Defence Industry

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  • Defence Public Sector Units and Exports

    While defence public sector units have been making efforts to increase their marketing footprint, they will have to succeed in a highly competitive export market.

    August 18, 2023

    Sai Yashwanth asked: What makes IAC Vikrant, which is expected to be commissioned in August 2022, so special?

    R. Vignesh replies: Aircraft carriers are complex naval platforms that act as floating military airbases through which tactical airpower can be projected on distant shores. Ever since these ships emerged in the 1920s, they swiftly replaced the battleship as flagships of a nation’s naval might. These platforms can critically augment a navy’s tactical combat potential and strategic power projection capabilities. Due to this aircraft carriers are much sought by nations that can afford to procure and operate them.

    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.

    Report of Monday Morning Meeting on “Sanctions on the Russian Defence Industry”

    Event: 
    Monday Morning Meeting
    May 23, 2022
    Time: 
    1000 hrs

    Vineet R. asked: How can the academia work with the industry in private defence R&D? What niche role do each of them play?

    Amit Cowshish replies: The initiative to engage with the academia in the field of defence R&D must come from the private and public sector defence industry, acting in tandem with the armed forces and the Defence Research & Development Organisation (DRDO). This also requires an overarching organisation to coordinate the efforts. On the face of it, there are three specific areas for potential collaboration.

    Vineet R. asked: If India can indigenously make the more complex SSBNs under ATV, why is it importing SSKs under P-75(I)?

    Abhay K. Singh replies: At the outset, it is pertinent to highlight that the acquisition of P-75(I) submarines is not being planned through import. The P-75(I) submarines will be indigenously constructed through the strategic partnership model (SPM) of procurement, which aims to revitalise the defence industrial ecosystem and progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon systems for the future needs of armed forces.

    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.

    Prashant Gogia asked: Is the Fall Clause applicable to direct purchase/urgent procurement and purchase requisition on GeM?

    Amit Cowshish replies: The standard format of Request for Proposal (RfP) given in the Defence Acquisition Procedure 2020 (DAP 2020) includes the Fall Clause. This clause requires the bidders to submit a written undertaking as a part of the technical offer that they have not supplied, or are not supplying, similar systems or subsystems at a price lower than that offered in the present bid to any other ministry or department of the Government of India.

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