“In continuous pursuit of achieving self-reliance in defence manufacturing under ‘Aatmanirbhar Bharat Abhiyan’ and in sync with the announcement made in the Union Budget 2022-23 that allocated 25 per cent of the defence R&D budget for industry-led R&D, 18 major platforms have been identified and announced by the MoD for industry led D&D,” stated the MoD in a written response to a Parliamentary question.

Under Make-1 procedure of the Defence Acquisition Procedure of 2021, 14 items are listed as follows:

•             Hypersonic glide vehicles

•             Anti-jamming systems for varied platforms

•             Directed Energy Weapons (>300 KW)

•             Light-weight tank

•             Self-healing minefields

•             Unmanned autonomous AI-based land robot

•             127 mm naval gun

•             127 mm guided projectile

•             Autonomous AI-based land robot

•             Standoff air-borne jammer

•             Lithium-ion/ Lithium-sulphur cells

•             Communication systems: AFNET switches, routers, encryptors & VOIP phones

•             Electro-optical pod with high-res sensing

•             Plug and Play’ housing/ infrastructure for soldiers posted at extreme altitudes

Under Make-2 procedure, only Anti-jamming systems for varied platforms is listed.

Under Special Purpose Vehicle, Long-range unmanned aerial vehicles (UAVs) and Indian multi-role helicopter (IMRH) are listed.

Under iDEX scheme, single item – Low-orbit pseudo-satellites – is listed.

Starting from August 2020, the MoD has issued three lists of defence equipment, the import of which is embargoed. The August 2020 list incrementally bans the import of 101 items, with the embargo growing wider each year.

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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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“In continuous pursuit of achieving self-reliance in defence manufacturing under ‘Aatmanirbhar Bharat Abhiyan’ and in sync with the announcement made in the Union Budget 2022-23 that allocated 25 per cent of the defence R&D budget for industry-led R&D, 18 major platforms have been identified and announced by the MoD for industry led D&D,” stated the MoD in a written response to a Parliamentary question.

Under Make-1 procedure of the Defence Acquisition Procedure of 2021, 14 items are listed as follows:

• Hypersonic glide vehicles
• Anti-jamming systems for varied platforms
• Directed Energy Weapons (>300 KW)
• Light-weight tank
• Self-healing minefields
• Unmanned autonomous AI-based land robot
• 127 mm naval gun
• 127 mm guided projectile
• Autonomous AI-based land robot
• Standoff air-borne jammer
• Lithium-ion/ Lithium-sulphur cells
• Communication systems: AFNET switches, routers, encryptors & VOIP phones
• Electro-optical pod with high-res sensing
• ‘Plug and Play’ housing/ infrastructure for soldiers posted at extreme altitudes

Under Make-2 procedure, only Anti-jamming systems for varied platforms is listed.

Under Special Purpose Vehicle, Long-range unmanned aerial vehicles (UAVs) and Indian multi-role helicopter (IMRH) are listed.

Under iDEX scheme,  single item – Low-orbit pseudo-satellites – is listed.

Defence industry watchers point out that, starting from August 2020, the MoD has issued three lists of defence equipment, the import of which is embargoed. The August 2020 list incrementally bans the import of 101 items, with the embargo growing wider each year.

In June 2021, an additional list of 108 defence items was issued by the MoD, progressively banning their import. Invoking“Atmanirbhar Bharat” repeatedly, the second list – termed “Positive Indigenisation List” – took up to 209, the number of defence items that must be compulsorily procured from Indian companies, the number rising each year out to 2025.

On New Year’s Day, 2021, 69 items from the first list were embargoed for import. On January 01, 2022, another 60 items came under the ban. Another 25 will be embargoed for import at the end of 2022; 25 more at the end of 2023; another 21 at the end of 2024 and nine on the New Year of 2026.

It is unclear how this latest import embargo list dovetails with the previous two lists.

The defence industry is sceptical about whether these lists create any pressure to indigenise. The army is already procuring the K9 Vajra system that Larsen & Toubro (L&T) builds under a South Korean licence outside Pune, so banning the import of tracked guns is superfluous.

Meanwhile, the DRDO, along with private firms Kalyani Group and Tata Aerospace and Defence, is already developing towed artillery guns and Pinaka multi-barrelled rocket launchers. Similarly, the army’s entire requirement of tanks has long been built at Chennai and its infantry combat vehicles at Medak. Banning the import of platforms that are already being built in India serves little purpose.

Similarly, there is little purpose in embargoing the import of naval warships, when most of them are already being built in Indian shipyards. According to official navy figures, of 48 warships under construction, 46 are being built in India; only two frigates are being constructed in Russia.

