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In continuous pursuit of self-reliance in defence manufacturing and to minimise imports by Defence Public Sector Undertakings (DPSUs) under ‘Aatmanirbhar Bharat Abhiyan’, Dept of Defence Production (DDP) notified 4th Positive Indigenisation List (PIL) of 928 items on May 12, 2023, which includes LRUs/ sub-systems/ assemblies/ sub-assemblies, raw material, low value critical spares and components of DPSUs for time-bound indigenisation. These items are to be indigenised within the timelines of December 2023 to December 2029. As compared to previous year, 4500+ items of Srijan Portal including 173 PIL items, have been indigenised in 2023.

To give fillip to the ongoing indigenisation, a portal – www.srijandefence.gov.in – was launched in August 2020 for DPSUs/Services with an industry interface to provide development support to MSMEs/ Startups/ Industry for import substitution.

The MoD has successfully indigenised 10,451 items during the period of 3 years since the launch of Srijan Portal. More than 34,000 items were uploaded by the DPSUs and Service Headquarters on Srijan Portal for indigenisation by Industry. This includes the 4,666 items under PILs being notified by DDP.

Standardisation of defence equipment/ inventory is undertaken through 13 Standardisation Sub-Committees dealing with specialized equipment/ technologies. During 2023, a new Standardisation Sub-Committee namely, Marine Equipment Standardisation Sub-Committee, was formed to formulate Standards for Marine Equipment.

During 2023, training on standardisation and codification was imparted to 333 personnel of Tri-Services, Defence Public Sector Undertakings (DPSUs), Authority Holding Sealed Particulars (AHSPs), Ordnance Factories and civil industries, through two Training Institutes located at Pune and Badarpur (New Delhi).

The 14th edition of Aero India-2023 was held from 13th–17th February at Bengaluru, Karnataka and has been the largest ever edition since its inception in 1996 with more than 100 countries, 809 exhibitors, first ever Fly past with 53 aircrafts showcasing our airpower to global attendees and a total footfall of 7+ lakh visitors over five days.

Start-ups promotion was a focus area at Aero India-2023 with Indian Start-ups being showcased at an exclusive iDEX pavilion, and at the Chiefs of Air Staff Conclave. The Annual Start-up event ‘Manthan’ was also conducted. The maiden iDEX Investor Hub (iIH) was conducted with over Rs 200 crore pledged during iIH.

A concerted effort was made towards forging B2B partnerships at the ‘Bandhan’ ceremony and more than 250 such partnerships with a total value of more than Rs 75,000 crore have been finalized. The partnerships are a step towards increasing traction for business, ToT and Joint development between the companies.

Defence Exports

Export leads received from various stakeholders are being disseminated to the registered Indian Defence Exporters through online portal. This facility helps the Indian defence exporters to quickly respond to export opportunities arising in other countries. The online portal has been upgraded with a feedback mechanism from Indian Industry for online monitoring/ follow-up of the disseminated export leads. Total 245 leads have been disseminated through the portal since Jan 2023.

In order to boost defence exports, webinars were organized with Friendly Foreign Countries (FFCs) under the aegis of DDP, MoD through Industry Associations. Total 26 webinars have been organised since Jan 2023.

A scheme for financial assistance to Defence Attaches (DAs) for promotion of “Brand India” in defence was approved by the RM in Nov’ 2023. Under this scheme DAs have been mandated for export promotion of Indigenous defence products of both public and private sector through enhanced financial grants to the Indian missions. For FY 2023-24, DAs of 64 countries were allocated a total of Rs. 3.76 crores.

An institutional support mechanism has been created for facilitation and hand-holding of Indian defence companies for promoting the export of UN Contingent Owned Equipment (COE) to troop contributing countries.

In line with India’s Defence Export Strategy to enhance defence exports, 1310 Export Authorisations were issued by Dept of Defence Production to 73 countries during 2023, having value of Rs. 13345 crore.

