Lok Sabha Question No. 3796 (UNSTARRED), answered on 2019-12-11
Subject: New Defence Projects
Ministry: DEFENCE
Asked by: Dr. T. Sumathy (a) Thamizhachi Thangapandian

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

## LOK SABHA UNSTARRED QUESTION NO.3796

TO BE ANSWERED ON 11 th  December, 2019

## NEW DEFENCE PROJECTS

3796. DR. T. SUMATHY (a) THAMIZHACHI THANGAPANDIAN:

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

- (a)  whether  the  Government  has  taken  special  measures  to  promote  new  and innovative  defence  production  projects  under  the  'Make  in  India'  programme  in Tamil Nadu and other States;
- (b) if so, the details thereof and the list of projects given approval during the last five years;
- (c)  whether  the  Government  has  taken  keen  note  on  certain  defence  production projects  particularly  in  the  manufacturing  of  small  arms  under  the  'Make  in  India' programme are not been given approval by the Ordnance Factory Board;
- (d) if so, the details thereof and the list of those projects pending for approval during the last five years, year-wise; 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

(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) LOK SABHA UNSTARRED QUESTION NO. 3796 FOR ANSWER ON 11.12.2019 REGARDING 'NEW DEFENCE PROJECTS'.

- (a)  Yes, Sir.
- i. A  new  category  of  procurement  'Buy  {Indian-IDDM  (Indigenously Designed,  Developed  and  Manufactured)}'  has  been  introduced  in Defence  Procurement  Procedure  (DPP)-2016  to  promote  indigenous design and development of defence equipment.
- ii. The 'Make' Procedure has been simplified with provisions for funding of 90% of development cost by the Government to Indian industry and reserving Government funded Make-I projects not exceeding development cost of Rs. 10 Crore & procurement cost Rs. 50 Crores per year  for  MSMEs.    Industry  funded  Make-II  Projects  not  exceeding development cost of Rs. 3 Crore & procurement cost Rs. 50 Crores per year have also been reserved for MSMEs.
- iii. A  separate  procedure  for  'Make-II'  category  has  been  notified  to encourage indigenous development and manufacture of defence equipment including provisions such as relaxation of eligibility criterion,  minimal  documentation,  provision  for  considering  proposals suggested by industry/individual etc.
- iv. 'Innovations  for  Defence  Excellence  (iDEX)'  was  launched  in  April, 2018  to  create  an  ecosystem  to  foster  innovation  and  technology development in Defence and Aerospace by engaging Industries including MSMEs, Start-ups, Individual Innovators, R&D institutes and Academia including grants/fund.
- v. The 'Strategic Partnership (SP)' Model for establishment of long-term strategic  partnerships  with  Indian  entities  through  a  transparent  and competitive  process,  enabling  tie  up  with  global  Original  Equipment Manufacturers  (OEMs)  for  technology  transfers  to  set  up  domestic manufacturing infrastructure and supply chains was notified.

- vi. FDI Policy  has  been  revised  to  allow  FDI  under  automatic  route  upto 49%  and  beyond  49%  through  Government  approval  for  technology acquisition etc.
- vii. A 'Policy for Indigenisation of Components and Spares used in Defence Platforms'  was  notified  in  March,  2019  to  support  indigenization  of imported components (including alloys & special materials).
- viii.  'Mission  Raksha  Gyan  Shakti'  was  notified  in  November,  2018  to support Intellectual Property Rights (IPR) culture in indigenous defence industry.
- ix. Defence Products list requiring Industrial Licences was rationalised and initial  validity  of  the  Industrial  Licence  granted  under  the  IDR  Act increased from 03 years to 15 years with provision of extension by 03 years.
- x. 112  items  were  notified  under  Public  Procurement  Order  2017  of Department  for  Promotion  of  Industry  and  Internal  Trade  (DPIIT) whereby Defence PSUs/OFB give preference to deomestic manufacturers in procurement.
- xi. Government  announced  two  defence  industrial  corridors  to  promote defence industrial base in the country in Tamil Nadu and Uttar Pradesh (UP).

(b)    In  the  last  five  financial  years  i.e.  from  2014-15  to  2018-19,  Government  has accorded Acceptance of Necessity (AoN) to 204 proposals worth Rs. 4,04,880 Crore approximately under 'Buy (Indian-IDDM)', 'Buy (Indian)', 'Buy and Make (Indian)', 'Strategic  Partnership  Model'  or  'Make'  categories  of  capital  procurement  as  per Defence Procurement Procedure (DPP) - 2016, in which Request for Proposal (RFP) is issued only to Indian Vendors.

(c) to (e):  No project proposal for manufacturing of Small Arms under the 'Make in India' program is pending approval by Ordnance Factory Board.

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