Draft Defence Production and Export Promotion Policy, 2020

News: The Ministry of Defence(MoD) has released draft Defence Production and Export Promotion Policy 2020(DPEPP 2020).

Facts:

Aim: To provide impetus to self-reliance in defence manufacturing under the Atma Nirbhar Bharat Abhiyan.

Objectives 

  • To achieve a turnover of Rs 1,75,000 Crores (US$ 25Bn) including export of Rs 35,000 Crore (US$ 5 Billion) in Aerospace and Defence goods and services by 2025.
  • To develop a dynamic and competitive Defence industry including Aerospace and Naval Shipbuilding industry to cater to the needs of Armed forces with quality products.
  • To reduce dependence on imports and take forward “Make in India” initiatives through domestic design and development.
  • To promote export of defence products and become part of the global defence value chains.
  • To create an environment that encourages R&D, rewards innovation, creates Indian IP ownership and promotes a robust and self-reliant defence industry.

Focus Areas: The Policy brings out multiple strategies under following focus areas: Procurement Reforms, Indigenization & Support to MSMEs/Startups, Optimize Resource Allocation, Investment Promotion, FDI & Ease of Doing Business, Innovation and R&D, DPSUs and OFB, Quality Assurance & Testing Infrastructure and Export Promotion

Key Provisions of the Policy:

  • Negative List: A negative list of weapons/platforms would be notified with year-wise timelines for placing an embargo on import of such items.
  • Technology Assessment Cell(TAC): It would be created to design, develop and produce indigenously and own the design rights and Intellectual Property(IP) of the systems.
  • Project Management Unit(PMU): It will be set up for estimation of development and production specifications and technologies involved, life cycle costs and maintenance requirements of platforms, equipment and weapon systems.
  • Indigenisation Portal: The portal will be developed for DPSUs/ OFB/ Services with an industry interface to provide development support to MSMEs/Startups/Industry for import substitution.
  • Defence Investor Cell in the Department of Defence Production will provide handholding to MSMEs, investors and vendors in defence production for resolving issues with Central, State and other authorities.
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