Defence Innovations

During 2023, 101 winners of iDEX challenges were declared, 131 contracts were signed and 15 prototypes were developed. Three versions of Defence India Start-up Challenges (DISC) i.e., DISC 8, DISC 9 & DISC X were launched. Three versions of Open Challenges, i.e., OC 7, OC 8 & OC 9 were launched.

iDEX in partnership with US DoD conducted the India-U.S. Defence Acceleration Ecosystem (INDUX-X) event in Washington DC, USA on 20-21 June 2023. The initiative will expand the strategic technology partnership and defence industrial cooperation between the start-up eco-system, businesses, and academic institutions.

iDEX Investor Hub (iIH) brought additional funding of Rs 50 cr through ITI Growth Opportunities Fund (a venture capital fund of the Investment Trust of India group), raising the total iIH amount to Rs 260 cr.

Swavlamban 2023. During Swavlamban 2023 event on 4 Oct 2023, Raksha Mantri launched a number of initiatives.

Collaboration with US DoD. Along with 76 Challenges of DISC X, 5 problem statements under iDEX 4 Fauji and first 2 challenges under ‘INDUS-X Mutual Promotion of Advanced Collaborative Technologies’ (IMPACT were jointly launched by iDEX and United States Department of Defence (US, DoD).

iDEX-Navy Venture for Technology (iNVent): Naval Innovation and Indigenisation Organisation (NIIO) and Defence Innovation Organisation (DIO) entered into an MoU for jointly working on facilitating the infusion of Venture Capital into the defence ecosystem through the iDEX Investor Hub (iIH).

DAC Approvals. Indigenous Design & Development of Defence Systems has been undertaken through ‘Make Procedure’ provided under Defence Acquisition Procedure-2020. In 2023, 18 projects were accorded ‘Approval-in-principle’ bringing the total tally to 149 projects. Also, 11 projects have been accorded Acceptance of Necessity (AoN) in 2023, taking the number of AoN projects to 60.

Defence Industrial Corridors. Two Defence Industrial Corridors (DIC) have been established at Uttar Pradesh and Tamil Nadu to boost Defence Manufacturing ecosystem in the country with intent to attract investment of Rs. 10,000 Crore in each DIC. In Uttar Pradesh Defence Industrial Corridor (UPDIC), Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), the nodal agency, has signed 138 Memoranda of Understanding (MoUs) with industries, etc. Actual investment of Rs. 2656 core has been made in UPDIC. In Tamil Nadu Defence Industrial Corridor (TNDIC), Tamil Nadu Industrial Development Corporation (TIDCO), the nodal agency, has made arrangements through 57 MoUs, etc. Actual investment of Rs. 4085 Crore has been made in TNDIC.

Helicopter Factory. Prime Minister Narendra Modi dedicated HAL’s New Helicopter factory in Tumkuru to the nation on 6th Feb ’23. During the same event, Prime Minister unveiled HAL’s indigenously designed and developed Light Utility Helicopter (LUH).

DPSU’s Successes

Raksha Mantri Rajnath Singh inaugurated first overseas regional marketing office of HAL in Kuala Lumpur, Malaysia on 11 July 2023.

HAL received the ‘State Export Excellence Award’ (for the years 2017-18, 2018-19 & 2019-20) from Department of Industries and Commerce, Govt. of Karnataka under the category of ‘Govt. of India Undertaking Exporter’ on 22 Jul 2023.

HAL played key role in success of Chandrayaan-3 including on-time delivery of 30 types of rivetted structure, six types of welded structure and the satellite’s bus structure Rover, Lander and Castings & Forgings, appreciation received.

ASTRA indigenous Beyond Visual Range (BVR) air-to-air missile, successfully fired from Light Combat Aircraft (LCA) LSP-7, off the coast of Goa on 23 Aug 2023. All the objectives of the test were met. This was a joint effort by ADA and HAL.

HAL received DGCA approval under ‘CAR21 Subpart G’ for series production of Hindustan 228 aircraft, indigenously built, as Make-in-India project and ‘Maintenance Type Training Certificate’ under CAR147 under category B1 and B2 for imparting AME type rated licence on Hindustan-228 aircraft.

Prime Minister Narendra Modi visited HAL Bangalore on 25 Nov 2023 and undertook a sortie on the LCA Tejas Twin Seater Aircraft. PM is the first Prime Minister of the Country who undertook a sortie in our home grown technology marvel-Tejas.

