Lok Sabha Question No. 2106 (UNSTARRED), answered on 2016-07-29
Subject: Defence Manufacturing Projects
Ministry: DEFENCE
Asked by: R. GOPALAKRISHNAN

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK  SABHA UNSTARRED QUESTION NO.2106

TO BE ANSWERED ON THE 29 TH  JULY, 2016

## DEFENCE MANUFACTURING PROJECTS

2106.  SHRI  R. GOPALAKRISHNAN:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a) whether  the  Government  has  listed  out  defence  manufacturing  projects  of  the armed forces for execution through private industries of the country;
- (b) if so, the details thereof and the reasons therefor; and
- (c) the  steps  taken  by  the  Government  to  provide  assistance  such  as  indigenous technology  or  acquisition  of  the  same  from  other  countries,  to  the  domestic  private industries showing interest in defence projects?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                      (SHRI MANOHAR PARRIKAR)

j{kk ea=h

¼Jh euksgj ijhZdj½

(a) to (c):

A statement is attached.

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## STATEMENT  REFERRED TO IN REPLY TO  PARTS  (a)  TO  (c) OF  LOK SABHA UNSTARRED QUESTION NO. 2106 FOR ANSWER ON 29.7.2016

Defence  capital  acquisitions are  carried  out  as  per  Defence Procurement  Procedure  (DPP)  wherein  emphasis  has  been  given  to boost domestic defence industry by according higher preference to 'Buy (Indian-IDDM)',  'Buy  (Indian)'  and  'Buy  &  Make  (Indian)'  categories  of capital acquisition over 'Buy (Global)' category.  Any Indian company, as defined in the DPP, can participate in the procurement cases categorized as 'Buy (Indian-IDDM)', 'Buy (Indian)' and 'Buy and Make (Indian)'. In  the  financial  year  2015-16,  the  Government  has  accorded Acceptance  of  Necessity  (AoN)  for  proposals  worth  Rs.45,900  Crore approximately, in 'Buy (Indian)' and 'Buy and Make (Indian)' categories of  capital  acquisition.    Some  of  the  major  projects  categorized  under these  categories  are  Successor  1099  Air  Defence  Gun,  Multi-Purpose Vessels, High Mobility Vehicles (HMV GS 6x6), Short Span Bridges, Multi Special Camouflage Net (MSCN) etc. Some of the major  policy  initiatives  taken  by  the  Government  to assist  the  domestic  private  sector  towards  acquisition  of  indigenous

technology or from other countries are as follows:

* Indian companies are allowed for tie-ups with a foreign Original Equipment Manufacturer (OEM) for Transfer of Technology (ToT) under 'Buy & Make (Indian)' category.
* Under 'Buy & Make' Category of Capital Acquisition, the foreign vendor is required to transfer the Technology to Indian Production agency  for  indigenous  production of the items. Provisions have also been made to allow Foreign OEM to select Indian Production agency of its choice for transfer of technology.
* Defence Offset Guidelines provides for Transfer of Technology to Indian Companies as one of the eligible avenues for discharge of offsets.
* Defence  Research  and  Development  Organisation  (DRDO)  has issued Guidelines for Transfer of Technology which provides for an institutional mechanism for transfer of technology developed by DRDO to public and private sector industry.
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