A need was felt to re-organise DGQA for an effective and efficient support to emerging defence manufacturing industry with the corporatisation of Ordnance Factories into new DPSUs, increased participation of private defence industry and impetus by the government towards indigenisation. DGQA has already been steering various organisational and functional reforms after active discussions with all stakeholders in the defence manufacturing ecosystem.

The new structure under implementation will enable single point technical support for complete equipment/ weapon platforms at all levels and also ensure uniformity in product-based QA, according to an official statement issued by the Ministry of Defence on March 28, 2024. The new structure also provides for a separate Directorate of Defence Testing and Evaluation Promotion to facilitate transparent allocation of Proof Ranges and testing facilities.

Coupled with automation and digitisation of standardised QA processes, this arrangement is likely to significantly improve the engagement of the Defence Industry with DGQA. The re-organised structure and ongoing functional reforms will give a push to indigenisation drive under ‘Aatmanirbhar Bharat’ with availability of Indian standards/ equivalent to guide manufacturers within the country and will also boost export of high Quality qualified defence products.

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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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Previously, Directorate General of Quality Assurance (DGQA) was the AHSP for majority of defence items designed, developed and manufactured by various DPSUs and private industries. Under the existing procedure, certain bottlenecks were experienced by the industry to bring timely improvements in their products and technologies in line with changing times. To remove these bottlenecks, the ministry has decided to liberalise the AHSP procedures and make it industry-friendly, according to an MoD release on Tuesday.

The Indian defence companies, which have developed products, systems, subsystems, components on their own indigenous capabilities (except critical stores), will now be allowed to own and account for their final designs and specification as AHSP. In case of any change in the sealed particulars, a simplified mechanism representing all the concerned stakeholders, including the industry, will take a decision. The DGQA will notify the detailed procedure in this regard within two months, the ministry said.

The DGQA has also been asked to examine all AHSPs with them and rationalise the entire list within two months.They have been further advised to transfer the AHSP to the industry at the earliest. It will be another significant step of the government to further encourage ‘ease of doing business’, it added.

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The amendments will allow the Indian private sector to acquire a major stake in Defence R&D companies, which will be set up for development of major hardware platforms like drones, helicopters, aircrafts, and advanced submarines. This is a groundbreaking development as till now, only government DPSUs and laboratories were allowed defence R&D with only minor items being exposed to private R&D. This is in line with the defence budget, where it was announced that 25 per cent of defence R & D budget would be spent on these platform specific SPVs with the private sector.

Given the global turmoil sparked off by the Ukraine war and the Chinese belligerence in the Indo-Pacific, India has no options but to make defence R & D competitive as the public sector alone cannot cater to growing Indian defence platform requirements in the stipulated time.

While DRDO has been developing hardware platforms over the decades, the entry of private sector into defence R&D will give India more options for developing stand-off weapon systems like long endurance armed drones, anti-drone systems, 12-ton multi-purpose helicopters, next generation of fighter aircraft and perhaps nuclear powered and conventionally armed submarines.

The matter has acquired urgency as China has been able to develop armed high altitude long endurance drones like Wing Loong 10, which is powered by turbofan engines like state-of-the-art US armed drones. India, on the other hand, is still relying on getting its medium altitude long endurance drones being upgraded by Israel and has no answer to the long strides that China or for that matter Iran and Turkey have taken in development of unmanned aircraft systems.

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According to officials aware of the developments, the amendments will allow the Indian private sector to acquire a major stake in Defence R&D companies, which will be set up for development of major hardware platforms like drones, helicopters, aircrafts, and advanced submarines. This is a groundbreaking development as till now, only government DPSUs and laboratories were allowed defence R&D with only minor items being exposed to private R&D. This is in line with the defence budget, where it was announced that 25 per cent of defence R & D budget would be spent on these platform specific SPVs with the private sector.

Given the global turmoil sparked off by the Ukraine war and the Chinese belligerence in the Indo-Pacific, India has no options but to make defence R & D competitive as the public sector alone cannot cater to growing Indian defence platform requirements in the stipulated time. The global defence market is set to face new challenges as countries like Japan, Germany, Asean, South Korea, and east European countries will be seeking more weapons from the US to deter Russia and China, and the latter will be cutting down on exports to service their own requirements. India has no options but to develop and manufacture hardware platforms on its own as its major supplier Russia is focused on the Ukraine war and it is only a matter of time when scarcity of spare parts hits the Indian armed forces.

While the Defence Research and Development Organization (DRDO) has been developing hardware platforms over the decades, the entry of private sector into defence R&D will give India more options for developing stand-off weapon systems like long endurance armed drones, anti-drone systems, 12-ton multi-purpose helicopters, next generation of fighter aircraft and perhaps nuclear powered and conventionally armed submarines.

The matter has acquired urgency as China has been able to develop armed high altitude long endurance drones like Wing Loong 10, which is powered by turbofan engines like state-of-the-art US armed drones. India, on the other hand, is still relying on getting its medium altitude long endurance drones being upgraded by Israel and has no answer to the long strides that China or for that matter Iran and Turkey have taken in development of unmanned aircraft systems.

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