Lok Sabha Question No. 3336 (UNSTARRED), answered on 2021-12-17
Subject: Equipment produced under Make in India Initiative
Ministry: DEFENCE
Asked by: Sisir Kumar Adhikari

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

## LOK SABHA

## UNSTARRED QUESTION NO.3336

TO BE ANSWERED ON 17 th  DECEMBER, 2021

## EQUIPMENT PRODUCED UNDER 'MAKE IN INDIA' INITIATIVE

## 3336. SHRI SISIR KUMAR ADHIKARI:

Will the Minister of DEFENCE be pleased to state:

- (a) the details of defence equipment produced under 'Make in India' scheme during the last six years;
- (b) whether self-reliance in defence sector has been achieved after the implemetation of the said scheme, if so, the details thereof and if not, the reasons therefor; and
- (c) the other steps being taken by the Government to achieve self-reliance in defence production?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

- (a)  Many significant projects including 155mm Artillery Gun system 'Dhanush',  Light Combat Aircraft  'Tejas',  'Akash'  Surface  to  Air  Missile  system,  INS  Kalvari,  INS  Khanderi,  INS Chennai,  Anti-Submarine  Warfare  Corvette  (ASWC),  Arjun  Armoured  Repair  and  Recovery Vehicle,  Bridge  Laying  Tank,  Landing  Craft  Utility,  Bi-Modular  Charge  System  (BMCS)  for 155mm Ammunition, Medium Bullet Proof Vehicle (MBPV), Lakshya Parachute for Pilotless Target  Aircraft,  Thermal  Imaging  Sight  Mark-II  for  T-72  tank,    Offshore  Surveillance  Ship, Water Jet Fast Attack Craft, Inshore Patrol Vessel, Offshore Patrol Vessel, Fast Interceptor Boat, 25  T  Tugs,  etc.  have  been  produced  in  the  country  under  'Make  in  India'  initiative  of  the Government in last few years.
- (b) & (c): The Government has taken several policy initiatives and brought reforms to promote self-reliance  in  defence  manufacturing.  These  policy  initiatives  are  aimed  at  encouraging indigenous design, development and manufacture of defence equipment in the country, thereby reducing  dependency  on  imports  in  long  run.  Important  policy  initiatives  and  reforms  are  as under: -

- i. DPP-2016 has been revised as Defence Acquisition Procedure (DAP)- 2020, which is driven by the tenets of Defence Reforms announced as part of 'Aatmanirbhar Bharat Abhiyan'.
- ii. In  order to  promote indigenous design and development of defence equipment 'Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)}' category has been accorded top most priority for procurement of capital equipment.
- iii. Ministry of Defence has notified two 'Positive indigenisation lists' of total 209 items for  which  there  would  be  an  embargo  on  the  import  beyond  the  timeline  indicated against them. This is a big step towards self-reliance in defence. This would offer a great opportunity to the Indian defence industry to manufacture these items using their own  design  and  development  capabilities  to  meet  the  requirements  of  the  Armed Forces.
- iv. The 'Make' Procedure of capital procurement has been simplified. There is a provision for funding upto 70% of development cost by the Government to Indian industry under Make-I  category.  In  addition,  there  are  specific  reservations  for  MSMEs  under  the 'Make' procedure.
- v. Procedure  for  'Make-II'  category  (Industry  funded),  introduced  in  DPP-2016  to encourage  indigenous  development  and  manufacture  of  defence  equipment  has number  of  industry  friendly  provisions  such  as  relaxation  of  eligibility  criterion, minimal documentation, provision for considering proposals suggested by industry/individual etc. So far, 60 projects relating to Army, Navy & Air Force, have been accorded 'Approval in Principle'.
- vi.      The Government of India has enhanced FDI in Defence Sector up to 74% through the Automatic Route for companies seeking new defence industrial license and up to 100% by Government Route wherever it is likely to result in access to modern technology.
- vii.    An innovation ecosystem for Defence titled Innovations for Defence Excellence (iDEX) has been launched in April 2018. iDEX is aimed at creation of an ecosystem to foster innovation and technology development  in Defence  and Aerospace  by  engaging Industries  including  MSMEs,  Start-ups,  Individual  Innovators,  R&D  institutes  and Academia and provide them grants/funding and other support to carry out R&D which has potential for future adoption for Indian defence and aerospace needs.
8. viii    An  indigenization  portal  namely  SRIJAN  has  been  launched  in  August  2020  for DPSUs/Services with an industry interface to provide development support to MSMEs/Startups/Industry  for  import  substitution.  So  far,  16445  Defence  items,  which were  earlier  imported,  have  been  displayed  on  the  portal.    The  Indian  industry  have shown their interest in 3559 items. Out of them, 342 have already been indigenized.

- ix.    'Offset portal' has been launched in May 2019 to ensure greater transparency, efficiency and accountability in the process. Reforms in Offset policy have been included in DAP 2020,  with  thrust  on  attracting  investment  and  Transfer  of  Technology  for  Defence manufacturing, by assigning higher multipliers to them.
- x.    Government  has  notified  the  'Strategic  Partnership  (SP)'  Model  in  May  2017,  which envisages establishment of long-term strategic partnerships with Indian entities through a transparent  and  competitive  process,  wherein  they  would  tie  up  with  global  Original Equipment  Manufacturers  (OEMs)  to  seek  technology  transfers  to  set  up  domestic manufacturing infrastructure and supply chains.
- xi.     Government has notified a 'Policy for indigenisation of components and spares used in Defence  Platforms'  in  March  2019  with  the  objective  to  create  an  industry  ecosystem which  is  able  to  indigenize  the  imported  components  (including  alloys  &  special materials) and sub-assemblies for defence equipment and platform manufactured in India.
- xii.   Government has established two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu to attract total investments of Rs 20,000 Cr in the two Defence corridors by year 2024. So far, investment worth Rs 3600 Cr have been made in both the corridors by public as well private sector companies. Moreover, the respective State Governments have also published their Aerospace & Defence Policies to attract private players as well as foreign companies including Original Equipment Manufacturers (OEMs) in these two corridors.
5. xiii  An Inter-Governmental Agreement (IGA) on 'Mutual Cooperation in Joint Manufacturing of  Spares,  Components,  Aggregates  and  other  material  related  to  Russian/Soviet  Origin Arms and Defence Equipment' was signed in September 2019. The objective of the IGA is to enhance the After Sales Support and operational availability of Russian origin equipment currently  in  service  in  Indian  Armed  Forces  by  organizing  production  of  spares  and components  in  the  territory  of  India  by  Indian  Industry  by  way  of  creation  of  Joint Ventures/Partnership  with  Russian  Original  Equipment  Manufacturers  (OEMs)  under  the framework of the 'Make in India' initiative.
6. xiv . Defence Products list requiring Industrial Licences has been rationalised and manufacture of most of parts or components does not require Industrial License. The initial validity of the Industrial Licence granted under the IDR Act has been increased from 03 years to 15 years with a provision to further extend it by 03 years on a case-to-case basis.
- xv.  Defence  Investor  Cell  (DIC)  has  been  created  in  Feb-2018  in  the  Ministry  to  provide  all necessary  information  including  addressing  queries  related  to  investment  opportunities, procedures and regulatory requirements for investment in the sector. As on 31 st Oct 2021, 1257 queries had been received and addressed by DIC.

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