Ministry of Defence | Defence Production Policy not yet finalised

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Defence Production
Defence Production

PIB News Update: Raksha Rajya Mantri Shri Shripad Naik has informed that Draft Defence Production Policy was placed in public domain and is not yet finalised.

In DPP-2016, under Government funded Make-I category, development of prototype of defence products/platforms projects not exceeding development cost of Rs.10 Crore and procurement cost of Rs.50 Crore are reserved for MSMEs. Similarly, under industry funded Make-II category of development of prototype of defence products/platforms, projects not exceeding development cost of Rs threecrore and procurement cost of Rs50 crore are reserved for MSMEs.  The iDEX initiative is also aimed at supporting MSMEs, Start-ups, Individual Innovators etc. by providing them grants/funding and other support to carry out R&D. Under the iDEX scheme, a maximum of Rs.1.5 crore funding is available to a participant for development of a prototype.To ensure timely payments to MSME vendors, Trade Receivables electronic Discount System (TReDS) has been implemented in Defence Public Sector Undertakings (DPSUs). Defence Investor Cell has been opened in Department of Defence Production (DDP) to address the issues being faced by industries especially MSME vendor.

As per data furnished by 79 companies in Defence and Aerospace sector, so far (i.e. till December, 2019), FDI inflows of over Rs1,834 crore have been reported in Defence and Aerospace sector after 2014.  FDI is allowed in Defence sector under automatic route upto 49% and above 49% through government route wherever it is likely to result in access to modern technology or for other reasons to be recorded.

The parameter used in estimating self-reliance is to enhance the share of procurement from Indian vendors in the overall procurement plan.

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