PROUD MEMBERS OF SIDM MEMBERS DIRECTORY 2020-21 SOCIETY OF INDIAN DEFENCE MANUFACTURERS A 360° OVERVIEW OF INDIAN DEFENCE & AEROSPACE SECTOR
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VI Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 1 PROUD MEMBERS OF SIDM 1. Messages Message from President 05 Message from Vice President 07 Message from Director General 09 2. About SIDM 17 3. Indian Defence Industry: Policy and Procedural landscape 19 4. Listing of Companies in Alphabetical Order 53 5. Index of Company Listing Alphabetically 219 6. Index of Company Listing Product Wise 228 7. Defence Establishment Contact Details 233 8. How to become a SIDM Member 235 Table of Contents
2 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 3 PROUD MEMBERS OF SIDM S. No. LIST OF ADVERTISERS Page No. 1 FLUID CONTROLS PVT LTD I 2 INDO-MIM PVT LTD II 3 STERLITE TECHNOLOGIES LTD III 4 LARSEN & TOUBRO LTD 4 5 MAHINDRA DEFENCE SYSTEMS LTD 6 6 BHARAT FORGE LTD 8 7 JNV AEROSPACE & DEFENCE 10 8 ASHOK LEYLAND LTD 11 9 TATA AEROSPACE & DEFENCE 12 10 LOCKHEED MARTIN INDIA PVT LTD 13 11 MKU LTD 14 12 JAKSON ENTERPRISES PVT LTD 54 13 RUNFLAT TIRE SYSTEMS 55 14 CORI ENGINEERS PVT LTD 86 15 INVESTMENT & PRECISION CASTINGS LTD 87 16 LEKHA WIRELESS SOLUTIONS PVT LTD 102 17 VARSITY INSTRUMENTS PVT LTD 103 18 SOLIZE INDIA TECHNOLOGIES PVT LTD 124 19 MICROFINE BUSHINGS PVT LTD 125 20 RESISTOFLEX PVT LTD 138 21 TRIVENI ENGINEERING AND INDUSTRIES LTD 139 22 JV MICRONICS 158 23 FUTURA AUTOMATION PVT LTD 159 24 ELECTRICAL RESEARCH AND DEVELOPMENT ASSOCIATION 174 25 ACCURATE INDUSTRIAL CONTROLS PVT LTD 175 26 GEARS AND GEAR DRIVES INDIA PVT LTD 204 27 SAICHEM COATINGS PVT LTD 204 28 MICRON INSTRUMENTS PVT LTD 205 29 ANANT DEFENCE SYSTEMS PVT LTD 205
2 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 3 PROUD MEMBERS OF SIDM S. No. LIST OF ADVERTISERS Page No. 30 ELICO LTD 216 31 MTAR TECHNOLOGIES PVT LTD 216 32 KAMALA PRECISION ENGINEERING PVT LTD 217 33 RACHAMALLU FORGINGS PVT LTD 217 34 UNIVERSAL PRECISION SCREWS 231 35 ALTAICA ALPHA 232 36 RADNIK AUTO EXPORTS 232 37 MSA-GLOBAL OPTO ELECTRONICS PVT LTD 236 38 VINIR ENGINEERING PVT LTD Back Inside 39 HEXAGON Back
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4 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 5 PROUD MEMBERS OF SIDM Mr Jayant D Patil President, SIDM I am delighted to present the first edition of the SIDM Members’ Directory to the Indian Defence and Aerospace Industry. “SIDM Members Directory 2020-21: A 360° Overview of Indian Defence & Aerospace Sector”– as the title of the Directory suggests, truly presents a 360° view of the Indian Defence and Aerospace sector comprising industry members from almost every sector of the economy - public & private; large, MSMEs as well as Start-ups. It also represents the complete spectrum of technologies, platforms, systems and ‘key inputs’ for the D&A sector and represents nearly 90% + revenue of the Indian D&A sector. The Indian D&A Industry landscape has evolved over six decades. Until the turn of the century, developments in the sector were mostly led by the Defence Public Sector Undertakings and Ordnance Factories. Private industry played the supportive, though very significant role as Tiered partners of public industries. Since the eighties, Private Industries have also extensively participated in R&D projects, notably the Integrated Missile Development Program of DRDO, besides the indigenisation drive of the Indian Navy for Warship building programs. With the opening of the Defence Sector for participation by Indian Private Industries in 2001 as part of the reforms initiated post Kargil review committee recommendations, the second phase of the evolution of the defence industry landscape commenced. Over the years, Policies, Procurement Procedures, internal processes as well as Procurement Organisations at the MOD have evolved to encourage enhanced participation of the Private Industry. The Private Industry now contributes over 20% of the domestic revenue of the D&A industry, which is estimated to be @Rs 90,000 Crores for the FY 2020-21. It is indeed significant that private industries contributed over 85% of the defence exports in 2019-20. “Make in India” and “Aatmanirbhar Bharat Abhiyaan” initiatives of the Government of India and articulation of the first Positive List for Indigenisation seek to push for development and growth of Indian D&A industries. These are being targeted as important levers to reduce dependence on imports, attain ‘self-reliance’ in this strategic sector, build exports and achieve a 25 Billion USD domestic production in D&A Sector. Hon’ble Prime Minister in his address to the industry on 22 February 2021 said, “Without the participation of the private sector, the 21st-century ecosystem of the defence sector cannot stand on its feet.” Such prophetic words from the highest office of the Government raise the bar of expectations for the Indian Industry to perform, both public and private. SIDM has endeavoured to put together a ‘competency map’ of the Indian defence industry that showcases the capabilities as well as the potential of its member industries to all stakeholders - Indian MOD, Defence Services & their lower formations (on request basis), DRDO, OFB and the DPSUs. This Directory will also enable Foreign OEMs to evaluate and develop new nodes in their global supply chain in India. It will leverage the reach of Defence Attachés to advise foreign governments on the capability of Indian industries and harness emerging opportunities to target exports. To make it a ‘go to’ reckoner for senior management of Indian Industries, the Directory also has a compilation of policies and schemes introduced by the Government and contact details of nodal officers of the Customer Organisations. I wish the Directory a successful listing. ***********
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6 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 7 PROUD MEMBERS OF SIDM Mr S P Shukla Chairman, Membership Committee & Vice President, SIDM I am pleased to present the First Edition of “SIDM Members Directory 2020-21: A 360° Overview of Indian Defence & Aerospace Sector”. The primary objective of this guide is to capture the capabilities of the Industry in the Defence and Aerospace sector and highlight its readiness to achieve a US$ 25 Billion Defence Industry by 2025. The Government has released several new schemes and policies with the objective of indigenisation of the Defence sector. The Government policy initiatives on “Buy Global, Manufacture in India” have necessitated the need for a document that can serve as a reference point for decision-makers at the MOD and Services Headquarters to have fair, un-prejudiced information on the capability and capacity of Indian Defence Industries in respect of military technologies, and design and development of military platforms and weapon systems. The Industries also need to have information about the various schemes and get an insight into the sector. This guide will therefore serve a dual purpose. Our Prime Minister’s Clarion Call for “Aatmanirbhar Bharat” has been nuanced in the DAP 2020, which seeks to give a major push to domestic manufacturing in the defence sector. It enables Foreign OEMs to be an integral part of the Indian defence industry eco-system by way of technology partnerships or Joint Ventures with the Indian industries. This Guide will facilitate ease of access to information on the Indian Industry and will serve as a one-stop reference for the global defence community. As India changes gears to become a global hub for Defence manufacturing, I am certain that this publication will significantly enhance visibility and truly showcase the strength of the Indian Defence and Aerospace Industry to domestic and global stakeholders. I wish “SIDM Members Directory 2020-21: A 360° Overview of Indian Defence & Aerospace Sector” a grand listing. ***********
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8 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 9 PROUD MEMBERS OF SIDM Mr Sujith Haridas Director General, SIDM Since its inception in 2017, the SIDM has fostered the growth of the Industry through a variety of services which has contributed greatly to make India self-reliant in Defence Production. SIDM has put forth the voice of the Industry to the Government and has advocated for creating a conducive policy environment for the Industry to function. The Society has also been able to facilitate indigenisation opportunities for the Industry through organizing multiple interactions with the forces. These interactions have created strong linkages of the Industry with the User. As this guidebook gets published, I am delighted to share that SIDM holds direct membership of over 450 companies, including DPSUs and FOEMS, which cover the entire spectrum of the Indian Defence Industry. With India poised to establish itself as a global defence and aerospace manufacturing hub, SIDM is proud to represent its diverse membership base to the Government, the Armed Forces and the International community. I am certain that this inaugural version of the “SIDM Members Directory 2020-21: A 360° Overview of Indian Defence & Aerospace Sector” will showcase the strength of the Industry and its capability to a wide variety of readers in the Defence and Aerospace sector. In the past few years, SIDM, through its technical advisors, has provided support and guidance to the Indian Industry to enhance their contribution in the Defence and Aerospace sector. Through this initiative, many members of the Industry have ventured into the sector according to their capability and expertise. For building a conducive policy environment, SIDM has regularly submitted its recommendations to the Government in several areas. With encouraging policies and procedures in place, SIDM will continue to work closely with the Government to streamline any bottlenecks for the Industry. With the launch of this guidebook, I reiterate SIDM’s commitment and resolve to make India ‘Aatmanirbhar’ in Defence Production. I am confident that the “SIDM Members Directory 2020-21: A 360° Overview of Indian Defence & Aerospace Sector” can emerge as a ’single point’ reference for India’s Defence and Aerospace Industry. ***********
