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Ministry of Defence
10-March, 2017 15:14 IST
Defence Procurement Organisation
In order to study the setting up of a defence procurement organization, the Ministry of Defence in April 2016 constituted a Committee under the chairmanship of Dr. Pritam Singh, Management Expert.
The Committee submitted its Report in February 2017. The Committee has recommended the creation of a central, autonomous, empowered professional organization to build up indigenous defence capability as a strategic imperative for long term self-reliance.
This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri B. Vinod Kumar in Lok Sabha today.
*****************
Ministry of Defence
10-March, 2017 15:12 IST
Self-sufficiency in Defence Production
Procurement of defence equipment is undertaken from various Indian as well as foreign vendors based on threat perceptions, operational challenges and technological changes and to keep the Armed Forces in a state of readiness to meet the entire spectrum of security challenges. The capital expenditure on purchase of defence equipment for the three services in the last three years and current financial year, from the Foreign vendors and Indian vendors is as given below:-
CAPITAL EXPENDITURE:
(Rs. in crore)
Total Procurement
Procurement from Foreign Vendors
Procurement from Indian Vendora
2013-14
66821.21
35245.31
31575.90
2014-15
65583.77
25984.86
39598.91
2015-16
62341.86
23192.22
39149.64
2016-17
(upto December 2016)
47494.79
21211.44
26283.35
The details of imports of defence equipment during the last three years and the current year, country-wise, are being compiled and will be laid on the Table of the House.
No targets are fixed for import of defence equipment, and there is no year-wise budget earmarked for the purpose, Defence equipment are procured from foreign vendors based on operational requirements indicated by the Armed Forces.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri K.N. Ramachandran in Lok Sabha today.
Ministry of Defence
10-March, 2017 15:19 IST
Recruitment in Armed Forces
Recruitment rallies are conducted in different parts of the country to provide opportunity to youth from these areas to join the Armed Forces. Recruitment in the Armed Forces is a continuous process. Efforts are made to cover entire country including remote, border, tribal and hilly areas.
Presently there is no proposal to open any new recruitment centre.
For recruitment in Army, certain relaxations in physical and educational standards are available for candidates of tribal / hilly and other backward areas. In the case of Navy and Air Force, there is no provision for relaxation in educational standards. However, some relaxation in height is given to candidates from certain areas.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shrimati Kamla Devi Paatle and Shri Harinarayan Rajbhar in Lok Sabha today.
*************
Ministry of Defence
10-March, 2017 15:16 IST
Defence Start-Ups
Government of India has launched ‘Start-up India’ initiative in January 2016, which aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of start-ups. The data of start-ups recognized by Department of Industrial Policy & Promotion (DIPP), is maintained by ‘Start-up India’ and at present, there is no recognized start-up in the Defence sector. However, in order to encourage start-ups and give them an opportunity to contribute in the defence production, Ordnance Factory Board (OFB) and all Defence Public Sector Undertakings (DPSUs) have been mandated to follow the guidelines of Ministry of MSME regarding ‘Relaxation of norms for start-ups and Medium & Small Enterprises in public procurements on prior experience – prior turnover criteria’.
The Government has taken following actions to encourage culture of innovation in defence sector:-
(i) Under the new Defence Procurement Procedure (DPP) 2016 promulgated in April 2016, the ‘Make’ Procedure has been simplified. The procedure provides for funding of 90% of development cost by the Government to Indian industry for design, develop and manufacture of defence equipment. Projects not exceeding development cost of Rs.10 crore (Government funded) and Rs.3 crore (industry funded) have been reserved for MSMEs under this procedure.
(ii) The Government has recently approved a Defence Innovation Fund (DIF) with initial funding by two DPSUs; Bharat Electronics Limited (BEL) and Hindustan Aeronautics Limited (HAL). The fund aims at creation of ecosystem to foster innovation and technology development in Defence, by engaging R&D institutes / academia and industry including start-ups and provide them the funding to carry out innovative development which has the potential for future commercialization.
(iii) The Government has also launched a scheme of Technology Development Fund (TDF) which aims at funding the development of defence and dual use technologies that are currently not available with the Indian defence industry, or have not been developed so far, thus creating an ecosystem for enhancing cutting edge technology capability for Defence applications. The TDF scheme is implemented by Defence Research & Development Organization (DRDO) and provides for assistance in the form of grant to public and private industries for design and development of key defence technologies.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Om Birla in Lok Sabha today.
Ministry of Defence
10-March, 2017 15:16 IST
Chief of Defence Staff
Creation of the post of Chief of Defence Staff (CDS) was recommended by Group of Ministers in 2001. A decision in this regard was to be taken after consultation with political parties. The consultation process however is not yet complete as all political parties have not responded. Subsequently, Naresh Chandra Task Force on National Security recommended creation of the post of Permanent Chairman Chief of Staff Committee in 2012. Both the proposals are simultaneously under consideration of the Government.
