31 December by PIB Delhi

Government is pursuing initiatives to achieve higher levels of indigenization and self-reliance in the defence sector by harnessing the capabilities of the public and private sector industries in the countries.  These measures include according priority and preference to procurement from Indian vendors and liberalization of the licensing regime.  Defence Procurement Procedure (DPP) accords the highest priority to Buy Indian (Indigenously Designed, Developed and Manufactured) (IDDM).  The ‘Make’ procedure has been simplified with provisions for earmarking projects not exceeding development cost of Rs.10 crores (government funded) and Rs.3 crores (Industry funded) for micro, small and medium enterprises (MSMEs);  and with provisions for involving private industry as production agencies and technology transfer partners.  Government has also promulgated the policy on Strategic Partnership in the Defence Sector to encourage broader participation of the private sector in manufacture of major defence platforms and equipment.

During last three financial years, out of 99 contracts signed with Indian vendors, 49 contracts have been signed with Indian private vendors for procurement of defence equipment.  Delivery schedule of equipment is specified in each contract.

This information was given by Raksha Rajya Mantri Dr. Subhash Bhamre in a written reply to Dr. Amee Yajnik in Rajya Sabha today.