Lok Sabha Question No. 1242 (UNSTARRED), answered on 2018-07-25
Subject: PSUs in Defence
Ministry: DEFENCE
Asked by: RAJENDRA AGRAWAL

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

## LOK  SABHA

## UNSTARRED QUESTION NO.1242

TO BE ANSWERED ON THE 25 TH  JULY, 2018

## PSUs IN DEFENCE

## 1242.  SHRI  RAJENDRA AGRAWAL:

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

- (a) the  details  of  the  Public  Sector  Undertakings  (PSUs)  under  the  administrative control of her Ministry;
- (b) whether  the  Government  has  signed  a  Memorandum  of  Understanding  with foreign  countries  for  production  of  equipment  and  if  so,  the  details  thereof,  companywise;
- (c) whether the Government has any plan to revitalize and make Defence PSUs and Ordnance  factories  more  dynamic  and  if  so,  the  details  thereof  along  with  the  action taken by the Government so far; and
- (d) the steps taken / being taken by the Government to modernize?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

र  ा रा य मं ी

(a) to (d): A statement is attached.

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(DR. SUBHASH BHAMRE)

(डा. सुभाष भामरे)

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK SABHA UNSTARRED QUESTION NO. 1242 FOR ANSWER ON 25.7.2018

- (a) There are 9 Public Sector Undertakings (PSUs) under the administrative  control  of  Department  of  Defence  Production,  Ministry  of Defence as per following details:
- (1) Hindustan Aeronautics Limited, HAL.
- (2) Bharat Electronics Limited, BEL.
- (3)
- Bharat Earth Movers Limited, BEML.
- (4)
- Bharat Dynamics Limited, BDL.
- (5) Garden Reach Shipbuilders & Engineers Limited, GRSE.
- (6)
- Goa Shipyard Limited, GSL.
- (7) Hindustan Shipyard Limited, HSL.
- (8)
- Mishra Dhatu Nigam Limited, MIDHANI.
- (9) Mazagon Dock Shipbuilders Limited, MDL.
- (b)    The  details  of  Memorandum  of  Understanding  (MoU)  signed  by Ordnance  Factory  Board  (OFB)  and  Defence  Public  Sector  Undertakings (DPSUs) with Foreign Countries for production of equipments are as under:
- i. OFB:  Ordnance  Factory  Board  has  signed  only  one  MoU  with M/s  BAE  systems,  Sweden  for  development  in  production  of 155mm Mounted Gun system.
- ii. HAL:  To implement Inter  Government  Agreement  (IGA)  for manufacture  of  Kamov  Ka-226T  helicopters  in  India,  a  Joint Venture Company (JVC) between Hindustan Aeronautics Limited, Russian Helicopters and Rosoboronexport has been incorporated  in  May  2017,  as  Indo  Russian  Helicopters  Ltd (IRHL).
- iii. BDL:  Bharat  Dynamics  Limited  has  signed  following  MoU  with Foreign Countries:
- M/s  THALES, UK :  Transfer of  Technology  of State Streak Missile System.
- M/S  Chemring  UK:  Transfer  of  Technology  for  Chaffs  and Flares.

:  2  :

- iv. BEL: Details of major Transfer of Technology agreements signed with  foreign  companies  in  the  defence  sector  for  production  of equipment are given below:
- v. GSL: Goa Shipyard Limited has signed following MoU with Foreign Countries:
3. MoU  with  M/S  NAIAD,  UK  for  Indigenous  manufacturing  of Steering Gear and Fin / Roll Stabilisers.
4. MoU  with  M/S  FHS,  Germany  for  Indigenous  manufacturing  of Helicopter Landing Grid, Traversing System and Hanger Doors.
5. MoU with M/S Griffon, UK for range of Amphibious hovercrafts for Indian Army, Indian Navy & Coast Guard.
6. MoU  with  M/s  DCNS,  France  (Now  Naval  Group,  France)  for setting  up  of  advanced  submarine  escape  training  tower(Sett), IPMS Simulator and Combat Management Simulator for Submarine of Indian Navy.
7. MoU  with  Thales,  France  for  Transfer  of  Technology  for  Hull Mounted sonar, sweep system, Mcube CMS and Towed side scan sonar (TSAS) for forthcoming MCMV project.
8. MoU with DRASS, ITALY for midget submarines scheduled to be constructed by Hindustan Shipyard Limited.
9. MoU with MITU Friedrichshafen GMBH for indigenous manufacturing of MTU Engine series 8000MXIL.

| Company                                       | Project                                                              |
|-----------------------------------------------|----------------------------------------------------------------------|
| Elbit Systems Electro-Optics ELOP Ltd, Israel | Compact Multi-purpose Advanced Stabilized system (COMPASS)           |
| Reshef Technologies Israel                    | Percussion, Time and Proximity Fuzes Setter for Artillery Ammunition |
| INDRA Sistemas, Spain                         | Mobile Ground Based ELINT System (MGBES)                             |
| Thales Air Systems, France                    | Low Level Transportable Radar (LLTR)                                 |

