IDEX Kicks Off with Huge Global Participation
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Visit us : C1- 03 IDEX & NAVDEX 2021 SPECIAL ISSUE FEBRUARY 22 a magazine dedicated to aerospace & defence industry www.arabiandefence.com MIDDLE EAST SUPPLEMENT Raj Kumar Secretary, Defence Production Ministry of Defence Interview - Page 2 IDEX Kicks Off with Huge Global Participation he International Defence Exhibition and Conference 2021 H.E. Mohammed bin Ahmad Al Bowardi, Minister of State for (IDEX), which is the largest defence fair in the Middle East Defence Affairs, United Arab Emirates, addressed the inaugural TNorth Africa (MENA) region, kicked off in style in Abu Dhabi. ceremony of the expo held under the patronage of the President His More than 900 companies are showcasing the latest in military Highness Sheikh Khalifa bin Zayed Al Nahyan at the ADNOC Business technology from drones to armoured vehicles. Centre. Condt... on Page 9 Indian Ambassador to UAE Pavan Kapoor with Rear Admiral Vipin Kumar Saxena, IN (Retd.), CMD, GRSE, Commodore (Retd) Siddharth Mishra, CMD, BDL, Commodore (Retd.) T.V.Thomas, Director- CP, MDL, Commodore TN Kaul (Retd) Executive Director, BDL, Dr.N.Ranjana, Director, DSTA, DRDO. Envisaging Structured Thrusts on Indigenisation The Department of Defence Production envisions expanding the defence manufacturing base of the country with equal participation of both Public and Private sector including MSMEs and startups. To achieve this goal, broadly three focus areas have been identified: Investment promotion, export promotion and innovation, says Raj Kumar, secretary, Department of Defence Production, Ministry of Defence, Government of India. Excerpts from the interview: Ministry of Defence has notified a has notified 46 items under the latest ‘Negative list’ of 101 items for which Public Procurement Order 2017 there would be an embargo on the notified by Department for Promotion import beyond the timeline indicated of Industry and Internal Trade against them. This is a big step towards (DPIIT), for which there is sufficient self-reliance in defence. This would local capacity and competition and offer a great opportunity to the Indian procurement of these items shall defence industry to manufacture be done from local suppliers only these items using their own design irrespective of the purchase value. and development capabilities to meet Government has notified a ‘Policy the requirements of the Armed Forces for indigenisation of components and in the coming years. This list includes spares used in Defence Platforms’ in some high technology weapon systems March 2019 with the objective to like artillery guns, assault rifles, create an industry ecosystem which corvettes, sonar systems, transport is able to indigenize the imported aircrafts, light combat helicopters components (including alloys and Raj Kumar special materials) and sub-assemblies Secretary, Defence Production (LCHs), radars and many other items Ministry of Defence to fulfil the needs of our Defence for defence equipment and platform Services. manufactured in India. What are the latest activities and policy initiatives “Offset portal” has been created An Inter-Governmental Agreement by the Government to promote indigenous in May 2019 to ensure Greater (IGA) on “Mutual Cooperation defence manufacturer in India? transparency, efficiency and in Joint Manufacturing of Spares, The size of the Indian Defence Industry, including accountability in the process. Reforms Components, Aggregates and other Aerospace and Naval Shipbuilding Industry, is in Offset policy have been included in material related to Russian/Soviet currently estimated to be about Rs 80,000 Crore DAP 2020, with thrust on attracting Origin Arms and Defence Equipment” (2019-20). The Government targets a turnover investment and Technology for was signed in September 2019. The of Rs 1,75,000 Cr (US$ 25Bn) in Aerospace and Defence manufacturing. objective of the IGA is to enhance the Defence goods and services by 2025, for which a Government has notified the After Sales Support and operational number of policy initiatives have been taken: ‘Strategic Partnership (SP)’ Model availability of Russian origin equipment Defence Procurement Procedure 2016 has been in May 2017, which envisages currently in service in Indian Armed revised as Defence Acquisition Procedure (DAP) establishment of long-term Forces by organizing production - 2020, which is driven by the tenets of Defence strategic partnerships with Indian of spares and components in the Reforms announced as part of ‘Aatmanirbhar entities through a transparent and territory of India by Indian Industry Bharat Abhiyan’. competitive process, wherein they by way of creation of Joint Ventures/ In order to promote indigenous design and would tie up with global Original