Lok Sabha Question No. 3873 (UNSTARRED), answered on 2022-03-25
Subject: Production of Defence Equipment
Ministry: DEFENCE
Asked by: Nama Nageswara Rao

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

## LOK SABHA UNSTARRED QUESTION NO. 3873

TO BE ANSWERED ON 25 TH  MARCH, 2022

## PRODUCTION OF DEFENCE EQUIPMENT

## 3873. SHRI NAMA NAGESWARA RAO:

Will the Minister of Defence be pleased to state:

- (a) the total production of defence equipment by defence Public Sector Units (PSUs) in the last three years and the targets fixed by them for the next three years;
- (b) whether defence PSUs have tied-up with private players for production of a wide range of defence equipment within the country and if so, the details thereof;
- (c) the defence equipment proposed to be manufactured under the 'Make in India' Scheme;
- (d) whether the production of defence equipment has started in the country under this scheme and if so, the details thereof; and
- (e) if not, the reasons therefor and the steps taken by the Government to ensure that production starts without further delay?

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MINISTER OF STATE

(SHRI AJAY BHATT)

IN THE MINISTRY OF DEFENCE

## (a):  The total value of production of defence equipment by defence Public Sector Units (PSUs) in the last three years are as under:

(in Rs. Crore)

|   2018-19 |   2019-20 |   2020-21 |
|-----------|-----------|-----------|
|     45458 |   47539.5 |   59278.1 |

Further, the production target of each DPSU is fixed annually after detailed deliberations between Ministry of Defence (MoD), Department of Public Enterprises (DPE) and the DPSU concerned based on factors such as performance in previous years and the order book position. The production target is specified as a parameter in the annual MoU signed between MoD and the DPE.

(b):  Defence PSU wise details of tie-ups with private players for production of a wide range of defence equipment within the country are as per Annexure.

(c)  to  (e):    The  Government,  in  the  last  three  years  i.e.  from  2018-19  to  2020-21  and  in  the current year till December 2021, has accorded Acceptance of Necessity (AoN) to 150 proposals approximately worth Rs. 2,47,515 Crore under various categories of Capital procurement which promote domestic manufacturing.   In addition, during the last three years i.e. from 2018-19 to 2020-21 and in the current year till January 2022, out of total 191 Capital acquisition contracts signed, 121 have been signed with Indian vendors for capital procurement of defence equipment for Armed Forces.

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 ensuring delivery of modern defence hardware to Indian Armed Forces. 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', T-90 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,  Anti-Submarine 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.

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## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION NO. 3873 FOR ANSWER ON 25.03.2022 REGARDING 'PRODUCTION OF DEFENCE EQUIPMENT':

Hindustan  Aeronautics  Limited  (HAL ): In  all  major  HAL  programs  for  manufacturing  of Defence  equipment  in  the  country,  Indian  Private  Companies  are  part  of  HAL  supply  chain. HAL  has  been  outsourcing  nearly  30%  of  workload  to  boost  defence  manufacturing  in  the country.  HAL  had  outsourced  several  critical  work  packages  such  as  Fuselage,  Wing,  Air Intakes, control surfaces, other structural assemblies, gears, critical machine components etc. of major  platforms  like  LCA,  SU-30  etc.  for  manufacturing  to  Indian  private  sector  including MSMEs and has various ongoing agreements for supply of the same. The vendor base of HAL has grown over 7250 registered vendors (including over 2050 MSMEs). Over 80% of registered vendors are of Indian Origin.  During last 5 years, some of the major work packages for defence equipment manufacturing undertaken by our domestic supply chain partners i.e. Indian private companies are as follows:

| Platform   | Item                  |
|------------|-----------------------|
| Su-30 MKI  | Structural packages   |
| Su-30 MKI  | Rudder and Flaperon   |
| Su-30 MKI  | Air Intake            |
| LCA-Tejas  | Centre Fuselage       |
| LCA-Tejas  | Rear Fuselage         |
| LCA-Tejas  | Wings                 |
| LCA-Tejas  | Front Fuselage        |
| LCA-Tejas  | Air Intake assemblies |
| ALH        | MGBHousing            |
| ALH        | Gears                 |
| ALH        | Harness               |