- vi. GRSE:  Garden Reach Shipbuilders & Engineers Limited (GRSE) has signed following MoU with Foreign Countries:
2. Marine  Diesel  Engine:  GRSE  has  signed  a  License  Agreement with  M/s  MTU  Friedrichshafen  GmbH,  Germany  on  04 th March 2017 for Indigenization of MTU 12V/16V4000M90 Diesel Engines.
3. Rail LessHelo Traversing System: GRSE has a License Agreement for a period of 10 years with M/s Mac Teggart, Scott & Co. Ltd. UK regarding indigenization and supply of Rail Less Helo Traversing  System  for  Warships  and  other  ships  within  the periphery of India.
4. Memorandum of Understanding between GRSE & CDCL, Bhutan: The  Memorandum  of  Understanding  (MoU)  for  promulgation  of export business and cooperation on mutual interests was signed between  GRSE  and  M/s  Construction  Development  Corporation Ltd  (CDCL),  a  state  owned  company  under  Druk  Holdings  and Investments  [DHI],  Royal  Government  of  Bhutan  on  19 th March 2018  for  procurement  of  components,  equipment  &  services  of GRSE manufactured Pre-Fabricated Portable Bridges.
5. Signing  of  Memorandum  of  Understanding  between  GRSE  & ELBIT Systems Ltd., Israel: GRSE has tied up with Elbit, Israel to develop  and  market  a  multi-mission  Unmanned  Surface  Vessel (USV).

The MoU between GRSE and ELBIT Systems Ltd., Israel that became  effective  from  27 th March  2018  was  formally  signed  on 11 th April 2018 during the Def-Expo-2018 at Chennai.

- Signing  of  Memorandum  of  Understanding  between  GRSE  & Khulna  Shipyard  Limited,  Bangladesh:  The  MoU  between  GRSE and Khulna Shipyard Limited, Bangladesh was signed on 08 th May 2018. Khulna Shipyard Limited (KSY),an independent commercial enterprise under Ministry of Defence, Government of Bangladesh and operated by Bangladesh Navy earlier expressed their keenness  to  develop  their  skill  &  know-how  for  design  and construction of ships at their facility at Khulna, Bangladesh and other subsidiary locations under them.

- vii. MIDHANI: MIDHANI has signed following MoU with Foreign Countries:
2. M/S Coresol, USA.
3. M/S Viam, Russia.
4. M/S Ukroboronprom, Ukraine.
- viii. HSL: Hindustan Shipyard Limited has signed a Memorandum of Understanding  with  JSC  United  Shipbuilding  Corporation,  Russia  for cooperation  in  construction  of  civil  vessels,  vessels  &  crafts  for  use  in inland Waterways of Andhra Pradesh and Cooperation in area of Military & Technical  Cooperation  (including  development/  upgradation  production facilities in India to ensure comprehensive after sales service of delivered Navy  Products)  following  RFPs  from  Indian  side  duly  approved  by  the Russian authorities (FSMTC of Russia).
6. (c) DPSUs have been instrumental in developing a robust Defence manufacturing  eco-system  in  the  country.  DPSUs  aim  to  be  lead  integrators, primarily through robust private partnership, while retaining its core competencies,  thus  ensuring  availability  of  a  vibrant  defence  manufacturing system in the country. To strengthen and consolidate Research and development functions, DPSUs  / Ordnance  factories are taking research assistance from academic institutes like IIT, NITs etc. The Government has also been  encouraging  all  DPSUs  for  their  meritorious  performance  by  conferring Raksha Mantri awards.

Moreover, DPSUs and Ordnance Factories have been permitted to export up  to  10%  of  their  annual  production.  For  items  where  there  is  a  capacity constraint, in  DPSUs export, they would be required to ramp up their capacity accordingly in subsequent years. The strategy provides for creation of an Export Promotion  Body,  engaging  Indian  Missions  /  Embassies  abroad  in  export promotion, better use of offset policy, export of indigenously developed defence systems and streamlining of the export regulation process. Standard Operating Procedure (SOP) for issue of 'Authorisation' for export has been simplified and put in public domain and requirement of Government signed End User Certificate (EUC) for export of parts and components and other non-sensitive military store, sub-assemblies, sub-systems has been done away with.

- (d)        Modernizing  the  existing  Production  facilities  is  a  continuous  process  of DPSUs.  Modernization  is  taken  up  to  enhance  capability  and  capacity.  This includes  up-gradation  of  technology  through  establishment  of  new  processes, state-of-the  art  manufacturing  and  design  facilities  with  an  aim  of  increased productivity efficiency and improved work condition.

DPSUs have modernized its infrastructure by increasing capital expenditure to meet the requirements of Indian Armed forces.

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