Indigenous Air Traffic Management System (ATMAS), jointly developed & installed by BEL and Airports Authority of India (AAI), was inaugurated & commissioned at Bhubaneswar airport on 27 Oct 2023.

Combat trial of indigenously developed Varunastra, a ship-launched anti-submarine heavy-weight torpedo (HWT) was successfully conducted on 6 June 2023 by Indian Navy. The Torpedo was fired from a submarine and successfully hit an underwater target demonstrating the combat worthiness and capable of meeting the Navy’s operational requirements. BDL has manufactured and supplied the torpedo and associated in integration, torpedo preparation for sea trials and firing onboard ship.

BDL has launched three new products i.e., Vertically Launch Short Range Surface to Air Missile (VL SRSAM), SAL Seeker ATGM for BMP II and Drone Delivered Missile (JISHNU) during the Bandhan event at Aero India held in Feb 2023.

BDL carried out field firing of 3rd Generation Fire and Forget Man Portable Anti-Tank Guided Missile named Amogha-III on 26 Mar 2023.

The i-ATS (Indigenous- Automatic Train Supervision) system, developed by BEL, was formally launched on the Delhi Metro Red Line on 18 Feb 2023 from the Operations Control Centre (OCC), Shastri Park.

MIDHANI indigenously developed SNI C276 sheets, a premier corrosion-resistant material. Alloy C276, strengthened with nickel, molybdenum, chromium, and a touch of tungsten, excels in oxidizing and reducing environments used for flue gas purification. This achievement was appreciated at BHEL SAMVAAD 3.0 held at New Delhi on 9 Nov 2023.

MIDHANI developed 1000th heat in the indigenously developed Vacuum Arc Remelting (VAR) furnace within 6 years.

MIDHANI launched five newly developed products and signed 11 MoUs during the 14th edition of Aero India 2023, organised by BEL along with HAL, held at Yelahanka, Bengaluru on 13-17 Feb 2023.

The 4th ship of Project-17A “Mahendragiri”, built by MDL, was launched on 1 Sep 2023.

Goa Shipyard Limited (GSL) and Foundation for Science innovation and Development, IISC Bengaluru signed MoU on 29 July 2023 towards fostering joint development and implementation of AI technologies in the field of shipbuilding & defence applications.

GSL & Kenya Shipyards Limited signed MoU in Capacity Building & for collaboration in ship design & construction, during the bilateral meeting held between Defence Minister Rajnath Singh and Kenya’s Cabinet Secretary for Defence, Aden Bare Duale in New Delhi.

Yard ‘Infrastructure Augmentation Plan’ worth Rs. 1393.55 cr was executed in five phases and completed in all manners on 31 Mar 2023 by GSL.

Two Diving Support Vessels (DSV), indigenously designed by Hindustan Shipyard Limited (HSL), are being built for Indian Navy for the first time by an Indian yard.

HSL has received three Inmex Maritime Excellence Awards in categories of Best Ship Repair Company, Best Technology Innovation and Women Leadership Award.

IOL has signed 13 MOUs valuing approx Rs 6,100 crore for cooperation in designing, development, manufacture, upgradation etc. of new products/ technologies with different parties like BEML and others.

In pursuance of MoD’s policy to promote ‘Aatmanirbhar Bharat’ Programmes, IOL has indigenised many ex-import components/sub-assemblies using Srijan portal. IOL has placed 101 project sanction orders on Indian manufacturers, under Make-II scheme of DAP-2020 and 8 RFPs/EOIs have also been published. IOL has 189 items in PIL1 and 47 items in PIL3 Lists, out of which 184 Items have already been indigenised. IOL has also sponsored five innovative technology projects under iDEX.

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This increase is due to a number of factors, including the Make in India initiative, which has encouraged the development of a domestic defence manufacturing industry. The government has also been providing financial incentives to defence exporters, and has been working to improve the ease of doing business in the defence sector.

Promotion of Defence Exports

The government has taken a number of steps to promote defence exports in recent years. These include:

• Streamlining export procedures: Export procedures have been simplified to make it easier for companies to export defence equipment and technologies. This includes reducing the number of approvals required, and making it easier to obtain export licenses.