10 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 11 PROUD MEMBERS OF SIDM JNV Aerospace & Defence India’s reputed industrial groups with over 4 decades of excellence in, Automobiles, Rubber, Electronics, Oil & Gas and Infrastructure JNV Ventures, 4th Flr , 898 Notan plaza, Turner road, Bandra west, Mumbai, Maharashtra, 400050 Tel: +91-26510033 email: [email protected] Helping India become 'Atmanirbhar' (Self Reliant) in Aerospace and Defence' through Research, Innovation, Design, Development & Manufacturing by investing in Disruptive technologies like Artificial Intelligence and Machine Learning in Military applications
10 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 11 PROUD MEMBERS OF SIDM
12 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 13 PROUD MEMBERS OF SIDM
12 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 13 PROUD MEMBERS OF SIDM We’re not just innovators, we’re opportunity makers. When we envision the future, we see a world of never ending possibility. But that future will never be realized unless we prepare the next generation to be part of it. We’re proud of our initiatives in India that incubate and celebrate innovation, and bring people, start-ups and medium sized enterprises together to actualize their dreams. By growing members of our industry, we empower them to be true makers of tomorrow. Learn more at lockheedmartin.com/india ® © 2020 Lockheed Martin Corporation VC20-12900
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14 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 15 PROUD MEMBERS OF SIDM Shri Rajnath Singh, Hon’ble Raksha Mantri along with Mr Jayant D Patil, President, SIDM Gen Bipin Rawat, PVSM, UYSM, AVSM, YSM, SM, VSM, ADC, Chief of Defence Staff along with Mr Jayant D Patil, President – SIDM, Mr SP Shukla, Vice President – SIDM, Mr Sujith Haridas, DG – SIDM and Lt Gen JP Nehra (Retd), Principal Adviser - CII Left to Right: Shri Rajnath Singh, Hon’ble Raksha Mantri, Shri Baba Kalyani, Founding President SIDM, Shri Chandrajit Banerjee, Director General CII at the SIDM Annual Session Shri Rajnath Singh, Hon’ble Raksha Mantri along with Gen Bipin Rawat, PVSM, UYSM, AVSM, YSM, SM, VSM, ADC, Chief of Defence Staff; Dr Ajay Kumar, Defence Secretary; Mr Raj Kumar, Secretary (Defence Production) & Mr Sanjay Jaju, Additional Secretary (Defence Production) addressing at the Webinar on Budget Announcement: 2021- 22
16 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 17 PROUD MEMBERS OF SIDM General MM Naravane, PVSM, AVSM, SM, VSM, ADC, Chief of the Army Staff at the 25 Years of Army – Industry - Partnership Admiral Karambir Singh, PVSM, AVSM, ADC, Chief of the Naval Staff along with RAdm Sanjay Misra, VSM, DG of Naval Armament Inspection, Mr Jayant D Patil, President, SIDM and Mr Sujith Haridas, DG, SIDM Dr G Satheesh Reddy, Secretary, Department of Defence R&D and Chairman, DRDO speaking at 25 Years of Army – Industry - Partnership Dr Ajay Kumar, Defence Secretary, MOD delivering Keynote Address at Helo India 2021
16 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 17 PROUD MEMBERS OF SIDM About SIDM Since 2017, the Society of Indian Defence Manufacturers (SIDM) has grown and established itself as India’s apex Defence Industry association and today plays a proactive role as an advocate, catalyst, and facilitator for the growth and capability building of the defence industry in India. The Society represents the entire spectrum of Defence and Aerospace manufacturers in India covering both the Public and the Private Sector. Its membership constitutes Large companies, MSMEs, FOEMs, DPSUs’, Academic Institutions and Think Tanks which are spread across all states and regions of the country. SIDM stands as the ‘Voice of the Industry’ and works closely with the Government to shape a conducive policy environment for the growth of the defence Industry in India. SIDM represents industry aspirations, concerns, and provides unbiased perspectives to policymakers by presenting various suggestions on the best way forward. It also provides support to members on policy issues, spreads awareness amongst members about policy changes, and their impact. Through its MoUs with the Army, the Air Force and the Navy, SIDM provides a platform for interface with the Services and enables the Industry to serve the emerging requirement of the forces. SIDM acts as a facilitator between the Defence Research & Development Organisation (DRDO), academic institutions, innovators and the user to create a strong foundation for nurturing new-age defence technologies. To build capacity and capability of the Indian Industry, SIDM provides technical support through subject-matter experts and conducts workshops, short courses on procedures and regulatory affairs, such as its flagship Defence Acquisition Management Course (DAMC), in the Defence and Aerospace sector. As India expands its global presence, SIDM has emerged as the single reference point for countries looking to engage with the Indian Industry and has organized numerous bilateral interactions to strengthen India’s defence industrial ties. SIDM is committed to make India Atamanirbhar in Defence and is “Proud to Arm the Nation”. Catalyse the Indian defence Industry to effectively contribute to India’s national security and become a trustworthy global partner Work closely with the Government towards enabling the growth of the defence industry. Collaborate with experts from the Armed forces • India First • One Voice • Self-Reliant for Security Vision Mission Values
18 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 19 PROUD MEMBERS OF SIDM Shri Rajnath Singh, Hon’ble Raksha Mantri, General Bipin Rawat, PVSM, UYSM, AVSM, YSM, SM, VSM, ADC, Chief of Defence Staff, Ministry of Defence and Shri Raj Kumar, Secretary (Defence Production), Ministry of Defence at the Inaugural Session of MSME Conclave 2020.Organized by SIDM SIDM along with USIBC organized Seminar on “Defence Industrial Corridors – Opportunities for Joint Ventures, Global Sourcing &Technology’ during AeroIndia 2021, Bengaluru From L to R: Dr Ajay Kumar, Defence Secretary; Air Marshal Sandeep Singh, AVSM, VM, DCAS, IAF; Mr Jayant Patil, President, SIDM; VAdm Ravneet Singh, AVSM, NM, Chief of Personnel, Indian Navy; Mr Rajinder Bhatia, Member, SIDM Executive Council at “Helo India – Indigenous Helicopter story and Glorious Future” organized by SIDM during the Aero India 2021 , Bengaluru SIDM – Indian Army (ADB) sign MoU on the occasion of 25 Years of SIDM -CII Army Industry A compendium of Indian Navy’s Indigenization perspective plans titled ‘SWAVLAMBAN’ gets released by Shri Rajnath Singh, Hon’ble Raksha Mantri, Shri Yogi Adityanath, Hon’ble Chief Minister of Uttar Pradesh, General Bipin Rawat, PVSM, UYSM, AVSM, YSM, SM, VSM, ADC, Chief of Defence Staff, Ministry of Defence and Admiral Karambir Singh, PVSM, AVSM, ADC, Chief of the Naval Staff (CNS), Indian Navy on the Launch of Indian Naval Innovation and Indigenization Organization (NIIO) on 13 August 2020. During this occasion, SIDM signed an MOU with NIIO, Indian Navy. SIDM - Indian Air Force signing MoU on Innovation and Indigenisation
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20 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 21 PROUD MEMBERS OF SIDM Policy “AatmaNirbhar Bharat Abhiyaan” On 12 May 2020 in his address to the nation, Hon’ble Prime Minister made a clarion call for AatmaNirbhar Bharat. The roadmap for ‘AatmaNirbhar Bharat Abhiyan (Self Reliant India Campaign)’ is to be built on five pillars viz. - Economy, an economy that brings Quantum Jump rather than Incremental change. Infrastructure, an infrastructure that will become the identity of modern India. System, a system that is driven by technology that can fulfil the dreams of the 21st century; a system not based on the policy of the past century. Demography. Vibrant Demography to be the strength in the world’s largest democracy, source of energy for self-reliant India. Demand. The cycle of demand and supply chain in the domestic economy needs to be harnessed to its full potential. In order to increase demand in the country and to meet this demand, every stakeholder in the supply chain needs to be empowered. Supply chains would be strengthened. In a way, the call for “AatmaNirbhar Bharat” and the roadmap for “AatmaNirbhar Bharat Abhiyyan” have become the overarching objective and beacons respectively for all policy initiatives of the Ministry of Defence. From “Make in India” to “Aatma Nirbharta”... Finance Minister in her fourth tranche of announcements on 16 May 2020 set a very calibrated, well thought out and much needed structural glide path for the development of the Indian Defence and Aerospace Sector. The gist of these initiatives is: Enhancing Self Reliance in Defence Production ‘Make in India’ for Self-Reliance in Defence Production will be promoted by notifying a list of weapons/platforms for ban on import with year wise timelines, Indigenisation of imported spares, and separate budget provisioning for domestic capital procurement. This will help reduce the huge Defence import bill. Improve autonomy, accountability and efficiency in Ordnance Supplies by Corporatisation of Ordnance Factory Board. Policy Reforms in Defence Production FDI limit in the Defence manufacturing under automatic route has been raised from 49 percent to 74 percent. There will be time-bound defence procurement process and faster decision making will be ushered in by the setting up of a Project Management Unit (PMU) to support contract management; Realistic setting of General Staff Qualitative Requirements (GSQRs) of weapons/platforms and overhauling Trial and Testing procedures. These initiatives are aimed to enable India to capitalise on the investments made and capabilities created in Indian industry under the “Make-in-India” narrative during the last five years.
