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 The 23 projects that the <keyword id="43909" type="ORGANIZATION" weightage="20" keywordseo="Defence-ministry">defence ministry</keyword> is taking up under the ‘<keyword id="6354869" type="UNKNOWN" weightage="20" keywordseo="make-in-India">Make in India</keyword>’ initiative has 13 for Army, six for Navy and four in <keyword id="15141" type="ORGANIZATION" weightage="20" keywordseo="Indian-Air-Force">Indian Air Force</keyword>’s fold.<o:p></o:p>

	This is for the first time such a transparent modus operandi has been followed by the ministry of defence.<o:p></o:p>

	The 23 projects will allow participation of all categories of companies including MSMEs – participation of a sector that the government wants to encourage under Make in India. A host of projects, however, are for the big and medium players, sources in the ministry said.<o:p></o:p>

	While the order for these 23 projects may not be very big and is estimated to be in the range of around Rs 2500-3000 crore in totality, the same is being viewed as an important step by the Indian government and is also the first of the lot after the announcement of the new Defence Procurement Policy (DPP) 2016.<o:p></o:p>

	Moreover, some of these projects were earlier not open for private participation and were either manufactured by defence PSUs, ordinance factories or the demand was alternatively being met from imports.<o:p></o:p>

	“Under the ‘Make in India’ initiative of the government, a list of potential ‘Make’ projects has been identified by the Service Head Quarters (SHQs) in consultation with the other stakeholders in the ministry. These projects are being contemplated to be undertaken as per category Make-I or Make-II of new revised Chapter-III on Make Procedure of Defence Procurement Procedure-2016,” a brief from the defence ministry stated.<o:p></o:p>

	We bring to you the complete details of these 23 projects. 
	<o:p></o:p>

	(Anupama Airy is the Founder and Editor of EnergyInfraPost.com and DefenceAviationPost.com. She can be reached at <a href="mailto:anupama.airy@gmail.com" target="_blank">anupama.airy@gmail.com</a>​, Twitter handle: @anupamaairy)

	(Images: Indiatimes, India defence news, Wikipedia, imgur.com, defence forum india, etimg, marine engines, Reuters)

Here is the complete information of 23 projects that defence ministry is taking up under Make in India initiative

New Delhi (India), July 10 (ANI): In a major development, India is planning to buy 26 Rafale fighter aircraft and three <keyword id="4045841" type="General" weightage="20" keywordseo="Scorpene-class" source="Orion">Scorpene class</keyword> conventional submarines from France. The proposals have been placed before the Defence Ministry by the defence forces and are likely to be announced during Prime Minister Narendra Modi's visit to France this week, government sources told ANI. As per the proposals, the Indian Navy will get 22 single-seated Rafale Marine aircraft along with four trainer aircraft. The Navy had been pressing for acquiring these fighter aircraft and submarines urgently as they have been facing shortages in view of the security challenges around the country. The aircraft carriers INS Vikramaditya and Vikrant have been operating the MiG-29s and need the <keyword id="925199" type="General" weightage="20" keywordseo="Rafales" source="Orion">Rafales</keyword> for operations on both carriers. Meanwhile, the three Scorpene class submarines would be acquired under the repeat clause by the Navy as part of Project 75 where they would be built in the Mazagon Dockyards Limited in Mumbai. The deals are estimated to be worth over Rs 90,000 crore but the final cost would be clear only after the contract negotiations are completed which will be held after the deal is announced. India is likely to seek price concessions in the deal and would be insisting on having more 'Make-in-India' content in the plan, sources said. Industry sources said for the Rafale M deal, India and France are expected to form a joint team to negotiate the deal like it was done for the previous Rafale deal for 36 fighter aircraft. The proposals have been discussed in the defence ministry at high-level meetings already and are likely to be placed before the defence acquisition council in the next few days and expected to be accorded Acceptance of Necessity by the government before the announcement in France. (ANI)

India to buy 26 Rafales, 3 Scorpene submarines from France, deals likely to be announced during PM Modi's visit

