New Delhi: To boost the defence and aerospace manufacturing sectors, India has approved the launch of a testing infrastructure scheme with funding scope for Rs 400 crore ($53 million) to create the capability locally.

“In order to give a boost to domestic defence and aerospace manufacturing, India’s Minister of Defence Rajnath Singh has approved the launch of Defence Testing Infrastructure Scheme (DTIS) with an outlay of Rs 400 crore for creating state of the art testing infrastructure for this sector,” a government statement said today.

The scheme would run for the duration of five years and it is envisaged to set up six to eight new test facilities in partnership with the private industry. This will facilitate indigenous defence production, consequently reduce import of military equipment, and help make the country self-reliant.

The projects under the scheme will be provided with up to 75 per cent government funding in the form of ‘Grant-in-Aid‘. The remaining 25 per cent of the project cost will have to be borne by the Special Purpose Vehicle (SPV), whose constituents will be Indian private entities and state governments.

The SPVs under the scheme will be registered under the Companies Act 2013 and shall also operate and maintain all assets under the scheme, in a self-sustainable manner by collecting user charges. The equipment/systems tested will be certified as per appropriate accreditation.

While majority of the test facilities are expected to come up in the two Defence Industrial Corridors (DICs), in Tamil Nadu and Uttar Pradesh, the Scheme is not limited to setting up Test Facilities in the DICs only.