Lok Sabha Question No. 102 (UNSTARRED), answered on 2024-02-02
Subject: Defence Ecosystem
Ministry: DEFENCE
Asked by: S. Jagathrakshakan

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

## LOK SABHA UNSTARRED QUESTION NO. 102

TO BE ANSWERED ON 02 nd  February, 2024

## DEFENCE ECOSYSTEM

102. SHRI S. JAGATHRAKSHAKAN:

Will the Minister of DEFENCE be pleased to state:

- (a) whether the Government has drawn any action plan to strengthen the country's defence ecosystem;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government agrees with the view that increased efforts are needed to connect the youth with the Defence Sector especially R&D and manufacturing; and
- (d) if so, the details of the initiatives proposed to be taken by the Government in this regard and if not, the reasons therefor?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(a): Yes, Sir.

(b): Government has drawn various action plans to strengthen the country's defence ecosystem. Indian industry, both public and private, is encouraged to participate in design, development and  manufacture  of  Defence  Systems  under  'Make  Procedure'  prescribed  at  chapter-III  of Defence  Acquisition  Procedure,  2020  (DAP  2020)  wherein  provisions  to  provide  financial assistance  for  prototype  development  are  also  incorporated.  A  Green  Channel  Policy  for procurement of  Defence  stores  and  spares  has  been  launched  for  awarding  Green  Channel status to firms having predefined financial and quality credentials. Grant of Green Channel Certificate provides waiver of pre-dispatch inspection and acceptance of stores under supplier's guarantee/warranty against the contracts concluded by various Procurement Agencies under Ministry  of  Defence.  Two  Defence  Industrial  Corridors  (DICs):    Uttar  Pradesh  Defence Industrial Corridor (UPDIC) and Tamil Nadu Defence Industrial Corridor (TNDIC), have been set up aimed at attracting investment for defence industries, develop domestic supply chain and strengthen defence manufacturing ecosystem in the country. Defence Testing Infrastructure Scheme has  been  launched  to  boost  Domestic  Defence  and  aerospace  manufacturing  with primary aim to set up Greenfield Defence Testing Infrastructure as a common test facility  for

(SHRI AJAY BHATT)

government  assistance  to  promote  indigenous  defence  production  with  special    focus    on participation  of  MSMEs and Startups by bridging gaps in defence testing infrastructure in the country. Innovations for Defence Excellence (iDEX) has been launched to bring Start-ups & MSMEs to innovate, develop technologies and solve problems related to defence and aerospace aimed at creation of an ecosystem to foster innovation and technology development in Defence and  Aerospace,  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. DSPUs are having          tie-ups with various Centres of excellence/ Academic Institutes viz IITs ,IISc , IIMs etc for various developmental projects.

DRDO has laid down procedure by which its developed technologies are transferred to industries by entering into Licensing Agreement for Transfer of Technology (LATOT).  DRDO has  evolved  a  new  ToT  policy  and  procedures  with  zero  ToT  fee  for  its  industry  partners (Development cum Production Partners (DcPP)/ Development Partner (DP) and zero royalty for supply to Indian Armed Forces and Government Departments. Test facilities have now been opened for industries in  DRDO labs.  DRDO has  launched Technology Development Fund (TDF) which provides financial support to the Indian industries for the design development of innovative  defence  products.  In  June  2023,  DRDO  released  75  priority  technology  areas/ products/ systems to encourage Defence R&D in Industry that DRDO will not do.

(c)  &  (d):  Yes,  Sir.  Youth  are  connected  as  start  ups  under  iDEX  scheme  in  innovation, technology  development  and  problem  solving  related  to  defence  and  aerospace.  Young Engineers are  involved  through  tie  -ups  of  Defence  PSUs  with  the Centres  of  Excellence/ Academic Institutes  for  various  projects  that  include  R&D  and  manufacturing.  DRDO  has established 15 DRDO Industry Academia-Centres of Excellence (DIA-CoEs) at various IITs, IISc, Central and State Universities, of which six have been operationalized in the year 2023. DPSUs and Private sectors are hiring trained youths having specializations  for various  projects in the Defence sector.

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