22-Jul-2022: Defence Corridor Projects

As per the information received from Government of Uttar Pradesh, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), the nodal agency for Uttar Pradesh Defence Industrial Corridor (UPDIC) has signed 69 Memorandum of Understanding (MoUs) with industry with potential investment of Rs 10,545 crore. Actual Investment of Rs 1,767 crore has been made by the industries in UPDIC.

Further, as per information received from Tamil Nadu Industrial Development Authority (TIDCO), the nodal agency for Tamil Nadu Defence Industrial Corridor (TNDIC) has arranged investment worth potential of Rs 11,359 crore through MoUs etc. with 42 industries. Actual Investment worth Rs 3,176 crore has been made by the industries in TNDIC.

The respective State Governments have their own Aerospace and Defence Policy to offer support to investors through various incentives. Regular interaction with all stakeholders such as DPSUs and private investors is being carried out by respective State and Union Government to understand the challenges and address issues of investors. No separate funds have been allocated by Central Government for setting up of the Defence Industrial Corridors.

The new Defence companies have the autonomy to engage manpower, as per their functional requirement.

13-Nov-2021: Raksha Mantri inaugurates first operationalised private sector defence sector defence manufacturing facility in UP Defence Industrial Corridor

Raksha Mantri Shri Rajnath Singh inaugurated the first operationalised private sector defence manufacturing facility in Uttar Pradesh Defence Industrial Corridor (UPDIC) in Lucknow on November 13, 2021. The facility, run by Aerolloy Technologies, a wholly owned subsidiary of PTC industries, will manufacture parts for Aircraft Engines, Helicopter Engines, Structural parts for aircrafts, Drones and UAV, Submarines, Ultra-Light Artillery Guns, Space Launch Vehicles and Strategy Systems etc.

The Raksha Mantri also laid the foundation stone for an integrated Metal Manufacturing Facility under PTC industries that will produce key Raw Materials in Titanium and other Exotic Alloys for aerospace applications. This plant will significantly reduce the country’s dependence on imports for all platforms which require Titanium and Nickel Super Alloys and help in building a strong and Atmanirbhar Bharat.

Shri Rajnath Singh applauded PTC Industries Limited as an example of how in today’s competitive environment a company can be successful through adoption of technology and said that the two units will prove to be major milestones in the path of self-reliance in defence in the times to come. He added that UPDIC and the units are a result of the vision of Prime Minister Narendra Modi for an 'Aatmanirbhar Bharat'. He appreciated the fact that PTC supplies products to renowned companies in India and abroad, contributing to the Government’s vision of transforming India into a net defence exporter. On PTC obtaining the clearance certificate of critical On-line Fittings (OLFs) for defence applications from Ministry of Defence recently, Shri Rajnath Singh said, the clearance will prove to be a big step in 'Make in India' and achieving self-reliance in defence manufacturing.

The Raksha Mantri recalled the significance attached to industries by great stalwarts of our nation such as Babasaheb Bhimrao Ambedkar, Madan Mohan Malviya, Subhas Chandra Bose, Veer Savarkar, M. Visveswaraya and others. Terming the inauguration of the unit as a shining example of the strong public-private partnership, he asserted that the Government is taking forward the vision of former Prime Minister late Atal Bihari Vajpayee who believed in the continuous & increased private sector participation for the development of the nation.

The Raksha Mantri emphasised the need for continuous modernisation of Armed Forces in the rapidly changing global security environment and said that the public & private sectors, academia and research & development organisations provide solutions to these problems. “The Indian defence industry has the potential to develop quality and cost-effective equipment which will not only bolster national security, but export the military hardware to the world. Companies like PTC Industries Limited can play an important role in this,” he said.