This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Ravneet Singh in Lok Sabha today.
******
Ministry of Defence
10-March, 2017 15:14 IST
Import of Defence Equipment
Government is pursuing several measures to realize progressively higher levels of indigenization and self reliance in the defence sector. To this end, the Defence Procurement Procedure 2016 (DPP 2016) has provisions which accord higher priority to procurement from Indian vendors. Notwithstanding this, import of defence equipment may be necessitated to meet operational requirements and when indigenous equipment is not available.
The expenditure in respect of orders placed on foreign vendors for capital acquisitions during each of the last two years is as under:-
Year
Expenditure (Rs. in crore)
2014-15
24992.36
2015-16
22422.12
The countries from which defence equipment imports are being undertaken include Russia, USA, Israel, France and UK.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri C.S. Putta Raju in Lok Sabha today.
Ministry of Defence
10-March, 2017 15:19 IST
Defence PSUs
9 Defence Public Sector Undertakings (DPSUs) with 47 units in the country as per the following State / UT-wise details including Odisha:
Name of State / UT
Number of Units
Karnataka
15
Maharashtra
5
Uttar Pradesh
4
West Bengal
6
Telangana
5
Andhra Pradesh
3
Odisha
2
Uttarakhand
1
Tamil Nadu
1
Kerala
2
Jharkhand
1
Goa
1
Haryana
1
Total:
47
The details of Profit / loss incurred by these Defence PSUs are as under:
(Rs. in Crore)
Name of DPSU
2013-14
2014-15
2015-16
2016-17*
HAL (PBT)
3578
3173
3288
2335
BEL
932
1167
1358
755.88
BEML (PBT)
9.08
6.91
64.27
35
BDL (PBT)
508.59
614.19
850.26
582.45
GRSE (PBT)
187.23
76.02
247.11
89.00
MDL
397.61
491.59
637.82
404.36
MIDHANI
0.82
1.02
1.18
0.85
GSL
-61.09
78.24
61.89
82.00
HSL
-46.21
-202.84
19.00
40.00
*Provisional, PBT : Profit Before Tax.
HSL had been incurring losses till financial year 2014-15 and GSL had incurred onetime loss in financial year 2013-14. These two Shipyards have been nominated for high value orders resulting in improvement of their financial position. However, Ministry is also considering a financial restructuring proposal of Rs. 1209.81 Crore for improvement of HSL’s financial position.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shrimati Pratyusha Rajeshwari Singh in Lok Sabha today.
NAMPI/Ranjan
10-March, 2017 15:14 IST
Defence Procurement Organisation
In order to study the setting up of a defence procurement organization, the Ministry of Defence in April 2016 constituted a Committee under the chairmanship of Dr. Pritam Singh, Management Expert.
The Committee submitted its Report in February 2017. The Committee has recommended the creation of a central, autonomous, empowered professional organization to build up indigenous defence capability as a strategic imperative for long term self-reliance.
This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri B. Vinod Kumar in Lok Sabha today.
*****************
Ministry of Defence
10-March, 2017 15:12 IST
Self-sufficiency in Defence Production
Procurement of defence equipment is undertaken from various Indian as well as foreign vendors based on threat perceptions, operational challenges and technological changes and to keep the Armed Forces in a state of readiness to meet the entire spectrum of security challenges. The capital expenditure on purchase of defence equipment for the three services in the last three years and current financial year, from the Foreign vendors and Indian vendors is as given below:-
CAPITAL EXPENDITURE:
(Rs. in crore)
Total Procurement
Procurement from Foreign Vendors
Procurement from Indian Vendora
2013-14
66821.21
35245.31
31575.90
2014-15
65583.77
25984.86
39598.91
2015-16
62341.86
23192.22
39149.64
2016-17
(upto December 2016)
47494.79
21211.44
26283.35
The details of imports of defence equipment during the last three years and the current year, country-wise, are being compiled and will be laid on the Table of the House.
No targets are fixed for import of defence equipment, and there is no year-wise budget earmarked for the purpose, Defence equipment are procured from foreign vendors based on operational requirements indicated by the Armed Forces.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri K.N. Ramachandran in Lok Sabha today.
Ministry of Defence
10-March, 2017 15:19 IST
Recruitment in Armed Forces
Recruitment rallies are conducted in different parts of the country to provide opportunity to youth from these areas to join the Armed Forces. Recruitment in the Armed Forces is a continuous process. Efforts are made to cover entire country including remote, border, tribal and hilly areas.
Presently there is no proposal to open any new recruitment centre.
For recruitment in Army, certain relaxations in physical and educational standards are available for candidates of tribal / hilly and other backward areas. In the case of Navy and Air Force, there is no provision for relaxation in educational standards. However, some relaxation in height is given to candidates from certain areas.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shrimati Kamla Devi Paatle and Shri Harinarayan Rajbhar in Lok Sabha today.
