Lok Sabha Question No. 3883 (UNSTARRED), answered on 2022-03-25
Subject: Indigenization of Defence Systems
Ministry: DEFENCE
Asked by: Rattan Lal Kataria

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK SABHA UNSTARRED QUESTION NO. 3883

TO BE ANSWERED ON 25 TH  MARCH, 2022

## INDIGENIZATION OF DEFENCE SYSTEMS

## 3883. SHRI RATTAN LAL KATARIA:

Will the Minister of Defence be pleased to state:

- (a)  whether  the  Government  has  emphasized  on  the  indigenization  of  defence  systems  in  the production of defence equipment;
- (b) if so, the details thereof;
- (c) whether the provision of 68 percent in the capital acquisition budget for the domestic defence industry is likely to include more and more indigenous defence systems; and
- (d) if so, the details thereof?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

(a) & (b): 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,  thereby  expanding  the  production  of  indigenous  defence  equipment.  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.

Many  significant  products  including  155mm  Artillery  Gun  system  'Dhanush',  Light Combat Aircraft 'Tejas', Surface to Air Missile system 'Akash', Main  Battle Tank 'Arjun', T90 Tank, T-72 tank, BMP-II/IIK, Su-30 MK1, Cheetah helicopter, Advanced Light Helicopter, Dornier  Do-228,  High  mobility  Trucks,  INS  Kalvari,  INS  Khanderi,  INS  Chennai,  AntiSubmarine Warfare Corvette (ASWC), Arjun Armoured Repair and Recovery Vehicle, Bridge Laying  Tank,  Bi-Modular  Charge  System  (BMCS)  for  155mm  Ammunition, Medium  Bullet Proof Vehicle (MBPV), Weapon Locating Radar (WLR), Integrated Air Command and Control System  (IACCS),  Software  Defined  Radios  (SDR),  Lakshya  Parachute  for  Pilotless  Target Aircraft,  Opto  Electronic  Sights  for  battle  tanks,  Water  Jet  Fast  Attack  Craft,  Inshore  Patrol Vessel, Offshore Patrol Vessel, Fast Interceptor Boat, Landing Craft Utility, 25 T Tugs, etc. have been  produced  in  the  country  during  the  last  few  years  which  are  being  used  by  the  Indian Armed Forces.

(c)  &  (d):  Yes  Sir.  Earmarking  of  68%  of  the  Capital  Procurement  budget  for  the  Domestic industry for the financial year 2022-23 builds confidence among the industry and gives further impetus to the Government's initiative of 'Aatmanirbharta in Defence' to promote development and manufacture of indigenous defence systems.

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