• Providing financial incentives: A number of financial incentives have been introduced to encourage defence exports. These include the Scheme for Promotion of Defence Exports (SPDE), which provides financial support for attending international defence exhibitions, marketing, and publicity of Indian defence products abroad.

• Encouraging partnerships with overseas firms: Indian defence companies have been encouraged to form partnerships with overseas firms. This can help Indian companies to access new markets, and to gain access to foreign technology and expertise.

• Promoting India’s defence manufacturing capabilities: The Make in India initiative has promoted India’s defence manufacturing capabilities by attracting foreign investment in the defence sector, and encouraged the development of a domestic defence manufacturing industry.

The government is also working to improve the ease of doing business in the defence sector. This includes simplifying the regulatory environment, and providing better infrastructure and support services to defence companies. The government is also working to promote India’s defence exports to countries in the Indian Ocean Region (IOR).

Streamlining Export Procedures

A number of steps have been taken to streamline export procedures for defence equipment. These include:

•  Establishing a single-window clearance mechanism: A single-window clearance mechanism has been established for defence exports. This means that all approvals required for export of defence equipment can be obtained from a single agency, the Department of Defence Production (DDP).

• Introducing an online export tracking system: An online export tracking system has been introduced for exporters to track the progress of their export applications, and to get updates on the status of their applications.

•  Simplifying the export documentation: The export documentation required for defence exports has been simplified to reduce the time and cost involved in obtaining export licenses.

• Providing online training on export procedures: The government provides online training on export procedures to defence exporters to help exporters understand the export procedures, and to comply with the export regulations.

Financial Incentives

A number of financial incentives have been introduced to encourage defence exports. These include:

• The Scheme for Promotion of Defence Exports (SPDE): The SPDE provides financial support for attending international defence exhibitions, marketing, and publicity of Indian defence products abroad. The scheme also provides financial assistance for the development of new defence products, and for the testing and certification of defence products.

• The Defence Export Promotion Capital Goods (DEPCG) Scheme: The DEPCG Scheme provides financial assistance for the purchase of capital goods by defence exporters. This can help exporters to upgrade their production facilities, and to improve the quality of their products.

• The Defence Export Promotion Rebate (DEPR) Scheme: The DEPR Scheme provides a rebate on customs duty for imported components used in the manufacture of defence exports. This can help to reduce the cost of production for defence exporters.

The SPDE is the main financial incentive for defence exports administered by the Department of Defence Production (DDP). It is a centrally-sponsored scheme, which means that the central government provides the funding.

The SPDE provides financial support for a variety of activities related to defence exports. These activities include:

• Attending international defence exhibitions

• Marketing and publicity of Indian defence products abroad

• Development of new defence products

• Testing and certification of defence products

The SPDE is a competitive scheme. Exporters must submit a proposal to the DDP, and the proposals are evaluated on a number of factors, including the commercial viability of the project, the export potential of the product, and the benefits to the Indian economy.

In addition to the SPDE, there are a number of other financial incentives available to defence exporters. These incentives are available from the central government, as well as from state governments and from financial institutions.

Defence Manufacturing

A number of steps have been taken by the government to promote India’s defence manufacturing capabilities. These include:

• The Make in India initiative: The Make in India initiative was launched in 2014 to attract foreign investment and to encourage the development of a domestic manufacturing industry. The initiative has been successful in attracting foreign investment in the defence sector, and has helped to boost the growth of the Indian defence manufacturing industry.

• The Defence Production Policy 2020: The Defence Production Policy 2020 was released in 2020. The policy aims to promote self-reliance in defence manufacturing, and to increase the share of domestic production in the Indian defence market. The policy includes a number of measures to promote defence manufacturing, such as increasing the FDI limit in the defence sector, and providing financial incentives to defence manufacturers.

• The Strategic Partnership (SP) Model: The SP Model was introduced in 2017. The model allows Indian companies to partner with foreign Original Equipment Manufacturers (OEMs) to develop and manufacture defence products in India. The SP Model has helped to attract foreign investment in the Indian defence sector, and has helped to boost the growth of the Indian defence manufacturing industry.

