MINISTER OF STATE (SHRI AJAY BHATT)
IN THE MINISTRY OF DEFENCE
(a): The total value of production of defence equipment by defence Public Sector Units (PSUs) in the last three years are as under:
(in Rs. Crore)
2018-19 2019-20 2020-21
45458 47539.46 59278.13
Further, the production target of each DPSU is fixed annually after detailed deliberations between Ministry of Defence (MoD), Department of Public Enterprises (DPE) and the DPSU concerned based on factors such as performance in previous years and the order book position. The production target is specified as a parameter in the annual MoU signed between MoD and the DPE.
(b): Defence PSU wise details of tie-ups with private players for production of a wide range of defence equipment within the country are as per Annexure.
(c) to (e): The Government, in the last three years i.e. from 2018-19 to 2020-21 and in the current year till December 2021, has accorded Acceptance of Necessity (AoN) to 150 proposals approximately worth Rs. 2,47,515 Crore under various categories of Capital procurement which promote domestic manufacturing. In addition, during the last three years i.e. from 2018-19 to 2020-21 and in the current year till January 2022, out of total 191 Capital acquisition contracts signed, 121 have been signed with Indian vendors for capital procurement of defence equipment for Armed Forces.
The Government has taken several policy initiatives in the past few years and brought in reforms to encourage indigenous design, development and manufacture of defence equipment in the country, thereby ensuring delivery of modern defence hardware to Indian Armed Forces. These initiatives, inter-alia, include according priority to procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020; Announcement of 18 major defence platforms for industry led design & development; Notification of two ‘Positive Indigenisation Lists’ of total 209 items of Services and one ‘Positive Indigenisation List’ of total 2851 items of Defence Public Sector Undertakings(DPSUs), for which there would be an embargo on the import beyond the timelines indicated against them; Simplification of Industrial licensing process with longer validity period; Liberalisation of Foreign Direct Investment(FDI) policy allowing 74% FDI under automatic route; Simplification of Make Procedure; Launch of Innovations for Defence Excellence (iDEX) scheme involving startups & Micro, Small and Medium Enterprises (MSMEs); Implementation of Public Procurement (Preference to Make in India) Order 2017; Launch of an indigenization portal namely SRIJAN to facilitate indigenisation by Indian Industry including MSMEs; Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers; and Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu.
Many significant products including 155mm Artillery Gun system ‘Dhanush’, Light Combat Aircraft ‘Tejas’, Surface to Air Missile system ‘Akash’, Main Battle Tank ‘Arjun’, T-90 Tank, T-72 tank, BMP-II/IIK, Su-30 MK1, Cheetah helicopter, Advanced Light Helicopter, Dornier Do-228, High mobility Trucks, INS Kalvari, INS Khanderi, INS Chennai, Anti-Submarine Warfare Corvette (ASWC), Arjun Armoured Repair and Recovery Vehicle, Bridge Laying Tank, Bi-Modular Charge System (BMCS) for 155mm Ammunition ,Medium Bullet Proof Vehicle (MBPV), Weapon Locating Radar (WLR), Integrated Air Command and Control System (IACCS), Software Defined Radios (SDR), Lakshya Parachute for Pilotless Target Aircraft, Opto Electronic Sights for battle tanks, Water Jet Fast Attack Craft, Inshore Patrol Vessel, Offshore Patrol Vessel, Fast Interceptor Boat, Landing Craft Utility, 25 T Tugs, etc. have been produced in the country during the last few years which are being used by the Indian Armed Forces.
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