Lok Sabha Question No. 135 (UNSTARRED), answered on 2018-07-18
Subject: Delay in According Approval
Ministry: DEFENCE
Asked by: P.R. SUNDARAM, PR. SENTHILNATHAN, V. SATHYABAMA, R.K. BHARATHI MOHAN

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

## LOK  SABHA UNSTARRED QUESTION NO.135

TO BE ANSWERED ON THE 18 TH  JULY, 2018

## DELAY IN ACCORDING APPROVAL

## 135. SHRI P.R. SUNDARAM:

SHRI PR. SENTHIL NATHAN: SHRIMATI V. SATHYA BAMA: SHRI BHARATHI MOHAN R.K.:

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

- (a) whether the Union Government has taken any decision on the complaints raised by the  Hon'ble  Members  of  Parliament  (MPs)  for  the  prolonged  delay  in  according  the approval to the Memorandum the approval to the Memorandum of Understanding (MoU) between  Original  Equipment  Manufacturer  (OEM)  and  Grand  Power  Slovakia  S.R.O. under the Public Private Partnership project; and
- (b) if  so,  the  details  thereof  and  the  Government's  reaction  on  this  issue  and  the stringent  measures  taken  /  being  taken  by  the  Government  to  take  action  against  the officials who have deliberately taken a very long time of three years and are yet to decide on this issue?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

र  ा रा य मं ी

(a) & (b): A Statement is attached.

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(DR. SUBHASH BHAMRE)

(डा. सुभाष भामरे)

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) & (b) OF LOK SABHA UNSTARRED QUESTION NO. 135 FOR ANSWER ON 18.07.2018

(a) & (b): A letter was received from an Hon'ble MP (LS) in October 2017 with  a  request  to  expedite  the  proposal  under  'Make  in  India'  program, Public - Private Partnership program [DCD Grand Power & Grand Power Ordnance  Factory  Board  (OFB)]  for  co-production  of  latest  technology small arms. Another  letter  was  received  in  March  2018  from  the  same  Hon'ble M.P.  stating  that  even  after  the  due  process,  the  Department  of  Defence Production  (DDP)  has  sent  back  the  proposal  to  OFB  citing  incorrect procedure followed and also lack of Standard Operating Procedure (SOP) with  OFB.    The  reply,  clarifying  the  status  of  the  case,  was  sent  to  the Hon'ble M.P. in May 2018, based on the grounds enumerated below: The  proposal  for  signing  of  Memorandum  of  Understanding  (MoU) was forwarded by OFB to the DDP in March 2017.  The MoU was returned to OFB in July 2017 as it was found deficient in terms of procedure followed. Earlier  in  September  2016,  OFB  had  been  asked  to  formulate  a  Standard Operating Procedures (SOP)  for  selection of  the technology  partners.   In October  2017,  OFB  stated  that  the  criterion  adopted  for  the  selection  of prospective partner has been clearly defined in the Expression of Interest (EoI)  issued  by  them.    Pending  approval  of  the  Standard  Operating Procedures (SOP) for the selection of technological partner, the proposal for  MoU  between  M/s  Grand  Power  and  OFB  was    returned  to  OFB  in January 2018 intimating that the same would be progressed based on the approved  Standard  Operating  Procedures  (SOP)  for  the  selection  of technological partner.  The revised Standard Operating Procedures (SOP) for the selection of technological partner, incorporating the suggestions of the  Ministry,  was  submitted  by  the  OFB  in  February  2018  which  after examination was approved by the Ministry in March 2018. Now,  because  of  the  change  in  scenario  of  the  requirement  of  the small arms, Rifle Factory Ishapore, Kolkata is engaged in the development of  small  arms  weapons  to  meet  the  requirement  of  Indian  Army  and Ministry  of  Home  Affairs  (MHA)  units.    The  available  resources  of  Rifle Factory,  Ishapore  are  being  used  for  the  development  and  production  of Small  arms  weapons  for  the  Services  and  the  MHA.    The  need  for technology partner for coproduction of NPB weapons is not felt in view of the changed circumstances.

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