Government Working On Indigenization List On Domestic Procurements

The Government is working on the Second ‘Positive Indigenisation List’ as part of Aatmanirbhar Bharat Abhiyan on domestic procurements.

The government is pursuing initiatives to achieve higher levels of Indigenisation and self-reliance in the defence sector by harnessing the capabilities of the public and private sector industries in the country.

A case for procurement of Light Utility Helicopters (LUH) and Light Combat Helicopters (LCH) is being progressed in accordance with extant procedures.

Innovations for Defence Excellence (iDEX) framework was launched in April 2018 with an aim to achieve self-reliance and to foster innovation and technology development in defence and aerospace by engaging industries including MSMEs, Start-ups, individual innovators, R&D institutes and academia.

iDEX provides grants for prototype development and promotes innovation and entrepreneurship among the Defence Start-ups.

Various initiatives being undertaken under iDEX are as follows:-

1. Defence India Startup Challenge (DISC): iDEX is emerging as a front runner & has gained substantial traction in the Defence Startup Community.  Various MSMEs/Startups have been funded so far, to evolve services related research towards challenges/Problem Statement of Indian Forces.  DISC IV was launched on 29 September, 2020 by the Hon’ble RM.

2. iDEX Open Challenges: As part of the iDEX Open Challenges, the received proposals are reviewed for approval by the High Powered Selection Committee (HPSC).

3. iDEX 4 FAUJI: iDEX 4 FAUJI was launched, along with Defence India Startup Challenge IV to support innovations identified by grass root service personnel serving in the field conditions.  This would incorporate the first-hand experience for improving and bringing operational and maintenance improvements in existing platforms, as also generate futuristic ideas for innovations in defence manufacturing.  These would then be issued as challenges under iDEX with the shortlisted start-ups being assisted by the applicant servicemen.

4. As part of iDEX initiative, OFB has taken up in-house R&D projects for development of Armament, Ammunition & Equipment items of Land Systems pertaining to i.e. Artillery & Air Defence Gun Systems, Small Arms Weapons Systems, Armored Fighting Vehicles and futuristic smart ammunition systems.

5. DRDO through Technology development scheme (TDF) scheme aims to fund private sector industry especially MSMEs including Start-ups. Total 25 Projects have been awarded to various private industries including MSMEs and start-ups under TDF scheme so for.  The DRDO has also launched a pan India contest’ to bring innovators, entrepreneurs, individual and start-ups for innovative ideas in the field of Defence and Aerospace.

6. There are 11 projects of the Indian Army as part of DISC and Open Challenges of iDEX which involves handholding of 23 start-ups.  Indian Navy has leveraged iDEX scheme and is presently engaging 21 start-ups in design and development for 09 projects.  IAF, as part of these initiatives, is progressing 11 cases and is engaged with 17 start-ups/individual innovators/MSMEs for the design and development of innovative equipment through iDEX.

Following are the steps to bring down the delays in timelines of capital acquisition:-

1. The aim of the Defence Acquisition Procedure- 2020 (DAP) is to ensure timely procurement of military equipment, systems and platforms are required by the Armed Forces in terms of performance, capabilities and quality standards, through optimum utilisation of allocated budgetary resources.  The following measures have been envisaged in DAP for achieving timely, efficient and effective procurement:-

• Exemption of CNC (Contract Negotiation Committee) from furnishing Reasonability of Cost Certificate for DPSU Equipment already Priced by Committee constituted under orders of Hon’ble Raksha Mantri.
• (b)  Delegation of Financial powers to Services Headquarters from Rs.150 Crores to     Rs. 300 Crores.
• The broad timeframe for completing procurement activities (from AoN to the award of the contract) had been reduced from 80-117 weeks to 70-94 weeks in multi-vendor cases and form 92-137 weeks to 82-114 weeks in resultant Single Vendor cases.
• Acceptance of Necessity (AoN) validity has been reduced to six months (from one year) for ‘Buy’ cases and to one year (from two years) for ‘Buy & Make (Indian)’ cases.
• Draft Request for Proposal (RFP) has to accompany Statement of the case (SOC) for AoN.
• Single vendor cases at the bid submission and TEC stages will not be automatically retraced but processed with due justification with the approval of the Defence Acquisition Council(DAC).
• Guidelines for change of Name of Vendor have been incorporated in DPP-2016 and Guidelines for Handling of Complaints have been notified to address avoid delays on this account.
• To rationalize time taken for Field Evaluation Trials (FET), it has been provided that FET be held in conditions where equipment is most likely to deploy.  In addition, provisions have been incorporated for increased use of certification and simulations in the technical evaluation of equipment.

2.  Monitoring Mechanism: As part of DAP-2020, various monitoring mechanism have been introduced.  Some of the existing monitoring mechanism for the Acquisition schemes is as follows:-

• Periodic review of Pre-contract schemes by PSO/APSO at SHQ and by DG(Acq) at MoD.
• Periodic review of delayed cases by DPB/DAC.
• Six monthly Review of shipbuilding cases by the Apex Steering Committee, headed by Secretary (DP) and Quarterly review by CWP&A.
• Empowered Project Committee (EPC) for SP Model 10(1) schemes, FTP cases.
• Monitoring of Make cases by Secretary (DP) and Head PMU-Make.
• Post Contract Monitoring for Projects.

This information was tabled in a written reply by Raksha Rajya Mantri Shri Shripad Naik to a question asked by Shri Komati Reddy Venkat Reddy and Shrimati Vanga Geetha Viswanath in Lok Sabha today.