The Government will set up a separate fund to provide necessary resources to the public and private sectors, including small and medium enterprises, to not only support innovation, research and development activities but also enhance cutting edge technologies in the defence sector.
This has been indicated in the Defence Production Policy, which was released by the Defence Minister Mr A. K. Antony, here on Thursday. The exact quantum of the new fund will be decided after consultations with the Finance Ministry, officials indicated.
Releasing the document, the Minister said that the changes aim at not only simplifying procedures, but also speeding up procurement and enhancing benefits to the Indian defence industry.
Towards self-reliance
The new policy seeks to achieve substantive self-reliance in the design, development and production of equipment, weapon systems and platforms required for defence in as early a timeframe as possible.
Besides, the policy seeks to create conditions conducive for private industry to take an active role. It also looks to enhance the potential of SMEs in indigenisation and broaden the research and development base of the country.
“Based on the approved Long Term Integrated Perspective Plan equipment, weapon systems and platforms required after 10 years or further down the line will by and large be developed, integrated and made within the country. Sub-systems, equipment and components that are not economically viable or practical to be made within the country may be imported, ensuring their availability at all times,” the policy adds.
In the case of shipbuilding procedures, the revised procedures, apart from laying down various clauses to strengthen the contracting mechanism, have also linked payments to stages of construction for ships or yard crafts, including modular construction.
To synergise and enhance national competence in producing state of art defence products within the price and time lines which are globally competitive, “all viable approaches, including formation of consortia, joint ventures and public-private partnership among others within the Government-approved framework, will be undertaken,” the policy adds.