Private Players In Defence Manufacturing Sector

#Gol #Defence #Manufacturing #privatesector

Source: Govt. of India

The Defence Industry sector, which was hitherto reserved for the public sector, was opened up to 100% for Indian private sector participation in May, 2001. As on date, 333 Private companies have been issued a total of 539 Industrial Licenses. Out of these, 110 companies have reported commencement of production.

Further, following measures have been taken by the Government to promote private sector participation in Defence sector –

• Out of the total Capital Acquisition Budget for the year 2021-22, 64.09% has been earmarked for domestic capital procurement.
• Defence capital outlay has been increased by 18.75 % in the budget of 2021 – 22.
• DPP-2016 has been revised as Defence Acquisition Procedure (DAP)- 2020, which is driven by the tenets of Defence Reforms announced as part of ‘Aatmanirbhar Bharat Abhiyan’.
• In order to promote indigenous design and development of defence equipment ‘Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)}’ category has been accorded top most priority for procurement of capital equipment.
• Positive indigenisation list: Ministry of Defence has notified a ‘Positive indigenisation list’ of 209 items for which there would be an embargo on the import beyond the timeline indicated against them. This would offer a great opportunity to the Indian defence industry to manufacture these items using their own design and development capabilities to meet the requirements of the Armed Forces in the coming years.
• The ‘Make’ Procedure of capital procurement has been simplified. There is a provision for funding upto 70% of development cost by the Government to Indian industry under the Make-I category. In addition, there are specific reservations for MSMEs under the ‘Make’ procedure.