault Rifle 7.62mm             | Closed                                                                                                                                                                                                                                                                                                 |
|         4 | Non-Prohibited Bore Pistol (NPB) | Closed                                                                                                                                                                                                                                                                                                 |
|         5 | Mini Truck                       | Closed                                                                                                                                                                                                                                                                                                 |
|         6 | Mounted Gun Sy stem              | EOI for selection of technology partner was floated for participation in the forthcoming Request for Proposal (RFP) for 155mm Mounted Gun System to be issued by the Army HQ. MoU has been signed by OFB in August 2017 with M/s BAE Systems, USA with validity of two years from the date of signing. |
|         7 | Air Defence Gun for Indian Army  | Closed                                                                                                                                                                                                                                                                                                 |

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