• The Defence Innovation and Research (DIR) Fund: The DIR Fund was launched in 2018 to promote innovation and research in the defence sector. The fund provides financial support to start-ups and small businesses that are developing new defence technologies.

Defence R&D by Private Sector

A number of steps have been taken to enhance defence research & development (R&D) by Indian private sector companies. These steps include:

• The Defence Research and Development Policy 2018: The Policy was aims to promote private sector participation in defence R&D. It includes a number of measures to promote private sector participation, such as providing financial incentives, and setting up defence R&D parks.

• The Innovations for Defence Excellence (iDEX) scheme: Launched in 2016, the iDEX scheme is designed to promote innovation and R&D in the defence sector. The scheme provides financial support to start-ups and small businesses that are developing new defence technologies.

• The Defence Technology Development Fund (TDF): The TDF was launched in 2016 to promote defence R&D by Indian companies. The fund provides financial support to companies that are developing new defence technologies.

• The Defence Innovation and Research (DIR) Fund: The DIR Fund was launched in 2018 to promote innovation and research in the defence sector. The fund provides financial support to start-ups and small businesses that are developing new defence technologies.

Some of the specific incentives and schemes that are available to Indian private sector companies for defence R&D are:

• Financial incentives: The government provides financial incentives in the form of grants, loans, or tax breaks to companies that are involved in defence R&D. These incentives can take the.

• Access to government facilities: The government provides access to its facilities like laboratories, test ranges, and other infrastructure to companies that are involved in defence R&D.

• Collaboration with government agencies: The government collaborates with companies that are involved in defence R&D. This collaboration can take the form of joint research projects, or the sharing of information.

• Access to foreign technology: The government provides access to foreign technology to companies that are involved in defence R&D. This can help companies to develop new technologies that are not available in India.

Comments

The increase in defence exports is also a reflection of India’s growing military power. India is now one of the world’s largest arms importers, and is increasingly looking to develop its own defence capabilities. This has led to an increased demand for Indian-made defence equipment, both from the Indian military and from foreign buyers.

The growth of India’s defence exports is  helping to boost the economy, create jobs, and enhance India’s global standing. It is also helping to reduce India’s dependence on foreign arms imports.

The steps taken to boost exports have helped to streamline export procedures for defence equipment, and have made it easier for companies to export defence equipment from India.

The government is also working to improve the infrastructure and support services available to defence manufacturers. This includes providing better training and education facilities, and improving the availability of raw materials and components. The government is also working to promote defence exports, and to create a more favourable environment for defence manufacturing in India.

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Based on data presented in parliament and published through the Press Information Bureau India’s defence exports record is as follows:

Year       Rs in crores

2013-14                686

2014-15                794

2015-16                1,056

2016-17                1,521

2017-18                4,682

2018-19                10,746

2019-20                9,116

2020-21                8,435

2021-22                12,815

2022-23               15,918 (est)

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India’s defence industry is now capable of manufacturing wide variety of high-end requirements e.g. tanks, armoured vehicles, fighter aircrafts, helicopters, warships, submarines, missiles, electronic equipment, special alloys, special purpose steels, and variety of ammunition.

The value of indigenous defence production for Financial Years 2020-2021 and 2021-2022 was Rs 84,643 crore and Rs 94,846 crore respectively.

Domestic Procurements

The Government, in the last three years, ie, from 2019-20 to 2021‑22 and current year (2022-23 up to September, 2022), had accorded Acceptance of Necessity (AoN) to 163 proposals worth Rs 2,46,989.38 crores approximately, under various categories of capital procurement which promote domestic manufacturing as per DAP-2020.

The share of domestic procurement in the total procurement has seen an upward trend. In 2018-19, the domestic procurement stood at 54% of the total procurement; this figure jumped to 59% in 2019-20 and to 64% in 2020-21. In 2022-23, it has been increased to 68% for domestic procurement, of this 25% budget has been earmarked for procurement from private industry.

With focus of Government on indigenisation and procurement of defence products from the domestic resources, the expenditure on defence procurement from foreign sources has reduced from 46% to 36% in the last four years i.e. from 2018-19 to 2021-22.

