Lok Sabha Question No. 310 (STARRED), answered on 2019-01-02
Subject: Defence Projects
Ministry: DEFENCE
Asked by: GAURAV GOGOI, JYOTIRADITYA MADHAVRAO SCINDIA

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

## LOK  SABHA STARRED QUESTION NO.310

TO BE ANSWERED ON THE 2 ND  JANUARY, 2019

## DEFENCE PROJECTS

*310.  SHRI  GAURAV GOGOI:

SHRI  JYOTIRADITYA  M. SCINDIA:

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

- (a) whether  it  is  a  fact  that  no  major  'Make-in-India'    projects  in  defence  have actually kicked off in the last three years;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether  stock  taking  of  several  mega  defence  projects  collectively  worth  over Rs.3.5 lakh crore remain stuck at different stages without the final contract being inked; and
- (d) if  so, the facts and the details thereof and the steps the Government has taken to break the bureaucratic and other logjams in various defence projects?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                    (SMT. NIRMALA SITHARAMAN)

j{kk ea=h

¼Jherh  fueZyk lhrkje.k )

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(a) to (d): A Statement is laid on the Table of the House.

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## STATEMENT  REFERRED TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO. 310 FOR ANSWER ON 2.1.2019

1. No, Madam.  Several 'Make in India' projects have taken off.  These include Surface  to  Air  Missile  System  'Akash',  155  mm  x  45  calibre  Artillery  Gun 'Dhanush', Attack Submarine 'INS Kalvari', Weapon Locating Radar 'Swati', High Speed Heavy Weight Ship launched Torpedo 'Varunastra' etc.
2. During the last three financial years i.e. 2015-16  to  2017-18, Government has accorded Acceptance of Necessity (AoN) to 111 proposals, worth Rs.1,78,900 Crore  approximately  under  'Buy  (Indian-IDDM)',  '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 the Indian Vendors.
3. During the last three financial years i.e. 2015-16  to  2017-18, 99 contracts worth about Rs.65,471 Crore have been signed with Indian vendors for procurement of defence equipment for Armed forces.
4. The steps taken by the Government to expedite and fast track the capital acquisition projects include:
5. (i) Defence  Procurement  Procedure  (DPP)  has  been  revised  in  2016 wherein specific provisions have been introduced to make the procurement process more efficient and effective.  These include:
6. (a) Technical  Evaluation  Committee  (TEC)  report  to  be  approved  by SHQs.
7. (b) Delegation of powers in approval process.
8. (c) Acceptance  of  Necessity  (AoN)  validity  has  been  reduced  to  six months  (from  one  year)  for  'Buy'  cases  and  to  one  year  (from  two years) for 'Buy & Make (Indian)' cases.
9. (d) Draft  Request  for  Proposal  (RFP)  has  to  accompany  Statement  of Case (SoC) for AoN.
10. (e) Cases  with  AoN  value  of  more  than  Rs.150  Crore  to  be  directly brought  before  Services  Capital  Acquisition  Plan  Categorisation Higher  Committee  (SCAPCHC)  thereby  eliminating  initial  placement of such cases before Services Capital Acquisition Plan Categorisation Committee (SCAPCC) etc.
11. (f) Simplification of 'Make' procedure.
12. (g) Promulgation of separate simplified procedure for 'Make-II' subcategory of 'Make' procedure in February 2018.
13. (ii) The Government has issued guidelines for Penalties in Business Dealing with Entities.
14. (iii) The  Government  has  issued  guidelines  for  handling  of  complaints  in respect of procurements under Defence Procurement Procedure.
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