January 11, 2016
NEW DELHI – Defence Minister Manohar Parrikar has cleared major changes in how India buys its defence equipment, sources told NDTV. From now, priority will be given to indigenously designed, developed and manufactured defence equipment.
January 11, 2016
NEW DELHI – Defence Minister Manohar Parrikar has cleared major changes in how India buys its defence equipment, sources told NDTV. From now, priority will be given to indigenously designed, developed and manufactured defence equipment.
To continue with Prime Minister Narendra Modi's Make in India push, under the new rules, indigenously designed, developed and manufactured equipment must have at least 40 per cent Indian components.
In case the design isn't Indian, 60 per cent Indian component is necessary.
To encourage research and development in the private sector, the department of defence production will bear 90% of design and development cost of major systems.
Small and medium scale industries will be given up to Rs 19 crore for design and development and contract within 24 months.
An empowered committee will take calls on anomalies that come up during procurement.
India has embarked on a massive defence modernization programme and during his recent visits abroad, PM Modi has repeatedly emphasized that the manufacturing should be done in India.
While in the US, PM Modi has conveyed the message to various corporate leaders, including Lockheed Martin Chairman Marillyn Hewson and others.
Courtesy: NDTV
