Lok Sabha Question No. 2615 (UNSTARRED), answered on 2021-03-10
Subject: Export of defence equipment
Ministry: DEFENCE
Asked by: Kaushal Kishore, P.P. Chaudhary

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK SABHA UNSTARRED QUESTION NO.2615

TO BE ANSWERED ON 10 th  March, 2021

## EXPORT OF DEFENCE EQUIPMENT

2615. SHRI  KAUSHAL KISHORE: SHRI P.P. CHAUDHARY:

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

- (a) the details of defence equipment being exported by India;
- (b)  the  countries  from  which  the  Indian  Government  has  received  interest  for  procurement  of Indian defence equipment; and
- (c) the measures being taken by the Government to increase defense exports?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI SHRIPAD NAIK)

- (a) The important defence equipment exported during last 05 years include Weapon Simulators, Tear Gas Launcher, Torpedo Loading Mechanism, Alarm Monitoring & Control, Night Vision Monocular & Binocular, Light Weight Torpedo & Fire Control Systems, Armoured Protection Vehicle, Weapons Locating Radar, HF Radio, Coastal Surveillance Radar etc.
- (b)    Export  leads/Interest  for  Indian  Defence  equipment  from  small  components  to  major Defence platforms are being received from all over the world including Asian, European, North American, African, Latin American and SAARC countries. Presently Defence items from India are being exported to more than eighty four countries. Names of the countries cannot be divulged due to strategic reasons.
- (c)    Many  reforms/steps  have  been  taken  up  to  boost  Defence  exports  in  last  6  years.  The reforms/steps taken up to promote defence exports are at Annexure.

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## ANNEXURE  REFERRED  TO  IN  THE  REPLY  TO  PART  (c)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  2615  FOR  ANSWER  ON  10.03.2021  REGARDING 'EXPORT OF DEFENCE EQUIPMENT'

- (i) Special  Chemicals,  Organisms,  Materials,  Equipment  and  Technologies  (SCOMET) Category 6 titled 'Munitions List' that was hitherto 'Reserved' has been populated and Military Stores list notified vide Notification No.115(RE-2013)/2009-2014 dated 13th March, 2015 stands rescinded.
- (ii) The  Director  General  of  Foreign  Trade  (DGFT)  vide  Public  Notice  No.  4/2015-20 dated  24th  April,  2017,  notified  Department  of  Defence  Production(DDP)  as  the Licensing Authority for export items in Category 6 of SCOMET. The export of items specified in Category 6 (Munitions List) except those covered under Notes 2 & 3 of Commodity  Identification  Note  (CIN)  of  the  SCOMET  is  now  governed  by  the Standard  Operating  Procedure  issued  by  the  Department  of  Defence  Production (DDP), Ministry of Defence.
- (iii) Standard Operating Procedure (SOP) for the export of munitions list items has been modified and placed on the website of the DDP.
- (iv) A completely end-to-end online portal for receiving and processing export authorisation permission has been developed. The applications submitted on this portal are digitally signed and the authorisation are also issued digitally, at faster pace.
- (v) In repeat orders of same product to the same entity, consultation process has been done away with and permission is issued immediately. For the repeat order of same product to  different  entity,  the  consultation  earlier  done  with  all  stakeholders  is  now  limited only with MEA.
- (vi) In  Intra-Company business (which is especially relevant for outsourcing of work by defence  related parent company  abroad  to  its  subsidiary  in India), the earlier requirement of getting End User Certificate (EUC) from the Government of importing country has been done away with and 'Buying' Company is authorized to issue the EUC.
- (vii) The legitimate export of the parts and components of small arms and body armour for civil use are now being permitted after prior consultation with MEA.
- (viii) For  export  of  items  for  exhibition  purposes,  the  requirement  of  consultation  with stakeholders has been done away with (except for select countries).
- (ix) Powers have been delegated to DRDO, DGOF, and CMD's of DPSUs for exploring export opportunities and participation in global tenders.
- (x) New End User Certificate Format for Parts & Components has been provided in SOP.
- (xi) Validity  of  Export  Authorization  has  been  increased  from  02  years  to  date  of completion of order/component whichever is later.

- (xii) A  new  provision  for  re-exporting  parts  and  components  for  undertaking  repair  or rework to provide replacement for a component under warranty obligation is inserted in the SOP as a sub-classification of repeat orders.
- (xiii) MHA vide Notification dated 1.11.2018 has delegated its powers to this Department to issue export license under Arms Rules 2016 in Form X-A, for parts & components of small  arms. With this the Department of Defence Production becomes the single point of  contact  for  exporter  for  export  of  parts  and  components  of  Small  Arms  & Ammunitions.
- (xiv) The Government has notified the Open General Export License (OGEL) -  a one time export  license,  which  permits  the  industry  to  export  specified  items  to  specified destinations, enumerated in the OGEL, without seeking export authorisation during the validity of the OGEL.
- (xv) Scheme for Promotion of Defence Exports has been notified to provide an opportunity to the prospective exporters an option to get their product certified by the Govt. and provides  access  to  the  testing  infrastructure  of  Ministry  of  Defence  for  initial validation  of  the  product  and  its  subsequent  field  trials.  The  certificate  can  be produced  by  the  prospective  exporter  for  marketing  their  products  suitably  in  the global market.
- (xvi) A  separate  Cell  has  been  formed  in  the  Department  of  Defence  Production  to  coordinate  and  follow  up  on  export  related  action  including  enquiries  received  from various countries and facilitate private sector and public sector companies for export promotion.
- (xvii) In order to boost defence exports, webinars are being organized with Friendly Foreign Countries (FFCs) under the aegis of DDP, MoD through Industry Associations with active participation from Indian Defence Industries.
- (xviii) A Scheme to provide financial support to Defence Attaches for taking up actions for promoting exports of Indian made defence products both of public and private sector in the countries to which they are attached has been notified.

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