DEFENCE QUESTIONS IN RAJYA SABHA

INDIGENISATION IN DEFENCE SECTOR
New Delhi, 08 December 2015
The Government has promulgated Defence Production Policy in 2011 in order to promote indigenisation in defence sector. The policy aims at achieving substantive self-reliance in the design, development and production of equipment, weapon systems, platforms required for defence in as early a time frame as possible; creating conditions conducive for the private industry to take an active role in this endeavour; enhancing potential of SMEs in indigenisation and broadening the defence R&D base of the country. In pursuance of the Policy, the Government has taken several steps to build strong defence industrial base which are given as below:-


o   FDI policy has been revised in Nov 2015 under which Foreign Investment upto 49% is allowed through automatic route and above 49% under Government route on case-to-case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country.

o   The Exchange Rate Variation (ERV) protection has been allowed on foreign exchange component to all Indian companies including private companies in all categories of capital acquisitions, so as to create a level playing field between the Indian and foreign industry.

o   To establish a level-playing field between Indian private sector and the public sector, the anomalies in excise duty/ custom duty have been removed.  As per the revised policy, all Indian industries (public and private) are subjected to the same kind of excise and custom duty levies.

o   The Defence Products List for the purpose of issuing Industrial Licences (ILs) under IDR Act has been revised and most of the components, parts, sub-systems, testing equipment, and production equipment have been removed from the List, so as to reduce the entry barriers for the industry, particularly small & medium segment.

o   The initial validity of the Industrial Licence granted under the IDR Act has been increased from 7 years to 15 years with a provision to further extend it by 3 years on a case-to-case basis.

o   To promote the participation of private sector, particularly SMEs for defence manufacturing, Outsourcing and Vendor Development Guidelines for DPSUs and OFB have been formulated and circulated to them.  The guidelines mandate that each DPSU and OFB to have a short-term and long-term outsourcing and vendor development plan to gradually increase the outsourcing from private sector including SMEs.  The guidelines also include vendor development for import substitution.

o   The Standard Operating Procedure (SOP) for the issue of No Objection Certificate (NOC) for export of military stores has been revised and put on the website.  Under the revised SOP, the requirement of End User Certificate (EUC) to be countersigned/ stamped by the Government authorities has been done away with for the export of parts, components, sub-systems etc.

o   The list of military stores has been finalised and has been put in the public domain to make the process transparent and unambiguous. The process of receiving applications for NOC for export of military stores and for issuing NOC has been made online to reduce the delay and to remove human interface in the process.

o   Preference to ‘Buy (Indian)’, ‘Buy & Make (Indian)’ & ‘Make’ categories of acquisition over ‘Buy (Global)’ category, thereby giving preference to Indian industry in procurement.

Department of Industrial Policy and Promotion (DIPP) has, so far issued 307 Letters of Intents (LOIs)/Industrial Licences (ILs) to 182 companies to till Oct  2015 for manufacture of a wide range of defence items to public/private companies. So far 50 licensed companies covering 79 industrial licenses have reported commencement of production.

34 FDI proposals/Joint Ventures have been approved in defence sector since 2000, for manufacture of various defence items, both with Indian public and private sector companies.

Since the launch of ‘Make in India’ initiative in Sept 2014, Department of Industrial Policy &Promotion has issued 81 Industrial Licenses to 61 companies for manufacture of various defence items.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Vijay Goel in Rajya Sabha today.



PRODUCTION CAPACITIES OF ORDNANCE FACTORIES
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015
The annual production plan of ordnance factories is based on targets mutually agreed with indentors i.e. Army, Navy, Air Force, Central & State Police etc.The capacities of ordnance factories are being fully utilized except in small arms manufacturing factories due to rapidly declining demand from Armed Forces for the existing small arms.

Ordnance Factory Board (OFB) has also received long-term demands of various ammunition items from Army, Navy and Air Force.  The OFB interacts on regular basis with the user so as to match their annual requirements.  The value of production of Ordnance Factories for supply to Defence and Non-Defence sectors during last three years is as under:-
(Rs. in Crore)
Year
Defence
Non Defence
Total

2012-13
10180
1794
11975
2013-14
9295
1828
11123
2014-15
9824
1540
11364







The percentage of expenditure on domestic and foreign procurement of Defence equipment for Army, Navy and Air Force under Capital and Revenue during 2014-15 was 62.89% and 37.11% respectively.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to ShriNaresh Agrawal in Rajya Sabha today.



