The Government has not conducted any study to find out the areas of opportunities and challenges in the defence sector in achieving the objectives of the scheme. However, the Government had set up a ‘Committee of Experts in May 2015 for amendments to Defence Procurement Procedure (DPP) – 2013 including formulation of Policy Framework to facilitate ‘Make in India’. Based on recommendations of the Committee, the new Defence Procurement Procedure (DPP) – 2016 has been promulgated for capital procurements and has come into effect from 1st April 2016. DPP-2016 has a focus on achieving the “Make in India” vision by according topmost priority to ‘Buy Indian – IDDM (Indian Designed, Developed and Manufactured) and ‘Buy (Indian)’ categories. It also focuses on enhancement and rationalization of indigenous content. The ‘Make’ Procedure has been simplified with provisions for funding of 90% of development cost by the Government to Indian industry and reserving projects not exceeding development cost of Rs. 10 crores (Government funded) and Rs.3 crores (Industry funded) for MSMEs.
In addition to above, the Government has taken several policy initiatives in pursuance to ‘Make in India’ initiative, such as liberalization of FDI policy & Industrial Licensing policy, simplification of export procedures, streamlining of defence offset guidelines, creating level playing field for Indian private and public sector companies, thereby giving priority to indigenous weapons/equipment.
The Army Institute of Management Technology which imparts education only to wards of all ranks of Army towards award of Masters in Business Administration(MBA), conducted a Seminar on “Make in India’ in May 2015 as part of teaching curriculum.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Ramsinh Rathwa in Lok Sabha today.