Lok Sabha Question No. 1624 (UNSTARRED), answered on 2022-12-16
Subject: Value of Indigenous Defence Production
Ministry: DEFENCE
Asked by: Rita Bahuguna Joshi, Sujay Radhakrishna Vikhepatil, Krishna Pal Singh Yadav, Unmesh Bhaiyyasaheb Patil, Shrikant Eknath Shinde, Heena Vijaykumar Gavit

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE PROCUCTION

## LOK SABHA

## UNSTARRED QUESTION NO. 1624

TO BE ANSWERED ON 16 th  December, 2022

## VALUE OF INDIGENOUS DEFENCE PRODUCTION

1624. PROF. RITA BAHUGUNA JOSHI: DR. SUJAY RADHAKRISHNA VIKHE PATIL: DR. KRISHNA PAL SINGH YADAV: SHRI UNMESH BHAIYYASAHEBPATIL: DR. SHRIKANT EKNATH SHINDE: DR. HEENA GAVIT:

Will the Minister of DEFENCEbe pleased to state:

- (a)  the value of indigenous defence production inthe country during the last two years;
- (b)  the details of additional employment generatedduring the last two years;
- (c)    whether  the  Government  proposes  to establishdefence  parks  in  the  country  during  the next three years;
- (d)  if so, the details thereof; and
- (e)    the  details  of  growth  plans  for  the  newlyindependent  units,  carved  out  of  the  earlier board?

## A  N  S  W  E  R

MINISTER OF STATE

IN THE MINISTRY OF DEFENCE

(a):  The value of indigenous defence production for the Financial Years 2020-2021 and 20212022 are Rs.84,643 Crores and Rs. 94,846 Crores, respectively.

- (b):  Ministry of Defence does not maintain data for employment generation.
- (c) & (d):  To achieve Atmanirbharta and realize the goal of 'Make in India', Government of India  has  established  two  Defence  Industrial  Corridors  (DICs)  in  the  country,  one  in  Uttar Pradesh  and  other  in  Tamil  Nadu.  06(six)  nodes  viz.  Agra,  Aligarh,  Chitrakoot,  Jhansi, Kanpur and Lucknow have been identified for developing Uttar Pradesh Defence Industrial Corridor  (UPDIC).  Similarly,  05(five)  nodes  viz.  Chennai,  Coimbatore,  Hosur,  Salem,  and Tiruchirappalli have been identified for developing Tamil Nadu Defence Industrial Corridor (TNDIC). Government intends to develop defence manufacturing ecosystem having conducive

(SHRI AJAY BHATT)

conditions including supply chain for giving push to production and testing & certification to create economies of scale and facilitate development of internationally competitive enterprises in the country.

As  per  the  information  received  from  Government  of  Uttar  Pradesh  for  UPDIC,  105 Memorandum  of  Understandings  (MoUs)  have  been  signed  with  industries/organizations worth potential investments of Rs. 12,139 Crore. Already, Rs. 2,422 Crore have been invested in UPDIC. Total 1,608 Hectare of land has been acquired for development of UPDIC. Further, as per the information received from Government of Tamil Nadu for TNDIC, arrangements have been made  through Memorandum  of  Understandings (MoUs) etc. for potential investment of Rs. 11,794 Crore by 53 industries. Already, Rs. 3,847 Crore have been invested in TNDIC. Total 910 Hectare of lands has been acquired for development of TNDIC.

(e):    The  seven  new  DPSUs  carved  out  of  erstwhile  Ordnance  Factory  Board,  have  been incorporated as Government companies (wholly owned by the Government of India) under the Companies Act 2013 in October, 2021. Government has taken steps to initially handhold and support these new defence companies in starting their business as corporate entities. In this  regard,  outstanding  indents  with  erstwhile  OFB  were  grandfathered and  converted  into deemed  contracts  valuing  about  Rs.  70,776  crore  for  the  next  five  years.  These  deemed contracts  provide  annual  targets  for  delivery  of  products.  Every  year,  60%  of  amount pertaining to that year's target would be paid by the Services to the new DPSUs as advance as per  the  terms  and  conditions  stipulated  in  the  deemed  contract.  The  advances  provide  the working  capital  to  the  newly  constituted  DPSUs.  With  more  functional  and  financial autonomy, these new DPSUs are focusing on widening their customer base, including exports to  augment the volume of defence production. The DPSUs are pursuing export opportunity through interaction with Defence Attaches at various Indian Embassies and Missions abroad.

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