ARMY PERSONNEL KILLED IN CEASEFIRE VIOLATIONS
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015
The details of ceasefire violations in J&K   along Indo-Pakistan border are as under:-
Ceasefire Violations along Line of Control (LC) and International Border (IB) under operational control of Army
Ceasefire Violations along IB under operational control of BSF
151
(from 01 January to 30th Nov, 2015)
249
(from 01 January to 31st Oct, 2015)
(b)  Six Army personnel were martyred during the ceasefire violations along the LC in the said period.
(c)  Compensation/benefits being paid to the Next of Kin of Army soldiers (Fatal Battle Casualties) is as under:
Monetary compensation to army soldiers’ families:
Ex Gratia Lump Sum Compensation from Central Government to Next of Kin (NoK) of Battle Casualty:
·        Death occurring due to accidents in the course of duties -         Rs.10.00 lakh.
·        Death in the course of duties attributable to acts of violence by terrorists, etc. -Rs.10.00 lakh.
·        Death occurring during enemy action in war or border skirmishes or in action against militants, terrorists, etc.-          Rs.15.00 lakh.
·        Death occurring during enemy action in International war or war like engagements specifically notified -        Rs.20.00 lakh.
·        Death occurring while on duty in the specified high altitude, inaccessible border posts, etc. on account of natural disasters, extreme weather conditions -Rs.15.00 lakh.

Other Monetary Benefits:
·        Liberalised Family Pension: as applicable to Battle Casualty that is equal to emoluments last drawn by the deceased individual.
·        Death-cum-Retirement Gratuity:  that is based on length of service rendered and emoluments last drawn by the deceased individual.
·        Army Group Insurance Fund:-
o   Officers           :           Rs. 50.00 lakh
o   JCO/ORs         :           Rs. 25.00 lakh

Army Group Insurance Maturity that is based on the contribution made by the deceased Army personnel.
·        Army Wives Welfare Association Fund:-
o   Officers                                   :           Rs.10,000/-
o   JCOs/ORs                                :           Rs.15,000/- (w.e.f. 01 Apr, 2015)

Army Officers Benevolent Fund     :           Rs.50,000/-
Army Central Welfare Fund:                       Rs.30,000/-
Other Benefits:
o   Education Concession
o   Air Travel Concession
o   Telephone Concession

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri P Bhattacharya and Shri Kiranmay Nanda in Rajya Sabha today.




DEF-EXPO 2016
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015

It has been decided to organize Def Expo 2016 in Quitol, Naqueri Betul in Quepem area of South Goa, in the State of Goa.The Government of Goa was requested to make approximately 150 acres of land available for the purpose.  However, Government of Goa has not allotted any land formally for the purpose to the Ministry of Defence. The Def Expo has been organized in previous years in Delhi. No land was allotted for Def Expo in Delhi.  Def Expo used to be organized in Pragati Maidan, a property of India Trade Promotion Organization (ITPO), by hiring the space.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri ShantaramNaikin Rajya Sabha today.