HAL  also  successfully  engages  private  organisations  (including  MSMEs)  in  Design  and Development of Defence products and technologies. Some of the major products successfully developed through such partnership with Indian Private Companies are as below:

| Platform         | System                                       |
|------------------|----------------------------------------------|
| LUH              | Smart Cockpit Display System Hardware        |
| LCH              | Control and Display Unit Data Interface Unit |
| LCH              | Multi-Function Display Hardware              |
| Jaguar DARIN III | Data Transfer System                         |
| Su-30 MKI        | Solid State Flight Data Recorder             |
| Su-30 MKI        | Integrated Standby Instrument System         |

Bharat  Electronics  Limited  (BEL) : BEL has  entered  in  the  tie-ups  with  many  private  players (Indian and foreign) for the indigenous production of defence equipment by way of outsourcing as  well  as  Technology  Transfers.  BEL  has  as  many  as  19700  including  3600  MSMEs  in  the company's Approved Vendor Directory for sourcing input material/services for the production of Defence equipment. The details of agreements signed with private players for major projects in the recent past for manufacturing defence products in India are furnished below:

|   Sl. No. | Company/ Country   | Project                                                      | Details                                                                                                             |
|-----------|--------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
|         1 | API Microwave, UK  | GaN based S-Band Dual TR Module & S-Band Dual Receive Module | Technical Collaboration Agreement (TCA) for Co- Development of GaN based S- Band DTRM and Dual Receive Module (DRM) |
|         2 | Reshef, Israel     | Electronic Fuzes                                             | TCA for the Manufacture of Percussion, Time & Proximity FuzeSetter for Artillery Ammunition                         |
|         3 | Sagem, France      | Advanced Land Navigation System (ALNS)                       | TCA for manufacture of ALNS for Guns (High Accuracy) through Joint Development of Prototype with DRDO.              |

BEML  Ltd.: BEML  is  continuously  putting  all-out  efforts  for  indigenous  production  of equipment required by Armed Forces and to increase the `Make in India' content in Defence production.  In  this  direction,  BEML  has  engaged  with  private  players  for  executing  various projects as mentioned below:

|   Sl. No | Project                                               | Private Industry                                                                                                                                                                                              |
|----------|-------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Arjun Armoured Recovery & Repair Vehicle (Arjun ARRV) | M/s. Bhaskara Dynamics, Bangalore. M/s. Hitech Engineering, Chennai. M/s. Hitech Fluid Power Systems, Bangalore. M/s. Pricol, Coimbatore. M/s. Tractor India Ltd, Kolkata. M/s. Canara Hydraulics, Bangalore. |
|        2 | Medium Bullet Proof Vehicle (MBPV)                    | M/s. Allison Transmission India Pvt. Ltd, Kanchipuram (TN). M/s. VE Commercials, Pitampura. M/s. Magtorq, Hosur.                                                                                              |

|   3. | Vehicles for Mounted Gun System (MGS) Dhanush          | M/s. Hitech Fluid Power Systems, Bangalore. M/s. Wipro Enterprises Limited, Bangalore. M/s.3D Concept Analysis, Bangalore. M/s. Precision Machines &Equipment, Chennai.   |
|------|--------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    4 | AI based Medical Health Care Diagnostics System (MHDS) | M/s. Prognosys Healthcare (India) Pvt. Ltd., Bangalore.                                                                                                                   |
|    5 | Mobile Stand by command post vehicle (MSCPV)           | M/s. VG Defence Systems Private Limited, Faridabad. M/s. VE Commercial Vehicles Limited, Dhar (MP).                                                                       |
|    6 | Sarvatra Bridge System                                 | M/s. L&T, Talegaon, Pune. M/s. Dantal Hydraulics, Bangalore. M/s. Oscar Equipment Pvt. Ltd. Kolkata.                                                                      |
|    7 | Mine Field Marking Equipment (MFME)                    | M/s. Accurate Engineering Company Pvt. Ltd. Pune. M/s. Dynalog India, Pune. M/s. Adroit Systems, Pune. M/s. Electro Pneumatics & Hydraulics (India) Pvt Ltd, Pune.        |

