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MINISTRY OF DEFENSE

DEPARTMENT OF

DEFENSEPRODUCTION

DEPARTMENT OF

DEFENSE

DEPARTMENT OF

DEFENSERESEARCH &

DEVELOPMENT

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THE DEPARTMENT OF DEFENSETHE DEPARTMENT OF DEFENSE

• Headed by the Defense Secretary

• Deals with the Integrated Defense Staffthe three services & various inter-service organizations

• Responsible for defense budget, defense policy, matters relating to Parliament, defense cooperation with foreign countries and coordination of all activities

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THE DEPARTMENT OF DEFENSE PRODUCTIONTHE DEPARTMENT OF DEFENSE PRODUCTION

• Headed by the Secretary Defense Production

• Deals with matters pertaining to defense production, indigenisation of imported stores, equipment & spares

• Planning & control of departmental production units of the Ordnance Factory Board & the Defense Public Sector Undertakings (DPSUs)

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The Department of Defense Production oversees The Department of Defense Production oversees the following :the following :

39 Ordnance Factories 8 Defense Public Sector Undertakings (DPSUs)

- Hindustan Aeronautics Limited (HAL)- Bharat Electronics Limited (BEL)- Bharat Earth Movers Limited (BEML)- Mazagon Dock Limited (MDL)- Goa Shipyard Limited (GSL)- Garden Reach Shipbuilders & Engineers Ltd.- Bharat Dynamics Limited (BDL)- Mishra Dhatu Nigam Limited (MIDHANI)

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Quality Assurance

Directorate of Standardization

Defense Exhibition Organization

Indigenisation

Private Sector participation in Defense Production

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THE DEPARTMENT OF DEFENSE RESEARCH & THE DEPARTMENT OF DEFENSE RESEARCH & DEVELOPMENTDEVELOPMENT

• Headed by the Secretary Defense R& D, who is also the Scientific Advisor to the Defense Minister & Director General of Defense Research & Development Organization (DRDO)

• Advise the government on scientific aspects of military equipment

• Formulation of research & development plans for equipment used by the services

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Defense Research & Development Defense Research & Development Organization (DRDO) Organization (DRDO)

Has a Vision ofEmpowering India with cutting-edge defense technology

And a Mission ofSelf-reliance in critical defense technologies and systems by indigenisation and innovation

While

Equipping the Armed Forces with state-of-the-art weapon systems and equipment

In partnership with :The Industry, the Academia and other R & D centers in India and abroad

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Over the past 30 years of DRDO activity, a number Over the past 30 years of DRDO activity, a number of systems have been developed and are in use of systems have been developed and are in use with the country’s armed forces. Some of the with the country’s armed forces. Some of the products are listed below:products are listed below:

- Field Guns & Mortars- Small Arms and Ammunition- Armaments- Radars- Sonars- Electronic Warfare Systems- Digital Communication Network- Combat Vehicles- Bridges & other Engineering Support- Advanced Materials

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- Main battle tank - Light Combat Aircraft- Torpedoes- Anti Submarine Warfare Systems- Lakshya – Aerial Target System- Unmanned Aerial Vehicle

SOME OF THE MAJOR SYSTEMS SOME OF THE MAJOR SYSTEMS DEVELOPED BY DRDO AREDEVELOPED BY DRDO ARE::

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- Aero engines- Multimode Radar- Composites and armour- Micro-electronics- Night Vision Systems- Signal and Data Networks- Simulators- Artificial Intelligence Systems

Work is also in progress in the Work is also in progress in the development of major sub-systems development of major sub-systems and technologies:and technologies:

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LABORATORIES IN DEFENCE LABORATORIES IN DEFENCE RESEARCH & DEVELOPMENT RESEARCH & DEVELOPMENT

ORGANISATIONORGANISATION

• Aeronautical - 6• Armament - 8• Combat Vehicles &

Engineering Group - 4• Computer Science - 6• Electronics & Instrumentation - 7 • Life Sciences - 8• Materials - 5• Naval Systems - 3

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Quickening the Pace of Technology AdvanceQuickening the Pace of Technology Advance

The Ideal Bond

R & D• Mature Technologies• Product Orientation

Academia Industry

• Active Industry Participation• Goal- / Product Oriented Research

• Applied R& D• Product Upgrade

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DRDO Efforts for Industry SynergyDRDO Efforts for Industry Synergy

Defense Public Sector Units

DRDO– PSUs initiatives Program / project reviews Multi – tier management boards DRDO representatives in PSU boards

Private Industry

Interaction through programs / projects DRDO – industry associations initiative

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Landmarks in DRDO-Industry Interface

• Light Combat Aircraft (LCA)

• Multi Barrel Rocket System – Pinaka

• Main Battle Tank - Arjun

• Sarvatra – Multi-Hop Assault Bridging System

• Bridge Layer Tank (BLT) T-72

• Mat Fording CL –70 (MGS)

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Enhanced Industry ParticipationEnhanced Industry Participation

Involve industry as prime production agency from the beginning

Industry to take up LSP orders

Firm commitment from user

Explore export opportunities to increase volume of production

R & D support of DRDO and academia throughoutproduct life cycle

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Private Sector Participation in Defense Production

• The objective is to pool capital, manpower resources and industrial infrastructure available outside the public sector & facilitate development of full-fledged Defense industrial complex in the country to achieve self-reliance.

• In May 2001, GOI decided to open Defense Production to Indian Private Sector with FDI up to 26% subject to licensing

• In Jan 2002, the Department of Industrial Policy & Promotion (DIPP) issued guidelines for licensing production of Arms & Ammunition

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Present Scenario

• 39 applications have been received from private companies for manufacture of various types of Defense equipment

• 18 Letters of Intent/Industrial Licenses have been issued by the DIPP

• Proposals submitted by Indian industry to MOD for effective amalgamation of Indian private sector in the planning & acquisition process

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Defense –Industry Partnership Meets

• Defense-Industry Partnership Meets are organized at regular intervals to share information with the private industry regarding the requirements of the Defense Production agencies and the different wings of the armed forces to help the private industry to prepare proper investment plans

• In these meets, various Defense Establishments namely DGQA, DRDO, Ordnance Factory Board also participate

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New Initiatives taken by MOD, GOI

• Constitution of Defense Acquisition Council headed by the Defense Minister- Accord “in principle” approval of capital

acquisitions in long term perspective plan and for each capital acquisition program

• The decisions of the Council are to be implemented by the following three Boards :- Defense Procurement Board- Defense Production Board- Defense Research & Development Board

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• A Defense Acquisition Wing headed by Special Secretary (Acquisition) has been created to assist the Defense Procurement Board

• Defense Technology Council (DTC) has been constituted under the Chairmanship of the Defense Minister to provide guidance and supervision of growth & promotion of research, development and production related to Defense Technologies

• DTC will assist Defense Acquisition Council in taking holistic decisions on specific Defense Projects related to long term perspective plan

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A Committee under the Chairmanship of Dr. Vijay Kelkar has been constituted by GOI :

• To examine & make recommendations on changes required in the procedure of acquisition/procurement of Defense equipment to modify it on an approach based on “Products Strategy”

• To suggest modalities for integration of user, MOD and the Indian Industry including R & D

• To recommend changes required to facilitate Ordnance Factories & Defense PSUs to assume the role of designer and integrator of large defense systems.

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DEFENSE EXPENDITUREDEFENSE EXPENDITURE

FINANCIAL YEAR EXPENDIURE IN

US DOLLARS

(Million)

2001-2002 12200

2002-2003 12500

2003-2004 13500

2004-2005 15000

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THANK YOUTHANK YOU