Partnership with Russian Original development of defence equipment ‘Buy Indian Equipment Manufacturers (OEMs) to - IDDM (Indigenously Designed, Developed seek technology transfers to set up and Manufactured)’ category was introduced domestic manufacturing infrastructure in 2016 and was accorded top most priority for and supply chains. procurement of capital equipment. Department of Defence Production 2 Export Promotion cell under DDP, MoD has been formed to co- In February 2018, the Government ordinate and follow-up on export related action including enquiries decided to establish two defence industrial received from various countries and facilitate private sector and corridors to serve as an engine of economic public sector companies for export promotion. development and growth of defence industrial base in the country. They span Equipment Manufacturers (OEMs) under has brought in two OGEL’s (Open General across Chennai, Hosur, Coimbatore, the framework of the “Make in India” Export License) - one for the select parts Salem and Tiruchirappalli in Tamil Nadu initiative. and components, and the other for intra- and across Aligarh, Agra, Jhansi, Kanpur, company transfer of technology. OGEL is Chitrakoot and Lucknow in Uttar Pradesh. The Government eagerly looks forward a one-time export license, which permits A number of private industries have either to boost defence exports. How strong is the industry to export specified items already invested or have plans to invest in India’s defence export business and what to specified destinations, enumerated these defence industrial corridors. are major export promotion policies taken? in the OGEL, without seeking export An innovation ecosystem for Defence The Government targets defence export authorisation during the validity of the titled Innovations for Defence Excellence of Rs 35,000 Cr (US$ 5 Bn) by 2025 from OGEL. (iDEX) has been launched in April 2018. about Rs. 9,100 Cr in 2019-20, for which iDEX is aimed at creation of an ecosystem a number of export promotion initiatives How does the Department plan to tap to foster innovation and technology have been taken: the potential of private industry in defence development in Defence and Aerospace Export Promotion cell under DDP, MoD sector to support indigenization? by engaging Industries including MSMEs, has been formed to co-ordinate and follow- The private sector has received focused Start-ups, Individual Innovators, R&D up on export related action including attention during the last six years by way institutes and Academia and provide them enquiries received from various countries of policy initiatives and interventions by the grants/funding and other support to carry and facilitate private sector and public Government to promote their participation out R&D which has potential for future sector companies for export promotion. in defence, as mentioned below: adoption for Indian defence and aerospace A High Level Committee (HLC) has been A number of provisions have been added needs. constituted under the Chairmanship of or amended in DAP 2020 to provide level- Offset guidelines have been made flexible Raksha Mantri to facilitate faster clearances playing field for Indian Private Industry. by allowing change of Indian Offset to export of major indigenous defence Notification of ‘Negative list’ of 101 Partners (IOPs) and offset components, platforms to Friendly Foreign Countries. items would offer a great opportunity even in signed contracts. Foreign Original A scheme for Export promotion of Indian to the Indian defence industry, including Equipment Manufacturers (OEMs) are now Defence Equipment Manufactured in India private sector, to manufacture these items allowed to provide the details of IOPs and by Indian Defence Attache has been rolled using their own design and development products after signing of contracts. In order out wherein Defence Attachés are provided capabilities. to bring more transparency and efficiency financial support to promote export of The ‘Make’ Procedure of capital into the Offset discharge process, “Offset indigenous defence equipment abroad. procurement has been simplified. There portal” has been created in May 2019. Webinars and expo are being organized is a provision for funding of 90% of Under the new Offset Policy, further Offset with 25 countries with stakeholders/ development cost by the Government to reforms have been included in DAP 2020, decision makers/Defence industries for Indian industry under Make-I category. In with thrust on attracting investment and export promotion of Indian Defence addition, there are specific reservations for Technology for Defence manufacturing. equipment. Out of 25 countries, webinar MSMEs under the ‘Make’ procedure. Defence Products list requiring with 9 countries, including UAE have been Separate procedure