<ul><li><keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> is back in Prime Minister Narendra Modi’s Union Cabinet as he takes office for the second-term.</li><li>Sitharaman, who previously held the Ministry of Defence, has been given the <keyword id="156153" type="ORGANIZATION" weightage="20" keywordseo="Ministry-of-Finance">Ministry of Finance</keyword> and Ministry of Corporate Affairs.</li></ul>Nirmala Sitharaman was once again sworn in in the Cabinet ministry of Prime Minister Narendra Modi. Sitharaman who took oath in the 6th position, was given the Finance Ministry in the Modi cabinet. She has also been given the Ministry of Corporate Affairs. She will be taking over Arun Jaitley, who served as the Finance Minister, in Modi's first term and had written a letter to the PM asking to be excused from ministerial duty this time due to health issues. Sitharaman is one of the three women in PM Modi’s 25-member cabinet. Sitharaman made history when she was announced to be India’s first full-time Defence Minister in 2017. Now, with the position of Finance Minister she becomes India’s second female finance minister, after former Prime Minister Indira Gandhi. She held the position of Defence Minister as tensions escalated between India and Pakistan during the Pulwama terror attack. She has been a member of the Rajya Sabha from Karnataka since 2016 and from Andhra Pradesh from 2014-2016. She was also the spokesperson for the Bharatiya Janata Party from 2010-2014. A graduate from the Jawaharlal Nehru University in Delhi, when Sitharaman lived in London she also worked as saleswoman before going on to join PriceWaterhouseCooper before finally joining politics in India.

Nirmala Sitharaman becomes India’s second female Finance minister

Australian Deputy Prime Minister Richard Marles will travel to Ahmedabad to witness the summit clash between <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> and <keyword id="6355478" type="General" weightage="80" keywordseo="australia" source="Orion">Australia</keyword> at the <keyword id="3859" type="General" weightage="20" keywordseo="cricket-world-cup" source="Orion">cricket World Cup</keyword> on Sunday. Marles, who is also Australia's <keyword id="32723" type="General" weightage="80" keywordseo="defence" source="Orion">defence</keyword> minister, and Foreign Minister Penny Wong are visiting India to co-chair the second edition of the "2+2" ministerial dialogue along with their Indian counterparts on Monday. The defence ministry on Saturday announced the Australian deputy prime minister's two-day visit to India from November 19-20 primarily for the "2+2" dialogue that is expected to focus on boosting the overall defence and strategic ties between the two countries. It said Marles will also attend the cricket World Cup final between India and Australia on Sunday. "Australian Deputy Prime Minister and Minister for Defence Richard Marles will visit India from November 19 to 20 to co-chair the second India-Australia 2+2 ministerial dialogue with Defence Minister Rajnath Singh," the ministry said in a statement. The Indian delegation at the "2+2" dialogue will be led by Singh and External Affairs Minister S Jaishankar. "During his visit, Minister Marles will also attend the Cricket World Cup final between India and Australia in Ahmedabad, Gujarat on November 19," the ministry said. It said Singh and Marles will hold a bilateral meeting on November 20 that would be followed by the "2+2" dialogue. "India and Australia are pursuing a comprehensive strategic partnership and the visit of Minister Marles is expected to give further impetus to the collaboration as well as bilateral defence cooperation," the defence ministry said. "The two countries are expected to discuss wide-ranging issues of mutual interest during the 2+2 dialogue and the bilateral defence ministers' meeting," it added. The two sides are expected to focus extensively on further ramping up the overall defence and security ties and boost the strategic cooperation in the Indo-Pacific region during the "2+2"dialogue. Both Australia and India are part of the Quad or Quadrilateral coalition that is focused on working towards ensuring a free, open and inclusive Indo-Pacific. The other two members of the Quad are the United States and Japan. The situation in West Asia in view of the Hamas-Israel conflict, China's increasing military muscle flexing in the Indo-Pacific and issues relating to regional security is expected to figure in the talks, people familiar with the preparation for the dialogue said. The inaugural "2+2" ministerial dialogue between India and Australia took place in September 2021. India has such a framework for talks with a very few countries, including the US and Japan. The latest edition of the India-US foreign and defence ministerial dialogue took place in New Delhi on November 10. The bilateral defence and strategic ties between India and Australia are on an upward trajectory in the last few years. In June 2020, the two countries elevated their ties to a comprehensive strategic partnership and signed a landmark deal for reciprocal access to military bases for logistics support. The <keyword id="10796857" type="General" weightage="50" keywordseo="mutual-logistics-support-agreement" source="Orion">Mutual Logistics Support Agreement</keyword> (<keyword id="449908" type="General" weightage="50" keywordseo="mlsa" source="Orion">MLSA</keyword>) allows the militaries of the two countries to use each other's bases for repair and replenishment of supplies, besides facilitating scaling up of the overall defence cooperation. SEE ALSO: <a href="https://www.businessinsider.in/sports/webstories/ind-vs-aus-icc-world-cup-final-past-battles-head-to-head-record-and-more/slidelist/105309620.cms">India vs Australia ICC World Cup final – Past battles, head-to-head record and more</a> <a href="https://www.businessinsider.in/business/telecom/news/jio-strengthens-market-leadership-with-3-25-mn-new-subscribers-vis-decline-slows/articleshow/105289414.cms">Jio strengthens market leadership with 3.25 mn new subscribers, Vi’s decline slows</a> <a href="https://www.businessinsider.in/tech/news/indias-pc-market-surges-to-4-5-million-devices-in-q3-2023/articleshow/105285251.cms">India’s PC market shipments surge in Q3 amidst import restrictions talks</a>

