Article Posted on : - Feb 06, 2017

NEW DELHI (PTI): As many as 73 defence deals amounting to Rs 72,303 crore were signed with local vendors in the past two years in line with the NDA government's flagship "Make in India" programme, Lok Sabha has been informed.

MoS Defence Subhash Bhamre in a written reply in the House on Friday said the Defence Procurement Procedure (DPP) focuses on achieving the "Make in India" vision by according priority to buy Indian designed, developed and manufactured equipment over foreign.

"In the past two financial years, 2014-15 and 2015-16, 73 contracts amounting to Rs 72,303.34 crore were signed with Indian vendors.

"In the same period, 85 cases amounting to Rs 1,60,362 crore were accorded 'Acceptance of Necessity' by Defence Acquisition Council under buy and make Indian category," he said.

He said the Dhirendra Singh Committee, set up to evolve a policy framework for facilitating "Make in India" within the purview of the DPP and streamline the procurement process, has recommended a "strategic partnership model" for creating capacity in the private sector on a long-term basis.

Replying to another question, the minister said 72 contracts/agreements amounting to Rs 1,29,918.19 crore were signed for procurement of defence equipment from foreign countries, including for 36 Rafale fighter jets from France, over the last three financial years and the current year.

In addition, 111 contracts involving a total value of Rs 94,020.67 crore were signed with Indian vendors for procurement of defence equipment in the same period.

Answering another query, he said since opening of defence manufacturing for local private sector in May 2001, so far 342 industrial licences have been issued to 205 Indian companies.

"However, after the launch of Make in India programme in September 2014, the Ministry of Commerce & Industry, Department of Industrial Policy & Promotion (DIPP) have issued 116 industrial licences for manufacture of various licenseable defence items.

"So far 53 licenced companies, covering 92 licences, have reported commencement of production," Bhamre said, adding that as per the current policy, industrial licence is valid for 15 years and expandable up to 18 years.

"During the period, companies are required to commence their commercial production. However, commencement of commercial production by the companies depends upon the business opportunities available to them," he added.

Replying to another question, Bhamre said the government has given in-principle approval for strategic disinvestment to the extent of 26 per cent of the government shareholding in BEML Limited.