Workshop on “Doing Business in Defence & Aerospace Sector”

Date: 16th November 2018 Venue: CII Gurgaon Office

Conducted By: CII, Rear Admiral Pritam Lal (Retd.)

Module – I
This session was built on the following bases of defence sector:-

 Defence Procurement Procedure 2016 which emphasizes on giving higher priority to

Indian companies with the following order.
Buy (Indian - IDDM) > Buy (Indian) > Buy and Make (Indian) > Buy and Make > Buy (Global)
 Make Procedure: With prescribed eligibility criteria’s.
Sub-Category (Make-I): Government will fund 90% of the development cost in phased
manner.
Sub-Category (Make-II): Industry Funded. If RFP is not issued, 100% will be reimbursed
for development cost. (Start Ups have separate Criteria.)
 Strategic Partnership of Private Industries with DPSU’s and OFB are being encouraged
for:
Enhancing competence to access global supply chain and exports.
Create competitive environment in domestic market.
Long term investments in R&D, Skill Development, Manufacturing & test infrastructure.
 Criteria’s for Shortlisting of foreign OEM’s and Indian Companies were discussed.
 Landscape and different tiers for products required in defence sectors were discussed.

Interaction
 Had discussion with delegates of different organizations with respect to their views and
future plans in the defense sector.

Module – II
This session was based on the opportunities given by Government and Defence Ministry:

 Defense Industrial License is needed for only 25% of the defence products and other
products do not need the same.
 Non-core items like Clothing, Shoes, Kits made by OFB are 275 in no. for items. Many of
these are majorly needed by Para and Police force. These products have a wide variety
and scope for business with exports as a major option.
 Participation of Private sectors for Ammunition & Small Arms are being encouraged.
 Technology is being offered by DRDO which i.e. a Private Company can take up a project
and look for the scope of business through manufacturing of some defence products.
 Innovation for Defence Excellence and Public Procurement Policy were also discussed.