New Delhi: The Narendra Modi government has approved purchase of $260-million worth of defence equipment, including an anti-tank missile, from the Indian industry, the Parliament of India was informed today.
The Defence Acquisition Council (DAC), headed by the defence minister, has given approval of Capital procurement for the defence Forces amounting to over Rs 3,300 crore ($260-million) of indigenously designed, developed and manufactured equipment to maintain the impetus on ‘Make in India‘ initiative, the House of the People (Lok Sabha), the lower house under the bicameral legislature system, was told in replies to questions from members.
“The three projects are the third-generation ATGM (Anti-Tank Guided Missile), Auxiliary Power Units for T-72 and T-90 Tanks and Electronic Warfare (EW) systems for mountain and high altitude terrain,” the government said.
Here are the other key details from separate replies given by the Ministry of Defence to the parliament members:
HAL JETS: The Government of India has not signed any Memorandum of Understanding for manufacturing of either the Light Combat Aircraft ‘Tejas‘ or Su-30MKI aircraft with Hindustan Aeronautics Limited (HAL).
However, for procurement of total 40 LCA — 20 in Initial Operational Clearance (IOC) and 20 in Final Operational Clearance (FOC) configuration] — two contracts have been signed between the government and the HAL.
For procurement of a total 222 Su-30MKI aircraft under license production for the Indian Air Force (IAF), six contracts have been signed by the government and HAL based on the Inter-Governmental Agreement (IGA) signed between India and Russia.
FOREIGN DEALS: Since 2016-17, India has signed agreements with Russia for (i) production of Kalashnikov Concern JSC AK-203 rifles as a Joint Venture, (ii) manufacturing of spares, components, etc. required for Russian/Soviet-origin platforms and defence equipment, and (iii) for manufacture of frigates 1135.6 in an Indian shipyard.
Some of the major contracts related to procurement/supply of defence equipment signed with foreign countries since 2013-14 include manufacture of Kamov Design Bureau Ka-226T helicopters, supply of S-400 long range surface to air missile system (All from Russia), Rafale fighter aircraft (From France), M777 Ultra Light Howitzer, and C-17 aircraft (Both from US).
Agreement for supply/manufacture of AK-203 rifle is with the Ordnance Factory Board, Agreement for Ka-226T helicopter is with HAL, Agreement for 1135.6 frigates is with Goa Shipyard Limited (GSL). Each agreement provides for indigenisation framework to be achieved.
Private industry benefits from indigenisation/outsourcing efforts wherein such requirement is envisaged as part of the deal. Besides, private industry also benefits from the defence offset which arises from such agreements.
Further, the agreement with Russia on spares, components, etc required for Russian/Soviet origin platforms and defence equipment also allows Joint Ventures to be formed between Indian private industry and Russian OEMs (Original Equipment Manufacturers) to manufacture spares/components of Russian/Soviet-origin platforms and defence equipment.
ARMY MODERNISATION: Modernisation of the Indian Army is a systematic process undertaken through a 15-year Long Term Integrated Perspective Plan, Army’s 5-year Capital Acquisition Plan and the Annual Acquisition Plan (two-year roll on plan).
The modernisation process aims at keeping the army in a state of operational readiness and optimally equipped with modern weapon systems. The budget allocation for modernisation of defence equipment is utilised to meet the urgent operational requirements of the defence forces and for acquisitions of contemporary systems based on the planned priorities of the defence forces.
Government is committed towards indigenisation and self-reliance in the defence sector. The Defence Procurement Procedure (DPP-2016) accords the highest priority to procurement under Buy Indian (Designed, Developed and Manufactured) (IDDM) category and acquisitions through ‘Buy’ and/or ‘Make’ from Indian vendors. The ‘Make’ procedure has been simplified to ensure increased participation of Indian industry.
During the last three financial years (2016-17 to 2018-19), 149 capital acquisition contracts have been concluded out of which 91 contracts have been placed on Indian vendors for procurement of defence equipment.