ROLE OF MSME IN DEFENCE SECTOR
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015
Ministry of Defence set up a Committee of Experts under the Chairmanship of      Shri Dhirendra Singh, IAS (Retd.), in May 2015 to evolve a policy framework for Make in India and to suggest requisite amendments in Defence Procurement Procedure (DPP) 2013. The Committee submitted its report in July 2015 and in its report it is mentioned that almost 80% of component, aggregates and assemblies of complex weapon system and aircraft are made by MSMEs, which are part of supply chains. The Report also mentions that there are nearly 6000 MSMEs across the country supplying components and sub-assemblies to the DPSUs, Ordnance Factories, DRDO and private industries. A 2012 Report of the Confederation of Indian Industry (CII) and the Boston Consulting Group (BCG) mentions that the employee base of 1.8 lakh in Ordnance Factories and DPSUs is similar to the countries like United Kingdom and France which are amongst the largest producers of defence related items.
The lack of state of the art defence technology and poor production capabilities are some of the major reasons for lagging behind by India in the field of defence production. However, the Government has promulgated Defence Production Policy in 2011aimed at achieving substantive self-reliance in the design, development and production of equipment, weapon systems, platforms required for defence in as early a time frame as possible; creating conditions conducive for the private industry to take an active role in this endeavour; enhancing potential of SMEs in indigenisation and broadening the defence R&D base of the country. In pursuance of the Policy, the Government has taken several steps to build strong defence industrial base, which are given as below:-
·        FDI policy has been revised in Nov 2015 under which Foreign Investment upto 49% is allowed through automatic route and above 49% under Government route on case-to-case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country.
·        The Exchange Rate Variation (ERV) protection has been allowed on foreign exchange component to all Indian companies including private companies in all categories of capital acquisitions, so as to create a level playing field between the Indian and foreign industry.
·        To establish a level-playing field between Indian private sector and the public sector, the anomalies in excise duty/ custom duty have been removed.  As per the revised policy, all Indian industries (public and private) are subjected to the same kind of excise and custom duty levies.
·        The Defence Products List for the purpose of issuing Industrial Licences (ILs) under IDR Act has been revised and most of the components, parts, sub-systems, testing equipment, and production equipment have been removed from the List, so as to reduce the entry barriers for the industry, particularly small & medium segment.
·        The initial validity of the Industrial Licence granted under the IDR Act has been increased from 7 years to 15 years with a provision to further extend it by 3 years on a case-to-case basis.
·        To promote the participation of private sector, particularly SMEs for defence  manufacturing, Outsourcing and Vendor Development Guidelines for DPSUs and OFB have been formulated and circulated to them.  The guidelines mandate that each DPSU and OFB to have a short-term and long-term outsourcing and vendor development plan to gradually increase the outsourcing from private sector including SMEs.  The guidelines also include vendor development for import substitution.
·        The Standard Operating Procedure (SOP) for the issue of No Objection Certificate (NOC) for export of military stores has been revised and put on the website.  Under the revised SOP, the requirement of End User Certificate (EUC) to be countersigned/ stamped by the Government authorities has been done away with for the export of parts, components, sub-systems etc.
·        The list of military stores has been finalised and has been put in the public domain to make the process transparent and unambiguous. The process of receiving applications for NOC for export of military stores and for issuing NOC has been made online to reduce the delay and to remove human interface in the process.
·        Preference to ‘Buy (Indian)’, ‘Buy & Make (Indian)’ & ‘Make’ categories of acquisition over ‘Buy (Global)’ category, thereby giving preference to Indian industry in procurement.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to ShriHarivanshin Rajya Sabha today.




FOREIGN DEALS IN DEFENCE SECTOR UNDER MAKE IN INDIA POLICY
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015
The expenditure on capital acquisition in respect of order placed on Indian vendors and foreign vendors for the period 2014-15 was Rs.40589.98 Crore (61.89%) and Rs.24992.36 Crore (38.11%) respectively.

During 2014-15 and current year, contracts have been signed with foreign vendors for capital procurement of Defence equipment such as Missiles, Simulators, Helicopters, Rockets and Guns.  Information related to employment of Indians in such projects is not maintained in the Department.

Capital procurement of Defence equipment is guided by the Defence Procurement Procedure (DPP) and the timelines given therein.  The timelines are specifically prescribed in each contract.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to ShriAvinashRai Khanna in Rajya Sabha today.


INDIGENOUS ENTREPRENEURS IN AVIATION EQUIPMENT FIELD
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015

Indigenous procurement of aviation equipment for Indian Army has increased.  Indigenous Procurements have been carried out for items such as helicopters, helmets, test benches and Gyros.  The Defence Production Policy promulgated in 2011 gives preference to indigenous design, development and manufacture of defence equipment and providing     a level playing field to Indian Industry vis-a-vis foreign industry.  Government has also raised the FDI limit in defence production from 26% to 49% and liberalized the licensing regime.  Capital Procurement of Defence Equipment is done through the Defence Procurement Procedure (DPP) 2013 which also provides for higher preference to the categories of Buy (Indian), Buy & Make (Indian) and Make (Indian) in that order.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Ambeth Rajan in Rajya Sabha today.





SHORTAGE OF FIGHTER PLANES IN THE AIR FORCE
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015

The Indian Air Force (IAF) is equipped to cater for the threat environment that exists and is always ready to meet the role assigned to it.  Operational preparedness of IAF is reviewed from time to time based on the threat perception.  Further, augmentation of capabilities of IAF including its modernization is a dynamic and continuous process.
During the Air Force Commanders Conference in October, 2015, all important issues related to operations were discussed and directions were given to take suitable measures to enhance the operational capability of IAF.

