Government is taking measures for modernization of the Armed Forces, through procurement of new equipment and upgrading of existing equipment and systems including security systems so as to ensure that the Armed Forces are equipped to meet the entire spectrum of security challenges.  The modernization projects are progressed as per the approved Capital Acquisition Plans and in terms of the extant Defence Procurement Procedure (DPP).

         Government is pursuing initiatives to achieve higher levels of indigenization and self-reliance in the defence sector by harnessing the capabilities of the public and private sector industries in the countries.  These measures include according priority and preference to procurement from Indian vendors and liberalization of the licensing regime.  DPP accords the highest priority to Buy Indian (Designed, Developed and Manufactured) (IDDM).  The ‘Make’ procedure has been simplified with provisions for earmarking projects not exceeding development cost of Rs.10 crores (government funded) and     Rs.3 crores (Industry funded) for micro, small and medium enterprises (MSMEs); and with provisions for involving private industry as production agencies and technology transfer partners.  The simplified Make-II procedure has been notified for Industry funded development projects. Government has also promulgated the policy on Strategic Partnership in the Defence Sector to encourage broader participation of the private sector in manufacture of major defence platforms and equipment.

This information was given by Raksha Rajya Mantri Dr. Subhash Bhamre in a written reply to Kumari Selja in Rajya Sabha today.

NAo/Nampi/Rajib/HS