Aviation: Nose to Tail Production

Defence Minister Nirmala Sitharaman said Aero India 2019 intended and endeavoured to put India on the Global map and intended metaphorically to be a “Runway to a billion opportunities”.

Inaugurating the mega show, Sitharaman welcomed Foreign Ministers and Deputy Ministers along with their delegations who were representing various countries from all around the world and 200 foreign companies as well as over 600 Indian companies.

Lately India had established itself as the hub of manufacturing and export of various world class avionics equipment and she added that the country now had the potential for “Nose to tail production”, said the Minister.

She hailed the “Make in India” initiative of the Government that had provided the impetus for increased self-reliance in Defence and stressed on the need for instituting provisions for creating the ecosystem for utilisation and consolidation of design and manufacturing facilities to create a ‘robust supply chain system’.

Talking about Defence procurements, the Minister elaborated that during the last four years, 150 contracts worth Rs.127,500 Cr had been signed with Indian vendors for procurement of defence equipment for the Armed forces.

She also mentioned that the Government had accorded AoN to 164 proposals worth Rs 2,79,950 Cr under ‘Buy and Make” categories only to the Indian vendors. She also mentioned that the VoP in respect of OFB and DPSUs had grown from 43,746 Cr in 2013-14 to Rs 58,163 Cr in 2017-18, out of which 40% of the production had been outsourced to the Private Sector and that the Government had also issued RFP for the manufacture of seven identified types of ammunition in private sector.

She highlighted several policy initiatives of the Government under the ‘Make in India’ viz. 100% FDI in Defence Manufacturing, Defence Offset Policy 2016, Delicensing of Defence items, iDEX and the Defence Investor’s cell.

She quoted S 92 Helicopter cabin, Advance Aircraft Cockpit, Glass Cockpit for Dornier and CH-47 Pylon for Boeing as some recent successes displayed at the Indian Pavilion. She also hailed Indian PSUs for manufacturing more than 4000 aircraft including LCA, LCH, ALH, C295 etc.

She applauded the 10,000 MSMEs which made 80% of components, aggregates and assemblies of complex weapon systems and aircrafts.

She also informed that more than 424 companies had obtained the licence for Defence production which was almost double the number in last four years.

Sitharaman mentioned the ‘Defence Investor cell’ which was set up in Jan 2018, to enhance the ‘Ease of doing Business’ and informed that over 350 industries had been facilitated till date. She also mentioned that 275 Ordnance Factory items had been de-notified and also that testing facilities of DPSUs and OFs had been opened up for private industry.

She told that 34 projects relating to Army, Navy and Air Force had already been accorded ‘Approval in Principle’ under the ‘Make-II’ category.

The FDI policy had been revised and now foreign investments up to 49% were allowed through the automatic route and above 49% under Government route, said the Minister.

She also mentioned that in last four years, six companies in Defence and Aerospace sectors had obtained government approval for FDI of Rs.237 Cr while FDI of over Rs.200 Cr had been received through the automatic route.

Sitharaman informed the audience about the iDEX scheme which was launched on 12th April 2018, to create a network of Defence Innovation hubs throughout the country and to resolve Defence and Aerospace related issues.

She also informed about the first innovation hub that had already started at Coimbatore and setting up of the two defence corridors in Uttar Pradesh and Tamil Nadu, the latest one being in Tiruchirappalli on 20 Jan 2019 wherein investments of more than Rs.3,200 Cr were committed by the Defence Industry.

She also mentioned the ‘Mission Raksha Gyan Shakti’, launched by the Ministry of Defence, to create greater capacity development and encourage greater filing of patents in defence and aerospace sectors.

Sitharaman further stated that the government was committed to create an enabling environment for a domestic ecosystem of defence manufacturing, the results of which were already visible.

“With the policy initiatives and the procedural reforms, I am confident that India will emerge as a key player in the global defence arena. We will create an ecosystem in which there would be enhanced technological collaborations of the public as well as private sectors with the foreign Defence OEMs. Strategic partnerships will be forged with increased integration of skills, systems, technologies and manufacturing capabilities.” fiinews.com