10 Jul 2019

Modernisation of Armed Forces

Source: Press Information Bureau

The modernisation of Armed Forces and substantive self-reliance in defence production

Modernization of the Armed Forces is a continuous process based on threat perception, operational challenges, and technological changes to keep the Armed Forces in a state of readiness to meet the entire spectrum of security challenges.

Government is taking measures for modernization of the Armed Forces, through procurement of new equipment and upgrading of existing equipment and systems. The modernization projects are being progressed as per the approved Capital Acquisition Plans and in terms of the extant Defence Procurement Procedure.

Following are the various measures taken to achieve substantive self-reliance in defence production and modernize the Armed forces of India;

    • ‘Make in India’: Since the launch of it several measures have been taken by the Government to promote indigenous design, development and manufacture of defence & aerospace equipment in the country under ‘Make in India’ by harnessing the capabilities of the public and private sector.
    • Defence Procurement Procedure (DPP) has been revised in 2016 wherein specific provisions have been introduced for stimulating growth of the domestic defence industry.
    • Indian-IDDM: A new category of procurement ‘Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)}’ has been introduced in DPP-2016 to promote indigenous design and development of defence equipment. It has been accorded top most priority for procurement of capital equipment. Besides this, preference has been accorded to ‘Buy (Indian)’,‘Buy and Make (Indian)’ & ‘Make’ categories of capital acquisition over ‘Buy (Global)’ & ‘Buy &Make (Global)’ categories.

 

  • Industrial corridors: Government has decided to establish two defence industrial corridors to serve as an engine of economic development and growth of defence industrial base in the country.  These are spanning across Chennai, Hosur, Coimbatore, Salem and Tiruchirappalli in Tamil Nadu and spanning across Aligarh, Agra, Jhansi, Kanpur and Lucknow in Uttar Pradesh (UP).
  • Innovations for Defence Excellence (iDEX) : iDEX is aimed at creation of an ecosystem to foster innovation and technology development in Defence and Aerospace by engaging Industries including MSMEs, Start-ups, Individual Innovators, R&D institutes and Academia and provide them grants/funding and other support to carry out R&D which has potential for future adoption for Indian defence and aerospace needs.
  • Mission Raksha Gyan Shakti: The Ministry has instituted a new framework titled ‘Mission Raksha Gyan Shakti’ which aims to provide boost to the IPR culture in indigenous defence industry.
  • Policy for indigenisation of components and spares used in Defence Platforms: The objective of the policy is to create an industry ecosystem which is able to indigenize the imported components (including alloys & special materials) and sub-assemblies for defence equipment and platform manufactured in India.
  • Defence Investor Cell: It  has been created in the Ministry to provide all necessary information including addressing queries related to investment opportunities, procedures and regulatory requirements for investment in the sector.
  • FDI policy: FDI Policy has been revised and under the revised policy, FDI is allowed under automatic route upto49% and beyond 49% through Government route wherever it is likely to result in access to modern technology or for other reasons to be recorded.

 

    • Offset guidelines have been made flexible by allowing change of Indian Offset Partners (IOPs) and offset components, even in signed contracts.  Foreign Original Equipment Manufacturers (OEMs) are now not required to indicate the details of IOPs and products at the time of signing of contracts.  ‘Services’ as an avenue of offset have been reinstated.
    • Technology Development Fund (TDF): Government has set up the Technology Development Fund (TDF) to encourage the participation of public/private industries especially MSMEs, through provision of grants, so as to create an eco-system for enhancing cutting edge technology capability for defence application.

 

  • Strategic Partnership in the Defence Sector: Government has set up this to encourage participation of public/private industries especially MSMEs, through provision of grants, so as to create an eco–system for enhancing cutting edge technology capability for defence applications.

 

How the Equipment requirement of the Armed Forces are planned?

The equipment requirements of the Armed Forces are planned and progressed through a detailed process which includes; 

  1. 15 year Long Term Integrated Perspective Plan (LTIPP)
  2. A five year Service-wise Capital Acquisition Plan.
  3. A two year roll-on Annual Acquisition Plan and 
  4. Deliberations by the Defence Acquisition Council chaired by the Raksha Mantri