Domestic Projects Realised

With focus on indigenisation and procurement from domestic industries, all the major areas of domestic defence production ecosystem such as weapons, ammunition, fighter aircrafts, helicopters, missile systems, warships, submarines, armoured vehicles, radars, communication systems, surveillance systems, etc. have benefited from the initiatives and also given boost to the growth of domestic industries including MSMEs and start-ups.

Many significant projects that have been produced in the country during the last few years include (alphabetically listed):

• 155 mm Artillery Gun system ‘Dhanush’
• 25 ton Tugs
• Advanced Light Helicopter
• Anti-Submarine Warfare Corvette (ASWC)
• Arjun Armoured Repair and Recovery Vehicle
• Armoured Personnel Carrier ‘BMP-II/IIK’
• Bi-Modular Charge System (BMCS) for 155mm Ammunition
• Bridge Laying Tank,
• Cheetah Helicopter
• Dornier Do-228
• Fast Interceptor Boat
• High Mobility Trucks
• INS Chennai
• INS Kalvari
• INS Khanderi
• Inshore Patrol Vessel
• Integrated Air Command and Control System (IACCS)
• Lakshya Parachute for Pilotless Target Aircraft
• Landing Craft Utility
• Light Combat Aircraft ‘Tejas’
• Main Battle Tank ‘Arjun’
• Medium Bullet Proof Vehicle (MBPV)
• Offshore Patrol Vessel
• Opto Electronic Sights for Battle Tanks
• Software Defined Radios (SDR)
• Su-30 Mk1
• Surface to Air Missile system ‘Akash’
• T-72 Tank
• T-90 Tan
• Unmanned aerial vehicles
• Water Jet Fast Attack Craft
• Weapon Locating Radar (WLR)

Further, for the first time, a Made-in-India Advanced Towed Artillery Gun (ATAG) howitzer gun developed by our industry was part of the 21-gun salute during the Independence Day celebration at Red Fort in Delhi.

Policy Initiatives to Encourage Self-Reliance

These projects are the result of several policy initiatives and reforms taken by Government in the past few years to encourage indigenous design, development and manufacture of defence equipment, there by promoting self-reliance in defence manufacturing in the country.

 These initiatives include:

• According priority to procurement of capital items of Buy Indian (IDDM) category from domestic sources under Defence Acquisition Procedure (DAP)-2020.
• Earmarking of 25% of R&D Budget for Industry led R&D.
• Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu.
• Implementation of Public Procurement (Preference to Make in India) Order 2017.
• Launch of an indigenization portal namely SRIJAN to facilitate indigenisation by Indian Industry including MSMEs.
• Launch of Innovations for Defence Excellence (iDEX) scheme by involving Start-ups & Micro, Small and Medium Enterprises (MSMEs).
• Launch of Mission DefSpace.
• Liberalisation of Foreign Direct Investment(FDI) policy allowing 74% FDI under automatic route.
• Notification of  four  ‘Positive  Indigenisation  Lists’  of  total  411  items  of  Services  and  three  ‘Positive Indigenisation Lists’ of total 3738 items  of Defence Public Sector Undertakings (DPSUs), for which there would be an embargo on the import beyond the timelines indicated against them.
• Opening up of Defence Research & Development (R&D) for industry, start-ups and academia with 25 percent of defence R&D budget.
• Progressive increase in allocation of Defence Budget of military modernisation for procurement from domestic sources, etc.
• Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers.
• Simplification of Industrial licensing process with longer validity period.
• Simplification of Make Procedure.

Specific provisions have been introduced in DAP-2020 under ‘Buy and Make (Indian)’ and ‘Buy (Global – Manufacture in India)’ category, wherein indigenous production is carried out with Transfer of Technology (ToT) from foreign OEM.

To enable adoption of Artificial Intelligence in defence, Defence AI Council (DAIC) and Defence AI Project Agency (DAIPA) has been created. Further, an AI roadmap has also been finalised for each Defence Public Sector Undertaking (DPSU) under which 70 defence specific AI projects have been identified for development.

Government has notified the ‘Strategic Partnership (SP)’ Model which envisages establishment of long-term strategic partnerships with Indian entities through a transparent and competitive process, wherein they would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfers to set up domestic manufacturing infrastructure and supply chains.