*************
Ministry of Defence
10-March, 2017 15:16 IST
Defence Start-Ups
Government of India has launched ‘Start-up India’ initiative in January 2016, which aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of start-ups. The data of start-ups recognized by Department of Industrial Policy & Promotion (DIPP), is maintained by ‘Start-up India’ and at present, there is no recognized start-up in the Defence sector. However, in order to encourage start-ups and give them an opportunity to contribute in the defence production, Ordnance Factory Board (OFB) and all Defence Public Sector Undertakings (DPSUs) have been mandated to follow the guidelines of Ministry of MSME regarding ‘Relaxation of norms for start-ups and Medium & Small Enterprises in public procurements on prior experience – prior turnover criteria’.
The Government has taken following actions to encourage culture of innovation in defence sector:-
(i) Under the new Defence Procurement Procedure (DPP) 2016 promulgated in April 2016, the ‘Make’ Procedure has been simplified. The procedure provides for funding of 90% of development cost by the Government to Indian industry for design, develop and manufacture of defence equipment. Projects not exceeding development cost of Rs.10 crore (Government funded) and Rs.3 crore (industry funded) have been reserved for MSMEs under this procedure.
(ii) The Government has recently approved a Defence Innovation Fund (DIF) with initial funding by two DPSUs; Bharat Electronics Limited (BEL) and Hindustan Aeronautics Limited (HAL). The fund aims at creation of ecosystem to foster innovation and technology development in Defence, by engaging R&D institutes / academia and industry including start-ups and provide them the funding to carry out innovative development which has the potential for future commercialization.
(iii) The Government has also launched a scheme of Technology Development Fund (TDF) which aims at funding the development of defence and dual use technologies that are currently not available with the Indian defence industry, or have not been developed so far, thus creating an ecosystem for enhancing cutting edge technology capability for Defence applications. The TDF scheme is implemented by Defence Research & Development Organization (DRDO) and provides for assistance in the form of grant to public and private industries for design and development of key defence technologies.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Om Birla in Lok Sabha today.
Ministry of Defence
10-March, 2017 15:16 IST
Chief of Defence Staff
Creation of the post of Chief of Defence Staff (CDS) was recommended by Group of Ministers in 2001. A decision in this regard was to be taken after consultation with political parties. The consultation process however is not yet complete as all political parties have not responded. Subsequently, Naresh Chandra Task Force on National Security recommended creation of the post of Permanent Chairman Chief of Staff Committee in 2012. Both the proposals are simultaneously under consideration of the Government.
This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Ravneet Singh in Lok Sabha today.
******
Ministry of Defence
10-March, 2017 15:14 IST
Import of Defence Equipment
Government is pursuing several measures to realize progressively higher levels of indigenization and self reliance in the defence sector. To this end, the Defence Procurement Procedure 2016 (DPP 2016) has provisions which accord higher priority to procurement from Indian vendors. Notwithstanding this, import of defence equipment may be necessitated to meet operational requirements and when indigenous equipment is not available.
The expenditure in respect of orders placed on foreign vendors for capital acquisitions during each of the last two years is as under:-
Year
Expenditure (Rs. in crore)
2014-15
24992.36
2015-16
22422.12
The countries from which defence equipment imports are being undertaken include Russia, USA, Israel, France and UK.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri C.S. Putta Raju in Lok Sabha today.
Ministry of Defence
10-March, 2017 15:19 IST
Defence PSUs
9 Defence Public Sector Undertakings (DPSUs) with 47 units in the country as per the following State / UT-wise details including Odisha:
Name of State / UT
Number of Units
Karnataka
15
Maharashtra
5
Uttar Pradesh
4
West Bengal
6
Telangana
5
Andhra Pradesh
3
Odisha
2
Uttarakhand
1
Tamil Nadu
1
Kerala
2
Jharkhand
1
Goa
1
Haryana
1
Total:
47
The details of Profit / loss incurred by these Defence PSUs are as under:
(Rs. in Crore)
Name of DPSU
2013-14
2014-15
2015-16
2016-17*
HAL (PBT)
3578
3173
3288
2335
BEL
932
1167
1358
755.88
BEML (PBT)
9.08
6.91
64.27
35
BDL (PBT)
508.59
614.19
850.26
582.45
GRSE (PBT)
187.23
76.02
247.11
89.00
MDL
397.61
491.59
637.82
404.36
MIDHANI
0.82
1.02
1.18
0.85
GSL
-61.09
78.24
61.89
82.00
HSL
-46.21
-202.84
19.00
40.00
*Provisional, PBT : Profit Before Tax.
HSL had been incurring losses till financial year 2014-15 and GSL had incurred onetime loss in financial year 2013-14. These two Shipyards have been nominated for high value orders resulting in improvement of their financial position. However, Ministry is also considering a financial restructuring proposal of Rs. 1209.81 Crore for improvement of HSL’s financial position.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shrimati Pratyusha Rajeshwari Singh in Lok Sabha today.
NAMPI/Ranjan