25 August 2011

India: Self-Sufficiency in Arms Production

The Ministry of Defence has been taking various steps for achieving self-reliance in defence production. A 'Make Procedure' was introduced as part of the Defence Procurement Procedure in 2006 to encourage indigenous development and manufacture of defence equipment, and action is in progress for the development of some major equipment under this category. A Defence Production Policy has also been introduced from January, 2011 with the objective of strengthening indigenous capability in defence production and achieving self-reliance. The policy includes various steps for encouraging indigenous design, development and manufacture of defence equipment by both the public sector and the private sector. It would also encourage and facilitate research and development projects as well as manufacture of defence products by MSMEs. The Offset Procedure introduced as part of DPP 2006 is also aimed at strengthening indigenous capabilities.

As per the information available with the Department of Defence Production, no reference has been received from the Government of Gujarat for developing defence industry in that State.

As per the target set for 2011-12, the Ordnance Factories would issue arms, ammunitions and products worth Rs.11,700/- crore, while for the 9 Defence Public Sector Undertakings a target of Rs.31,590/- crore has been set for sales/value of production.

This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Shri Parshottam Khodabhai Rupala in Rajya Sabha today.