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Ministry of Defence Lists Priorities for Projects Under Make in India

Published Dec 06, 2019
Updated Feb 06, 2020

The projects of Capital procurement of defence equipment are undertaken based on threat perception, operational challenges & technological changes and to keep the Armed Forces in a state of readiness to meet the entire spectrum of security challenges.

The existing Defence Production Policy 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 private industry to play an active role in this endeavour; enhancing potential of SMEs in indigenisation and broadening the defence R&D base of the country.

A number of measures have been taken to promote ‘Make in India’ in defence manufacturing by harnessing the capabilities of the public & private sector such as introduction of new category of procurement ‘Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)} and ‘Strategic Partnership Model’ in Defence Procurement Procedure (DPP); according preference to ‘Buy (Indian-IDDM)’, ‘Buy (Indian)’,  ‘Buy and Make (Indian)’ & ‘Make’ categories of capital acquisition over ‘Buy (Global)’ & ‘Buy & Make (Global)’ categories; simplification of Make-II procedure, etc.

As a result of the aforesaid initiatives undertaken, the Government in the last three years i.e. from 2016-17 to 2018-19 and current year till September, 2019, has accorded Acceptance of Necessity (AoN) to 130 proposals, worth Rs. 2,63,704 Crore approximately, under those categories of Capital Procurement which promote domestic manufacturing as per DPP-2016.

This information was given by Raksha Rajya Mantri Shri Shripad Naik in a written reply to Ms. Ramya Haridas in Lok Sabha

In a separate press release the ministry released the contracts signed since 2014, some of these are –

A contract for manufacture of Frigates under Project P 17A was signed in February 2015 with Mazagon Dockyards Limited (MDL), Mumbai valued at Rs. 45,000 crores while 02 Frigates under Project P1135.6 are slated to be manufactured by Goa Shipyard Limited (GSL) under a contract signed in Oct 2018 valued at Rs. 14,100 Crore.

Further, contracts for manufacture of 41 Advanced Light Helicopters for Indian Air Force (IAF) and 32 ALH for Indian Navy (IN) have been signed with Hindustan Aeronautics Limited (HAL) in March 2017 and Dec 2017 with a combined value of Rs. 14,100 crore.

This is in addition to procurement of 14 Dornier 228 aircrafts from M/s HAL valued at Rs. 1100 crore through a contract signed in February 2015.