20 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 21 PROUD MEMBERS OF SIDM Revised Public Procurement (Preference for MII) Order, 2017 As a part of “AatmaNirbhar Bharat Abhiyan”, Department for Promotion of Industry and Internal Trade has promulgated a revised PPP MII Order 2017 on 04 June 2020. The following amendments have been made to original PPP MII Order 2017, issued on 15 June 2017: • Classification of Suppliers – The local suppliers under the Public Procurement Order have now been classified into 3 categories, namely, ‘Class-I local supplier’, ‘Class-II local supplier’ and ‘Non-local supplier’. The same have been defined as follows: - i. Class-I Local Supplier – A supplier or service provider, whose goods, services or works offered for procurement, has local content equal to or more than 50%, as defined under this Order. ii. Class-II Local Supplier – A supplier or service provider, whose goods, services or works offered for procurement, has local content more than 20% but less than 50%, as defined under this Order. iii. Non-Local Supplier – A supplier or service provider, whose goods, services or works offered for procurement has local content less than or equal to 20%, as defined under this Order.. • Eligibility – Different classes of suppliers shall be eligible to bid for supply of goods, services or works depending on whether there is sufficient local capacity and local competition. i. In procurement of all goods, services or works, in respect of which there is sufficient local capacity and local competition, only Class I Local suppliers shall be eligible irrespective of the purchase value. ii. In the procurement of all goods, services or works, not covered in (i) above, with an estimated value less than Rs 200 Cr, GTE shall not be issued. Only Class I Local suppliers and Class II local suppliers shall be eligible. iii. In GTE, non-local suppliers shall also be eligible. • Purchase Preference – The Class-I local supplier shall be given purchase preference over the Class-II local suppliers as well as the Non-local suppliers. i. In the procurement of goods or works which are divisible in nature, if L1 bid is not a Class-I local supplier, 50% of the order quantity shall be awarded to L1. Thereafter, the lowest bidder among the Class-I local suppliers will be invited to match the L1 price for the remaining 50% quantity, subject to the Class-I local suppliers quoted price falling within the margin of purchase preference. ii. In the procurement of goods or works which are not divisible in nature, if L1 bid is not a Class-I local supplier, the lowest bidder among the Class-I local suppliers will be invited to match the L1 price subject to the Class-I local suppliers quoted price falling within the margin of purchase preference. In case such lowest eligible Class-I local supplier fails to match the L1 price, the Class-I local supplier with the next higher bid within the margin of purchase preference shall be invited to match the L1 price and so on and contract shall be awarded accordingly. • Verification of Local Content. The Class-I and Class-II local suppliers shall, at the time of tender, bidding or solicitation, be required to indicate the percentage of local content and provide self-certification that the item offered meets the local content
22 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 23 PROUD MEMBERS OF SIDM requirements. In cases of procurement for a value in excess of INR 10 crores, the Class-I and Class-II local suppliers shall be required to provide a certificate from the statutory auditors of the company giving the percentage of local content. Revised PPP MII Order 2017 of 04 June 2020 is likely to give more impetus to ‘Make in India’ schemes whereby suppliers are encouraged to have a higher percentage of local content in order to be given preference over the Class-II and Non-local suppliers. The Order provides that even though a Class-II or Non-local supplier may bid lower than a Class-I local supplier, preference shall still be given to such Class-I local supplier on account of having 50% or more local content (subject to Class I suppliers bid being within the prescribed margin for price preference of L1 bid, and the L1 price being matched) The revised PPP MII Order is available at the web link provided below: https://dipp.gov.in/sites/default/files/PPP%20MII%20 Order%20dated%204th%20June%202020.pdf Import Embargo List of Defence Weapons / Platforms (Negative List for Imports / Positive Indigenisation List) In pursuance of its efforts towards enhancing self-reliance in defence, MOD published the first list of 26 items to be placed on the negative list for imports. The list is available at the web link: https://dipp.gov.in/sites/default/files/PPONotification%20 3a_210520_0.pdf Though the list contained only simple part level items of the shipyards and Ordnance Factories, its significance was in the prompt intent of the MOD. As a follow-up, on 09 August 2020 MOD introduced import embargo on 101 items beyond given timelines, from Dec 2020 to Dec 2025, to boost the indigenisation of defence production. This list of systems and platforms is significant, though many of the items are already being manufactured by the Indian industry. The list contains systems/platforms for the Land, Air and Maritime Forces. The list of items comprises not just simple parts but also some high technology weapon systems like artillery guns, assault rifles, warships, sonar systems, submarines, light transport aircraft, light combat helicopters, radars and light combat aircraft. As per the list, there will be a near-immediate embargo on 70 products, another ten will be stretched out till 2021 before the embargo kicks in and finally, the balance 21 will be targeted between 2022 and 2025. It has been stated that the MOD will place orders worth Rs 4 lakh crore with the domestic industry over the next 5-7 years by cutting down on these imports. Among the big orders for the domestic industry will be submarines, which would come under the import embargo by December 2021. A contract for six of these would be worth about Rs 42,000 crore. The likely embargo date for LCA MK-1A is December 2020. An order of 123 of these for the IAF with an approximate cost of Rs 85,000 crore will now go to domestic players. What it, therefore, does is to give out a clear signal to the industry that future long-term capability needs of Indian armed forces in respect of those systems /platforms will be met through the Indian industry. It is very pertinent that the MOD is presently working on the second Positive List for Indigenisation. Industry inputs for the same were collated by SIDM in March 2021 and those have been submitted. Separate Budget Provisioning for Domestic Capital Procurement The MOD has bifurcated the capital procurement budget for FY 2020-21 into domestic and foreign routes. A separate budget head has been created with an outlay of Rs 52,000 Cr for domestic capital procurement. In FY 21-22, the MOD has targeted to procure 15% of the capital budget from the private Industry.
