Tag Archives: Make in India

MHA gives a boost to “Make in India” in the field of manufacturing of arms

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The Ministry of Home Affairs has liberalised the Arms Rules to boost “Make in India” manufacturing policy of the Government as also to promote employment generation in the field of manufacturing of arms and ammunition.
The liberalisation of the Arms Rules will encourage investment in the manufacturing of arms and ammunition and weapon systems as part of the “Make in India” programme. The liberalised rules are expected to encourage the manufacturing activity and facilitate availability of world class weapons to meet the requirement of Armed Forces and Police Forces in sync with country’s defence indigenization programme. The liberalised rules will apply to licences granted by MHA for small arms & ammunition and licences granted by Department of Industrial Policy and Promotion (DIPP), under powers delegated to them, for tanks and other armoured fighting vehicles, defence aircrafts, space crafts, warships of all kinds, arms and ammunition and allied items of defence equipment other than small arms.
The salient features of the liberalised rules are:
(i) The licence granted for manufacturing shall now be valid for the life-time of the licensee company. The requirement of renewal of the license after every 5 years has been done away with.
(ii) Similarly, condition that the small arms and light weapons produced by manufacturer shall be sold to the Central Government or the State Governments with the prior approval of the Ministry of Home Affairs has been done away with.
(iii) Further, enhancement of capacity up to 15% of the quantity approved under licence will not require any further approval by the Government. The manufacturer will be required to give only prior intimation to the licensing authority in this regard.
(iv) The licence fee has been reduced significantly. Earlier the licence fee was Rs. 500/- per firearm which added up to very large sums and was a deterrent to seeking manufacturing licenses. The licence fee will now range from Rs. 5,000/- to the maximum of Rs. 50,000/-.
(v) The fee for manufacturing licence shall be payable at the time of grant of license rather than at the time of application.
(vi) Single manufacturing licence will be allowed for a multi-unit facility within the same State or in different States within the country.
A notification for the Arms (Amendment) Rules, 2017 has been issued by MHA on October 27, 2017.

Modi Ponders Make in India Initiative

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Defence sector being a User driven sector, Defence Forces are actively involved in various policies & procedures related to procurement, indigenous design, development & manufacture of defence equipment, co-development & co-production with foreign OEMs, thus contributing towards ‘Make in India’ . Some of the major areas, where defence personnel are involved, are listed below:

‘Make Procedure’: ‘Make’ procedure as given out at Chapter-III of Defence Procurement Procedure (DPP)-2016, envisages involvement of Defence personnel at various stages of development of a defence equipment. The ‘Make’ projects are identified through a consultative process with involvement of members from Services Head Quarters (SHQs). Project Management Unit (PMU) headed by Service officer, established at SHQs, is responsible for monitoring the implementation of ‘Make’ projects of respective SHQ. The Integrated Project Management Team (IPMT) mandated to steer the Make project, is also headed by Service Officer.

Technology Development Fund (TDF) Scheme: TDF scheme launched by the Government aims at funding the development of defence and dual use technologies that are currently not available with the Indian defence industry, or have not been developed so far, thus creating an Eco-system for enhancing cutting edge technology capability for Defence application. The scheme envisages constitution of Empowered Committee and Technical Committee with representation from Armed Forces as members, which are involved in identification of technologies, Project Monitoring & Mentoring activities.

‘Buy & Make (Indian)’ and ‘Buy & Make’ Categories of Capital Acquisition: ‘Buy & Make (Indian)’ and ‘Buy & Make’ categories of capital acquisition under DPP, envisage tie-up between Indian Vendor/ Indian Production Agency & foreign OEM, for indigenous production of defence equipment involving Transfer of Technology (ToT) of critical technologies to promote ‘Make in India’. The Defence Personnel are engaged at various stages of procurement to progress the projects categorized under these categories.

Army Design Bureau (ADB): SHQ (Army) has established an Army Design Bureau (ADB) in August – 2016 as a single point coordination with Industry & Academia. The mandate of ADB, inter- alia is to act as a central repository of technical know-how, to bring forward the innovation undertaken by field formation, to generate long-term research requirement for Indian Army etc.

In addition, a large number of personnel from the Armed forces are posted in DRDO (Defence Research & Development Organisation) to provide impetus to design & development of projects of the Armed forces, thus contributing to indigenization process.

This information was given by Minister of State for Defence Dr. Subhash Bhamre to Shri Raghav Lakhanpal in a written reply in Lok Sabha today.