Make in India Defence Portal

  • Technical Articles
  • Sep 01,16
Make in India Defence Portal

This portal provides information related to all policy and procedural issues relevant for defence manufacturing industry. It provides link to industrial promotion polices and program of various states and UTs. Another highlight of the portal is that the test facilities of DPSUs/OFB/DGQA/DGAQA/DRDO/Forces, which can be utilised by the private sector, have been displayed. The portal also gives an opportunity to an individual company to seek clarifications or ask questions related to Defence Production.

The government has implemented several policy initiatives to promote Make in India, such as liberalisation of FDI policy and Industrial Licensing Policy, simplification of export procedures, creating level playing field.

There are various initiatives taken to promote Make In India for manufacture of defence equipment.

The salient features of Make procedure in the Defence Procurement Procedure-2016 (DPP-2016) are as follows:

There shall be two categories of Make projects first, those funded by the MoD, and the second, that are self-funded by the developers.

Funding of the projects by the MoD has been increased from 80% to 90%.

In case the RFP for the product is not issued within two years of successful development of the prototype, the balance 10% shall also be reimbursed. In case of second category of projects, the entire cost of development shall be reimbursed.

The development agencies will also be able to get a mobilisation advance of 20% of the estimated cost of development.

Projects with an estimated cost of development of up to Rs 10 crore, under MoD funded projects, and up to Rs 3 crore, under self-funded projects, will be earmarked for MSMEs.

Buy (Indian-IDDM): Another notable feature of DPP-2016 is the introduction of a new procurement category Buy [Indian – Indigenously Designed, Developed and Manufactured (IDDM)]. This category refers to procurement from Indian vendors of products that are indigenously designed, developed and manufactured, and have at least 40% indigenous content. If the product is not designed and developed indigenously, it will have to have 60% indigenous content. The Buy (Indian) category, in which the product is to be procured from Indian vendors, will now require to have an indigenous content of 40%, instead of the 30% present requirement.

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