Defence ministry to start 8-10 projects each year under its 'make policy':

Secretary, Defence Production

Alka Sirohi
06 January, 2015
With the Government's focus on "Make in India," the Union Ministry of Defence is streamlining its 'make
policy' in order to start at least 8-10 projects every year to see that process of most of the products is
indigenised, a top Defence Ministry official has said.
G. Mohan Kumar, secretary (defence production) while inaugurating '7th International Conference on
Aerospace, Defence & Homeland Security' organised by The Associated Chambers of Commerce and
Industry of India (ASSOCHAM), said, "The make policy is under change, it is being streamlined and it is one
of our agenda in 'Make in India that at least 8-10 make projects will be started every year and once this
happens, I'm sure the defence production and development will attain a critical volume which would be
able to carry the industry forward."
"The Ministry of Defence is also seriously considering the setting up of a promotional body which would be
able to assess the producers not only in bringing investments but also in finding markets," said Kumar
according to a statement issued by ASSOCHAM.
Stressing upon the growing need for indigenisation in the defence sector, Mr Kumar said, "In the current
situation, indigenisation has become very important as we cannot have a defence system which is
depending on imports all the time, we need to reduce imports and we have to get more and more into
indigenisation."
"This will call for technology," he added while talking about the huge technological barriers in this regard.
Talking about providing a level playing field to the private sector,Kumar said, "As far as fiscal or taxation
measures are concerned we are trying our best to see that a level playing field is being provided to the
private sector and I think too shortly you will start seeing the results."
On the issue of significant role of private sector in developing a robust defence sector, Kumar said, "Apart
from a few large industrial houses and well known industries which are in the defence sector supporting
the various stakeholders in the public sector including the DPSUs and the Ordnance Factory Board and
some sporadic efforts in export of products, the other side of the industry i.e. the small and medium
industries have not been able to make much headway in the defence industry."
Talking about streamlining of procedures at the Government level, the secretary said, "We have a very
bulky procedural volume i.e. the Defence Procurement Procedure (DPP) and this is my dream to see that
this procedure is reduced to 25-30 pages instead of hundreds of pages. You should try to see that the
volume of procedures are reduced and streamlined so that there is predictability about what we are doing."
He also said that there is a need to instil confidence amid public sector undertakings like the DPSUs and
the Ordnance Factory Board to compete together with the private sector for winning a contract. "There
appears to be some problem in this area and we are addressing the same."
He also said that the PSUs have to leverage on the opportunities available in the private sector, they need
to build partnerships with the private sector and become more and more efficient and prompt in delivery of
services.

"The procedures followed by the Ordnance factories or the DPSUs call for a paradigm shift as they need to
have an environment in which they can have long-term partnership with the industry," said Kumar.
He also said that though every year tenders or enquiries are floated and based on the lowest tenders, may
be some temporary contracts are awarded and long-term contracts are very few, thus there is a need to
develop the same in the days to come.
"I've been trying to persuade the DPSUs to see that these long term contracts are built in a very
transparent way and it is possible to that and the same applies to ordnance factories," said Kumar.
"These partnerships are not just going to decentralise the whole process of production but it will also bring
overall efficiency in delivery and prices, productivity and this is something we need to promote in a big
way," he added.
He further said that the progress of the defence industry will ultimately be driven by the contracts the
industry is going to get from the Government.
The secretary also said that going ahead, the Government's entire effort is concentrated on addressing the
basic structural issues and if it succeeds in that then India will definitely move into the high trajectory of
exports and defence production in the days to come.