22 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 23 PROUD MEMBERS OF SIDM Ministry of Defence has allocated Rs 70,221 crore, that is 63% of the ‘capital acquisition’, or ‘modernisation’ budget, of approximately Rs 1,11,462 crore, from domestic industries. This will have a positive impact on the domestic industry, including tiered MSME partners, development. Draft Defence Production & Export Promotion Policy 2020 Draft Defence Production & Export Promotion Policy (DPEPP) 2020, released on 03 August 2020 to seek comments /suggestions from industry, is another very comprehensive framework to orient the ongoing “Make-in-India” initiatives of the Ministry of Defence towards “AatmaNirbhar Bharat Abhiyaan”, with self-reliance as the core objective. Further, Hon’ble Finance Minister in her speech on 16 May 2020 described defence and aerospace as one of the champion sectors and presented a very calibrated, structural glide-path for the development of the Indian Defence and Aerospace Sector. The draft DPEPP essentially articulates the measures envisaged by the Ministry of Defence to address each of the above-stated pronouncements of the Hon’ble FM, also lays down quantitative policy objectives for achieving a turnover of Rs 1,75,000 Crores (US$ 25Bn) including export of Rs 35,000 Crore (US$ 5 Bn) in Aerospace and Defence goods and services by 2025. The policy seeks to leverage the following focus areas: i. Procurement Reforms ii. Indigenization & Support to MSMEs / Startups iii. Optimize Resource Allocation iv. Investment Promotion, FDI & Ease of Doing Business v. Innovation and R&D vi. Streamlining functioning of DPSUs and OFB vii. Quality Assurance & Testing Infrastructure viii. Export Promotion Several of the above focus areas are in tune with Draft Production Policy 2018, which was circulated in August 2018. The provisions have presented a bit differently. However, there are certain noteworthy changes, which will positively help the Indian industry participants. These are: - • A negative list of weapons/platforms would be notified with year-wise timelines for placing an embargo on the import of such items from those dates. • A Project Management Unit (PMU), with representation from the Services, would be set up to support the acquisition process and facilitate the management of the contracts. • A Technology Assessment Cell (TAC), with representation from the Services, would be created which would make an assessment of the TRL levels available in the country for all the major systems/ platforms and provide advice for initiation of AONs. • The TAC would also assess the industrial capability for design, development and production including re-engineering for production of various major systems like Armoured Vehicles, Submarines, Fighter Aircraft, Helicopters, Radars with the major industries in the country which could be categorized as:
24 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 25 PROUD MEMBERS OF SIDM • System integrators with Design, Development, production, testing & certification capability and ability to develop and sustain the ecosystem required for the next 25-30 years. • System integrators who lackintegral design, development and certification capability but have the capability and infrastructure to be development cum production partners of DRDO/ any other domestic development agency and have the ability to sustain the ecosystem so developed for next 25-30 years. • A comprehensive review and overhaul of the trials and testing procedures would be done to reduce the procurement cycle time. • All Acceptances of Necessity (AoNs) involving procurement from domestic sources would be reviewed for time-bound procurement. • To provide the industry greater visibility into the likely opportunities in the defence sector. Understanding future capital acquisition priorities will enable industry to develop technologies, carry out necessary groundwork and position themselves in an optimal manner to compete at the appropriate time. • Public Procurement Order will be made applicable for procurement preference to those items in Defence sector for which domestic production capability exists. • In case of the critical products and materials currently being imported, DPSUs/OFB would consider issuing long term orders as feasible to incentivize the domestic industry and also have provision for repeat order. In such cases, resultant single vendor should also be acceptable with due price discovery and negotiations. • Initiate steps to enhance procurement from domestic industry from the current Rs 70,000 crore to Rs 1,40,000 crore by 2025 by (i) carving out a distinct budget head for domestic capital procurement and (ii) to strive for enhancing allocation for domestic capital procurement at the rate of minimum 15 per cent per annum for the next five years, and several other measures. • Seek to harness the identified opportunities in civil aviation: (a) Aircraft Build Work (b) Aircraft MRO (c) Helicopters (d) Engine manufacturing and MRO work (e) Line Replaceable Units (LRUs) (f) Unmanned Aerial Vehicles (UAVs) (g) Upgrades & Retrofits segment • Investments would be encouraged to provide specific focus on in identified segments and technological areas such as development of Aero Engine complex, MRO, and critical technologies and materials. • Mission mode projects by DRDO in collaboration with other scientific and industrial establishments in select areas - Gas
24 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 25 PROUD MEMBERS OF SIDM Turbine Engines, Hypersonic Missiles, Ballistic & Cruise Missiles, Armoured Vehicles, Submarines, Fifth Generation Fighters, Transport Aircrafts to meet military requirements, Secure communication devices, secure microprocessors and secure routers, Cyber Security Infrastructure, Surveillance Systems, Artificial Intelligence & Robotics including unmanned platforms and Airborne Sensors. This is an effort at enabling synergy between R&D and production capacities of DRDO and industries. Industries have submitted comments on the draft released by MOD. Final policy document is anticipated to be released soon. Indigenisation portal – SRIJAN As a follow up of the 2019 Policy for Indigenisation of components and spares used in Defence Platforms by DPSUS & OFB {https://www.makeinindiadefence.gov.in/admin/webroot/writereaddata/upload/recentactivity/Policy_for_Indigenization_of_ components_and_spares_used_in_Defence_Platforms_for_DPSUsOFB.pdf}, the Department of Defence Production has launched the Indigenisation Portal – SRIJAN - which is a ‘one stop shop’ online portal that provides access to private industry to take up items that can be taken up for indigenization. On this portal, DPSUs/OFB/SHQs can display their items that they have been importing or are going to import which the Indian Industry can design, develop and manufacture as per their capability or through joint venture with OEMs. The Indian Industry will be able to show their interest in these items. The concerned DPSUs/OFB/SHQs, based on their requirement of the items and their guidelines & procedures will interact with the Indian industry for indigenization. In the first stage, DPSUs/OFB/SHQs have displayed those items which they have imported in 2019-20 and going to import in 2020- 21, for the annual value of the items as Rs 10 lacs and above. The number of items and their value of annual imports displayed year wise are shown in the table below. There are over 3000 unique items with a value of over Rs 10,000 Crore that are listed on the portal for private industry to review and express interest to take up indigenisation. The list of items to be imported during FY 2021-22 have also been listed now. Industries may peruse these and indicate their interest to under indigenisation / development of indigenous products. The estimated value of such imports is indicated to be Rs 35, 474 Million. Facilitation of Indian Industry to Manufacture Spares for Legacy Russian Systems under InterGovernmental Agreement. An Inter-Governmental Agreement (IGA) On “Mutual Cooperation in joint manufacturing of Spares, Components, Aggregates and Other materials related to Russian / Soviet origin Arms and Defence Equipment” was signed during the 20th India-Russia Bilateral Summit held at Vladivostok on 04 September 2019. The objective of the IGA is to enhance the After Sales Support and operational availability Of Russian origin equipment currently in service in Indian Armed Forces by organizing production of spares and components in the territory of India by Indian Industry by way of creation of Joint Ventures/Partnership with Russian original Equipment Manufacturers (OEMs) under the framework of the “Make in India” initiative. Year No of items displayed by DPSUs/OFB/SHQs Value of imports in Rs million 2019-20 1557 34035 2020-21 739 34514
26 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 27 PROUD MEMBERS OF SIDM Consequent to that, in December 2019, Ministry of Defence issued comprehensive guidelines for organizing production of spares and components in India for implementation of Intergovernmental Agreement on joint manufacturing of spares, components, aggregates and other material related to Russian origin arms and defence equipment. This guideline document stipulates the processes to be followed by various stakeholders towards facilitating setting up of manufacturing facilities in India by Indian Companies in collaboration with Russian OEMs for implementation of the IGA viz. from the initiation stage of Identification of parts/ material’ to the stage of ‘Implementation of contracts’. The indigenous production of spare parts / components will result in timely availability of spares and will thus improve the after sales support and increased availability of the Russian origin defence equipment for operational use. Close to 20 MoUs have been signed between the Russian OEMs and the Indian companies under the provisions of the IGA during the 5th & 6th Round of the India-Russia Military Industrial Conference conducted on the sidelines of Defexpo 2020 and AeroIndia 2021 respectively. The first ‘Request for Proposal’ for manufacturing of parts in India under the provision of IGA has been handed over by the Indian Navy to the identified Indian industry as well. This should pave way for more cases and contracts for joint manufacturing of spares parts, in the days ahead, leading to integration of Indian private industry into supply nodes of Russia Defence entities. It is pertinent to highlight that the MOD has introduced a separate provision – Make-III sub-category – to purchase such items that are to be manufactured under arrangements of the nature described above. The same is reproduced below for ready reference. Make-III. This although would not be designed/developed indigenously, but can be manufactured in India as import substitution for product support of weapon systems/ equipment held in the inventory of the Services. Indian firms may manufacture these either in collaboration or with ToT from foreign OEMs. In this category, an Indian vendor can enter into a JV with OEM. Design, Development and Manufacture of Defence Systems – Partnership between DRDO and Indian Industry. DRDO has made another policy initiative to strengthen the indigenous defence ecosystem. Towards this, DRDO laboratories have identified 108 systems and subsystems for designing and development by the Indian Industry only. This initiative, over & above the Transfer of DRDO Technologies to Indian private industries, will pave the way for Indian Defence industry to become an equal partner in the IP creation eco-system of DRDO. Under this policy, DRDO will also provide support to industries for design, development and testing of listed systems on requirement basis. All the requirements of these systems by R&D establishments, Armed Forces, and other Security Agencies shall be met through development contracts or production orders on suitable Indian industry. It is notable that the list at the end of this section comprising of a wide range of systems, sub-systems and components across a spectrum of technologies and military applications. Export Promotion and Facilitation. Export promotion and facilitation has been one of the key focus areas of the MOD during the last four years. Apart from creation of Export Promotion Cell in the MOD and rolling out a slew of facilitative measures for export promotion and facilitation such as Defence Attaché scheme, Testing and Certification for exports, utilization of “Lines of Credit” etc., MOD has been pro-actively informing the industry of the export leads.