The indigenous Light Combat Aircraft ‘Tejas’ has achieved initial operational clearance. The production phase is progressing concurrently with developmental activity.
This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Vishambhar Prasad Nishad and Smt Kanak Lata Singh in Rajya Sabha today.




FOOLPROOF COASTAL AND MARINE SECURITY
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015

Government regularly reviews the threat perception from time to time and takes appropriate measures to safeguard the sovereignty, territorial integrity and security of the country.  It includes review by National Committee on Strengthening Maritime and Coastal Security against threats from the sea (NCSMCS).  The last meeting of NCSMCS was held on 16.10.2015.

Consequent to the events of 26/11, the Government had approved a number of measures for strengthening coastal security.  Accordingly, National Command Control Communication and Intelligence Network (NC3IN)) has been established.  Further, under Coastal Surveillance Network (CSN), 45 Radar Stations (RS) have already been made operational along the coastline.  The Coastal Security of the entire coastline including that of Andaman and Nicobar Islands has been strengthened through Aerial and Electronic Surveillance, Joint Coastal Exercises and Community Interaction Programmes.  Towards greater monitoring, control and regulation of fishing activity, registration of boats, issue of biometric fishermen Identity cards and regulation of fishing traffic at fishing harbours have been introduced.  Also Coordinated Patrols (CORPAT) with navies of Myanmar, Thailand and Indonesia have been also undertaken against illegal fishing and poaching.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Dr. T Subbarami Reddy in Rajya Sabha today.




SHORTAGE OF WEAPONS AND HELICOPTERS WITH THE ARMED FORCES
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015

Request for Proposal (RFP) for the procurement of Qty.  186,138 Bullet Proof Jackets (BPJs) was retracted on 5th October, 2015 as the BPJs fielded by vendors failed in the trials.  The Government has taken into consideration the deficiencies in some of the critical ammunition and has taken effective steps to mitigate the deficiencies to ensure desired level of operational – preparedness commensurate to threat perception.  Government constantly reviews the security scenario and accordingly decides to induct appropriate defence weapons / equipment.  Mismatches between requirements and availability can sometimes occur which are continually addressed by the procurement process.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to SmtWansukSyiemin Rajya Sabha today.



PURCHASING OF NEW AIRCRAFT FOR THE AIR FORCE
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015

The Government constantly reviews the security environment and ensures that the Indian Air Force (IAF) is fully equipped to meet the security challenges.  The IAF undertakes the process of modernization of its fleet by procuring various aircrafts.  In addition, existing fleet of aircraft are upgraded as per requirements.  These measures augment the operational strength of the IAF.
As per the India-France Joint Statement issued by the two countries during the Prime Minister’s visit to France, Government of India conveyed to the Government of France  that  in  view  of  the  critical  operational  necessity  for  Multirole  Combat  Aircraft for Indian Air Force (IAF), Government of India would like to acquire [36] Rafale jets in fly-away condition as quickly as possible.  The two leaders agreed to conclude an Inter-Governmental Agreement for supply of the aircraft on terms that would be better than conveyed by Dassault Aviation as part of a separate process underway, the delivery would be in time-frame that would be compatible with the operational requirement of IAF; and that the aircraft and associated systems and weapons would be delivered on the same configuration as had been tested and approved by Indian Air Force, and with a longer maintenance responsibility by France.

A Negotiating Team has been constituted to negotiate the terms and conditions of the procurement of 36 Rafale jets and recommend a draft agreement.  The meetings of the Indian Negotiating team with the French side are underway.
This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to ShriMotilalVora in Rajya Sabha today.





WOMEN PILOTS COMMANDING FIGHTER PLANES
New Delhi: Agrahayana 17, 1936
Tuesday, 08 December 2015


Government has accorded the approval for women to join as Short Service Commission officers in the fighter steam of the IAF on experimental basis for a period of five years.
This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri LalSinhVadodiain Rajya Sabha today.



DEFENCE QUESTIONS IN RAJYA SABHA DEFENCE QUESTIONS IN RAJYA SABHA Reviewed by Shailesh Kumar on 10:03:00 PM Rating: 5
shaileshkumar.in. Theme images by Sookhee Lee. Powered by Blogger.