Highlights

During the Covid-19 pandemic when the nation is drifting towards self reliant India “Aatmanirbhar Bharat Initiative” Defence Ministry published a ‘Defence Production & Export Promotion Policy 2020’ draft for public feedback which the ministry awaits till 17 August 2020.

About DPEPP

In the Defence Production & Export Promotion Policy 2020, the ministry aims at achieving a manufacturing turnover of 25 billion USD (Rs 1,75,000 crore), which includes exports of $5 billion in aerospace and defence goods and services by the end of the year 2025.

The draft aims at providing a structured and significant push to the nation’s defence production capabilities for self reliance and exports. Currently, in overall India’s defence procurement the share of domestic procurement is just about 60 per cent. The ministry aims at doubling the current domestic procurement from Rs 70,000 crore to Rs 1,40,000 crore by the year 2025.

How it will be done?

Defence Production & Export Promotion Policy 2020 lays a framework for Defence Attachés on increasing defence exports, stating further the policy mentions that Defense officials have been mandated and are supported to promote export of indigenously manufactured defence equipment abroad.

Defence PSUs which would work as export promotion agencies will help in promoting export of defence products abroad. The Defence PSUs for certain selected nations would help these nations with earnings linked to success fee however, subject to strategic considerations. The policy also lay guidelines for promoting these domestically manufactured defence products through Govt to Govt agreements and Lines of Credit/Funding.

Space Sector

The guidelines also talk about various opportunities in the space sector which have been classified under the following segments aircraft Maintenance, helicopters, aircraft build work, line replaceable units, engine manufacturing and MRO work, Repair and Overhaul, Unmanned Aerial Vehicles and upgrades and retrofits.

As there is a long timeline involved in the whole process of defence procurement therefore, a Project Management Unit will be set up with representation from the Services. The main work for PMU will be to estimate the specifications of life cycle costs and maintenance requirements of platforms, equipment and weapon systems, development and production lead times and also the various technologies involved.

Major Change

Shifting from licensed production ministry will now own the design rights and Intellectual Property of the systems. All this will be done through a Technology Assessment Cell which would be created to assess the industrial capability with the major industries in the country for design, development and production, including re-engineering for production of major systems such as fighter aircraft, helicopters armoured vehicles, submarines, and radars.

As announced earlier by the indian govt, the policy states that a negative list of weapons and platforms will be notified with year wise timelines for placing an embargo on the import of such items from those dates.