26 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 27 PROUD MEMBERS OF SIDM Year Export Authorizations to Private Companies (Rs Cr) Export by DPSU/OFB (Rs Cr) SCOMET Issued by DGFT (Rs Cr) Total Export (Rs Cr) 2016-17 194.35 1327.51 0.00 1521.86 2017-18 3163.16 1519.20 0.00 4682.36 2018-19 7387.23 932.86 0.00 8320.09 2019-20 8007.81 904.74 203.00 9115.55 2020-21 7271.25 984.64 125.15 8434.83 The steady and healthy growth in export figures over last 05 years reflect this buoyancy. Target for FY 2021-22 has been set at Rs10,000 Cr. {Rs 781 Cr has been achieved till 30 April 2021} To further ramp up effort on this front, MOD in Oct 2019 has also issued Notifications for: - a) Open General Export License (“OGEL”) for Intra Company Transfer of Technology. To allow the export or transfer of software or technology of the Munitions List Items specified from India to any of the countries (listed in Section 3) subject to the condition that the export is an intra-company transfer from an Indian subsidiary (applicant exporter) to its foreign parent company and /or to subsidiaries of the foreign parent company b) Open General Export License (“OGEL’) for export of parts and components. To allow the export or transfer of specified items of Munitions List from India to any of the countries (listed in Section 3) subject to the specified terms & condition. The authorization under the OGEL will be valid for a period of 2 years from the date of issue. The Department of Defence has, during November – December 2020, conducted an outreach program to cover over 80 target countries to focus on exports. Industry associations have partnered with the Ministry of Defence to reach out to the governments / Services and industries of select foreign countries and showcase capabilities & military products being manufactured by the Indian Defence industries. Procurement Procedures Outcomes of the policies are determined by the efficiency and effectiveness of the Procedures (and processes) through which those are implemented. In Defence Sector, the Defence Acquisition Procedure {erstwhile Defence Procurement Procedure} and Defence Procurement Manual are the two important documents that lay down the guidelines for stakeholders – decision makers, user services as well as industry participants. Both these, and the Procurement Manuals of the DRDO, Ordnance Factory Board and DPSUs have been under constant churn since the launch of “Make in India” by GoI. Transition from “Make in India” to “AatmaNirbhar Bharat Abhiyaan” has mandated even more comprehensive review of the procedures to deliver on the objectives of new policies and targets for output of domestic defence industry and exports. Various initiatives of the MOD towards review of such procedures are accordingly enumerated in the succeeding paragraphs.
28 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 29 PROUD MEMBERS OF SIDM Amendments to DPP 2016. MOD undertook a comprehensive review of DPP 2016 during 2018 through a series of Business Process Re-engineering exercises, in four phases. Apart from tweaking several internal processes, a number of other features were also tweaked to facilitate “Ease of Doing Business” and manage “Cost of Doing Business. These broadly addressed the following salient areas – a) Retraction of RFPs b) Handling of ab-initio Single vendor Cases c) Rationalisation of Integrity Pact Bank Guarantee d) Proportionality Principle for Liquidated Damages (LD) e) Criteria for Determining Effective Date of Contract for imposition of LD f) Incorporation of enhanced delegated financial powers of SHQ authorities g) Review of eligibility criteria for MSMEs for participation in Make-I and Make-II schemes h) Eligibility Criteria and Capacity norms for shipbuilding projects A revised version of DPP 2016 was published on 01 Nov 2019. {https://www.mod.gov.in/dod/sites/default/files/UVDPP201611119. pdf} Defence Acquisition Procedure 2020 MOD, in September 2019, constituted two committees under the chairmanship of DG(Acquisition) to undertake a comprehensive review of DPP and DPM to ensure seamless flow from asset acquisition to life cycle support. Further, MOD invited members of the industry to participate in the above Committees. To enable wider participation of industry and deliberate several proposals, the MOD also constituted sub-committees as follows: - SNo.Subcommittees Defence Procurement Procedure (DPP) 1 Capital Proc Process, RFP, Contract, Payments & IGA 2 Make Procedure including D&D, IDEX, DTTI, MSME 3 Offsets 4 Shipbuilding, Repair/Refit, long term spare support 5 Air Platforms with LCC, PBL, Leasing, Long Term Maintenance and Spare Support 6 Post Contract Management (Capital / Revenue)
28 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 29 PROUD MEMBERS OF SIDM 7 Information, Communication and Technology (ICT) (Capital / Revenue) 8 Subcommittee on FET, ATP and Certification 9 Modalities for verification of Indigenous Content (IC) Defence Procurement Manual (DPM) 10 DPM Revision - General Purpose Proc, RFP, Contract, DFPDS, Outsourcing services, Consultancy, Payments 11 DPM Revision - Ration, Clothing, Vehicles 12 DPM Revision-Medical Stores and Equipment 13 Subcommittee on Military Grades Spares & Support 14 Subcommittee on All Aspects other than Military Grade Spares & Support (Armament, Ammunition etc.) After extensive deliberations and discussions in the sub-committees, the MOD published first draft DPP 2020 on 20 March 2020.. While the above deliberations were still in progress, Government announced the launch of “AatmaNirbhar Bharat Abhiyaan” on 12 May 2020 and a series of new policy measures followed. Based on the recommendations of industry on the provisions contained in Draft DPP 2020, MOD released Defence Acquisition Procedure 2020 0n 28 September 2020. It has taken effect from 01 October 2020. https://www.mod.gov.in/sites/default/files/ DAP2030new.pdf Some of the salient features of DAP 2020 are listed below: - • DPP has been re-christened as “Defence Acquisition Procedure” as recommended by the industry. • DAP 2020 retained all the amendments which had been incorporating as a result of Business Process Re-engineering effort during 2018-19. • It also stipulated several new organisational features – Services Procurement Board in lieu of erstwhile SCAPCC / SCAPCHC, Project Management Unit to monitor and report progress of all acquisition schemes, and creation of Innovation and Indigenisation Organisation for each service. • DAP 2020 seeks to address ‘efficiency and integrity of acquisition processes, and ‘ease of doing business’ while introducing new provisions for addressing the life cycle support at asset acquisition stage itself. • DAP 2020 has additional provisions for acquisition of defence equipment / systems / platforms, which may have been placed under the “Negative List for Imports”. • Provisions to give incentives for use of military materials and software from indigenous sources have been made. • Threshold of Indigenous Content for all categories has been increased. • Introduction of new category Buy (Global – Manufacture in India), with a provision for participation by Indian Vendors also.