Australian Deputy PM Marles to watch India-Australia World Cup cricket final in Ahmedabad

New Delhi, The <keyword id="43909" type="General" weightage="100" keywordseo="defence-Ministry" source="Orion">defence ministry</keyword> on Thursday approved the proposed procurement of 26 Naval variant of <keyword id="6381048" type="General" weightage="20" keywordseo="Rafale" source="Orion">Rafale</keyword> jets from France, people familiar with the development said. The project was cleared by the Defence Acquisition Council (<keyword id="456872" type="General" weightage="20" keywordseo="DAC" source="Orion">DAC</keyword>) headed by Defence Minister Rajnath Singh on a day Prime Minister Narendra Modi begins a two-day visit to Paris. The DAC, which is the defence ministry's highest decision making body on procurement, also cleared a proposal for construction of three more Scorpene submarines in India. The mega <keyword id="75940" type="General" weightage="20" keywordseo="defence-projects" source="Orion">defence projects</keyword> are expected to be announced after wide-ranging talks between Prime Minister Modi and French President Emmanuel Macron in Paris on Friday. The DAC's approval to the projects came around a week after they were cleared by the Defence Procurement Board (DPB). The Indian Navy is looking for procurement of 26 deck-based fighter jets for indigenously-built aircraft carrier INS Vikrant. After a lengthy process, the Navy had narrowed down on Boeing's F/A-18 Super Hornet and French aerospace major Dassault Aviation's Rafale M aircraft for the procurement. Later, Rafale-M, the naval variant of the lethal jet, emerged as the winner in the tight race. India has already procured 36 Rafale jets from France for the Indian Air Force. The Rafale jets are India's first major acquisition of fighter planes in 23 year after the Sukhoi jets were imported from Russia. Another important project with France would be the follow on order of three Scorpene submarines. Under Project 75, six Scorpene submarines have already been made in India. PTi MPB DV DV

Procurement of 26 Rafale jets for Navy approved

<ul><li><keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>’s defence ministry announced yesterday that the Indian and Chinese armies would increase engagement through joint military exercises and the initiation of a “strategic hotline”. </li><li>The proactive approach towards cooperation by both sides follows an April visit to <keyword id="1334" type="LOCATION" weightage="20" keywordseo="China">China</keyword> by India’s Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>. </li><li>While India has been suspicious of China’s growing closeness with its neighbours, it is also moving to cement ties with the country as a way to ensure peace and stability along its borders.</li></ul>On August 23rd, India’s Ministry of Defence announced that the Indian and Chinese armies would increase engagement through joint military exercises and the initiation of a “strategic hotline”. The move came during a four-day visit to India by Wei Fengh, the state councillor and defence minister of China and key officials in the People’s Liberation Army of China. The countries are drafting a bilateral memorandum of understanding (MoU) in this regard, with the end goal of ending all skirmishes along the border. Any future skirmishes are expected to be solved and mediated by lower-ranking officials, preventing any escalation. There will also be several communication channels opened up between senior military officials on both sides, such as the Eastern and Northern Commander of the Indian Army and the head of the Chinese Army’s Western Theatre Command, a military unit tasked with border protection. Last month. China and India commenced joint military exercises again with the inauguration of the <a href="https://economictimes.indiatimes.com/news/defence/india-china-joint-military-exercise-hand-in-hand-begins-in-pune/articleshow/55465031.cms">“Hand-to-Hand”</a> meeting in Pune, a programme aimed at helping each army understand the other’s operating procedures. The proactive approach towards cooperation by both sides follows an April visit to China by India’s Prime Minister Narendra Modi. The summit was meant as a reconciliations of sorts after a heated military standoff in Bhutan’s <keyword id="4708082" type="PERSON" weightage="20" keywordseo="doklam">Doklam</keyword> region last year that lasted for 73 days. The standoff was a result of a border dispute in the region. The two countries share a 3500-kilometre border, a significant portion of which has not been formally delineated. India carries out a number of development programs along the border related to water provision and electricity supply and wants to ensure the continuity of these programs. While India has been suspicious of China’s growing closeness with its neighbours - Pakistan, Nepal, Sri Lanka and Bangladesh - it is also moving to cement ties with China as a way to ensure peace and stability along its borders. The new MoU will replace a previous one that was signed in 2006 for defence cooperation.

