Lok Sabha Question No. 4951 (UNSTARRED), answered on 2022-04-01
Subject: Atmanirbhar Bharat Initiative in Defence Production
Ministry: DEFENCE
Asked by: Bhartruhari Mahtab

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4951

TO BE ANSWERED ON 1 ST  APRIL, 2022

## ATMANIRBHAR BHARAT INITIATIVE IN DEFENCE PRODUCTION

4951. SHRI BHARTRUHARI MAHTAB:.

Will the Minister of Defence be pleased to state:

- (a)  whether  in  a  push  towards  Aatmanirbhar  Bharat  initiative  in  the  military  sector,  the Government is going to shelve a number of defence import projects;
- (b) if so, the details thereof;
- (c)  whether  the  Government  has  chalked  out  a  new  defence  production  and  export  promotion policy  for  strengthening  defence  production  within  the  country  and  help  in  their  export  to friendly foreign countries and if so, the details thereof;
- (d) whether the said initiative is likely to impact a large number of projects of the Indian Navy, Air Force and the Army including the ones which are at a fairly advanced stage like the Kamov helicopter acquisition project of the Indian Navy; and
- (e)  if  so,  the  details  thereof  along  with  the  necessary  steps  taken  by  the  Government  in  this regard in the interest of the country?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

(a)  to  (e): In  pursuance  of  the  policy  of  Government  of  India  for  'Make  in  India'  and  the mandate given in 'Aatmanirbhar Bharat Abhiyan' for indigenization and promotion of Indian industry, the proposals which were accorded Acceptance of Necessity (AoN) under Buy (Global) category  of  Capital  Acquisition  in  the  past  have  been  reviewed  as  per  DAP-2020  and  the Defence  Acquisition  Council  (DAC)  has  approved  cancellation/closure  of  AoN  for  09  such proposals worth Rs. 46,695 Crore. The details of service-wise platforms cannot be shared in the interest of national security.

The Government has taken several policy initiatives in the past few years under 'Make in India'  program  and  brought  in  reforms  to  encourage  indigenous  design,  development  and manufacture  of  defence  equipment  in  the  country,  including  design  and  development  of  the projects like Kamov 31. These initiatives, inter-alia, include according 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 & development;

Notification  of   two  'Positive  Indigenisation  Lists'  of  total  209  items  of  Services  and   one '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; 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 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 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.

A Draft 'Defence Production & Export Promotion Policy (DPEPP) 2020' was placed in public domain by the Department of Defence Production, Ministry of Defence and is Ministry of Defence's overarching guiding document to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports in Defence sector, including Aerospace and Naval Shipbuilding sectors.

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