30 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 31 PROUD MEMBERS OF SIDM • New Chapters have been introduced for acquisition of Systems designed and developed by DRDO / DPSU / OFB, Leasing, Acquisition of Systems Products and ICT Systems, and Post Contract Management. • Introduction of the concept of Base Contract Price {Total Contract Price minus Taxes and Duties} • Computation of Indigenous Content w.r.t. Base Contract Price Provision for participation of Indian Vendors in Buy (GlobalManufacture in India) • Provision to enable IDDM qualified Indian Vendors to participate in all categories of acquisitions, subject to meeting other eligibility requirements. Thus, vendors eligible for participating in a higher category will be permitted to participate in the lower category, provided they meet the other eligibility requirements for the scheme. • Computation of the Value of advances as well as Bank Guarantees w.r.t. the Base Contract Price • Funding for Make -I projects to be restricted to 70% of prototype development cost or maximum Rs 250 Cr per DA. • Introduction of Make-III category to source import substitutes from Indian industry. • Projects under iDEX and Technology Development have been brought under the ambit of DAP. • Incentives for MSMEs. Projects under the Make categories, with procurement not exceeding Rs 100 Cr/year based on delivery schedule at the time of seeking AoN will be earmarked for MSMEs. There are relaxed eligibility financial criteria for schemes below Rs 150 Cr to enable Start-Up’s and MSME’s participation, • In Make-I projects, if OFB participates, it will be third DA without funding. • Provision for participation of Indian Vendors in Lease (Global) sub-category • An elaborate, Price Variation Clause with provisions for price escalations at bid opening and post contract stages Defence Procurement Manual While the Defence Acquisition Procedure takes care of acquisition of new capabilities & assets (CAPEX) by the Services, Defence Procurement Manual lays down the guidelines for procuring goods and services that are required for administrative, operational and life cycle maintenance requirements. Such expenditures are usually undertaken from the funds allocated under ‘Revenue” head of the defence budget. Currently, Defence Procurement Manual 2009 (DPM 2009) is in vogue. A lot of policy changes have taken place since its formulation. These include promulgation of GST laws, General Financial Rules 2017, Public procurement Policy (Preference for Make in India) Policy 2017, Policy of Negative List etc. Accordingly, the MOD had constituted a Committee, alongside those for review of DPP, for undertaking a thorough review of DPM also. This Committee, in which industries also participated and submitted their suggestions, has submitted its recommendations. The MOD has released the Draft Defence Procurement Manual 2021 on 25th March 2021 and requested feedback from the Industry. The Draft DPM 2021 can be accessed here - https://docs.zohopublic.in/folder/m5yl1f8802b48f8c94a8fa04a9151b9d79a59
30 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 31 PROUD MEMBERS OF SIDM Organisation Creation of the post of Chief of Defence Staff and Department of Military Affairs The Department of Military Affairs in the MOD, to be headed by a 4-star defence officer as the Chief of Defence Staff, has been created w.e.f. 01 January 2020. General Bipin Rawat, PVSM, UYSM, AVSM, YSM, SM, VSM, ADC, former Chief of Army Staff, has been appointed as the country’s first Chief of Defence Staff (CDS). The duties and functions of the Chief of Defence Staff (CDS) include the following: • To head the Department of Military Affairs in the Ministry of Defence and function as its Secretary. • To act as the Principal Military Advisor to Hon’ble Raksha Mantri on all Tri-Service matters. • To function as the Permanent Chairman of the Chiefs of Staff Committee • To administer the Tri-Service organizations/agencies/commands. • To be a member of Defence Acquisition Council chaired by the Hon’ble Raksha Mantri. • To function as the Military Advisor to the Nuclear Command Authority. • To bring about jointnessin operation, logistics, transport, training,supportservices,communications, repairs andmaintenance, etc of the three Services. • To ensure optimal utilisation of infrastructure and rationalise it through jointness among the Services. • To implement Five-Year Defence Capital Acquisition Plan and Two-Year roll-on Annual Acquisition Plans, as a follow up of Integrated Capability Development Plan. • To assign inter-services prioritisation to capital acquisition proposals based on the anticipated budget. • To bring about reforms in the functioning of three Services with the aim to augment combat capabilities of the Armed Forces by reducing wasteful expenditure. • The mandate of the Department of Military Affairs inter-alia includes “Facilitation of restructuring of Military Commands for optimal utilisation of resources by bringing about jointness in operations, including through establishment of joint/theatre commands” Procurement Manuals of DRDO, OFB and DPSUs On the same lines as DAP & DPM, Procurement Manuals of DRDO, OFB and all DPSUs have also been reviewed during 2019 & 2020. These can be accessed on the website of the respective organisations.
32 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 33 PROUD MEMBERS OF SIDM Army Design Bureau (ADB) The Army Design Bureau functions as a single point of contact for the Industry, Research organisations, Innovators and Academia in providing the user requirements and problem statements for facilitating development of indigenous solutions. Not only it is mandated to strive for facilitating indigenous design, development and manufacturing but also to seek out capabilities and support research for developing technologies of the future. Since its creation, the ADB has reached out to an ever increasing number of Defence industries, MSMEs and Start-Ups - for collaboration towards realising the needs of the Service. It has also established an intimate connect with our academic scholars and various technical institutes to benefit from their vast technological know-how. With the recent restructuring of the Army Headquarters, the Army Design Bureau is now an independent Directorate functioning directly under the Deputy Chief of Army Staff (Capability Development & Sustenance). SIDM signed an MOU with ADB on 21 January 2021 with the aim of partnering with the Indian Army in bringing the best technologies available in the Indian Industry to their doorstep through various physical and virtual platforms organised at national level. Naval Innovation and Indigenisation Organisation (NIIO) The NIIO, launched in August 2020 as mandated in the DAP 2020, is to put in place dedicated structures for the end users to interact with the academia and the industry to foster innovation and indigenisation for self-reliance in defence, in keeping with the vision of ‘AatmaNirbhar Bharat’. It is a three-tiered organisation. 1. Naval Technology Acceleration Council (N-TAC) to bring together the twin aspects of innovation and indigenisation and provide apex level directives. 2. A working group under the N-TAC to implement the projects. 3. A Technology Development Acceleration Cell (TDAC) for induction of emerging disruptive technology in an accelerated time frame. The existing, functional Directorate of Indigenisation of the Navy and the new structures are planned to be integrated to build upon the ongoing indigenisation initiatives, as well as focus on innovation. SIDM signed an MOU with NIIO, Indian Navy on 13 August 2020 to encourage the Indian defence industry including start-ups and MSMEs, and aim at enhancing research and academic collaboration to develop innovative solutions to address defence capability requirements. Directorate of Indigenisation – Indian Air Force The Directorate of Indigenisation at Air HQ is mandated to function as the apex body for indigenisation tasks. The following tasks are to be undertaken by the Directorate towards indigenisation:- a) To be associated with Plans branch during the process of new acquisitions to advise on areas in which indigenisation should be taken up through joint development and Make in India. b) A Central database for all vendors is to be maintained at Directorate of Indigenisation, along with the range of products indigenised. c) Suggest technologies/areas to Plans branch which need to be obtained under Offsets for the IAF.
32 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 33 PROUD MEMBERS OF SIDM Useful Business Information Defence Production Domestic defence production has continued a steady trajectory with private sector contribution being ~22%. Target for FY 2019-20 was set at Rs 90,000 Cr, which was considered very achievable but for disruption caused by COVID pandemic during March 2020, did not materialize A summary of defence production is tabulated below. Defence Exports Defence exports have witnessed a minor drop during FY 2020-21. It was Rs 8,434 Cr vis-a-vis Rs 9,115 Cr during 2019-20. Over 85% of exports revenue has been contributed by private industry. Note:- Summation of Annual Sales Turnover as reported by the companies Year Defence Public Sector Undertakings (in Rs Cr) Ordnance Factory Board (in Rs Cr) Other Public Sector Undertakings/Joint Ventures (in Rs Cr) Defence Private Companies (in Rs Cr) Total Production (in Rs Cr) 2016-17 40,427 14,825 4,698 14,104 74,054 2017-18 43,482 14,829 5,180 15,347 78,838 2018-19 44,825 12,816 5,567 17,350 80,558 2019-20 30,134 5,472 4,326 11,875 51,807 Year Export Authorizations to Private Companies (Rs Cr) Export by DPSU/OFB (Rs Cr) SCOMET Issued by DGFT (Rs Cr) Total Export (Rs Cr) 2020-21 7271.25 984.64 178.94 8434.83 d) Identification of agencies to establish equivalence of items between foreign origin and Indian make items. e) Provide interface with Indian industry for indigenous development. f) Provide support for development and registration of vendors. g) Enter into MoU with Indian industry/academic institutions of repute for indigenous development. SIDM signed a MoU with Directorate of Indigenisation, IAF on 5th February 2021 at Aero India 2021 for promoting indigenisation of equipment of IAF. Directorate of Aerospace Design – Indian Air Force Directorate of Aerospace Designing (DAD) was formed by IAF in 2020 with an aim to spearhead Design and Development activities in niche technology areas for future acquisitions. It is also mandated to promote greater involvement of IAF in innovation. The Directorate aims to act as an interface between Innovators from Academia and Industry to meet IAF’s requirements. It intends to achieve these aims by nurturing its relationship with industry and providing support and guidance to industry.