India and China are taking their military ties to the next level

<ul><li>The union budget will be presented in the parliament on July 5, 2019. </li><li>The defence forces are hopeful of increased budget allocation as Smt <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> herself is the former defence minister. </li><li>India is the <keyword id="7821032" type="UNKNOWN" weightage="20" keywordseo="fourth-largest-defence-spender">fourth largest defence spender</keyword> globally.</li></ul>The <keyword id="112134" type="COMPANY" weightage="20" keywordseo="Indian-Armed-Forces">Indian armed forces</keyword> expect the Union Budget 2019, to be announced on July 5, to provide more money to modernise and upgrade the country’s defence establishment amidst ever-increasing global and internal challenges. Fuelling this hope is the fact that the newly-appointed Finance Minister Nirmala Sitharaman was in charge of the defence ministry in her last role and therefore, she would be well aware of the challenges and requirements of the forces. The defence budget has increased nearly doubled in the last five years, the first term of the Narendra Modi government. But the money was still not enough to upgrade the weapons because the lion’s share of the allocation for the ministry of defence (MoD) goes into paying salaries and pensions. 
 
 
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 The Indian army has the largest share in the defence budget, more than half. Second in the list comes that <keyword id="15141" type="COMPANY" weightage="20" keywordseo="Indian-Air-Force">Indian Air Force</keyword> followed by the navy, DRDO and ordnance factories. 
 
 
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 INDIA’S GLOBAL RANK In 2018, India became the fourth largest military spender in the world, with the United States of America, China and Saudi Arabia ahead in the list and France at the fifth spot. Global military expenditure also grew 2.6 % to $1.8 trillion in 2018 compared to a year earlier, according to the Stockholm International Peace Research Institute (SIPRI). India’s defence allocation grew 6.5% in the year ending March 2019. Geopolitical tensions are rising around the world- tensions between the <a href="https://www.businessinsider.in/Simple-economics-show-how-Trump-is-beating-up-on-Iran-without-firing-a-shot/articleshow/69934762.cms">US and Iran</a>, simmering conflict in <a href="https://www.businessinsider.in/It-looks-like-the-US-has-been-quietly-lowering-the-threshold-for-conflict-in-the-South-China-Sea/articleshow/69832087.cms">the South China sea</a>, the constantly <a href="https://www.haaretz.com/middle-east-news/.premium-the-iran-crisis-is-exposing-a-far-deeper-conflict-between-trump-and-europe-1.7427507">volatile middle east</a>, and last but not the least <a href="https://www.businessinsider.in/if-india-and-pakistan-have-a-limited-nuclear-war-scientists-say-it-could-wreck-earths-climate-and-trigger-global-famine/articleshow/68207655.cms">India’s own conflict with Pakistan</a> and the <a href="https://www.businessinsider.in/Tensions-are-still-simmering-a-year-after-the-worlds-2-biggest-countries-almost-clashed-over-a-border-at-the-top-of-the-world/articleshow/65507895.cms">threats from China</a>, make the modernisation of India’s military necessary. 
 
 
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 Vintage weapons In 2018, the then Vice Chief of Army Lt Gen Sarath Chand said that 68% of the Army’s equipment is in the ‘<a href="https://www.rediff.com/news/report/sixty-eight-per-cent-of-armys-equipment-is-in-vintage-category/20180313.htm">vintage category</a>’, adding fund crunch will also impact the serviceability of the existing equipment and may even affect payment of instalments for past purchases. It had set up of the Special Forces Division, Defence Cyber Agency, the Defence Space Agency and the Defence Space Research Agency (DSRA). It also came up with the concept of <a href="https://www.businessinsider.in/indian-army-is-setting-up-integrated-battle-groups-along-the-pakistan-border-which-will-be-self-sufficient-to-fight-a-war/articleshow/69884097.cms">Integrated Battle Groups (IBGs)</a>. Insufficient allocation will hit its modernisation at a time when Chinese military is competing to reach the level of the US and Pakistan bolstering capability of its forces, the Army had told a <a href="https://economictimes.indiatimes.com/news/defence/parliamentary-standing-committee-criticises-govt-for-inadequate-allocation-of-funds-to-army/articleshow/67427334.cms?from=mdr">parliamentary panel</a>. SEE ALSO: <a href="https://www.businessinsider.in/indian-army-is-setting-up-integrated-battle-groups-along-the-pakistan-border-which-will-be-self-sufficient-to-fight-a-war/articleshow/69884097.cms">Indian Army is setting up ‘Integrated battle groups’ along the Pakistan border which will be self-sufficient to fight a war</a>

