17 Dec 2016

Make in India Initiative

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After the launch of ‘Make in India’ initiative by the Government in September, 2014, so far, 116 Industrial Licenses have been issued for manufacture of various licensable defence items to Indian companies.  The expenditure on purchase of defence equipment for the three services in the last two years and current financial year from the foreign vendors and Indian vendors is given below:

                                                                                          (Rs. in Crores)

Total Procurement
Procurement from foreign vendors
Procurement from Indian vendors

2014-15
77986.32
29159.69
48826.63
2015-16
76178.80
26190.46
49988.34
2016-17
(upto October, 2016)
32073.18
9278.26
22794.92
Detail of defence export based on export by Defence Public Sector Undertakings (DPSUs) / Ordnance Factory Board (OFB) and the No Objection  Certificates (NOCs)  issued  to  private  sector  companies  by Department of Defence Production (DDP) during the last three years is as under:
Year
Total value of export
(Rs. in Crores)
No. of NOCs issued
2013-14
1153.35
39
2014-15
1940.64
42
2015-16
2059.18
241

The Government has received suggestions from Indian industry chambers for reviewing certain clauses of Defence Procurement Procedure (DPP) 2016.  These suggestions include reduction in time from Request for Information (RFI) to procurement, assessment of combined financial and technical bids of the partners in consortium, Government to bear the development and prototype cost of the equipment offered in case of retraction of Request for Proposal (RFP), Purchase price preference for higher indigenous content, providing price indexation for Long Term Contracts due to high cost of capital and inflation vis-à-vis foreign original equipment manufacturer (OEM), fixing of timeline for inspection etc.  All such suggestions are examined and considered by the Government while reviewing the Defence Procurement Procedure (DPP), which is a continuous exercise.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Rabindra Kumar Jena and Shri Chandu Lal Sahu in Lok Sabha t

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