Defence Industry

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  • Shashank Mittal asked: What is technology transfer and with which all countries have India engaged in this regard?

    Amit Cowshish replies: Transfer of Technology (ToT) is the process by which the know-how underlying the development of a product, or any activity associated with its development, production or maintenance, is passed on by the original equipment manufacturer to another entity on mutually acceptable terms, largely financial.

    Report of Monday Morning Meeting on “Sanctions on the Russian Defence Industry”

    Event: 
    Monday Morning Meeting
    May 23, 2022
    Time: 
    1000 hrs

    Vineet R. asked: How can the academia work with the industry in private defence R&D? What niche role do each of them play?

    Amit Cowshish replies: The initiative to engage with the academia in the field of defence R&D must come from the private and public sector defence industry, acting in tandem with the armed forces and the Defence Research & Development Organisation (DRDO). This also requires an overarching organisation to coordinate the efforts. On the face of it, there are three specific areas for potential collaboration.

    Vineet R. asked: If India can indigenously make the more complex SSBNs under ATV, why is it importing SSKs under P-75(I)?

    Abhay K. Singh replies: At the outset, it is pertinent to highlight that the acquisition of P-75(I) submarines is not being planned through import. The P-75(I) submarines will be indigenously constructed through the strategic partnership model (SPM) of procurement, which aims to revitalise the defence industrial ecosystem and progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon systems for the future needs of armed forces.

    Anjali Ranawat asked: How far has India met the target of achieving $25 billion defence production by 2025, and what needs to be done to boost the defence industry to achieve the same?

    Amit Cowshish replies: The draft Defence Production and Export Promotion Policy (DPEPP) 2020 aims at achieving a turnover of Rs 1,75,000 crore (US$ 25 billion) by 2025, but no mechanism seems to be in place to aggregate the annual turnover–broadly defined as the value of sale–of the entire Indian defence industry, including the private sector entities.

    Unmanned Aircraft System and Indian Industries

    While India is establishing a strong aviation ecosystem by bringing together all stakeholders including the government, DPSUs, tri-services, academia and industry partners, it is believed that private Indian industries will be the crusaders for the government in defence production, particularly in the UAV vertical.

    January 27, 2022

    Mayank Bahuguna asked: What are the relevant lessons for Make in India from the role of private companies in the American defence industry?

    Amit Cowshish replies: The business practices, professionalism, and potential of the private sector in India for undertaking the design, development and production of sophisticated defence equipment are second to none in the world. If, despite this, India has not become a defence manufacturing hub, it is largely because of the economic and geopolitical milieu of the country, which is vastly different from the one in which the private defence companies bloomed in the US after the Second World War.

    Prashant Gogia asked: Is the Fall Clause applicable to direct purchase/urgent procurement and purchase requisition on GeM?

    Amit Cowshish replies: The standard format of Request for Proposal (RfP) given in the Defence Acquisition Procedure 2020 (DAP 2020) includes the Fall Clause. This clause requires the bidders to submit a written undertaking as a part of the technical offer that they have not supplied, or are not supplying, similar systems or subsystems at a price lower than that offered in the present bid to any other ministry or department of the Government of India.

    Public Procurement Framework in India

    The GFR 2017 permit individual ministries to issue detailed instructions to address the needs and complexities of procurement carried out by them. The question is whether those principles and rules come in the way of the Ministry of Defence evolving a more efficient procurement procedure that meets the armed forces’ aspirations.

    August 19, 2021

    Viable Alternatives Required to Replace Existing Procurement Procedures

    If existing procurement procedures are a hindrance in acquiring state-of-the-art defence materiel expeditiously, a case needs to be made out, based on demonstrable drawbacks of the existing system for a detailed blueprint of what system should replace it.

    August 10, 2021

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