Rs 20,000 Crore Investments Planned In Defence Corridors In UP, Tamil Nadu By 2024: Govt

The two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu have received investment of around Rs 3,342 crore from public as well private sector companies, Parliament was told on Monday (19 July).

In a written reply to Biju Janata Dal Rajya Sabha member Sujeet Kumar, Minister of State for Defence Ajay Bhatt said the investments of Rs 20,000 crore are planned in both defence corridors by 2024.

"The progress is reviewed regularly at apex level," he said, adding that so far, investment of approximately Rs 3,342 crore have been made in both the corridors by public as well private sector companies.

"Moreover, the respective state governments have also announced their Aerospace and Defence Policies to attract private players as well as foreign companies including original equipment manufacturers (OEMs) in these two corridors," he said.

He also said that the government has taken several policy initiatives and brought in reforms to promote indigenisation and self-reliance in defence manufacturing, under AatmaNirbhar Bharat in the defence sector.

Noting that the Defence Ministry has notified a 'First Positive Indigenisation list' of 101 items on August 21, 2020 and 'Second Positive Indigenisation list' of 108 items on May 31, 2021 for which there would be an embargo on the import beyond the timelines indicated against them, he said: "This is a big step to promote indigenisation in defence sector. This offers a great opportunity to the Indian defence industry to manufacture these items using their own design and development capabilities to meet the requirements of the Indian Armed Forces."

These lists includes some high technology weapon systems like artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters, radars, wheeled armoured platform, rockets, bombs, armoured command post vehicle, and many other items to fulfill the needs of the defence services, he said.

The Minister said that the SRIJAN portal to promote indigenisation was launched on August 14, 2020, and as on date, 10,929 items, which were earlier imported, have been displayed on the portal for indigenisation.

The Indian industry has shown interest for 2,890 displayed items so far. A total 1,776 components and spares have been indigenised in 2020-21 as a result of efforts of indigenisation by DPSUs, OFB & SHQs through their own process of indigenisation.

In order to promote indigenous design and development of defence equipment 'Buy Indian-IDDM (Indigenously Designed, Developed and Manufactured)' category has been accorded top most priority for procurement of capital equipment.

The Minister also said that the 'Make' Procedure of capital procurement has been simplified, and there is a provision for funding up to 70 percent of development cost by the government to Indian industry under Make-I category. In addition, there are specific reservations for MSMEs under the 'Make' procedure.

"Procedure for 'Make-II' category (Industry funded), introduced in DPP-2016 to encourage indigenous development and manufacture of defence equipment, has number of industry-friendly provisions such as relaxation of eligibility criterion, minimal documentation, provision for considering proposals suggested by industry/individual etc," he said.

So far, 58 projects relating to Army, Navy and Air Force, have been accorded 'Approval in Principle'.

For the year 2021-22, the allocation for domestic procurement has been enhanced compared to previous years and is about 64.09 per cent, or Rs 71,438.36 crore, of the allocated amount for military modernisation.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)