Lok Sabha Question No. 2693 (UNSTARRED), answered on 2023-08-04
Subject: Self-reliance in Defence Sector
Ministry: DEFENCE
Asked by: Chandra Prakash Joshi, Rekha Arun Verma

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEFENCE RESEARCH & DEVELOPMENT ORGANISATION

## LOK SABHA UNSTARRED QUESTION NO. 2693

TO BE ANSWERED ON 04 th  August, 2023

## SELF-RELIANCE IN DEFENCE SECTOR

## 2693.   SHRI CHANDRA PRAKASH JOSHI: SHRIMATI REKHA VERMA:

Will the Minister of DEFENCE be pleased to state:

(a)  whether  the  Government  has  taken  adequate  steps  to  make  the  country  self-reliant  by developing indigenous advanced technologies and complex systems;

- (b) if so, the details thereof and if not, the reasons therefor;
- (c)  the  progress  made so far in the direction of becoming self-reliant in the defence sector during the last three years, year-wise;

(d) the status regarding the ratio of import-export in defence sector before the year 2014 as compared to 2021-22; and

- (e) the number of indigenous arms manufacturing companies in the country, State/UT-wise?

## A  N  S  W  E  R

## MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

(a) & (b):  Yes, Sir. Government has taken adequate steps to make the country self-reliant by developing  indigenous  advanced  technologies  and  complex  systems.  Following  are  the initiatives/  steps  taken  by  Government  for  indigenization  of  manufacturing  of  technology intensive defence equipments and weapons and for creating a domestic defence production eco-system: -

-  Defence  Acquisition  Procedure  (DAP  2020)  is  promulgated  to  maximize acquisition  of  defence  equipment  through  indigenous  sources  and  promote domestic  manufacturing.  Government  of  India  has  ensured  that  the  most preferred option for capital acquisition is 'Buy Indigenously Designed Developed and Manufactured (IDDM)' category equipment followed by 'Buy (Indian)' category. The 'Make' categories aim to achieve the objective of selfreliance  by  involving  greater  participation  of  Indian  industrial  eco-system including private sector.

-  The  provisions  of  Government  funding  have  been  introduced  for  Make-I, Technology Development Fund (TDF) and Innovations for Defence Exellence (iDEX)  projects.  TDF  Scheme  executed  by  DRDO  supports  indigenous development of components, products, systems and technologies by MSMEs and Start-ups. Funding under TDF scheme was enhanced from Rs. 10 Cr. to Rs. 50 Cr. per Project, and the same under iDEX Prime scheme has been enhanced from Rs. 1.5 Cr. to Rs. 10 Cr. It will give further boost to the vision of 'Aatmanirbharta in defence'.
-  Four  'Positive  Indigenization  Lists'  of  defence  equipment  and  platforms  for which there would be an embargo on the import.
-  The  'Development  cum  Production  Partner  (DcPP)'  model  of  DRDO  is implemented  where-in  Industry  is  taken  up  as  DcPP  in  system  development projects. Both development and production units are manufactured by industry along with life cycle support.
-  DRDO test facilities have been opened to the industries for utilization. The test facilities have been listed on DRDO website and have been communicated to them. The facilities are being utilized by the industries.
-  Two Defence Industrial Corridors have been set up in Uttar Pradesh and Tamil Nadu to catalyze indigenous production of defence and aerospace related items.
-  Defence R&D has been opened up for industry, start-ups and academia with 25% of defence R&D budget earmarked for the purpose. This is being implemented through various existing schemes and new schemes have been proposed.
-  In order to promote indigenous design and manufacturing, funds have also been earmarked for procurement from indigenous sources. For the FY 2023-24, funds have been earmarked in the ratio 67.75:32.25  between  Domestic and Foreign procurement  in  the  Capital  Acquisition  Budget  of  the  Ministry  of  Defence (MoD). In addition, the MoD has also directed for spending an amount of Rs. 1500 Cr. towards procurement from Start-ups.
-  Nil Transfer of Technology (ToT) fees are being charged from DcPPs /PAs/ LSI.
-  Industries have been provided with free access for DRDO patents.
-  Lists of systems which will be developed by industry only have been identified by DRDO. The same has been promulgated by MoD. DRDO will not develop such systems.
-  DRDO  is  skilling  youth  (Internships,  apprenticeship,  electives  in  B.Tech, M.Tech courses) to make ready for Defence industries.

(c):  Acceptance of Necessity (AoN) for 43 DRDO developed/ being developed systems has been accorded for induction in the Services during the last three years i.e. 11 in 2021, 25 in 2022 and 07 in 2023.

(d):  During the last three financial years (2020-21 to 2022-23), 122 contracts have been signed for capital procurement of defence equipment, out of which, 100 contracts accounting for 87% of  total  contracts  value,  have  been  signed  with  Indian  vendors  for  capital  procurement  of Defence equipment.

Ratio of import-export in defence sector for the year 2013-14 as compared to 2021-22 is given below: -

(Rs. in Crore)

| Year                             | 2013-14   | 2021-22   |
|----------------------------------|-----------|-----------|
| Import Value (Capital + Revenue) | 41,198.61 | 50,061.67 |
| Export value                     | 1153      | 12815     |
| Ratio (Import to Export)         | 35.73     | 3.90      |

(e):  The desired information is sensitive in nature and its disclosure is not in the interest of the National Security.

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