Q. No. 1751 Preference given to domestic production by DPP

Question: Will the Minister of DEFENCE be pleased to satate :-

(a) whether Defence Production Policy of the country gives any preference to the domestic production;

(b) if so, the details thereof; and

(c) how many new defence production units started in the country in the last ten years?

Answer: Minister of Defence (Shri A.K. Antony)

(a) & (b): Yes, Sir. The Para 3 of Defence Production Policy in this regard, is reproduced below:

“Preference will be given to indigenous design, development and manufacture of defence equipment. Therefore, wherever the required arms, ammunition and equipment are possible to be made by the Indian industry within the timelines required by the Services, the procurement will be made from indigenous sources. Whenever the Indian industry is not in a position to make and deliver the equipment as per the SQRs in the requisite time frame, procurement from foreign sources would be resorted to.”

(c) New units in DPSUs:

HAL – 3 units
-SUKHOI Engine division at Koraput in 2004
-Helicopter MRO division at Bangalore in 2006
-Strategic Electronic factory at Kasargod in 2012

BEML - one unit at Palakkad, Kerala in 2010
BDL - one unit at Vishakhapatnam in 2007

New units in Private sector: Since opening of Defence Industry Sector upto 100%, for Indian Private sector participation in May 2001, 104 Private companies have been issued 190 Letter of Indents / Industrial licenses, out of which 34 companies have reported commencement of production.