India’s defence budget has nearly doubled in 5 years but the money is not enough to upgrade the weapons

<ul><li>New deal saved 2.86% for the Indian exchequer, says India's federal auditor.</li><li>Latest report tabled in the Parliament will help Modi in fighting corruption charges from the opposition.</li><li>Opposition had hoped to corner the Modi government over the controversial defence deal.</li></ul> The Narendra Modi government struck a better deal than the Congress, that's the verdict from the <keyword id="6379775" type="UNKNOWN" weightage="20" keywordseo="Comptroller-and-Auditor-General-of-India">Comptroller and Auditor General of India</keyword> (CAG), the country's federal auditor, which tabled its report on the controversial 2015 deal to buy 36 Rafale jets from French company Dassault, according to news reports. "Compared to the 126 aircraft deal, India managed to save 17.08% money for the India-specific enhancements in the 36 Rafale contract," news agency ANI said, adding that,"the delivery schedule of the first 18 Rafale aircraft is better than the one proposed in the 126 aircraft deal, by five months." However, the full price of the jets have been redacted in the report based on the insistence of the Defence Ministry citing the Indo-French agreement of 2008 and the provisions of inter-government agreement, another news agency IANS reported. In April 2015, Prime Minister Narendra Modi had announced that India will buy 36 French-manufactured Rafale fighter jets off-the-shelf. This was a departure from the original plan, under the previous regime, under which India would buy 18 off-the-shelf jets and another 108 would be assembled by the state-run Hindustan Aeronautics Limited or HAL in Bengaluru. Modi , however, intervened and decided to buy 36 "ready-to-fly" fighters instead of trying to acquire technology from Dassault and make it in India. "A Defence Ministry team in March 2015 recommended the scrapping of the 126 Rafale deal saying that Dassault Aviation was not the lowest bidder and EADS (European Aeronautic Defence &amp; Space Company) was not fully compliant with the tender requirements," the CAG report said according to ANI. The opposition parties had cornered the incumbent Modi government alleging that the ₹590 billion deal was more expensive and it included kickbacks. It was also said that the deal was made to help Anil Ambani, whose Reliance Naval and Engineering was reportedly brought in to support Dassault. Both entities have denied this. Modi also faced a direct <a href="https://twitter.com/INCIndia/status/1093733762104524800/photo/1?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1093733762104524800&amp;ref_url=https%3A%2F%2Fwww.hindustantimes.com%2Findia-news%2Fdefence-ministry-note-proves-pm-bypassed-negotiations-with-france-on-rafale-deal-rahul%2Fstory-EUd4UAbFWTQ9lX6XODsLkM.html" data-type="tilCustomLink" target="_blank">charge</a> after news reports revealed that the Prime Minister's Office had intervened in the deal negotiations and in fact, dismissed the apprehensions of its own Defence Ministry. The latest report from CAG will be a big blessing for Prime Minister Narendra Modi who will be seeking re-election in the upcoming summer. However, the opposition was already prepared. Prior to the release of the report, the Congress party had pre-emptively dismissed the findings of the report, explaining that Rajiv Mehrishi, the current Comptroller and Auditor General of India, took part in the deal’s negotiations.