Reaffirming the Government’s resolve of 'Make in India and Make for the World', Shri Rajnath Singh listed out a series of measures undertaken to achieve self-reliance in defence, including earmarking around 64 per cent of its modernisation funds under capital acquisition budget for 2021-22 for procurement from domestic companies; notifying two positive lists of over 200 items to increase exports and Defence Acquisition Procedure 2020, setting up of Defence Industrial Corridors in UP & Tamil Nadu; free Transfer of Technology of DRDO and Innovation for Defence Excellence (iDEX) initiative. The Raksha Mantri added that all efforts are being made to provide a suitable growth environment to the private sector. “We have opened up opportunities to build a Mega Defence Programme, including fighter aircraft, helicopters, tanks and submarines through a strategic partnership model which will help our private companies grow in stature and become global giants in the times to come. Recently, a Rs 22,000 crore contract was signed for transport plane 'C-295'. Most of these planes will be made in India in collaboration with our industry.

Shri Rajnath Singh said that as the nation is currently celebrating Azadi Ka Amrit Mahotsav, this is an opportunity to give a fresh impetus to our resolve to Make in India and Make for the world. He noted that the Armed Forces have also supported the drive for Aatmanirbharta in Defence. Shri Rajnath Singh stated that all these initiatives by the government have resulted in an increase in the number of contracts being awarded to the indigenous defence industry. This includes the recent LCA Tejas contract of about Rs 50,000 crore given to Hindustan Aeronautics Limited. He stressed that from prioritising procurement from Indian-IDMM (Indigenously Designed, Developed and Manufactured) categories to supporting R&D, the Government is striving to harness technology through active engagement with industry, academia, technology providers, equipment manufacturers, quality controllers etc.

The Raksha Mantri underlined that the steps undertaken by the Government have started to bear fruit. “In the last seven years, our defence exports have crossed the mark of Rs 38,000 crore and more than 10,000 SMEs have joined in the defence sector. Research & development, startup, innovation and employment has also increased as a result of these policies,” he added.

Speaking on the state of Uttar Pradesh and UPDIC, the Raksha Mantri applauded Chief Minister Yogi Adityanath and the state government for undertaking important reforms to incentivise investment in the state. The Raksha Mantri expressed confidence that private sector companies will invest in Uttar Pradesh and the state government will provide all possible support to them. He said that such investments will mean that the people of Uttar Pradesh no longer have to leave their homes in search of employment.

Underscoring the importance of learning from the past and working on the present for an empowered future, Shri Rajnath Singh exhorted the private industry to carry out in-house R&D or with academia, making full use of the Government’s policies and stay ahead in the race of development of state-of-the-art technology. He also urged them to make the local community a partner in their success by adopting local ITI, apprenticeship programme, schools and hospitals. This will be a true contribution to society and the country, he said.

The Raksha Mantri expressed confidence of increased investments by private companies in the near future and hoped that city of Lucknow and the state of Uttar Pradesh will make a mark in the manufacturing domain of defence and aerospace sector.

Earlier, Raksha Mantri, Uttar Pradesh Minister for Industrial Development Satish Mahana, Uttar Pradesh Minister of State (Independent Charge) Smt Swati Singh, Additional Secretary Defence Production Shri Sanjay Jaju and UP Additional Chief Secretary and CEO, UPEIDA Shri Awanish Awasthi were welcomed by Chairman & Managing Director PTC Industries.

Uttar Pradesh Minister for Industrial Development Shri Satish Mahana expressed gratitude towards Raksha Mantri Shri Rajnath Singh for bringing initiatives, including Brahmos to Uttar Pradesh. Hailing the visionary leadership of Prime Minister Narendra Modi, the Minister said that competition in the defence sector will lead to an Aatmanirbhar Bharat. He further expressed confidence that UP will become the most preferred destination for investment.

Shri Sanjay Jaju, elaborated on the vision of Make in India and Aatmanirbhar Bharat, saying that the infrastructure and facilities offered by UPDIC will attract fresh investment in all 6 nodes. This, he said, will help the nation achieve its goal of self-reliance. Shri Awanish Awasthi, briefed the gathering on the UPDIC and said that the state government would ensure land availability and logistical support for all investors. Other officials of the Ministry of Defence and the state government as well as industry representatives and investors were also present on the occasion.

