Rajnath Singh approves Rs 400 cr scheme to boost defence manufacturing

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In order to give a boost to domestic defence and aerospace manufacturing, Union Defence Minister Rajnath Singh on Friday (May 15) approved the launch of Defence Testing Infrastructure Scheme (DTIS) at a cost of Rs 400 crore.

"The defence minister approved the launch of DTIS with an outlay of Rs 400 crore for creating a state-of-the-art testing infrastructure for the defence sector," the defence ministry said in a statement.

It said the scheme would run for the duration of five years and envisages to set up six to eight new test facilities in partnership with private industry. This will facilitate indigenous defence production, consequently, reduce imports of military equipment and help make the country self-reliant.

It said projects under the scheme will be provided with up to 75 per cent government funding in the form of ‘Grant-in-Aid’. The remaining 25 per cent of the project cost will have to be borne by private entities and state governments. The special purpose vehicles under the scheme will be registered under Companies Act 2013 and shall also operate and maintain all assets under the scheme, in a self-sustainable manner by collecting user charges. The equipment/systems tested will be certified as per appropriate accreditation.

While the majority of test facilities are expected to come up in the two Defence Industrial Corridors (DICs), the scheme is not limited to setting up Test Facilities in the DICs only.

At present, India is one of the top importers of military hardware globally. The government has been focusing on making India a hub of defence production.

According to the latest report by Stockholm International Peace Research Institute (SIPRI), a leading think-tank on military spending, India's defence expenditure stood at USD 71.1 billion in 2019, which is third highest after the US and China.

In 2017, the government came up with an ambitious policy under which select private firms were to be roped in to build key military platforms like submarines and fighter jets in India in partnership with global defence majors.