First private sector facilities for the manufacture of ammunition and missiles opened in Kanpur(UP) | Current Affairs | Vision IAS
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    First private sector facilities for the manufacture of ammunition and missiles opened in Kanpur(UP)

    Posted 27 Feb 2024

    Updated 27 Mar 2024

    2 min read

    • It is opened in the Defence Industrial Corridors (DICs) of UP.
      • the other defence corridor is in Tamil Nadu.
    • The Defence Industry sector was opened up to 100% for Indian private sector participation in 2001. 

     

    • Need for privatisation of the Defence sector:
      • India is third largest military spender(after US and China) and the world's largest arms importer, Stockholm International Peace Research Institute (SIPRI) Report.
      • The share of the defence budget can be reduced which stands at 13.04% of the total government expenditure. 
      • Surplus production will boost defence exports and would help to achieve the set target of 35000 crore of exports by 2024-25.

     

    • Concerns: security concerns like protection of sensitive data at the hands of private companies; selling weapons to customers who are not aligned with India’s national interest; etc.

     

    • Government steps for promotion of indigenous Defence Production:
      • Priority to the procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020.
      • Liberalization of Foreign Direct Investment(FDI) policy by allowing 74% FDI under automatic route.
      • The launch of the Innovations for Defence Excellence (iDEX) scheme.
      • The SRIJAN portal to facilitate indigenisation by Indian Industry including MSMEs.

    Related News: SAMAR (System for Advance Manufacturing Assessment and Rating) certification

    • The Defence Research and Development Organisation(DRDO) handed over SAMAR assessment certificates to nine Industry Partners.

     

    • About SAMAR

      • It is a benchmark to measure the competency of defence manufacturing enterprises.
      •  It is based on a maturity assessment model developed by the Quality Council of India (QCI)
      • Applicability: to all defence manufacturing enterprises.
      • Validity: 2 years.
      • It’s an outcome of the collaboration between DRDO and QCI.
    • Tags :
    • Defence Industrial Corridors
    • Privatisation of the Defence sector
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