Defence Production

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  • Issues in Co-Development and Co-Production of Defence Equipment

    The success of the co-development-cum-production push in Defence Acquisition Procedure 2020 would depend on the commercial viability of the co-developed product, apart from overcoming a host of conceptual and procedural challenges.

    August 17, 2022

    Shashank Mittal asked: What is technology transfer and with which all countries have India engaged in this regard?

    Amit Cowshish replies: Transfer of Technology (ToT) is the process by which the know-how underlying the development of a product, or any activity associated with its development, production or maintenance, is passed on by the original equipment manufacturer to another entity on mutually acceptable terms, largely financial.

    Anjali Ranawat asked: How far has India met the target of achieving $25 billion defence production by 2025, and what needs to be done to boost the defence industry to achieve the same?

    Amit Cowshish replies: The draft Defence Production and Export Promotion Policy (DPEPP) 2020 aims at achieving a turnover of Rs 1,75,000 crore (US$ 25 billion) by 2025, but no mechanism seems to be in place to aggregate the annual turnover–broadly defined as the value of sale–of the entire Indian defence industry, including the private sector entities.

    Unmanned Aircraft System and Indian Industries

    While India is establishing a strong aviation ecosystem by bringing together all stakeholders including the government, DPSUs, tri-services, academia and industry partners, it is believed that private Indian industries will be the crusaders for the government in defence production, particularly in the UAV vertical.

    January 27, 2022

    Mayank Bahuguna asked: What are the relevant lessons for Make in India from the role of private companies in the American defence industry?

    Amit Cowshish replies: The business practices, professionalism, and potential of the private sector in India for undertaking the design, development and production of sophisticated defence equipment are second to none in the world. If, despite this, India has not become a defence manufacturing hub, it is largely because of the economic and geopolitical milieu of the country, which is vastly different from the one in which the private defence companies bloomed in the US after the Second World War.

    Public Procurement Framework in India

    The GFR 2017 permit individual ministries to issue detailed instructions to address the needs and complexities of procurement carried out by them. The question is whether those principles and rules come in the way of the Ministry of Defence evolving a more efficient procurement procedure that meets the armed forces’ aspirations.

    August 19, 2021

    Self-Reliance in Defence Sector

    The Ministry of Defence has taken significant steps in recent times to boost domestic defence manufacturing and increase the role of the private sector to reduce dependence on imports and achieve self-reliance.

    August 04, 2021

    Indigenisation – In Need of Policy Framework

    There is a need to formulate a composite policy that focuses on indigenisation in high priority technology areas, shedding the notion that it must necessarily result in savings. A more modest and focussed mission-mode approach to indigenisation can produce better results.

    July 09, 2021

    P.V. Venkata Krishna asked: Does DAP 2020 guide the vendors on whether they can use China-based hardware or software or both in defence stores? If not, which policy should the vendors follow?

    Amit Cowshish replies: The Defence Acquisition Procedure (DAP) 2020 does not specifically prohibit the use of raw material, hardware, or software imported from any country. However, it does require the vendors to institute appropriate measures for information security and to ensure that the equipment being supplied is free from the possibility of subversion attacks, embedded spyware/ malware, and similar risks.

    Mohit Nayak asked: How can indigenisation in the Indian defence sector be enhanced?

    Amit Cowshish replies: As the first step, the Ministry of Defence (MoD) needs to formulate a composite policy that focuses on the indigenisation of high priority technology areas, shedding the notion that it must necessarily result in savings. The commercial viability of the identified projects and institutional arrangement for financing them, apart from a mechanism to accommodate the cost of failed efforts, must form the bedrock of the policy.

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