Similarly, Hindustan Aeronautics Ltd (HAL) is already building the majority of the air force’s fighter and trainer aircraft in India, with the recent exception of the Rafale. Banning the import of aircraft such as the Tejas Mark 1A and the Light Combat Helicopter serve little purpose, since these are indigenously designed and manufactured aircraft, as is the HTT-40 basic trainer aircraft.

“These 18 platforms (announced on 22 July) have been distributed between four indigenous routes prescribed in the Defence Acquisition Procedure-2020, namely, Make-I, Make-II, Special Purpose Vehicle (SPV) and Innovations for Defence Excellence (iDEX),” said the MoD.

“These 18 platforms have been identified after extensive consultations between the services, DRDO and the defence industry,” said the MoD.

According to the Minister of State for Defence, “These major platforms… have been identified taking into consideration multiple factors like the capabilities of Indian industry, being cost effective, faster and scalable; current technological advancements; requirement of future warfare; operational challenges; need for import substitution etc.

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Speaking at the webinar ‘Aatmanirbharta in Defence: Call to Action’ organised by the Ministry of Defence, on 26 February, Madhavan said, “We are trying to implement the projects through the SPV route where we want the private players to have a majority stake so that it does not become a full government entity. The procurement process will also be easy. The advantage is that it will cut procedural delays. On AMCA, we are working with DRDO.”

Adding further he said, “SPVs cannot raise debts based on the sponsor’s assets. So, it has to create assets or they have to ensure that the financing institute has a say in the cash flows of the future. We have worked out on that. There are a couple of things which are required from the government as guarantees for the SPV to function.”

Explaining further, he said, “One is that there will be a fixed order quantity and it should be known to the SPV from the beginning. Suppose there are 400 helicopters; this has to be told to the SPV upfront by the government. Secondly, once the design development is over, there will be no delay in placing orders because any delay means the SPV will face a problem in paying back the debt as well as the investment that they have made. Private industries should also have confidence in Indian development, especially the defence public sector units. There is not much of a risk involved in the subsequent development of a new platform through the SPV route even if it is AMCA or IMRH.”

IMRH will replace the Russian Mi-17 helicopters. Union Finance Minister Nirmala Sitharaman announced that the private sector will be encouraged to take up design and development of equipment in collaboration with the DRDO and other organisations under the SPV model.

The provision for formation of the SPV for design development and production of major defence equipment is aimed at enabling concurrent engineering and production in faster timelines.

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Make-I

• Hypersonic Glide Vehicle
• Directed Energy Weapons (300 KW and more) [High Powered Electromagnetic Devices and High Powered Laser Devices]
• Naval Ship Borne Unmanned Aerial System (NSUAS)
• Light Weight Tank
• Self-Healing Mine Fields
• Unmanned Autonomous AI Based Land Robot
• 127 mm Naval Gun
• 127 mm Guided Projectile
• Electric Propulsion (Engines) for Ships
• Standoff Airborne Jammer
• Li-ion Cells/ Li-Sulphur Cells [Portable High Capacity Energy Systems replacing the Conventional Hydrocarbons
• Communication System (AFNET System Switches, routers, Encryptors& VOIP phones)
• Electro Optical (EO) Pod (with subsequent upgrade to EO/IR) with high resolution sensing
• ‘Plug and Play’ Housing/ Infrastructure for soldiers posted at extreme altitudes.

Under the Defence Acquisition Procedure 2020, ‘Make’ Category aims to achieve self-reliance by involving greater participation of Indian industry.  Projects involving design and development of equipment, systems, major platforms or upgrades thereof by the industry can be taken up under this category. For Projects under Make-I sub-category, Ministry of Defence will provide financial support up to 70% of total cost of prototype development.

Special Purpose Vehicle (SPV) Model

Under SPV model, private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with the Defence Research and Development Organisation (DRDO) and other organizations.  Following two platforms have been identified under this category.

• Long Range Unmanned Aerial Vehicles (UAVs) [High Altitude Long Endurance (HALE)]
• Indian Multi Role Helicopter (IMRH)

iDEX

Projects of Start-ups, MSMEs etc. involving high-end innovation would be pursued under the iDEX category and the following platform has been selected under this category.

• Low Orbit Pseudo Satellites

Make-II

Under Make-II, which is funded by industry with assured procurement, following platform has been listed.

• Anti-jamming Systems for Multiple Platforms

Out of 18 major platforms mentioned above, following four platforms have been already accorded Approval-In-Principle (AIP) under Make-I category on 03 March 2022:

• Communication System (AFNET System Switches, routers, Encryptors& VOIP phones)
• EO Pod (with subsequent upgrade to EO/IR) with high resolution sensing
• Standoff Airborne Jammer
• Light Weight Tanks

The indigenous development of these projects will help harness the design capabilities of domestic defence industry and position India as a design leader in these technologies.

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