Manufacturing of Defence Equipments

Friday, July 29, 2016

New Delhi: So far, Department of Industrial Policy and Promotion (DIPP) has issued 342 licenses to 205 Indian private companies for manufacturing of defence equipment such as Artillery guns, Tanks / Combat Vehicles, Unmanned Aerial Vehicle (UAVs), Helicopters, Radars, Warships etc. Since the beginning of the financial year 2014-15, 128 Industrial Licenses for defence have been issued to 97 Indian private companies.
Government does not directly undertake export of defence equipment. However, to encourage export of defence equipment by Indian manufacturing companies, the Government has taken the following measures:-

(i)
Defence Export Strategy has been formulated and placed in the public domain. The Strategy provides for creation of an Export Promotion Body, engaging Indian Missions / Embassies abroad in export promotion, export financing through line of credit etc., better use of offset policy, export of indigenously developed defence systems and streamlining of the export regulation process.

(ii)
The list of military stores for the purpose of issuing NOC for export has been notified by the Government to remove ambiguity and to make the process transparent.

(iii)
Standard Operating Procedure (SOP) for issue of No Objection Certificate (NOC) for export of military stores has been simplified and put in public domain. Requirement of Government signed EUC for export of parts and components and other non-sensitive military stores has been done away with.

(iv)
The process of applying for NOC for export of military stores has been made on-line.

(v)
Specific time frame has been prescribed in SOP for issue of NOC for export of military stores.

(vi)
The provision of ‘in-principle’ approval for export of specific items to specific countries has been incorporated in the SOP to enable Indian companies to explore export opportunities in overseas markets.
In the last three years and the current financial year, defence equipment such as Do-228 Aircraft, Offshore Patrol Vessels, Chetak Helicopters, SONARS, 4x4 Vehicles, Simulators, Overvests, Ballistic Helmets etc., have been exported to major countries like Brazil, Egypt, Israel, Japan, Kazakhstan, Mauritius, Russia, Saudi Arabia, South Korea, Turkey etc.

This information was given by Defence Minister Shri Manohar Parrikar in Lok Sabha today.