12-Apr-2022: Shri Jyotiraditya M. Scindia flags off First Made in India Dornier Aircraft Flight

The Minister of Civil Aviation Shri Jyotiraditya M. Scindia and the Chief Minister of Arunachal Pradesh Shri Pema Khandu today flagged off the first flight of Made in India HAL Dornier Do-228 in a bid to connect airports and Advanced Landing Grounds (ALGs) of Northeast India. The flight will be operational from Dibrugarh in Assam to Passighat in Arunachal Pradesh and finally to Lilabari in Assam.

The event was graced by Shri Kiran Rijiju, Union Minister of Law & Justice, Shri Naresh Kumar, Chief Secretary, Government of Arunachal Pradesh, Shri Nakop Nalo, Minister (Civil Aviation), Government of Arunachal Pradesh, Shri Goruk Pordung, Health Minister, Government of Arunachal Pradesh,  Shri Tapir Gao, Member of Parliament, Arunachal East, Shri Rajiv Bansal, Secretary, Ministry of Civil Aviation, Shri Swapnil M Nair, Secretary (Civil Aviation), Government of Arunachal Pradesh, Air, Shri R Madhavan, CMD, HAL, Shri Sanjeev Kumar, Chairman, AAI, Smt Usha Padhee, Joint Secretary and Shri Amber Dubey, Joint Secretary from Ministry of Civil Aviation, Shri Vikram Dev Dutt, CMD, Alliance Air, and other dignities from State Government of Arunachal Pradesh, Alliance Air, HAL, Indian Airforce and Airport Authority of India.

Alliance Air, a public sector airline company, had signed a Memorandum of Understanding (MoU) with Hindustan Aeronautics Limited (HAL), a Central Public Sector Unit under Ministry of Defence to operate Indian made Dornier aircraft, which is called Hindustan aircraft. This initiative is in line with the vision of Prime Minister of India Shri Narendra Modi “AtmaNirbhar Bharat”. With this, Alliance Air becomes the first commercial airline to fly Indian made aircraft for civil operations.

The deployment of Indian made Do-228 will be done in a phased manner. In the first phase, 2 Hindustan aircrafts would be stationed at Dibrugarh, to connect Tezu, Pasighat and Ziro. In the second phase of the program, connectivity to Mechuka, Tuting and Vijoy Nagar has been planned. In the coming 15 days, the airline will connect Tezu and after that, within 30 days, air connectivity to Ziro would commence.

Speaking on the occasion, Shri Scindia said, “In the last 70 years, 74 airports were developed but in last 7 years under the visionary leadership of our Prime Minister Narendra Modi ji, we have created 66 new airports taking the total to 140 airports operational in the country. In Northeast, 9 airports were operationalized but today 15 airports are established in the last 7 years.”

Talking about the civil aviation development plans for Northeast, the Minister elaborated “In Arunachal Pradesh, within 6 months, a new greenfield airport in Hollongi will be inaugurated with a budgetary allocation of Rs. 645.63 Crore. At Tezu, 67 crores has been allotted for the upgradation of airport and work is in progress. A dedicated budgetary support of Rs. 500 Crore has been approved by the Ministry for enhancing air connectivity and aviation infrastructure in NER till March, 2024. Out of these Rs. 500 Crore, about Rs. 227 Crore is earmarked for development of ALGs and air connectivity in Arunachal Pradesh, making it 50% of the total budget. At Imphal, the airport would be getting a major up-gradation with a budgetary allocation of Rs. 499 Crore where a new Integrated Terminal Building and other associated work would be taken up. A new Integrated Terminal Building at Agartala airport with a budgetary support of Rs. 438.28 Crore has just been completed. Another Rs.120 Crore would be spent on development of runway, taxiway and apron at Agartala airport. At Dibrugarh in Assam, re-carpeting of airport runway has started with Rs. 55.54 Crore allotted. With all these developments in the airport infrastructure, the air connectivity in NER is going to get a fillip. In addition to this, about 18 airstrips, heliports/ helipads, water aerodromes are also awarded under UDAN scheme and are being developed in NER with the budgetary allocation of about Rs. 182 Crore. In total, more than Rs 2,000 crore will be invested in North East to upgrade and create civil aviation infrastructure by Government of India”

Talking about UDAN scheme, Minister stated “415 routes have been operationalized under the UDAN scheme and over 91 lakh people have benefitted from it. Over 1 lakh 75 thousand flights are flown under this scheme.”

