Wednesday, March 23, 2016

Manufacturing of Helicopters in India

Manufacturing of Helicopters in India

At present, there is no such proposal to prepare a separate policy on Make-in-India to invite private companies in defence sector. The defence production sector was opened in 2001 for 100% private sector participation. Further in pursuance of the Defence Production Policy 2011, the Government has taken the following major steps to promote the participation of private sector in production of defence equipments:

Technology Perspective and “Capability roadmap (TPCR), which gives out the equipment and technologies required by our Armed Forces, has been put in public domain to provide the industry an overview of the direction in which the Armed Forces intend to head in terms of capability over the next 15 years.

Preference to ‘Buy (Indian)’, ‘Buy & Make (Indian)’ & ‘Make’ categories over ‘Buy (Global)’ or ‘Buy & Make’ categories of Capital Acquisition cases.

The procedure for ‘Buy and Make (Indian)’ category, has been simplified in order to make the category more attractive for Indian Defence industry.

A clear definition of indigenous content has been provided which would not only bring more clarity on the indigenous content required for different categorization, but also enhance the indigenization of defence products in India.

Indian private sector industry has also been allowed to receive Maintenance Transfer of Technology (MToT) in ‘Buy (Global)’ cases.

FDI Policy in Defence sector has been reviewed and as per the new policy, composite foreign investment up to 49% has been allowed through FIPB route and beyond 49% with the approval of Cabinet Committee on Security (CCS).

Defence Products List for the purpose of industrial licensing has been revised and in the revised list most of the components / parts / raw materials have been taken out from the purview of the industrial licensing.

) Defence Exports Strategy has been formulated and put in public domain. The Standard Operating Procedure (SOP) for issuing NOC for export of military stores has been simplified and made online.

Defence Acquisition Council has taken a decision to procure 384 Light Helicopters for Indian Air Force (IAF) & Indian Army and 56 Naval Utility Helicopters through ‘Buy & Make (Indian)’ route. Acquisition covered under the ‘Buy & Make (Indian)’ route would mean purchase from an Indian vendor (including Indian company forming the joint venture / establishing production arrangement with Original Equipment Manufacturers (OEMs), followed by licensed production / indigenous manufacture in the country.

Hindustan Aeronautical Limited (HAL) has decided to augment its helicopters manufacturing capacity of Advanced Light Helicopter (ALH) from 24 to 36 helicopters per annum.


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