20 March 2012

India: Defence Production Policy


The government has formulated a new Defence Production Policy in order to reduce dependence on the import of defence equipments from other countries.  The Defence Production Policy came into effect from 1st January 2011. The policy endeavours to build up a robust indigenous defence industrial base by proactively encouraging larger involvement of the Indian private sector in design, development and manufacture of defence equipment.

The modernization programmes are under implementation in DPSUs&OFB.

In regard to restructuring of DRDO, the two review committees headed by Prof. P. Rama Rao and Defence Secretary respectively had submitted their recommendations. The following recommendations have been accepted by Government:-

  1. Formation of Defence Technology Commission (DTC).
  2. Restructuring of DRDO Management/Re-shaping of R&DHeadquarters.
  3. Administrative decentralization of DRDO.
  4. Financial decentralisation.
  5. Revamping of HR structure.
  6. Creation of a Commercial Arm of DRDO.
  7. Continuation of major ongoing programmes.
  8. Selection of Industry Partner.


DRDO has initiated the process of implementation of the above recommendations.

While DPP-2011 aims to achieve greater self-reliance in comingyears in continuous manner, no target can be fixed in this regard.

This information was given by Minister of Defence Shri AK Antony in a written reply to Shri DharmendraYadavand others in Lok Sabha today.