## Mazagaon Dock Shipbuilders Limited (MDL):

|   Sl. No. | Company/ Country                             | Project     | Details                                                                                                      |
|-----------|----------------------------------------------|-------------|--------------------------------------------------------------------------------------------------------------|
|         1 | Fincantieri, Italy                           | Project 17A | Technical advice for construction of seven stealth frigates with modular technique and enhanced capabilities |
|         2 | M/s Shoft Shipyard Pvt. Ltd and M/s Chowgule | -           | Undertaking part of outsourced activities in the on-going warship projects                                   |
|         3 | M/s Naval Group, France                      | Project-75  | Licensed construction of six Scorpene class Submarine                                                        |

Garden Reach Shipbuilders & Engineers Limited (GRSE): The Shipyard has forayed into Public Private  Partnership  (PPP)  in  shipbuilding  industry  w.e.f.  2020,  wherein  experience  &  design capability of GRSE has been synergised with available infrastructure (Berth/dry-dock/material handling) of private shipyards for faster construction of vessels.

|   Sl. No. | Company/ Country                      | Project                                                                                             | Details                                                                                              |
|-----------|---------------------------------------|-----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
|         1 | M/s. L&T, Chennai                     | Survey Vessel Large (SVL) Project and Anti-Submarine Warfare Swallow Water Craft (ASW- SWC) project | Partial construction of 07 ships                                                                     |
|         2 | M/s. Titagarh Wagons Limited, Kolkata | Fast Patrol Vessel (FPV) and Ocean Going Vessel (OGV)                                               | Partial construction of 01 FPV for Indian Coast Guard and construction of 01 OGV for Govt. of Guyana |

Goa Shipyard Limited (GSL): GSL uses Private Vendors as Tier I, Tier II, Tier III Suppliers/ Sub-contractors.

Hindustan Shipyard Limited (HSL): HSL has tied up with Indian Private players and indigenised the following equipment/systems for the ongoing projects i.e.2 Nos. Diving Support Vessels & 1 No. Semi-submersible Pontoon for Indian Navy: -

|   Sl. No. | Item Name                                         | Probable Vendors                        |
|-----------|---------------------------------------------------|-----------------------------------------|
|         1 | WT/GT Fire class door                             | M/s Godrej Boyce Pvt. Ltd               |
|         2 | Incinerator                                       | M/s HAAT Incinerators India Pvt. Ltd    |
|         3 | Flight Data recorder                              | M/s Elcome Integrated solutions, Mumbai |
|         4 | HVAC System                                       | M/s Johnson Control, Mumbai             |
|         5 | PN 300 Bar High pressure valves for HP Air system | M/s Vanaz valves, Pune                  |
|         6 | CAP 437 Heli Deck                                 | M/s SOLAS Marine, Mumbai                |
|         7 | RF Film for mitigation of EMI/EMC Effect          | Through Idex, M/s AG Flex technologies  |

Munitions India Limited (MIL): Munitions India Limited has signed MoUs with the following private player for development and manufacture of defense equipment within the country. The details are given below:

|   Sl.No | Firm Name                                  |
|---------|--------------------------------------------|
|       1 | M/s VEM Technologies Pvt. Ltd. Hyderabad   |
|       2 | M/s HBL Power Systems Limited, Hyderabad   |
|       3 | M/s Micron Instruments Pvt. Ltd. New Delhi |
|       4 | M/s Bharat Forge Limited, Pune             |

Advanced Weapon and Equipment India Limited (AWEIL): Advanced Weapon and Equipment India  Limited  has  tied  up  with  private  companies  for  major  sub-assembly  of  155mmx45Cal Dhanush Gun, Up-gunned 130mm to 155mmx45Cal Sharang Gun & AK630 Naval Gun.

Armoured Vehicle Nigam Limited (AVNL): Armoured Vehicle Nigam Limited has tied up with the following Indian Private Companies for manufacturing LPTA and Stallion vehicle.

|   Sl. No. | Private Company   | Product                   |
|-----------|-------------------|---------------------------|
|         1 | Tata Motors       | LPTA and its variants     |
|         2 | Ashok Leyland     | Stallion and its variants |

Yantra India Limited (YIL): Yantra India Limited has entered into agreement with industries in private sector for development of 155mm Terminally Guided Munition.

India  Optel  Limited  (IOL):  India  Optel  Limited  has  tied  up  with  Indian  Private  Industry  on major scale and placed Make-II orders for 13 systems indigenously.

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