INDIGENISATION OF DEFENCE EQUIPMENT PRODUCTION
The indigenisation
of defence equipment is an ongoing process and is achieved by
transfer of technology and indigenous research. Indigenisation
of spares of defence equipment has been undertaken in aircraft,
warships, armament, tanks, vehicles and electronic as well as
engineering equipment.
While
the Ordnance Factories and Defence Public Sector Units (DPSUs)
are manufacturing a wide range of products for the defence forces,
the private sector has been involved in the supply of raw material,
semi-finished products, parts and components of defence equipment.
The combined value of the products of Ordnance Factories and Defence
PSUs during 2000-2001 has been approximately Rs. 14000 crore as
against approximately Rs. 1800 crore on import of stores (which
excludes capital equipment) comprising components, spares, overhaul
etc.
The Government
has recently allowed private sector participation in the defence
industry upto 100 per cent and with foreign direct investment
permissible upto 26 per cent both subject to licensing, for manufacture
of all types of defence equipment within the country. This is
expected to add to the investment already made in the public sector.
This
information was given by the Defence Minister Shri George Fernandes
in a written reply to Shri Y V Rao in Lok Sabha today.
