‘Make in India’ initiative in defence sector is implemented through various policy initiatives which promotes indigenous design, development and manufacture of defence items. These initiatives, inter-alia, include priority to procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP) 2020; notification of ‘Negative list’ of 101 items for which there would be an embargo on the import beyond the timeline indicated against them; simplification of Industrial licensing process; liberalization of FDI policy; simplification of Make Procedure; launch of Innovations for Defence Excellence (iDEX) scheme; and implementation of “Public Procurement (Preference to Make in India), Order 2017.
During the last two financial years i.e. from 2018-19 to 2019-2020 and the current financial year 2020-21( till December 2020), the Government has accorded Acceptance of Necessity (AoN) to 112 Defence proposals, worth Rs. 1,99,860 Crore approximately, under the various categories of Capital Acquisition, which promotes domestic manufacturing as per the Defence Acquisition/Procurement Procedure.
Many significant projects including 155mm Artillery Gun system ‘Dhanush’, Bridge Laying Tank, Thermal Imaging Sight Mark-II for T-72 tank, Light Combat Aircraft ‘Tejas’, ‘Akash’ Surface to Air Missile system, Submarine ‘INS Kalvari’, ‘INS Chennai’, Anti-Submarine Warfare Corvette (ASWC), Arjun Armoured Repair and Recovery Vehicle, Landing craft utility, etc. have been produced in the country under ‘Make in India’ initiative of the Government in last few years.
Based on the export Authorisations/ Licenses issued by Department of Defence Production and actual exports done by Ordnance Factory Board (OFB) & Defence Public Sector Undertakings (DPSUs) and private industries, some of major items exported in the past few years, are Fast Patrol Vessels, Coastal Surveillance System (CSS), Light Weight Torpedoes, Light Weight Torpedo Launcher and Parts, Do-228 Aircraft, Wheeled Infantry Carrier, Light Specialist Vehicle, Mine Protected Vehicle, Passive Night Sights, Battle Field Surveillance Radar Extended Range, Integrated Anti-Submarine Warfare, Advanced Weapons Simulator, Personal Protective items, 155mm Artillery Gun Ammunition, Small Arms and Ammunitions, Weapon locating Radars, Identification of Friend or Foe (IFF) –Interrogator etc. Considering the strategic sensitivity of the matter and in the interest of national security, the country-wise details of exports cannot be divulged.
The contracts for various capital acquisition requirements of the Government in the Defence Sector are awarded to domestic, public & private sector companies including those situated in State of Uttar Pradesh, as per the extant provisions prescribed in Defence Acquisition Procedure. In addition, the OFB &DPSUs place orders on Indian vendors including those situated in Uttar Pradesh for supply of various items, components etc. as per their requirements. Moreover, the Government has established a Defence Industrial Corridor in the State of Uttar Pradesh with 6 nodes at Aligarh, Agra, Chitrakoot, Jhansi, Lucknow and Kanpur to develop defence manufacturing ecosystem and promote indigenous manufacturing.