The expenditure on defence procurement from foreign sources has reduced from 46% of overall expenditure in 2018-19 to 36.7% as per data till December 2022.

Research & Development

Defence Research & Development (R&D) has been opened up for industry, start-ups and academia with 25 percent of defence R&D budget earmarked, to promote development of defence technology in the country.

Defence Research and Development Organisation (DRDO) identified nine thrust areas for focused research, namely Platforms, Weapon System, Strategic Systems, Sensors & Communication Systems, Space, Cyber Security, Artificial Intelligence & Robotics, Material & Devices and Soldier Support.

Technology Development Fund (TDF) Scheme also funds industries, especially – Start-ups and MSMEs upto an amount of Rs. 10 Crore, for innovation, research and development of defence Technologies in the field of defence and Aerospace.

Defence Industrial Corridors

To achieve ‘Aatmanirbharta’ and realise the goal of ‘Make in India’, Government of India has established two Defence Industrial Corridors (DICs) in the country, one in Uttar Pradesh and other in Tamil Nadu. These are expected to attract investments in Aerospace & Defence sector and established a comprehensive defence manufacturing ecosystem in the country. Moreover, the respective State Governments have also published their Aerospace & Defence Policies to attract private players as well as foreign companies including Original Equipment Manufacturers (OEMs) in these two corridors. The two State Governments have already signed MoUs/Agreements with various industries for investment worth total value of about Rs 24,000 crore. Investments worth Rs 2,242 crore and Rs 3,847 crore have been made in Uttar Pradesh Defence Industrial Corridor (UPDIC) and Tamil Nadu Defence Industrial Corridor (TNDIC) respectively.

DPSUs carved out of OFB

The seven new DPSUs carved out of erstwhile Ordnance Factory Board have been incorporated as wholly owned Government companies under the Companies Act 2013 in October 2021. Government has taken steps to initially handhold and support these new defence companies in starting their business as corporate entities. In this regard, outstanding indents with erstwhile OFB were grandfathered and converted into deemed contracts valuing about Rs 70,776 crore for the next five years. These deemed contracts provide annual targets for delivery of products. Every year, 60% of amount pertaining to that year’s target would be paid by the Services to the new DPSUs as advance as per the terms and conditions stipulated in the deemed contract. The advances provide the working capital to the newly constituted DPSUs. With more functional and financial autonomy, these new DPSUs are focusing on widening their customer base, including exports to augment the volume of defence production.

Defence Innovations

An innovation ecosystem for Defence titled Innovations for Defence Excellence (iDEX) was launched in April 2018 to foster innovation and technology development in Defence and Aerospace by engaging Industries including MSMEs, Start-ups, Individual Innovators, R&D institutes and Academia. iDEX provides them grants/funding and other support to carry out innovations/R&D which has potential for future adoption for Indian defence and aerospace needs. Under iDEX, 233 problems have been opened, 310 Start-ups have been engaged, 140 contracts have been signed. ‘iDEX Prime’ framework under iDEX has been launched in 2022 to support Start-ups with Grant-in-Aid up to Rs 10 crore to enable the development of high-end solutions.

Till October 2022, a total of 595 Industrial Licences have been issued to 366 companies operating in Defence Sector.

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The Tactical UAV was first unveiled at Aero India 2021. BEML is better known for its earthmovers and Metro coach assemblies.

BEML has taken a two-pronged approach in its foray into the versatile drone space: One, a partnership with the Czech innovation company Primoco UAV to jointly produce the Model One 150 with a 200 km range and payload capacity of 1-30 kg.

India’s immediate requirement is for over 4,000 UAVs in the micro to weaponised categories, and BEML’s entry is expected to add to the variety. This dictated the company’s partnership with the Indian Institute of Technology, Kanpur, for joint indigenous development of a Pilotless Target Aircraft (PTA) and a tactical UAV. The tactical UAV will have an endurance of eight hours, the longest in its class.

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According to L&T’s JD Patil, the Light Tank will be ready for testing by mid-2023. “The development is on at full speed,” he said.