CAG report on Rafale deal is a blessing for Modi government

India has set a target to achieve a turnover of Rs 1.75 lakh crore ($25 billion) including export of Rs 35,000 Crore ($ 5 billion) in aerospace and <keyword id="8127101" type="UNKNOWN" weightage="20" keywordseo="defence-goods">defence goods</keyword> and services by 2025. This is part of the <keyword id="9693161" type="UNKNOWN" weightage="20" keywordseo="draft-defence-production">draft Defence Production</keyword> and Export Promotion Policy (DPEPP 2020) announced on Sunday. Defence Minister <keyword id="6355121" type="PERSON" weightage="20" keywordseo="Rajnath-Singh">Rajnath Singh</keyword> announced the draft policy through a tweet on Monday. "In order to provide impetus to self-reliance in Defence manufacturing and to position India amongst the leading countries of the world in Defence and Aerospace sectors, a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020) has been formulated," he said. In implementing such framework and to position India amongst the leading countries of the world in defence and aerospace sectors, <keyword id="6369097" type="COMPANY" weightage="20" keywordseo="ministry-of-defence">Ministry of Defence</keyword> (MoD) has formulated a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020). The DPEPP 2020 is envisaged as overarching guiding document of MoD to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports. The policy proposes to develop a dynamic, robust and competitive defence industry, including <keyword id="9694649" type="COMPANY" weightage="20" keywordseo="aerospace-and-naval-shipbuilding">aerospace and naval shipbuilding</keyword> industry to cater to the needs of armed forces with quality products. It also seeks to reduce dependence on imports and take forward "Make in India" initiatives through domestic design and development. The policy's aim is to promote export of defence products and become part of the global defence value chains. It emphasizes creation of an environment that encourages R&amp;D, <keyword id="9694650" type="UNKNOWN" weightage="20" keywordseo="rewards-innovation">rewards innovation</keyword>, creates Indian IP ownership and promotes a robust and self-reliant defence industry. The policy brings out multiple strategies under the focus areas of procurement reforms, indigenization and support to MSMEs/startups, optimize resource allocation, investment promotion, FDI and Ease of Doing business, innovation and R&amp;D, DPSUs and OFB, quality assurance and testing infrastructure and export promotion. The vision as stated in the policy is "To make India amongst the leading countries of the world in Defence sector, including Aerospace and Naval Shipbuilding sectors, from design to production, with active participation of public and private sector and thus fulfilling the twin objectives of self-reliance and exports". SEE ALSO: <a href="https://www.businessinsider.in/tech/news/mark-zuckerberg-and-jeff-bezos-got-14-billion-richer-in-a-single-day-as-facebook-and-amazon-shrugged-off-the-coronavirus-recession/articleshow/77333152.cms" data-type="tilCustomLink">Mark Zuckerberg and Jeff Bezos got $14 billion richer in a single day as Facebook and Amazon shrugged off the coronavirus recession</a> <a href="https://www.businessinsider.in/business/corporates/news/dgca-asks-spicejet-to-stop-ticket-sale-offer-as-govt-imposed-fare-limits-are-in-place/articleshow/77333769.cms" data-type="tilCustomLink">DGCA asks SpiceJet to stop ticket sale offer as govt-imposed fare limits are in place</a>

Draft defence policy aims to achieve ₹1.75 lakh crore turnover by 2025

India is preparing country-wise profiles of defence products and platforms to promote their exports and the government will stand "side by side" with the domestic industry in this endeavour through diplomatic channels, a senior Defence Ministry official said Monday. Raj Kumar, secretary, Department of Defence Production, said at a webinar that the domestic defence industry will hold web interactions with the representatives of friendly countries to figure out what kind of products and platforms they require. "We are preparing country-wise profiles of products, weapons and platforms which are probably needed by our friendly countries. So we are now planning to start web interaction led by the industry," Kumar said. "That country's defence attache, our DPSUs (defence public sector undertakings), industry, will then figure out what is in the store for us to promote there for exports," he said. Kumar said the government will be standing side by side with the domestic industry through its defence attaches, embassies and diplomatic channels to promote exports. To promote indigenous production, the Defence Ministry on August 9 announced restrictions on import of 101 weapons and military platforms including light combat helicopters, conventional submarines and cruise missiles under a staggered timeline till 2024. Kumar said a second list of import-restricted defence items will be notified soon. "This is the first list we are examining and then a second list will also come. We expect you (industry) to come forward and start investing to meet our requirements," he said at the webinar -- "Army Make Projects 2020" -- organised by FICCI. The senior official said as successful domestic bidders move to the defence equipment production stage, his department will share their details with the UP and Tamil Nadu defence corridor authorities, who "will compete in attracting your units to their respective states". He said since the three services are making efforts to push the "Make II" category of defence production projects, he will interact with project participants to understand their concerns and share best practices among the services. As secretary of the Department of Defence Production, Kumar heads the collegiate committee that approves the "Make II" category of projects. Under the Make II category, no government funding is given to the Indian company for the prototype development process. If a prototype developed by the company meets the standards set by the armed forces, an order is placed for such equipment or platforms. "Everything, whether it is defence industrial corridor, or whether it is defence production and export promotion policy, or whether it is a negative list - everything works in the same direction that we have to be among the top producers of defence items," he said. On August 9, Defence Minister Rajnath Singh said the ministry was now ready for a "big push" to indigenous defence manufacturing in tune with Prime Minister Narendra Modi's call for an "Atmanirbhar Bharat" (Self-Reliant India). India is one of the most lucrative markets for global defence giants. The country has figured among the top three global importers of military hardware for the last eight years. The Indian armed forces are projected to spend around USD 130 billion in capital procurement in the next five years. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/tech-mahindra-hcl-tech-wipro-and-likes-are-hoping-global-5g-race-resumes-next-year-bringing-some-large-deals-before-that/articleshow/77583638.cms">Tech Mahindra, HCL Tech, Wipro and likes are hoping global 5G race resumes next year⁠ — bringing some large deals before that</a> <a href="https://www.businessinsider.in/international/news/gaza-strips-only-power-plant-may-run-out-fuel-in-the-next-24-hours-following-israel-border-shut-warns-expert/articleshow/77584765.cms">Gaza Strip's only power plant may run out fuel in the next 24 hours following Israel border shut, warns expert</a> <a href="https://www.businessinsider.in/tech/apps/news/the-heat-is-on-mark-zuckerberg-in-india-as-facebook-and-whatsapp-incur-the-ire-of-modis-rivals/articleshow/77575358.cms">The heat is on Mark Zuckerberg in India as Facebook and WhatsApp incur the ire of Modi's rivals</a>