On reduction of VAT on ATF (Aviation Turbine Fuel), the Minister said that “State Government of Arunachal Pradesh has also reduced the VAT on ATF (Aviation Turbine Fuel) from 20% to 1% after a virtual meeting with Chief Minister Shri Pema Khandu.”

Development of North Eastern Region (NER) is not only of strategic importance, but, also is a part of India’s growth story. Connectivity in NER is very essential and in many places air transport is the lifeline for movement of people and the cargo. Under “Ude Desh Ka Aam Nagrik (UDAN)”, the Regional Connectivity Scheme (RCS), Ministry of Civil Aviation (MoCA) has identified NER as a priority area.  This has helped in enhancing inter and intra connectivity for the NER. In this regard, new airports are getting developed and old airports are getting upgraded. Considering the hilly terrain, helicopter operations under UDAN scheme have been given focus for connectivity. These massive aviation infrastructure development undertaken by Ministry of Civil Aviation will boost the immense potential of NER in terms of tourism, adventure sports and economical activities.

4-Feb-2022: Dornier Aircraft

Hindustan Aeronautics Limited (HAL), a Defence Public Sector Undertaking (DPSU) under the Ministry of Defence, has been manufacturing 19 Seater Dornier Do-228 aircraft since 1983 under Transfer of Technology from Germany. More than 150 military Do-228 aircraft have been produced and supplied to various customers. Two civil Do-228 aircraft have also been produced by HAL.

The Research & Development efforts for an indigenous civil transport aircraft have been initiated by HAL to develop a prototype Hindustan-228 aircraft, based on Dornier Do-228 platform.

HAL has signed two MoUs with foreign companies for exploration of possible co-operation with no financial commitment, regarding development of an amphibian variant of Hindustan-228 aircraft.

HAL’s Transport Aircraft Division (TAD) at Kanpur was identified as production agency for the Do-228 in 1983.

For development of Hindustan-228 prototype and indigenisation of the various systems, HAL has allocated Rs 94.41 crore from its internal resources.

17-Dec-2021: Defence Production Units

An Inter-Governmental Agreement (IGA) on “Mutual Cooperation in Joint Manufacturing of Spares, Components, Aggregates and other material related to Russian/Soviet Origin Arms and Defence Equipment” was signed during the 20th India-Russia Bilateral Summit held at Vladivostok in 2019. The objective of the IGA is to enhance the “After Sales Support” and operational availability of Russian origin equipment currently in service in Indian Armed Forces by organizing production of spares and components in the territory of India by Indian Industry by way of creation of Joint Ventures/Partnership with Russian Original Equipment Manufacturers (OEMs) under the framework of the “Make in India” initiative.

Further, an Inter-Governmental Agreement was signed in 2018 between Government of India and Government of Russia for manufacture of AK-203 rifle in India through a Joint Venture. Accordingly, M/s Indo Russian Rifles Pvt. Ltd. (IRRPL) was incorporated in 2019 with shareholding of erstwhile Ordnance Factory Board (OFB) (50.5%) from Indian side and Concern Kalashnikov (CK) (42%) & Rosoboron Export (ROE) (7.5%) from Russian side.

Capital procurement of defence equipment are undertaken from various domestic as well as foreign vendors, based on threat perception, operational challenges and technological advancements and to keep the Armed Forces in a state of readiness.

During FY 2013-14 to 2020-21, 407 contracts have been signed, out of which 156 contracts have been signed with foreign vendors for capital procurement of defence equipment for Armed Forces. Delivery schedule of equipment is specified in each contract.