Lok Sabha Question No. 5048 (UNSTARRED), answered on 2023-03-31
Subject: Defence Industrial Corridor
Ministry: DEFENCE
Asked by: Vishnu Dutt Sharma, Nama Nageswara Rao

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

## LOK SABHA

## UNSTARRED QUESTION NO. 5048

TO BE ANSWERED ON 31 st  March, 2023

## DEFENCE INDUSTRIAL CORRIDOR

## 5048.  SHRI VISHNU DATT SHARMA: SHRI NAMA NAGESWARA RAO:

Will the Minister of DEFENCE be pleased to state:

- (a) whether  the  Government  has  issued  licenses  to  private  companies/MSMEs  for manufacture  of  defence  items  across  the  country  and  is  providing  any  incentives  in  this regard, if so, the details thereof;
- (b)    whether  the  Government  proposes  to  set  up  3rd  defence  industrial  corridor  in Bundelkhand; and
- (c)  if so, the details thereof and if not, the reasons therefor?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

(a):  Defence Industry sector was opened up in May 2001 upto 100% for Indian private sector participation.  Since  the  opening  up  of  Defence  sector  till  date,  a  total  of  606  Industrial Licenses have been issued to 369 companies operating in Defence sector. Further in order to promote domestic production, the Government has taken several policy initiatives in past few years and brought reforms to encourage indigenous design, development and manufacture of defence equipment in the country. These initiatives, inter-alia, include according priority to procurement  of  capital  items  from  domestic  sources  under  Defence  Acquisition  Procedure (DAP)-2020; Notification of four 'Positive Indigenisation Lists' of total 411 items of Services and  three  'Positive  Indigenization  Lists'  of  total  3738  items  of  Defence  Publice  Sector Undertakings  (DPSUs),  for  which  there  would  be  an  embargo  on  the  import  beyond  the timelines  indicated  against  them;  Simplification  of  Industrial  licensing  process  with  longer validity period; Liberalisation of Foreign Direct Investment (FDI) policy allowing 74% FDI under  automatic  route;  Simplification  of  Make  Procedure;  Launch  of  Mission  DefSpace; Launch of Innovations for Defence Excellence (iDEX) scheme involving startups & Micro, Small and Medium Enterprises (MSMEs); Implementation of Public Procurement (Preference to Make in India) Order 2017; Launch of an indigenization portal namely SRIJAN to facilitate indigenisation by Indian Industry including MSMEs; Reforms  in  Offset  policy with  thrust on

…2/- attracting  investment  and  Transfer  of  Technology  for  Defence  manufacturing  by  assigning higher multipliers; and Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh  and  Tamil  Nadu;  Opening  up  of  Defence  Research  &  Development  (R&D)  for industry, startups and academia with 25 percent of defence R&D budget; Progressive increase in  allocation  of  Defence  Budget  of  military  modernization  for  procurement  from  domestic sources, etc.

(b) & (c):  The Government of India has established two Defence Industrial Corridors (DICs) in  the  country,  one  in  the  State  of  Uttar  Pradesh and  other  in  Tamil  Nadu.  In  Uttar Pradesh Defence Industrial Corridor (UPDIC), 06(six) nodes viz. Agra, Aligarh, Chitrakoot, Jhansi,  Kanpur and Lucknow are identified.  Jhansi & Chitrakoot nodes are in Bundelkhand region. There is no proposal to set up any new Defence Industrial Corridor.

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