Project Under ‘Make in India’

(Judicial Quest News Network)

Capital procurement of defence equipment is undertaken from various domestic as well as foreign vendors as per extant Defence Procurement Procedure (DPP) based on threat perception, operational challenges and technological change and to keep the Armed Forces in a state of readiness to meet the entire spectrum of Security Challenges.  Details of Capital Procurement through Indigenous and Foreign sources for the period 2014-15 to 2018-19 are appended below:- (figures are in Rs crores)

YearTotal ProcurementProcurement from Indian VendorsProcurement from Foreign Vendors
2014-1565,589.9839,879.0025,980.98
2015-1662,341.8639,149.6323,192.23
2016-1769,150.1241,872.0327,278.09
2017-1872,732.2943,696.8729,035.42
2018-1975,920.7538,963.6939,957.06

        Specific provisions have been introduced in Defence Procurement Procedure (DPP)-2016 for stimulating growth of the domestic defence industry.  A new category of procurement ‘Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)}’ has been introduced in DPP-2016 to promote indigenous design and development of defence equipment. This category has been accorded top most priority for procurement of capital equipment. Besides this, preference is being given to ‘Buy (Indian)’ and ‘Buy and Make (Indian)’ categories of capital acquisition over ‘Buy (Global)’ & ‘Buy & Make (Global)’ categories.

        Government has notified the ‘Strategic Partnership (SP)’ Model which envisages establishment of long-term strategic partnerships with Indian entities through a transparent and competitive process, wherein they would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfers to set up domestic manufacturing infrastructure and supply chains.

        As a result of all the above efforts, during the last 5 years i.e. 2014-15 to 2018-19 Government has accorded Acceptance of Necessity (AoN) to 204 proposals, worth Rs.4,04,949.24 Crore approximately under ‘Buy (Indian-IDDM)’, ‘Buy (Indian)’, ‘Buy and Make (Indian)’, ‘Buy and make’, Strategic Partnership Model or ‘Make’ categories of capital procurement as per Defence Procurement Procedure (DPP).  In all the above categories Indian Industry including PSUs and private sector would be engaged in defence manufacturing either through direct recipient of RFP or in collaboration with foreign OEMs and all these projects are in different stages of execution.  Besides, DRDO is contributing immensely towards indigenous R&D and technology capability building and has a strong partnership with about 1800 private sector industries.

This information was given by Raksha Rajya Mantri Shri Shripad Naik in a written reply to Shri Ashok Mahadeorao Netein Lok Sabha today.

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