34 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 35 PROUD MEMBERS OF SIDM Defence Budget for Capital Acquisitions A summary of the defence budget for FY 2021-22 and its trend over the last 05 years is depicted in the Chart below Contracts There is a balanced trend on the flow of defence orders to the domestic industry. Major foreign contracts during Sep 2019 to Mar 2020 in FY 2019-20 being on account of 24 MRH for Navy ($2130 million) and 06 Apache Helicopters for Army ($797 million). The budgetary allocation of Rs 1,35,061 Cr has been made for capital acquisition for FY 2021-22, which is considered inadequate to fund all planned modernisation schemes of the Services. The distribution of the Budget among the three Services is shown in the Chart below
34 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 35 PROUD MEMBERS OF SIDM Order Book of DPSUs / OFB as published in Nov 2019 is tabulated below.
36 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 37 PROUD MEMBERS OF SIDM AONs During the last three financial years i.e. from 2018-19 to 2019-2020 to 2020-2021(till December 2020), the Government has accorded Acceptance of Necessity (AoN) to 112 Defence proposals, worth Rs. 1,99,860 Crore approximately under make in India categories. Further, DAC accorded AONs for another Rs 5,100 Cr. Rs 1,300 Cr & 38,000 Cr during its meetings in January 2020, March 2020 and December 2020 respectively. In February 2021, AONs worth Rs 13,700 were accorded. Industrial Licence Government has issued Defence Industrial Licences (up to June 2020) for manufacture of Arms, Ammunition and Defence equipment/platforms as under: a) Arms Act,1959 (58) b) Defence sector under IDR Act,1951 (386) c) Explosives sector under IDR Act,1951 (210) d) Chemicals sector under IDR Act,1951 (05) The increase in the number of Licences under Arms Act and those for explosives & chemicals under IDR Act signifies the expansion of ecosystem for manufacture of small and ammunition segments, which were opened for participation by private industry in 2018. Make-II Projects Approval -in – Principle for 56 Make-II projects of the Services (Army - 26, Navy - 13 and Air Force - 17) existed as on 22 May 2021. Project Sanction Order for 06 Army, 04 Navy and 04 Air Force had been issued. Considering that simplified Make-II procedure was introduced in Oct 2018, the progress of Make-II projects is slow. Technology Development Fund Technology Development Fund (TDF) has been established to promote self-reliance in Defence Technology as a part of the ‘Make in India’ initiative. It is a programme of the MOD executed by DRDO for meeting the requirements of Tri-Services, Defence Production and DRDO. The scheme encourages participation of public/private industries especially MSMEs to create an eco-system for enhancing cutting edge technology capability for defence application. Funding up to Rs 10 Crore is provided under the scheme for development of prototype. A new provision has been incorporated in DAP 2020 so that order for the initially approved quantity
36 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 37 PROUD MEMBERS OF SIDM can be placed on the successful Development Agency under Buy (Indian-IDDM) category. Sample List of Projects under TDF. {It is pertinent that over 50 projects have been taken up under TDF} • Design and development of video Processing/Switching Board for an advanced military aircraft with ARINC 818 Std (Digital Video Std) capability (AF-16-0.1) • Composite material Sea Water Pump • Fuel Cells for small to large power • Rubberised Track Pads for ICV • Microwave 500W CW SSPA • Multi-Platform Multi-Sensor data Fusion • Universal Green Load Bank • TWT for ASPJ • Dual Flow JT Cooler • Prussian Blue Formulation under GMP facility • Concentric Rings for Aero Engine • Course Correction Fuse • Solid State Magnetron • Avionics LRU • Pumps for Aircraft • Drones for Load Carrying (25 Kg) for high altitude areas Industry may access details of all on-going / fresh projects on the TDF website https://tdf.drdo.gov.in/ Innovation for Defence Excellence MOD has signed a total of 58 MOUs with Start-Ups under three rounds of Defence Industry Start-up Challenges Make-II Projects and Import Substitution – DPSUs / OFB
38 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 39 PROUD MEMBERS OF SIDM AIP for 2593 Make-II projects for DPSUs / OFs had been accorded till April 2020, as under: - It is notable that OFB has signed contracts for 27 out 73 projects during FY 2019-20. Projects under Strategic Partnership (SP) Model SP Model has been billed as the ‘game changer’ policy framework of the Ministry of Defence, which has the potential to transform the Landscape of the Indian Defence industry in less than a decade and bring it at par with the developed world. It is also one of the crucial bulwarks of “self-reliance” in defence and the most important cog in the wheel of “AatmaNirbhar Bharat Abhiyaan” for the defence sector. MOD initiated three major programs viz. 111 NUH, 06 Conventional Submarines P75-I, and 110 fighter aircraft under the SP model in 2018. Shortlisting of FOEMs and perspective SPs for NUH and submarine programs has been completed. Manufacturing of Ammunition through private Industry Ammunition segment gained prominence in early 2018 after the Indian Army decided to permit Indian private industry to manufacture medium and large-calibre ammunition of 08 types. The policy permitted the Indian Army to enter into 10-year long term contracts with industry for supply of ammunition. Indian private industry participated and submitted response to all RFPs. None of the schemes has progressed properly till now. Notwithstanding the above, Indian Army has now issued RFIs for private industries to meet the annual requirement for different types of ammunition, including rifle bullets and artillery rockets, for the next 10 years. The move, however, comes with a rider that interested manufacturers will not receive any financial support for their venture. In a series of requests for information (RFI) issued in August 2020, the Master General of Ordnance’s Branch at Army Headquarters has sought to identify prospective manufacturers Organisation No of Projects MIDHANI 10 HAL 1213 GRSE 1 BEML 1269 OFB 73 HSL 2 GSL 1 MDL 1 BEL 31 BDL 11
38 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 39 PROUD MEMBERS OF SIDM for participating in the indigenous manufacture of ammunition. The types of ammunition to be manufactured include rockets for the 300mm SMERCH and 122 mm BM21 systems, 90 mm shoulder-fired rocket launcher, 155 mm, 40 mm and 20 mm rounds for artillery and air defence guns as well as 7.62 mm and 9 mm rounds for different rifles and carbine. The annual requirement projected to be sourced from the private sector varies from a few dozen rounds for systems like SMERCH rockets to about 70 lakh 7.62 mm bullets. Thus, the ammunition segment in the defence sector presents a potential Rs 10,000 Cr annual business for Indian private industry, and therefore needs to be pursued seriously by the interested industry. Indian army is scouting for Indian vendors to meet its needs for three different types of ammunition, all of them over a 10-year period. The requirement will be met through private sector only. On 26 Nov 2020, the Master General of Sustenance of the Indian Army has issued the Requests for Information to facilitate preparation of Requests for Proposal and identify prospective manufacturers for participating in the proposal for indigenous production. The due date for submission of responses was 25 January 2021. The three types of ammunition in RFI are: i. Cartridge SA 7.62mm Intermediate Rimless for AK-47/56/AKM Rifle (annual requirement projected is 65,91,936). ii. Cartridge SA 14.5mm B-32 API for AMR (annual requirement projected is 52,188) iii. Round of 125mm HE for Tank 7-72/T-90 and Round of 125mm HEAT for Tank T-72/T-90 (annual requirement for Round QF 125MM HE is 54,828 and for Round QF 125mm HEAT is 25,716) Salient aspects to note are: • The participating manufacturers will be responsible to obtain necessaryclearancesfrom Ministry of Home Affairs(under Arms Act), from Department of Industrial Policy and Promotion (manufacturing licenses) and any other permissions necessary for manufacture of ammunition. • The Government of India will neither provide any special concessions nor any funding or investment to facilitate setting up of requisite infrastructure by participating firms. • The prospective manufacturers will be free to select their technology partners, negotiate and obtain Transfer of Technology (ToT). • The manufacturer should develop the infrastructure and absorb the complete ToT for manufacture of ammunition within two years from signing of the contract. **********
