Lok Sabha Question No. 1727 (UNSTARRED), answered on 2020-09-21
Subject: Ordnance Manufacturing Industries and Laboratories
Ministry: DEFENCE
Asked by: Uday Pratap Singh

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

## LOK SABHA UNSTARRED QUESTION NO.1727

TO BE ANSWERED ON 21 st  SEPTEMBER, 2020

## ORDNANCE MANUFACTURING INDUSTRIES AND LABORATORIES

## 1727. SHRI UDAY PRATAP SINGH:

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

- (a) whether the Government is considering to set up ordnance manufacturing industries and laboratories in the country including Madhya Pradesh to increase the defence capabilities and upgrade defence equipments in the country and if so, the details thereof;
- (b) the steps taken to strengthen the armed forces and upgrade defence equipments during the last three years and the current year;
- (c) whether recently the Government has launched any scheme with the private industry or foreign  entities  to  design  and  develop  indigenous  defence  equipments  under  the  'Make  in India Programme'; and
- (d) if so, the details thereof?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI SHRIPAD NAIK)

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

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA UNSTARRED  QUESTION  NO.  1727  FOR  ANSWER  ON  21.09.2020  REGARDING 'ORDNANCE MANUFACTURING INDUSTRIES AND LABORATORIES'.

(a) & (b): No Sir. At present, there is no proposal under consideration for establishing new ordnance industries and laboratories by the Government. Defence Public Sector Undertakings,  Ordnance  Factory  Board  and  the  private  industries  have  supplied  various Defence Equipment such as missiles, torpedoes, Offshore Patrol Vessels, radars, electronic warfare  systems,  avionics,  sonar,  fire  control  systems,  survey  vessels,  assault  bridges, armoured  recovery  and  repair  vehicle,  high  mobility  vehicle,  submarines,  155mmx45 Artillery  Gun  Systems,  Commander's  Thermal  Imaging  Sights  for  battle  tanks,  Bridge Laying Tank,    Upgraded  Anti-Aircraft  Gun  L-70,  40mm  Under Barrel  Grenade  Launcher, Armoured NBC Reccee Vehicle etc to the armed forces to strengthen them.

(c)  &  (d):  The  Government  has  taken  the  following  policy  initiatives  to promote 'Make  in India' in defence sector: -

- i. Separate procedure for 'Make-II' category (Industry funded) has been notified to encourage indigenous development and manufacture of defence equipment. Number of industry friendly provisions  such as relaxation of eligibility  criterion, minimal documentation, provision for considering proposals suggested by industry/individual etc. have been introduced in this procedure.
- ii. Under  'Atmanirbhar  Bharat'  campaign  of  Govt  of  India,  Ministry  of  Defence (MoD) has prepared a list of 101 items for which there would be an embargo on the  import  beyond  the  timeline  indicated  against  them.  This  would  offer  a  great opportunity to the Indian defence industry to manufacture these  items using their own design and development capabilities to meet the requirements of the Armed Forces  in  the  coming  years.  This  list  includes  some  high  technology  weapon systems  like  artillery guns,  assault  rifles,  corvettes,  sonar  systems,  transport aircrafts, light combat helicopters (LCHs), radars and many other items to fulfil the needs of our Defence Services.
- iii. An  innovation  ecosystem  for  Defence  titled  Innovations  for  Defence  Excellence (iDEX)  has  been  launched  in  April,  2018.  iDEX  is  aimed  at  creation  of  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  and  provide  them  grants/funding  and other support to carry out R&D which has potential for future adoption for Indian defence and aerospace needs.
- iv. Government  has  notified  a  'Policy  for  indigenisation  of  components  and  spares used in Defence Platforms' in March, 2019 with the objective to create an industry ecosystem which is able to indigenize the imported components (including alloys &  special  materials)  and  sub-assemblies  for  defence  equipment  and  platform manufactured in India.

- v. In  February,  2018,  Government  decided  to  establish  two  defence industrial corridors  to  serve  as  an  engine  of  economic development  and  growth of defence industrial  base  in  the  country.  They  span  across  Chennai,  Hosur,  Coimbatore, Salem  and  Tiruchirappalli  in  Tamil  Nadu  and  across  Aligarh,  Agra,  Jhansi, Kanpur, Chitrakoot and Lucknow in Uttar Pradesh (UP).
- vi. In  order  to  bring  more  transparency  and  efficiency  into  the  Offset  discharge process, 'Offset portal' has been created in May, 2019.
- vii. Defence  Investor  Cell  has  been  created  in  February,  2018  in  the  Ministry  to provide all necessary information including addressing queries related to investment opportunities, procedures and regulatory requirements for investment in the sector.
- viii. Under the Public Procurement Order 2017, Department of Defence Production has notified  list  of  24  items  for  which  there  is  local  capacity  &  competition  and procurement of these items shall be done from local suppliers only irrespective of the purchase value.
- ix. DRDO  has  established  Technology  Development  Fund  (TDF)  Scheme  under 'Make in India' initiative to promote Self Reliance in Defence Technology and to create  an  eco-system  for  enhancing  cutting  edge  technology  capabilities  by inculcating R&D culture in Industry.
- x. The Government has revised the extant FDI Policy in defence sector and enhanced FDI in defence industry from 49% to 74% under automatic route for companies seeking new industrial licenses.

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