The current design being developed by DRDO and L&T is completely ab initio, and not taking Vajra design. While L&T is involved in the development work, it is not assured of a role in the production phase. Developed equipment has to undergo field evaluation trials and emerge successful for the induction clearance, and then production ordering process begins.

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Under the agreement, the companies will jointly produce lightweight titanium castings. They will develop a controlled fabrication process and ensure that the same parts can be manufactured in any future production of the M777 howitzers for India.

The first sub-systems are expected to be produced by the end of 2022.

The manufacturing will eventually be extended to all three of the major structures of the gun namely the Saddle, Cradle, and Lower Carriage.

BAE Systems also said that it may soon manufacture a 52-Calibre 155 mm barrel for the ULH in India. This would make India the first customer to have a 155mm 52-calibre platform under 5,800 kg in weight.

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The UP government announced that it was likely to sign 13 industrial MOUs worth Rs 564 crore at DefExpo-2022 to partner with over 100 companies with an estimated investment target of around Rs 600 crore.

“The UP government is committed to develop the defence and aerospace sector with modern infrastructure, better connectivity and policy support.

Among the key features of its recently announced policies, the government will be offering a capital subsidy of 7 per cent up to Rs 500 crore to all defence and aerospace units being set up in Aligarh, Agra, Lucknow and Kanpur nodes.

A 10% subsidy up to Rs 500 crore for investors in Jhansi and Chitrakoot nodes of Bundelkhand was also announced, along with a 25% land subsidy for anchor defence and aerospace units. The state government will bear the cost of developing infrastructure of all six nodes. The state will also offer research and development tie-ups with prominent academic institutions like IIT-Kanpur and IIT-BHU, as well as Defence Research and Development Organisation (DRDO) and HAL’s Aerospace Systems & Equipment R&D Centre (ASERDC).

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William L Blair, Chief Executive, Lockheed Martin India, said, “Our joint ventures with Tata and industrial relationships with many Indian companies such as Ashok Leyland, Lakshmi Machine Works, MIDHANI, Rossell Techsys, and SASMOS among others are a testament to the success of the Government of India’s mission to create ‘Atmanirbhar Bharat’ in the defence sector. ”

The prime attraction at its booth this year was the ‘Made in India’ fuel-carrying, 9G, 12,000-hour, interchangeable/replaceable fighter wing. This wing was manufactured at the Tata Lockheed Martin Aerostructures Limited (TLMAL) facility in Hyderabad, which also serves as the single global source of C-130J empennage assemblies installed on all new Super Hercules aircraft. To date, TLMAL has manufactured and exported more than 180 C-130J empennages.

The F-21 fighter aircraft, which was on offer to the Indian Air Force (IAF), also occupied a prominent place at Lockheed Martin’s booth. The company is leveraging both 4th and 5th generation technologies to offer the best solution to meet or exceed the IAF’s capability needs, provide Make in India industrial opportunities, and accelerate India-United States cooperation on advanced technologies, including but not limited to fighter aircraft.

The Indian Navy’s acquisition of the MH-60R ‘Romeo’ multi-mission helicopter was another highlight for Lockheed Martin at the show. The MH-60R is the world’s most advanced maritime helicopter and brings vital anti-submarine and anti-surface warfare capabilities to the Indo-Pacific region. The US Navy already delivered the first three aircraft to the Indian Navy in 2021, and these aircraft are being utilised for training Indian pilots and crew members in California. In July-August 2022, the US Navy transported to India another three helicopters, which will be initially based at Naval Air Station INS Garuda in Kochi. A total of 24 MH-60Rs will be delivered to the country over the next few years.

India’s workhorse, the C-130J Super Hercules airlifter, which represents a strong legacy of partnership between India and the US, was also on display at the Lockheed Martin booth. The S-92 helicopter also boosted Lockheed Martin’s presence at the show; it recently surpassed two million fleet flight hours which is a testament to the reliability of the multi-mission aircraft.

As part of the Javelin Joint Venture, Lockheed Martin also produces the Javelin fire-and-forget anti-tank guided missile system.

The company’s present and future programmes in India range from transport, maritime and fighter aircraft to sea and land-based air and missile defence projects and capabilities in civil sectors, including new and renewable energy.

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