40 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 41 PROUD MEMBERS OF SIDM Import Embargo List of Defence Weapons / Platforms Annexure - I SNo Name of Platform/ Weapon/ System/ Equipment Indicative YearImport Embargo With Effect From Dec 2020 1 120mm Fin Stabilised Armour Piercing Discarding Sabot (FSAPDS) Mark II Ammunition Dec-20 2 7.62x51 Sniper Rifle Dec-20 3 Tracked Self Propelled (SP) Gun (155mm x 52 Cal) Dec-20 4 Towed Artillery Gun (155mm x 52 Cal) Dec-20 5 Short Range Surface to Air Missiles (Land variant) Dec-20 6 Shipborne Cruise Missiles Dec-20 7 Multi Barrel Rocket Launcher (MBRL) (Pinaka Variant) Dec-20 8 Simulators Presenting Smart Ranges And Multi-Function Targets Dec-20 9 Battalion Support Weapons Simulators Dec-20 10 Container-based Simulators for Live Fire Training Dec-20 11 Tailor-made Simulators for Counter Insurgency (CI)/Counter Terrorism (CT) based Training Dec-20 12 Force-on-force Live Tactical Simulators / Infantry Weapon Dec-20 13 Tank Simulators (driving, as well as, crew gunnery) Dec-20 14 155mm/39 Cal Ultra-Light Howitzer Dec-20 15 Successor of Flycatcher & Upgraded Super Fledermaus (USFM) / Air Defence Fire Control Radar (ADFCR) Dec-20 16 Component Level Repair Facility for Tank T-90 Dec-20 17 Shipborne Close in Weapon System Dec-20 18 Bullet Proof Jackets Dec-20 19 Ballistic Helmets Dec-20 20 Missile Destroyers Dec-20 21 Multi-Purpose Vessel Dec-20 22 Offshore Patrol Vessel Dec-20 23 Next Generation Missile Vessels Dec-20 24 Anti-Submarine Warfare Shallow Water Crafts Dec-20 25 Water Jet Fast Attack Craft Dec-20 26 Ammunition Barges Dec-20
40 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 41 PROUD MEMBERS OF SIDM SNo Name of Platform/ Weapon/ System/ Equipment Indicative YearImport Embargo 27 50ton Bollard - Pull Tugs Dec-20 28 Survey Vessels Dec-20 29 Floating Dock Dec-20 30 Diving Support Vessels Dec-20 31 Pollution Control Vessels Dec-20 32 Anti-Submarine Rocket Launchers Dec-20 33 Shipborne Medium Range Gun Dec-20 34 Torpedo Tube Launcher for Light Weight Torpedoes Dec-20 35 Magneto - Rheological Anti Vibration Mounts Dec-20 36 All variants of Depth Charges Dec-20 37 Shipborne Sonar System for Large Ships Dec-20 38 Hull Mounted Submarine Sonar Dec-20 39 Short Range Maritime Reconnaissance Aircraft Dec-20 40 Anti-Submarine Rocket Dec-20 41 Chaff Rockets Dec-20 42 Chaff Rocket Launcher Dec-20 43 Integrated Ship’s Bridge System Dec-20 44 Light Combat Aircraft (LCA) MK I A – Enhanced Indigenised Content Dec-20 45 Light Combat Helicopters Dec-20 46 General Purpose Pre Fragmentation Bombs between 250-500 Kg Dec-20 47 Radar Warning Receiver (RWR) for Transport Aircraft Dec-20 48 Ground Based Mobile ELINT System Dec-20 49 Transport Aircraft (Light) Dec-20 50 GSAT-6 Satellite Terminals Dec-20 51 Aerial Delivery Systems for Transport Aircraft Dec-20 52 Digital Tropo Scatter/LOS Communication System Dec-20 53 Low Level Transportable Radar Dec-20 54 High Power Radar (HPR) Dec-20
42 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 43 PROUD MEMBERS OF SIDM 55 CBRN Detection & Monitoring System Dec-20 56 CBRN Decontamination & Protection System Dec-20 57 Parachute Tactical Assault (PTA)- G2 Dec-20 58 Dragunov Upgrade System Dec-20 59 PKMG Upgrade System Dec-20 60 Simulators for A Vehicles / B Vehicles Dec-20 61 Simulators for Towed and Self Propelled Guns of Air Defence Dec-20 62 Simulators for Correction of Fire by Observers Dec-20 63 Military trucks of 4x4 and above variants: 12x12, 10x10, 8x8, 6x6 Dec-20 64 Fixed Wing Mini UAVs Dec-20 65 500 Ton Self Propelled Water Barges Dec-20 66 Software Defined Radio (TAC) for IN Dec-20 67 Next Generation Maritime Mobile Coastal Battery (Long Range) Dec-20 68 Advance Landing Ground Communication Terminals (ALGCTs)for AGLs Dec-20 69 Field Artillery Tractor (FAT) 6X6 for Medium Guns Dec-20 With Effect From Dec 2021 70 Wheeled Armoured Fighting Vehicle (AFV) Dec-21 71 Light Machine Gun Dec-21 72 125 mm Fin Stabilised Armour Piercing Discarding Sabot (FSAPDS) New Generation Ammunition Dec-21 73 Assault Rifle 7.62 x 39mm Dec-21 74 30 mm Ammunition for Infantry Fighting Systems Dec-21 75 Mine Fragmentation Dec-21 76 Mine Anti-tank Dec-21 77 Mine Anti-Personnel Blast Dec-21 78 Multipurpose Grenade Dec-21 79 Inertial Navigation System for Ship Application Dec-21 80 Conventional Submarines Dec-21 SNo Name of Platform/ Weapon/ System/ Equipment Indicative YearImport Embargo
42 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 43 PROUD MEMBERS OF SIDM Dec 2022 Onwards 81 40mm UBGL (Under Barrel Grenade Launcher) Dec-22 82 Lightweight Rocket Launcher Dec-22 83 155 mm Artillery Ammunition Dec-22 84 EW Systems Dec-22 85 Material Handling Crane 2.5 to 7.5 Tons (Vehicle Mounted) Dec-23 86 GRAD BM Rocket Dec-23 87 30MM HEI/HET Dec-23 88 ASTRA-MK I Beyond Visual Range Air to Air Missile (BVR AAM) Dec-23 89 EW Suit for MI-17 V5 Dec-23 90 Communication Satellite GSAT-7C Dec-23 91 Satellite GSAT 7R Dec-23 92 Basic Trainer Aircraft (BTA) Dec-23 93 Expendable Aerial Targets Dec-24 94 Small Jet Engines with 120kgf thrust Dec-24 95 Light Low Level Terrain Radar (LLLWR) Dec-24 96 Close in Weapon System (Land based) Dec-24 97 23 mm ZU Ammunitions Dec-24 98 30mm VOG 17 Dec-24 99 Electronic Fuses for Artillery Ammunitions Dec-24 100 Bi- Modular Charge System (BMCS) Dec-24 101 Long Range – Land Attack Cruise Missile Dec-25 SNo Name of Platform/ Weapon/ System/ Equipment Indicative YearImport Embargo
44 Towards Atmanirbhar Bharat in Defence Towards Atmanirbhar Bharat in Defence 45 PROUD MEMBERS OF SIDM List of 108 Systems/ Sub systems for Industry to Design, Develop and Manufacture S.No. System Timelines 1 Mini& Micro UAVs 2020 2 Mini & Micro RoVs 2020 3 Un-cooled NV-IR sights for weapons (short range) 2020 4 Mountain Foot Bridge (Metallic) 2020 5 Multi Span Bridge (Metallic) 2020 6 Modular Bridge (Metallic) 2020 7 Floating Bridge (Metallic) 2020 8 Mines Laying and Marking Equipment 2020 9 NBC Shelters 2020 10 Armoured Engineering Reconnaissance Vehicle (AERV) 2020 11 Multipurpose Decontamination Systems (MPDS) 2020 12 Mobile Decontamination System (MDS) 2020 13 Solo Vehicle Based Transporter cum Tilter System 2020 14 Special Purpose Transporters up to 80 T Payload 2020 15 Loader cum Replenishment (LCR) Vehicles 2020 16 Anti-Terrorist Vehicle (ATV) 2020 17 Heavy Recovery Vehicle 2020 18 IR flare 2020 19 Tank Transporter 2020 20 Multi Spectral Camouflage Net (MSCN) 2021 21 Unit Maintenance Vehicle 2021 22 Unit Repair Vehicle 2021 23 Bullet Proof Vehicle 2020 24 Missile Canisters 2020 25 Missile Assembly Jigs 2020 26 Missile Storage Containers 2020 27 Marine Rocket Launcher 2020 28 Image Intensified (II)Based Weapon Sights 2021 Annexure - II