After import embargo, India is creating country profiles for its defence exports

The government has permitted <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> (FDI) of up to 74 per cent under the automatic route in the defence sector with a view to attracting overseas investors, according to a press note issued by the DPIIT on Thursday. However, foreign investments in the defence sector would be subject to scrutiny on the grounds of national security and the government reserves the right to review any foreign investment in the sector that affects or may affect national security, the Department for Promotion of Industry and Internal Trade (DPIIT) said in the note. As per the current FDI policy, 100 per cent overseas investments are permitted in the defence industry -- 49 per cent under the automatic route, while beyond that government approval was required. According to the Press Note 4 (2020 series): "FDI up to 74 per cent under automatic route shall be permitted for companies seeking new industrial licences". It also said that infusion of fresh investment up to 49 per cent, in a company not seeking industrial licence or which already has government approval for FDI in defence, shall require "mandatory" submission of a declaration with the defence ministry in case change in equity/shareholding pattern or transfer of stake by existing investor to new foreign investor for FDI up to 49 per cent, within 30 days of such change. Proposal for raising FDI beyond 49 per cent from such companies will require government approval, it added. "The decision will take effect from the date of FEMA (Foreign Exchange Management Act) notification," it said. The decision to permit up to 74 per cent FDI in the <keyword id="2377476" type="PERSON" weightage="20" keywordseo="defence-manufacturing">defence manufacturing</keyword> through the automatic route was announced by Finance Minister Nirmala Sitharaman in May while announcing the fourth tranche of the Rs 20 lakh crore stimulus package for the coronavirus-hit economy. In July 2018, the government had relaxed foreign direct investment norms in the defence sector by allowing up to 49 per cent FDI under the automatic route. The move was aimed at boosting domestic industry as India imports about 70 per cent of its military hardware. According to the DPIIT data, defence industries has received FDI equity inflows of USD 9.52 million (Rs 56.88 crore) during April 2000 and March 2020. Under the government route, foreign investors have to take prior approval of the respective ministry/department, while in the automatic route, the investor just has to inform the RBI after the investment is made. Total FDI into India increased by 18 per cent to USD 73.45 billion in 2019-20. SEE ALSO: <a href="https://www.businessinsider.in/sports/news/dailyhunt-app-founders-confirm-ipl-2020-associate-sponsorship/articleshow/78169667.cms">EXCLUSIVE: Dailyhunt founders confirm IPL 2020 associate sponsorship — promise new release for Josh ahead of India’s biggest cricket tournament</a> <a href="https://www.businessinsider.in/stock-market/markets/news/hcl-tech-enters-the-list-of-top-10-most-valued-companies-in-india/articleshow/78165311.cms">HCL Tech enters the list of top 10 most valued companies in India</a> <a href="https://www.businessinsider.in/science/space/news/first-intact-planet-found-circling-a-dead-star-this-jupiter-sized-anomaly-is-in-orbit-rather-than-being-pulled-apart-at-the-seams/articleshow/78166938.cms">First 'intact' planet found circling a dead star — this Jupiter-sized anomaly is in orbit rather than being pulled apart at the seams</a>

Foreign investors can now pump in up to 74 % FDI under automatic route in India's defence sector

The <keyword id="6416832" type="ORGANIZATION" weightage="80" keywordseo="Ministry-of-Commerce-and-Industry">Ministry of Commerce and Industry</keyword> today said that steps taken to boost defence manufacturing would encourage foreign companies to invest more in India. The government withdrew excise and customs duty exemptions enjoyed by the <keyword id="594435" type="ORGANIZATION" weightage="80" keywordseo="Ordinance-Factory-Board">Ordinance Factory Board</keyword> and defence PSUs to provide a level-playing field to private players. 
 

