Co-Opting Private Sector in Production of Defence Equipment

Co-Opting Private Sector in Production of Defence Equipment

The Defence Production Policy, 2011 aims at achieving substantive self-reliance in the design, development and production of equipment/weapon systems/platforms required for defence in as early a time frame as possible; creating conditions conducive for the private industry to take an active role in this endeavour; enhancing potential of SMEs in indigenisation and broadening the defence R&D base of the country.

In pursuance of the Defence Production Policy 2011, the Government has taken the following major steps to promote the participation of private sector in the indigenous production of Defence equipment;

• Technology perspective and Capability Roadmap, which gives out the details of the equipment and technologies required by our Armed Forces, has been put in public domain to provide the industry an overview of the direction in which the Armed Forces intend to head in terms of capability in future.

• Preference to ‘Buy (Indian)’, ‘Buy & Make (Indian)’ ‘Make’ categories of acquisition over ‘Buy (Global)’ category, thereby giving preference to Indian industry in procurement.

• The procedure for ‘Buy and Make (Indian)’ category has been further simplified in order to make the category more attractive for Indian Defence Industry.

• A clear definition of indigenous content has been provided which would not only bring more clarity on the indigenous content required for difference categorization but also enhance the indigenisation in defence products in India.

• Indian private sector industry has also been allowed to receive Maintenance Transfer of Technology (MToT) in ‘Buy (Global)’ cases.

• FDI policy in Defence sector has been reviewed and as per the new policy, composite foreign investment up to 49% has been allowed through FIPB route and beyond 49% with the approval of Cabinet Committee on Security (CCS).

• Defence Products Lists for the purpose of industrial licensing has been revised and in the revised list most of the components /parts / raw materials have been taken out of the purview of industrial licensing.

• Defence Export Strategy has been formulated and put in public domain. The Standard Operating Procedure (SOP) for issuing NOC for export of military stores has been simplified and made online.

This information was given by Minister of State for Defence Rao Inderjit Singhin a written reply to Shri Vijay Goel and Shri PrabhatJhain Rajya Sabha today.
Co-Opting Private Sector in Production of Defence Equipment Co-Opting Private Sector in Production of Defence Equipment Reviewed by Ajit Kumar on 7:22 AM Rating: 5

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