21-Jan-2021: Indian Army Signs MoU with SIDM on Indigenisation and Innovation Partnership
An MoU between the Indian Army & Society of Indian Defence Manufacturers (SIDM) was signed on 21 January 2021 to provide further impetus to indigenisation under the Hon’ble Prime Minister’s vision of ‘Atmanirbhar Bharat’ and to achieve strategic independence by reducing dependence on foreign origin equipment. This MoU was signed on the occasion of 25 Years of Army-Industry Partnership with Confederation of Indian Industry (CII). Collaboration between the Indian Army and industry started in 1995 with the indigenisation of spares and has progressed to major defence platforms and a wide range of weapons and equipment.
Increasing security challenges due to India's rising stature in the international community, apart from unresolved borders and revisionist adversaries require continuous and concerted capability building of the Army through modernisation to address them. This can be done by equipping the Army with indigenously built equipment. In order to optimise capability building and single contact with the industry, Indian Army has reorganised itself by aligning both the revenue and capital routes of procurement under Deputy Chief of Army Staff (Capability Development & Sustenance). Army Design Bureau (ADB) has been established to act as a direct facilitator with the industry and thereby connect the defence manufacturers directly with the user. These changes have resulted in a collaborative engagement between the technology provider, the equipment manufacturer and the user.
The Government has made necessary policy changes to support indigenisation and achieving self-reliance in defence sector with the active support from the Army. Industry associations have provided a common platform for industry to interact with Indian Army to showcase their expertise. The inputs of industry go a long way in effecting policy modulation and changes. With the signing of MoU with SIDM, Indian Army has reiterated its firm resolve towards achieving self-reliance by supporting and handholding indigenous defence industry.
11-Feb-2019: Defence Innovation Hubs
The Innovations for Defence Excellence (iDEX) framework of the Government envisages setting up and managing independent Defence Innovation Hubs (DIHs). These DIHs will serve as platforms where innovators can get information about needs and feedback from the Services directly and create solutions for India’s major defence platforms. This structure is also geared towards attracting more innovators to work for the defence sector in India.
The Defence Innovation Organisation set up under iDEX has announced setting up of two DIHs in Tamil Nadu (Coimbatore) and Maharashtra (Nashik).
The Framework to Fund Defence Innovation Hubs under iDEX, approved by the Board of Defence Innovation Organisation (DIO) prescribes the following minimum criterion for setting up Defence Innovation Hubs:
- Any Central Government recognized Incubator including but not limited to:
- Department of Science and Technology (DST) recognized Incubators.
- Atal Innovation Mission, NITI Aayog created Atal Incubation Centers (AICs) and Established Incubation Centers (EICs).
- Ministry of MSME recognized incubators.
- Any other incubator recognized or funded through any Central government scheme.
- The incubator located in districts mentioned in the list of SME clusters hosted by the Ministry of MSME in collaboration with UNIDO.
- Incubator / Hub promoted by local industry associations.
24-Oct-2019: Raksha Mantri Shri Rajnath Singh approves two Open General Export Licences in a major push for defence exports
Raksha Mantri Shri Rajnath Singh has approved issuance of two Open General Export Licences (OGELs) for export of certain parts & components and intra-company transfer of technology to select countries. It will give a boost to defence exports and enhance ease of doing business. The application for grant of OGEL will be considered by Department of Defence Production (DPP) on a case-to-case basis.
Following a demand by the exporters, the DPP held extensive consultations with various stakeholders and formulated this OGEL policy and submitted for Raksha Mantri’s approval.
The countries allowed under the OGELs are: Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, USA, Canada, Italy, Poland and Mexico. Export of items to a ‘Special Economic Zone’ is not permitted.
For acquiring the licences, the applicant is mandatory to have Import-Export certificate. The quarterly & end of the year reports on all the transactions done under OGELs should be submitted to DPP for examination and post-export verification.
The items permitted under OGEL includes components of ammunition & fuse setting device without energetic and explosive material; firing control & related alerting and warning equipment & related system; and body protective items. Complete aircraft or complete unmanned aerial vehicles (UAVs) and any components specially designed or modified for UAVs are excluded under this licence.
The transfer of technology to the countries is subject to the condition that the export is an intra-company transfer from an Indian subsidiary (applicant exporter) to its foreign parent company and/or to subsidiaries of the foreign parent company.
The OGEL is a one-time export licence to be granted to a company for a specific period (two years initially).
India has made significant strides in improving its defence exports. These have grown seven-fold over the last two years and reached to Rs 10,500 crore in 2018-19. This has been made possible due to the reforms brought in the standard operating procedure and ushering in a portal for online clearance of applications. The processing time has been brought down significantly.