Centre spends over Rs 72.7 crore for indigenous defence products in 2017-18

New Delhi: Under 'Make in India' initiative, the government's expected expenditure for the year 2017-18 is Rs 72,732.28 while for the last financial year it was Rs 69,280.16. This year, the government has allocated Rs 69,473.41.

'Make in India' in the defence sector, is primarily driven by the capital acquisition of defence equipment and other policy measures. 

In the last four financial years i.e. from 2014-15 to 2017-18, the government has accorded Acceptance of Necessity (AoN) to 151 proposals, worth Rs. 2,66,700 crore approximately under 'Buy (Indian-IDDM)', 'Buy (Indian)', 'Buy and Make (Indian)' or 'Make' categories of capital procurement as per Defence Procurement Procedure (DPP), which means Request for Proposal (RFP) shall be issued only to Indian Vendors.

In the last four financial years i.e. from 2014-15 to 2017-18, 128 contracts worth about Rs. 1,19,000 crore have been signed with Indian vendors for capital procurement of defence equipment.

This information was given by Minister of state Defence Subhash Bhamre in a written reply to Lok Sabha.

Here are the details of budget allocation and expenditure incurred under Capital Acquisition Head under Defence Services Estimates (DSE) for the last three years: (Rs. in Crore)

2015-16: 77,406,.69 (Budget Estimate) and 62,235.54 (Expenditure)

2016-17: 69,898.51 (Budget Estimate) and 69,280.16 (Expenditure)

2017-18: 69,473.41 (Budget Estimate) and 72,732.28 (Expenditure)

With the objective to facilitate participation of Indian industry in design, development and manufacture of defence products, the government has notified a separate procedure for 'Make-II' sub-category of 'Make' procedure in February 2018, wherein a number of industry-friendly provisions such as relaxation of eligibility criterion, minimal documentation, provision for considering proposals suggested Suo-moto, by industry /individual etc., have been introduced. 

So far, 26 Proposals have been accorded 'Approval in Principle' (AIP) under 'Make-II' sub-category, out of which 06 Proposals have been accorded Acceptance of Necessity (AoN).