	"This will provide a level-playing field...by taking away the strategic advantage with PSUs for quoting lower rates in open bids,” as per a PTI report. "With this initiative, the government has also fulfilled demand of foreign Original Equipment Manufacturers (OEMs) such as Boeing, Airbus, <keyword id="112859" type="CITY" weightage="80" keywordseo="Lockheed-Martin">Lockheed Martin</keyword>, BAE Systems etc which are actively exploring the scope of future <keyword id="6362476" type="ORGANIZATION" weightage="60" keywordseo="investments">investments</keyword> in India," according to a statement issued by the Ministry of Commerce and Industry. 

	The statement further said the move would also send a definitive message to foreign OEMs that India is open to business and investment for defence manufacturing. Moreover, defence manufacturing is one of the key sectors among the 25 sectors identified under the Make-in-India campaign, an initiative by the <keyword id="6360789" type="ORGANIZATION" weightage="80" keywordseo="Modi-Government">Modi government</keyword>. 
	 

	India is the highest importer of defence equipments in the world. Therefore, Indian aerospace and defence market attract many global players. The government has systematically opened up the sector for private investment by increasing Foreign Direct Investment (<keyword id="44528" type="ORGANIZATION" weightage="80" keywordseo="FDI">FDI</keyword>) cap in defence of up to 49% and rationalising certain conditions. 
	 

	"A number of initiatives have been taken by the new government to incentivise the private sector, including foreign OEMs, to engage in the Defence and Civil Aerospace sector," as per the statement issued by the ministry. 
	 

	It added that a series of consultations have been held across ministries and departments to enable simplification of rules and procedures to promote private participation in defence manufacturing and exports. 
 

	(Image: Indiatimes)

Govt. provides private firms level-playing field with defence PSUs to boost manufacturing

The Ministry of Defence will soon come out with a new set of guidelines and norms that will work as Standard-Operating-Procedures (SOP) for foreign companies seeking higher ownership beyond the existing 49% foreign direct investment (FDI) that is currently allowed in defence production.<o:p></o:p>
 India’s <keyword id="2619377" type="UNKNOWN" weightage="20" keywordseo="defence-minister-Manohar-Parrikar">Defence Minister Manohar Parrikar</keyword> has already stated that he was open to considering higher FDI in defence production on a case-to-case basis. However, presently, there are no guidelines or SOP in place to decide on cases where higher foreign ownership is proposed.

	“India may soon announce guidelines to increase the 49% cap on foreign direct investment (FDI) in defence production allowing foreign companies, with the latest cutting edge technology, to set shop in the country. These guidelines are being finalised so that the department of defence can take a view on the dozen odd proposals by leading global players,” said a senior government official.<o:p></o:p>

	At a recent meeting of the top brass of defence ministry with the industry, it was indicated that the norms and guidelines for allowing over 49% FDI in defence production are being finalised.<o:p></o:p>

	Sources in the know said a draft Cabinet note has been readied in this regard following inter-ministerial consultations on the issue of higher FDI in defence production.

	However, as against having fixed norms, the department of defence is understood to have proposed taking a view on a case to case basis and on the merits of the proposal.<o:p></o:p>

	French company DCNS has proposed to set up a wholly-owned Indian subsidiary to develop advanced systems for submarines.

	“Many foreign companies have approached the government to set up wholly owned Indian subsidiaries to develop crucial modern defence systems. But due to lack of guidelines, the clarity is missing and global companies have expressed concerns on the same. These new guidelines will detail a specific roadmap for international companies that are planning to make big investments in India’s defence production,” an official said.<o:p></o:p>

	“Our FDI norms will need to watch out for the real intents and the encumbrances on the technology flow through export controls and denial regimes to make Make-in-India a success,” he said.<o:p></o:p>

	“The caution indeed has to be exercised as going by the past experience, whenever a new sector is opened up there is a honeymoon time that gets in many new entrants. Aviation sector is one such glaring example to point. All new entrants use high pitch and try to create differentiators but they will have to eventually deliver promises through building shear track record through physical delivery on a sustained basis,” said an industry source.<o:p></o:p>

	So while the government puts in place these new norms and guidelines, care needs to be taken that this does not result in mere creation of a “front” but instead build skill sets and capabilities to enhance indigenous content.<o:p></o:p>

	The need of the hour is to create centres of excellence to enhance not only the indigenous content but gradually built sustainability through geographic spread of markets in a calibrated way, said an industry leader.<o:p></o:p>

	This, he said, is welcome as the Indian requirements are diverse and technologies constantly move with time needing fresh inputs in technology all the time.

	​(Anupama Airy is the Founder and Editor of EnergyInfraPost.com and DefenceAviationPost.com. She can be reached at <a href="mailto:anupama.airy@gmail.com" target="_blank">anupama.airy@gmail.com</a>​, Twitter handle: @anupamaairy)

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