Lok Sabha Question No. 3864 (UNSTARRED), answered on 2019-12-11
Subject: Procurement and Production of Defence Equipments
Ministry: DEFENCE
Asked by: Gautham Sigamani Pon, S.R. Parthiban

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

## LOK SABHA UNSTARRED QUESTION NO.3864

TO BE ANSWERED ON 11 th  December, 2019

## PROCUREMENT AND PRODUCTION OF DEFENCE EQUIPMENTS

3864. SHRI GAUTAM SIGAMAANI PON: SHRI PARTHIBAN S.R.:

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

- (a)  the  details  of  procurement  and  production  of  defence  equipment  undertaken during the last five years;
- (b) whether any targets have been set for the next five years regarding production of indigenous defence equipments and if so, the details thereof;
- (c) if not, the framework made by the Government in this regard;
- (d) the details of the policies regarding the manufacturing of state-of-the-art defence products; and
- (e) the details of the efforts made by the Government for the transfer of state-of-the-art defence technology to India?

## A    N    S    W    E    R

MINISTER OF STATE

(SHRI SHRIPAD NAIK)

IN THE MINISTRY OF DEFENCE

रक्षा राज्य मंत्री

( श्री श्रीपाद नाईक )

(a) to (e):  A Statement is attached.

*****

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  TO  (e)  OF  LOK SABHA UNSTARRED QUESTION NO. 3864 FOR ANSWER ON 11.12.2019 REGARDING 'PROCUREMENT AND PRODUCTION OF DEFENCE EQUIPMENTS'.

- (a) The details of procurement and production of defence equipments in the last five years i.e.  2014-15 to 2018-19 is given in the table below:-
- (b)  & (c):    Targets  for  the  production  of  indigenous  defence  equipment are decided based  on  requirements  of  the  Armed  Forces.    Armed  Forces  undertake  Capital procurement of defence equipment from various domestic as well as foreign vendors, based on threat perception, operational challenges and technological changes so as to keep the Armed Forces in a state of readiness to meet the entire spectrum of security challenges.
- (d)  &  (e):    Government  has  undertaken  following  policy  initiatives  for  indigenous manufacturing  of  state-of-the-art  defence  products  and  transfer  of  state-of-the-art defence technology to India :-
- i. Specific  provisions  have  been  introduced  in  Defence  Procurement Procedure (DPP) under 'Buy and Make (Indian)' and 'Buy and Make' category, wherein indigenous production is carried out with Transfer of Technology  (ToT)  from  foreign  Original  Equipment  Manufacturer (OEM).    Another category of 'Buy {Indian-IDDM  (Indigenously Designed,  Developed  and  Manufactured)}'  provides  for  indigenous design  and  development  of  defence  equipment  and  this  category  has been accorded top most priority for procurement of capital equipment.
- ii. Discharge of offset obligations by foreign OEMs through ToT to Indian enterprises including government institutions has been incorporated.

|         |         |   (Value in Rs Cr) |
|---------|---------|--------------------|
| 2014-15 | 65860   |            46390   |
| 2015-16 | 62341.9 |            52773.7 |
| 2016-17 | 69150.1 |            55614.3 |
| 2017-18 | 72732.3 |            58330   |
| 2018-19 | 75920.8 |            58246   |

- iii. Government has notified the 'Strategic Partnership (SP)' Model which envisages establishment of long-term strategic partnerships with Indian entities  through  a  transparent  and  competitive  process,  wherein  they would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfer to set up domestic manufacturing infrastructure and supply chains.
- iv. 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.
- v. Apart from the above, Defence Research & Development Organisation (DRDO) has launched a program termed as Technology Development Fund  (TDF)  for  meeting  the  requirements  of  Tri-Services,  Defence Production  and  DRDO.    The  scheme  has  been  established  to  promote self-reliance  in  Defence  Technology  as  part    of  the  'Make  in  India' initiative by encouraging participation of public/private industries.
- vi. FDI  Policy  has  been  revised  and  under  the  revised  policy,  FDI  is allowed  under  automatic  route  upto  49%  and  beyond  49%  through Government  route  wherever  it  is  likely  to  result  in  access  to  modern technology or for other reasons to be recorded.
- vii. The  Ministry  has  instituted  a  new  framework  titled  'Mission  Raksha Gyan  Shakti'  in  November,  2018  which  aims  to  provide  boost  to  the Intellectual Property Rights (IPR) culture in indigenous defence industry.
- viii. The  Test  facilities/infrastructure  available  with  various  Government agencies have been made available to private sector with the objective to assist them in design & development of defence systems.

*****