Lok Sabha Question No. 3871 (UNSTARRED), answered on 2022-03-25
Subject: Defence Production and Export Promotion Policy
Ministry: DEFENCE
Asked by: Sajda Ahmed

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

## LOK SABHA UNSTARRED QUESTION NO. 3871

TO BE ANSWERED ON 25 TH  MARCH, 2022

## DEFENCE PRODUCTION AND EXPORT PROMOTION POLICY

3871. SHRIMATI SAJDA AHMED:

Will the Minister of Defence be pleased to state:

- (a) the steps taken by Government to minimize the defence import by the Defence Public Sector Undertakings (DPSUs);
- (b) whether the Government has finalized the Defence Production and Export Promotion Policy 2020;
- (c) the policy adopted by the Government to ease the approval/certifications for Indian Industries for defence productions;
- (d) whether the Government proposes to set up defence production Unit in West Bengal; and (e) if so, the details thereof?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

(a):    The  Government  has taken several policy initiatives in the past few  years and brought in reforms to encourage indigenous design, development and manufacture of defence equipment in the  country  and  to  minimize  the  defence  import  by  the  Defence  Public  Sector  Undertakings, thereby  ensuring  delivery of  indigenous  modern  defence  hardware  to  Indian  Armed  Forces. These  initiatives,  inter-alia,  include,  priority  to  procurement  of  capital  items  from  domestic sources under Defence Acquisition Procedure (DAP)-2020;  Announcement of 18 major defence platforms  for  industry  led  design  and  developments;  Notification  of   'Positive  Indigenisation List' of total 2851 items  of Defence Public Sector Undertakings(DPSUs), for which there would be  an  embargo  on  the  import  beyond  the  timelines  indicated  against  them;  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 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.

(b):  A Draft Defence Production and Export Promotion Policy was placed in Public Domain.

(c): Various policy measures have been adopted by the Government to ease the approval/certifications  for  Indian  Industries  for  defence  production.  Defence  Products  list requiring  Industrial  Licenses  has  been  rationalised  and  manufacture  of  most  of  parts  or components  does  not  require  Industrial  License.  The  initial  validity  period  of  the  Industrial License  granted  under  the  Industries  (Development  &  Regulation)-  I(D&R)  Act  has  been increased from 03 years to 15 years with a provision to further extend it by 03 years on case -tocase basis.  A new online portal has been developed for facilitating filing of online applications for  Industrial  Licence  under  Industries  (Development  &  Regulation)-IDR  Act  1951/Arms  Act 1959  with  effect  from  16.10.2018.  Further,  Government  has  also  launched  a  scheme  for awarding  self-certification  status  to  DPSUs  and  Private  Industry  wherein  these  have  been delegated the responsibility of certifying the quality of products.

(d) & (e):   There are 5 (five) existing Public Sector Defence production units working in West Bengal,  namely  Garden  Reach  Shipbuilders  &  Engineers  Ltd.,  Ordnance  Factory  Dum  Dum, Gun & Shell Factory Cossipore, Metal & Steel Factory Ishapore and Rifle Factory Ishapore. In addition,  8  (eight)  licenses have  been  issued  by  the  Government  to  private  companies  for manufacture of defence items in West Bengal under I(D&R) Act, 1951 and Arms Act, 1959 / Arms Rules, 2016.

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